Recognition Circles: The Art and the Science, Part One

This two-part guest blog from DRG Group member Debbie Meyers attempts to demystify the recognition circle, in theory and in practice. Part one discusses the rationale behind having recognition circles (the art), including why we should have them and how they should operate. Part two highlights some of the FAQ’s and logistics in setting up a family of circles (the science).

Why have recognition circles?

A rule of project management is to ask yourself why you’re doing something five times to get the real answer. So why are you creating a recognition circle?

To recognize your donors? To make them feel good about their relationship with your institution?

Well, duh – yeah! That’s two.

To encourage your donors to keep giving each year, and more generously? To prove that all gifts matter?

Closer. Yes. Keep going.

To provide a structure and focus for your development staff, to show them who they need to keep an eye on? YES YES YES.

That’s five. All five YES.

Each answer is valid but it’s only when you get to the last one do you discover a major insight: these circles are really more for us than they are for our donors. They’re a tool in our fundraising tool box. Donors don’t give to get. And they certainly don’t care if they’re in the Platinum level as opposed to the Diamond. I can’t tell you which is more valuable, platinum or diamond, and even if I could, what difference does is make?

(Let me save you four seconds: a quick Google search will give you the good ol’ “it depends” answer.)

No, really. What difference does it make?

Are you offering donors something worth the $4 million it would take for them to get from one level to the next? If you are, you’re jeopardizing their tax deductibility status. And if they have that much money, couldn’t they buy it for themselves anyway?

I’m not talking about the Big Three Things that donors want: access, information and experiences. The IRS doesn’t care about those. I’m talking about the medallions, plates, vases and other commemorative items we give our donors to acknowledge their generosity and welcome them into the fold of our giving circles.

Giving these things is not right or wrong. Just understand that receiving these things is not why our donors give.  And truthfully, it does more for us than it does for them. We get to have our brand displayed in their homes and offices. They have to find a place to put them.

A cautionary tale from our leadership annual giving staff. They are aligned with our leadership annual giving circle, which they (LAG) and we (donor relations) jointly administer. When we were experiencing several challenges and delays with printed pieces, branding and support materials that they felt they needed to go out at meet with donors, the leadership annual giving officers finally came to realize that they are not the circle – they are leadership annual giving. The circle is just something they use. And if the circle were to disappear tomorrow, they would still be doing their jobs exactly the same way they are now: soliciting donors to support the university.

Same with major gifts staff. Our cumulative giving circle has been dormant for several years, because of staff turnover and state budget cuts. But that didn’t stop our gift officers from asking for major gifts, nor did it stop our donors from making major commitments. Life went on.

Am I suggesting we don’t need these circles? Not by a longshot. But if you are going to have circles or societies, make them work for you. Use them a part of your cultivation, solicitation and stewardship cycle, not as an end unto itself.

Don’t have levels just to have levels. It’s confusing to donors, particularly if no meaningful benefits are assigned to the various levels. Use the circles to reward and recognize the behavior you want to reinforce: loyalty, leadership, generosity. And use the circles to highlight for gift officers the donors who mean the most to your institution.