Asking the question of “why” when your nonprofit fundraising strategy tanks

Why did our last fundraising appeal “tank”? Why is our donor retention rate so low? Why are we not acquiring new donors?

The big question of “Why!”

In Peter Senge’s book, The Fifth Disciple Fieldbook, Rick Ross points out, “We live in a world of self-generating beliefs which remain largely untested. We adopt those beliefs because they are based on conclusions, which are inferred from what we observe, plus our past experience.” (Fieldbook, p. 242).

Ross uses “The Five Why’s” perspective to begin shifting perspective and thinking about the root cause-effect of situations.

As defined by Wikipedia, “5 Whys is an iterative interrogative technique used to explore the cause-and-effect relationships underlying a particular problem. The primary goal of the technique is to determine the root cause of a defect or problem by repeating the question “Why?” Each answer forms the basis of the next question. The “5” in the name derives from an anecdotal observation on the number of iterations needed to resolve the problem.” Sakichi Toyota has been credited with the invention of the method in the 1930s. He was an industrialist, inventor, and founder of Toyota Industries.

Have we ever really stopped to ask the question “Why” and explore that on a deeper level?

Here is how you can use “The Five Why’s” to determine what is indeed causing a situation.

This exercise is best done as a group or team.

Step #1

Start with your problem. Let’s take, for instance, “Why is our donor retention rate so low?”. Ask, “Why is this taking place?” You will end up with three or four answers. Record them.

For instance, we have been mailing monthly appeals to our donors. Thus they are tired. We don’t have a lot of stewardship report backs updating donors on giving. Our messaging is lacking and not emotional enough.

Steps #2, 3, 4, and 5

Repeat the process of asking “Why” for every statement that you have come up with, asking “Why” about each one. Follow up on all the answers that seem likely. You will notice a pattern even to different items. And in most cases, You can trace those items back to more significant organizational issues.

For instance, “We have been mailing appeals monthly to donors.” Why? “Because we are short on payroll dollars.” “We don’t have other sources of income to rely on.” “We need cash right away.”

And “We don’t have a lot of stewardship report backs.” Why? “We don’t have the time.” Why? We need money in the door.” Why? “Because if we don’t have money in the door, we won’t be able to pay staff.” Why? “Because we don’t rely on other income streams.” Why? “We have never diversified our income.” Why? “We have never developed a strategic plan.” Why? “We just don’t have the time.”

So, what looks like the real problem here. A cash-strapped organization forced to fundraise monthly to meet its primary revenue goals. In the process, it is hurting its donor base long term. It is an organization that is probably understaffed or not staffed appropriately with the correct position or people. As a result, it operates from a very short-term limiting perspective that is not focused on growth. The long-term effects of this type of operation remain unseen.

When you launch an inquiry such as this, you don’t want to focus on people. That leads to punishment. That does not lead to change. As Peter Sense points out in his Fieldbook, staff must begin to recognize the difference between an event and the explanation of a system.

The next time you are faced with a problem in your fundraising department, why not try “The Five Why’s” with your team?

Photo by Emily Morter on Unsplash

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