Do you send all your donors the same appeal and thank you letter? Do you also feel your appeals aren’t bringing you the donations you need?
There may be a correlation here. If you’re not segmenting your donors into different groups, you’re missing a chance to raise more money and let your donors know you recognize them for who they are.
Your donors are not the same. Some donors have given for at least five years (these donors should get a lot of attention). Some are monthly donors. Yet, nonprofit organizations fail to recognize that and send everyone a one-size-fits-all letter.
Sometimes smaller organizations do a better job of personalization. Not that long ago, I received a generic, one-size-fits-all appeal from a large, national organization. I’m a monthly donor and they didn’t acknowledge that. In fact, the letter included a blurb encouraging people to become monthly donors. Um….
That organization missed an opportunity to do a better job of connecting with their donors. Unfortunately, they are one of many.
If you’re not segmenting your donors, make this the year you start. And if you’re already segmenting your donors, kudos to you!
You may be worried about how much time this will take. Plus, you don’t think your current database can handle it and it will cost too much to get a better one.
In reality, it may cost you more not to segment. A good database/CRM is worth the investment. Segmenting your donors will help you with retention, which costs more than trying to find new donors. Donor stewardship/engagement is usually easier and it’s more fun.
You also don’t need to create 100 different types of letters. Four or five should be sufficient. Your appeals and thank you letters will stand out if you can personalize them and not send everyone the same generic letter.
Here are a few different types of donor groups. You may want to include others. The more you can segment, the better. Remember, investing in a good CRM/database will help you with this.
Current single gift donors
One of the biggest hurdles nonprofits face is ensuring first-time donors give a second time. If they keep giving after that, they’re showing their commitment to your organization. Don’t blow it by ignoring this.
An appeal letter to current single gift donors (Monthly donors get their own appeal. More on that below.) must acknowledge their past support. This is also a good opportunity to ask for an upgrade. Many organizations don’t do this, but it’s a good way to increase your revenue.
Your donors will be more receptive to upgrading their gifts if you’ve been doing a good job of thanking them and staying in touch throughout the year.
If these donors give again, they should get a handwritten note, phone call, or letter letting them know how much you appreciate their continued support. If they’ve upgraded their gift, be sure to acknowledge that, too.
Potential/new single gift donors
If you’re sending an appeal to someone who’s never donated to your nonprofit before, what is your connection to them? Are they volunteers, event attendees, or people on a list you purchased?
The more you can establish a connection, the better chance you have of getting a donation.
The retention rate for first-time donors is horrible. One of the reasons is poor communication. You can help boost your retention rate by making your new donors feel special.
New donors should get a handwritten note, phone call, or letter welcoming them as donors. Invite them to connect with you in other ways such as signing up for your newsletter, following you on social media, or volunteering.
Then a week or so later, send them a welcome package by mail or email. Personalization is crucial with new donors.
New monthly donors
Brand new donors who opt for monthly or other recurring donations get the same special thank you treatment mentioned above. Welcome them to your family of monthly donors.
Current monthly donors
Your current monthly donors must get their own appeal that recognizes them as monthly donors. In this appeal, you can either ask them to upgrade their gift or give an additional gift.
When your donors renew or upgrade their monthly gifts, they, of course, get an amazing thank you.
Current donors who become monthly donors
Your current donors who decide to become monthly donors are also showing their commitment to you. They get a handwritten note, phone call, or letter thanking them for their continued support and for joining your family of monthly donors. From now on they should get specialized appeals and other communications targeted to monthly donors.
Segmenting your donors makes a difference
In these uncertain times, some donors may cut back on their giving. Don’t let them choose between organizations that communicate throughout the year with engaging personalized appeals, thank yous, and updates and organizations who just send generic, one-size-fits-all communications. People are also looking for a personal connection right now.
Spending some extra time segmenting your donors and personalizing your communications will be worth it if you can raise additional revenue and boost your retention rate.
Here’s more information about segmenting your donors.