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Non-Profit Organization: Donors and Volunteers Essay

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Updated: Mar 2nd, 2022

Non-profit organization prosperity depends on the number of loyal donors and volunteers it has. According to this article, the authors argue that the relationship between loyalty and success is wide. They have established that donors and volunteers can be loyal but not offering donations or contributions. The process of measuring donors and volunteers loyalty and their value to the organization is more difficult and if not carried out can lead to ineffective service delivery.

This may force the organization to deplete it resources thus being dissolved. The authors of the article recommends that managers should approach this issue using a method known as Customer Lifetime Value instead of using traditional metrics system to measure the value of donors and volunteers. If this method is adopted by a non-profit organization it will them regularly when making decisions to establish the donors and volunteers and prospects to retain and acquire, the donors and volunteers. This is when the organization is unable to reach out to and the amount of resources to be spent on each donor and volunteer section (Kumar and Rajan, 2009, Pp.27-28).

Customer Lifetime Value if adopted will help to measure the donors and volunteer’s value to the firm and will treat each donor and volunteer depending on his or her contribution. In addition, this method takes into account the changes in organization’s lifecycle, changes in donors and volunteers lifecycle and accountability of 80%of donations. Because of this, managers who use this method will be able to measure the value of their donors and volunteers and effectively avoid making unnecessary losses to the origination (Kumar et al, 2009, Pp.29-32).

Examples of donors and volunteers

There are various examples of volunteers and donors who can be grouped as true friends, butterflies, barnacles and strangers. In the case of true friends of non –profit organization can be described as life members who can subscribe a certain amount periodically for the survival of the organization. Those volunteers and donors who can be described as butterflies are those members who subscribe certain amount periodically but they will cease to be members when an organization makes a mistake. This type of volunteers and donors provide funds based on certain conditions and once the conditions are not met they withdraw their support (Kumar et al, 2009, Pp.29).

Barnacles are those members who are life members by virtue of initial promotion of the organization. They are the people who originated with the idea of starting the organization and may not have money to contribute to organization. This is because they may be old or may not have money and may be willing to provide services to organization. Strangers are those donors and volunteers who come to the organization when called upon by friends and they do not have any attachment with the organization but contributions once they come (Kumar et al, 2009, Pp.29-30).

Types of Donors and Volunteers

All these types of donors are valuable to the organization as they provide resources that are needed to attain its objectives. True friends can be used to finance those activities that are long-term while butterflies can be used to finance activities which are not recurrent. Butterflies can be used when an activity has been identified that requires specific amount once thus funds from this group is utilized. Barnacle can be used to provide services such as being members of committees where there is no remuneration. Strangers can provide funds which will be used to finance impromptu projects that require financing.

Shift Donors and Volunteers from One Category to Another

In order to help volunteers and donors move from one category to another, various strategies should be adopted. The most important thing to do is to make sure that all donors and volunteers are contacted once or twice as form of recognition. Strangers should be invited to the organization’s annual general meeting where they are congratulated for their donations. When there is a project to be carried out they should be contacted as away of recognizing them.

Conclusion

For any non-profit organization to have the right donors and volunteers the organization must learn to obtain, retain and grow donors and volunteers list. To retain and grow volunteers and donors their true contributions must be evaluated and they should be contacted always for them to feel as part of the community.

Reference list

Kumar, V. and Rajan B. (2009). Nurturing the right Customers. Strategic finance. 26-33.

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IvyPanda. 2022. "Non-Profit Organization: Donors and Volunteers." March 2, 2022. https://ivypanda.com/essays/non-profit-organization-donors-and-volunteers/.

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