Your Nonprofit Newsletter Should Engage Your Donors, Not Bore Them

A newsletter can be a great way to engage with your donors. Unfortunately, that doesn’t often happen because most donor newsletters can put you right to sleep. They’re too long and filled with boring articles that brag about how wonderful the organization is.

The good news is you can create an engaging newsletter your donors will want to read. Here’s what you need to do.

Think about what your donors want

You need to include content that will interest your donors. You also need to reference the current situations. Do you think your donors would rather read an article about your CEO receiving an award or one about Marla, a single mother who is having trouble making ends meet, but is grateful she can get food for her family at the Eastside Community food bank? 

The answer should be obvious. Your donors want to hear about how they’re helping you make a difference for your clients/community.

If you’re a larger organization, you could create different newsletters for different programs or one specifically for monthly donors.

Don’t shy away from a print newsletter 

You may opt not to do a print newsletter because it’s expensive and takes too much time, but you’re making a mistake if many of your donors prefer print.

I think you’ll have more success if you can do both print and electronic newsletters. I recommend a short e-newsletter once or twice a month and one to four print newsletters a year.

Many organizations put a donation envelope in their print newsletter. This is a proven way to raise additional money and you may be able to recoup your expenses.

You can also save money by creating a shorter print newsletter (maybe two pages instead of four) or only mailing once or twice a year. You can print them in-house, as long as it looks professional.

Be sure you have a clean mailing list. If you can get rid of duplicate and undeliverable addresses, that’s another way to save a little money.

Donors are more likely to read a print newsletter. But ask them what they like, and listen to what they say. If a majority of them prefer print, then you need to find a way to accommodate them.

Share your stories

Each newsletter needs to begin with a compelling story. If you’re making a difference, you have stories to tell.

Client stories are best, but you could also do profiles of volunteers, board members, and donors. Focus on what drew them to your mission (more on that below).

Create a story bank that includes at least four client stories to use every year.

Make Connections With Your Donors by Sharing Stories

Don’t stray from your mission

A common article I see in many nonprofit newsletters is one about a foundation or major donor giving a large gift. This may be accompanied by a picture of someone holding a giant check. Of course, you should recognize these donors (and all donors), but why is this gift important? How will it help your clients/community?

For example – This generous $50,000 grant from the Eastside Community Foundation will help us serve more students in our tutoring program. Many students have fallen behind since the pandemic started.

Something else I see a lot is a profile of a new board member. Instead of focusing so much on their professional background, let your donors know what drew them to your organization. We welcome Lisa Clark, Vice President of First National Bank, to our board. Lisa has a brother with autism and is very passionate about finding ways for people with autism to live independent lives. 

Write to your donors

Write your newsletter in the second person, emphasizing you much more than we. Be personal and conversational. Say – You helped Marla feed her family or Because of donors like you, X number of families have been able to get healthy food every week. 

Leave out the jargon and other language your donors won’t understand. Write as if you’re having a conversation with a friend.

I’m not a fan of the letter from the CEO because those tend to be organization-centered instead of donor-centered.  

Pour on the gratitude 

Never miss an opportunity to thank your donors. Many donors have stepped up over the last two years and they deserve to be thanked as often as possible. Every one of your newsletters needs to show gratitude and emphasize how much you appreciate your donors.

Make it easy to read (and scan)

Most of your donors aren’t going to read your newsletter word for word, especially your e-newsletter. Include enticing headlines and email subject lines (if you don’t, your donors may not read it at all), at least a 12-point font, and lots of white space so your donors can easily scan your newsletter.

Stick to black type on a white background as much as possible. Colors are pretty, but not if it’s hindering your donor’s ability to read your newsletter. Photos can be a great way to add some color, as well as tell a story in an instant.

Use the inverted pyramid and put the most important story first (client story or profile), keeping in mind your donors may not get to all the articles.

Keep it short

Your print newsletter should be no more than four pages. Limit your monthly e-newsletter to four articles. Some organizations send an e-newsletter twice a month. Those should be even shorter – maybe just two articles. People have a lot going on and don’t want to be bombarded with too much information.

Do the best you can

For some of you, putting together a newsletter may be too much to take on right now. You don’t have to do an actual newsletter, but you do need to keep your donors updated.

Do what you can, but be sure to update your donors at least once a month. You may find you have more success with shorter, more frequent email updates and postcards with an infographic a few times a year.

Create an engaging newsletter that won’t bore your donors.

Keep reading for more information on how to create a great donor newsletter.

Nonprofit Donor Newsletters | Print or Enews?

Worthwhile Nonprofit Newsletters: Content Donors Adore 

Tips for Using your Nonprofit Newsletter to Get More Donations Without Even Asking

10 Nonprofit Newsletter Ideas and Examples to Save for Later

A Fundraiser’s Guide to Measuring Donor Engagement

By Ally Smith

Donor engagement is vital to nonprofit success. By donating, volunteering, and spreading the word about your organization, donors fuel your nonprofit mission. 

As a fundraiser, you need to increase donor engagement, and the only way to do that is by tracking engagement metrics and monitoring your success. This article will show you four metrics for measuring donor engagement and tell you why they’re important for your fundraising team. 

Why is Measuring Donor Engagement Important?

Every phone call, donation, and click on your website is a part of your nonprofit’s donor engagement strategy. 

Effective donor engagement increases donor retention. Retaining donors is one of the best ways to increase fundraising efficiency because it’s much cheaper than acquiring new donors. In fact, acquiring a new donor costs about ten times more than retaining a donor.

Additionally, nonprofits retain about 52% of their engaged repeat donors. Increasing donor engagement can motivate a donor to give a second gift and keep them donating. 

However, before you improve your donor retention, you need to track metrics that tell you the effectiveness of your engagement strategies. These metrics will help you understand how engaged your donor base is and help you identify areas for improvement. 

Four Key Donor Engagement Metrics 

  1. RFM Analysis

The RFM analysis model is a method of measuring engagement levels by scoring donor contributions across three dimensions: recency, frequency, and monetary value. 

Recency of Donations 

The “recency” dimension is the amount of time that’s transpired since a donor’s last gift. First, you’ll need to determine what “recent” is for your organization. Many organizations assign their highest scores to donors who have given within the last six months. 

Having too short of a “recent” period would pressure fundraisers to solicit donations too frequently, which would result in lower donation amounts and higher donor turnover.

Frequency of Donations 

How often does a donor give? The more often a donor gives is a great indicator of how engaged they are. For example, someone who gives monthly would likely be more engaged than someone who gives sporadically every few years. The highest frequency scores are assigned to your most consistently active donors. 

Monetary Value of Donations 

How much money is a donor giving? The more a donor contributes to your nonprofit, the higher the monetary score they’ll receive. Similar to how every nonprofit has a different definition of a major gift, every organization will have a different threshold for its monetary scores.

Once you have scored your donors’ contributions across each dimension, you need to combine their scores and consider the results. 

For example, if you only look at monetary value, you may think that someone who donates $500 is more engaged than someone giving $20. However, if that person gives $20 every month for a few years, they are likely more engaged. RFM analysis helps you develop a holistic understanding of donor engagement.

To help you create your own, here’s an example of what an RFM analysis scorecard should look like: 

Once you’ve developed a scorecard that’s right for your organization, you can score each donor. For example, a donor that’s given in the last six months, given four gifts in a year, and given an average of $150, would receive a score of 5-4-4. 

Then, you can group donors with similar scores to create donor segments. This will allow you to tailor your engagement efforts to specific donor groups. For example, you can send more frequent appeals to the donor group’s frequency score that you want to increase. 

Additionally, you can observe how the distribution of your segments changes over time to determine if your engagement strategies are working. 

  1. Fundraising Participation Rate 

There are many ways to measure donor engagement beyond just tracking donation activity. 

For example, donors can participate in campaigns by becoming a fundraiser themselves. This engagement is important to measure because peer-to-peer fundraising is becoming more popular. Facebook fundraising grew by 14% in 2021

Fundraiser Participation Rate tells you the percentage of donors who fundraised on your behalf by doing things such as being sponsored in a charity run, soliciting door-to-door, or accepting donations as birthday presents. 

You can measure this metric using the following equation: 

(# of P2P Fundraisers ÷ # of Donors) x 100 = Fundraiser Participation Rate

The higher you can make this percentage, the better. A high fundraising participation rate tells you that your donors are highly engaged because they are willing to take time out of their busy days to grow support for your cause. 

  1. Social Media Metrics 

Social media engagement does not always mean donor engagement, just look at Unicef Sweden’s ad calling out “slacktivism”. Very bold!

But, if you are tracking the right social media metrics, they can help you measure donor engagement. We recommend focusing on conversion rates that tell you when social media engagement actually leads to donations. 

A great place to start is by tracking how many donations come directly from social media. Luckily, most social media platforms will be able to tell you your conversion rate.

However, you’ll also want to know how many people get to your website’s donation page from a social media post. You can track this using Google Analytics. 

To get started, there are lots of helpful Google Analytics resources for monitoring traffic that comes from social media. For example, check out Whole Whale’s video, which gives a great overview of Google Analytics for nonprofits. 

  1. Major Donor Contact Frequency

Measuring contact frequency tracks your touchpoints with a major donor or major donor prospect. Many interactions need to occur between meeting a potential donor and receiving a donation. These donor interactions are a part of donor relationship building and should be tracked to help you understand your progress towards a gift. 

You can track this as a metric by determining how many touchpoints you have with a donor in a given time period, such as a year or six months. Then, in your donor database or spreadsheet, track every communication you have with your major donor prospects, whether it’s a phone call or an email blast with a donation form attached. 

Not all contact efforts are created equal, so you may want to score communications differently. For example, if you have lunch with a donor, it may be worth five touchpoints, compared to an e-blast worth one. 

You can measure this metric using the following equation: 

(# of Touchpoints ÷ # of Months) = Major Donor Contact Frequency

While there’s no clear benchmark for Major Donor Contact Frequency, use your most engaged major donors’ scores as targets for success. And as always, don’t forget to use your fundraising common sense; if a donor doesn’t want to be contacted a lot, don’t contact them. 

—– 

As a fundraiser, you understand the value of building a deep and meaningful relationship with each donor. However, you can only tell how strong a relationship you’ve built is by tracking engagement indicators. Hopefully, these four metrics give you a good place to start!

Author Bio

Ally Smith | Content Writer at KIT

With a passion for nonprofit innovation, Ally has spent her career helping build community capacity and supporting social innovation as a customer success manager turned, youth worker, turned social researcher.

After leaving the tech start-up landscape, she pursued a Master’s in Philanthropy and Nonprofit Leadership and has since supported nonprofits to innovate and grow. A Canadian ex-pat and social entrepreneur based in Edinburgh, she enjoys hiking, baking bread in a panic, and pursuing the full Scottish experience- rain and rugby included!

What Casablanca Can Teach Us About Nonprofit Organizations

Casablanca is one of my favorite movies. I’ve seen it many, many times and I always discover something new in that wonderful script. This year it turns 80 and with a few exceptions, it’s still very relevant now.

Over the past several years, the story of refugees fleeing Europe mirrored what was going on in other parts of the world. Now we have a new set of refugees and the storyline of the Germans invading France parallels what’s going on in Ukraine.

If you haven’t seen the movie, and I highly recommend it, here’s a synopsis. Warning – does contain spoilers. Even if you haven’t seen it, you’re probably familiar with many of the quotes.

Here are a few Casablanca quotes that can apply to nonprofit organizations.

“Here’s looking at you, kid.”

One of the most important words in nonprofit communication is you. When you write to donors and other supporters, you need to write directly to them. Unfortunately, this doesn’t happen as often as it should.

I just received an annual report from an organization that was quite liberal with its use of the word you. Hats off to them because most annual reports go heavy on organization-centered language. 

Here are a few examples.

You’re feeding kids today.

You gave more students access to school nutrition.

On the front line, you helped the helpers.

As fundraising expert Tom Ahern says, “You is glue.” Writing directly to your readers, using you much more than we, helps establish important connections. No one wants to hear you brag about yourself.

Do Your Donor Communications Pass the “You” Test?

“Of all the gin joints, in all the towns, in all the world, she walks into mine.”

There are a plethora of nonprofit organizations out there that your donors can choose from, but they chose yours. Once they have, your goal should be to keep them for a long time. 

Unfortunately, many organizations spend a good deal of time on getting donors, but not on keeping them.

“Louis, this looks like the beginning of a beautiful friendship.”

One key to keeping your donors is establishing a relationship with them. Building relationships is just as important as raising money.

Work on keeping your new donors and getting that ever-important second gift, also known as the golden donation. Once you get that second gift, your donors are more likely to keep giving.

Keep that beautiful friendship going!

Fundraising Should be About Building Relationships, Not Making a Transaction

Besides quotes, here are a few scenes and themes from Casablanca that are relevant to nonprofits.

The passion of La Marseilles

My favorite part of Casablanca is the La Marseilles scene. The Germans are singing “Die Wacht am Rhein,” a patriotic German song, when Victor orders the band to start playing “La Marseilles,” the French equivalent. The bar is filled with refugees trying to escape to freedom. They all start singing with such a passion, which moves me every time I see it. 

Nonprofits also have a passion for their work. It would be hard to succeed if you didn’t. Plus, many of your donors are passionate about your cause.

Bring some of this passion into your fundraising letters and other donor communication instead of the usual same old, same old.

On the front lines

Before Rick came to Casablanca, he ran guns to Ethiopia in 1935 and fought in the Spanish Civil War in 1936. Even though these countries had their own armies, Rick saw a need and headed to the front lines to help make a difference.

Nonprofit organizations are also out on the front lines. We’re seeing countless nonprofits working with refugees who are fleeing from Ukraine. We’ve seen nonprofits stepping up during the pandemic and also working to combat racism, economic crises, and climate disasters. They’re often going above and beyond what the government and other institutions provide. 

A story of resilience

Throughout the movie, there is an underlying story of resilience. After the two years we’ve been through, resiliency is a common theme. Not that it’s easy, but going through difficult times can make us more resilient.

How to Build Nonprofit Resilience: Three Strategies to Strengthen Organizations

Casablanca has its serious parts, but there’s also romance, intrigue, and a surprising amount of humor. It deserved its Oscar for best screenplay, as well as best picture. You might find it a nice escape from everything that’s going on in the world.

Spring Forward to Better Donor Retention

Donor retention is a perennial problem for nonprofit organizations. Many organizations spend all this time and energy on acquiring donors, concentrating more on volume and don’t seem to be concerned that they’re churning through different donors year after year.

You should be keeping track of your retention rate. If you’re losing donors, it could be because you’re either not communicating enough or communicating poorly. Fortunately, this is something you can fix, but donors don’t magically donate, or more important, keep donating to your organization.

You need good donor relations

One of the most important components of fundraising is building relationships with your donors.

Donor relations should be easier than raising money, and it can be fun, too. Make it a priority, as well as something you do throughout the year.

But it will take more than leprechauns granting wishes. If you want to keep reaching for that pot of gold at the end of the rainbow, you’ll need to work at it. If you ignore your donors or communicate poorly, they’re unlikely to donate again.

New beginnings

Spring is just around the corner (hopefully) and it’s a time for new beginnings. Maybe you can share a new initiative that you were able to launch with your donors’ help.

Speaking of new beginnings, think about sending something special to your first-time donors. Let them know how much you appreciate this new relationship. If you don’t, it’s likely to be a short-term relationship. 

5 Ways to Improve New Donor Retention

One-and-done fundraising is just March Madness

In college basketball, players are allowed to turn pro after playing one season. This is known as one-and-done. If you watch the NCAA tournament (aka March Madness), it’s likely many of the players won’t be around next year.

Another place you’ll find one-and-done is in nonprofit fundraising. The donor retention rate for first-time donors is around 25%. Obviously, we can do better.

If you can get your first-time donors to give again, it’s much more likely they’ll keep giving. That second donation is known as the golden donation. This is why it’s important to engage with your new donors. But don’t stop there, you also want to acknowledge your longer-term donors and make them feel special.

A consistent stream of donor communication is key

Here in the Boston area where I live, we have the most inconsistent weather. This winter has been no exception. One day it was 65 and two days later we got a foot of snow.

Inconsistent levels of donor communication should have no place in the nonprofit world. You don’t want to barrage donors with appeals and then go silent for a while.

Ideally, you want to reach out somewhere between once a week and once a month. And not just with appeals. You need to thank donors and share updates. This is crucial for good donor retention.

A communications calendar will help. So will sending shorter, more frequent updates.

How will you reach out?

March may be a slower time for you. Maybe you have a fundraising campaign or event planned this spring. If so, you definitely want to engage with your donors first. If you don’t, the in-between times are just important. 

As you’ll notice, I’ve made references to a bunch of March themes – St. Patrick’s Day, daylight saving time, March Madness, spring. But you don’t need a holiday, special occasion, or a theme as a reason to reach out to your donors. Do it just because they’re great and you can’t do your work without them.

Keep reading for more ways you can spring forward to better donor retention.

Donor Retention Strategies: Get Donors to Give Again

7 Donor Retention Tips for Growing Organizations

Two Key Strategies For Donor Retention And Engagement As We Emerge From The Pandemic

Why Monthly Giving is Important for Your Nonprofit Organization

Monthly giving is gaining momentum and that’s a good thing. We want that to continue. If your organization doesn’t have a monthly/recurring giving program or it’s fairly small, now is a great time to start or grow your monthly giving.

In this post, I’ll tell you why monthly giving is important for your nonprofit, how to start or grow your program, and how to nurture it going forward. 

Monthly giving helps you raise more money

Monthly or recurring donations can help donors spread out their gifts and it’s easier on their bank accounts. They might be apprehensive about giving a one-time gift of $50 or $100. But if you offer them the option of giving $5 or $10 a month, that may sound more reasonable. 

It can also give you a consistent stream of revenue throughout the year instead of certain times, such as when you do individual appeals and (virtual) events and when grants come in.

Monthly gifts are smaller, but you can raise a lot of money with lots of small gifts. Political candidates do it all the time. Also, monthly gifts aren’t as small as you think. The average is over $20 a month.

It can also be a more feasible way to get larger gifts. A gift of $100 a month may be more appealing to a donor than giving a large sum all at once. Even if they start with a smaller donation, monthly donors are more likely to become major donors and legacy donors.

It raises your retention rate, too

The retention rate for monthly donors is an impressive 90%. That’s significantly higher than other retention rates. 

One reason is that monthly gifts are ongoing. But your donors have agreed to that, so this shows they’re committed to your organization. 

These are long-term donors and long-term donors should always be one of your priorities.

How to get started

If you don’t already have a monthly giving program, make this the year you start one. Remember, it will help you raise more money, which is even more important during these uncertain times.

A good way to start is to invite your current donors to become monthly donors. Your best bet for monthly donors are people who’ve given at least twice. These are donors who have shown a commitment to you.

That doesn’t mean you can’t ask first-time donors. This could be a good way to connect with donors from your most recent campaign. And if you haven’t officially welcomed your new year-end donors, do that now. 

10 Quick Tips to Create a Great Monthly Giving Program

How To Start A Monthly Giving Program (In 6 Simple Steps)

Make monthly giving the go-to option

Put monthly giving front and center in all your campaigns. It should be an easy option on your donation page. Include it on your pledge form and make it a prominent part of your appeal letter, maybe as a PS.

I can speak from personal experience that once I started giving monthly, that’s the way I wanted to give to all organizations. Your donors would probably agree.

A handful of organizations don’t offer a monthly giving option, which is a mistake. Some have a minimum donation, which I would also not recommend, if possible. If you do have a minimum, make it $5 a month instead of $10. 

If your reason to have a minimum donation amount is to save money on expenses, is that happening if your minimum deters someone from giving at all? You often have to invest a little to raise more money.

Make your monthly donors feel special

You need to do a good job of thanking your monthly donors. Go the extra mile and segment your monthly donors into new monthly donors, current monthly donors, and current donors who become monthly donors.

Make This the Year You Segment Your Donors

This way you can personalize their thank you letters to make them feel special. Be sure to mail a thank you letter, or even better, send a handwritten note. An email acknowledgment is not enough.

Many organizations send a monthly acknowledgment email or letter, and most are just okay. Some are basically only receipts, and as I mentioned in a recent post, your thank yous need to be more than a receipt. Yes, it’s helpful to know the organization received your donation, but you’re not practicing good donor stewardship if that’s all you do.

You could spruce up these monthly acknowledgments, both by making them sound like they were written by a human and not a robot, and by providing some engaging updates.

One thing you should do is send your donors an annual summary of their monthly gifts. This is extremely helpful for people who itemize deductions. Make this letter more than just a receipt and use this opportunity to connect with your donors. Pour on the gratitude and let them know how their monthly donations are helping you make a difference.

Best Practices For Recognizing, Thanking And Retaining Monthly Donors

Thanking and Retaining Your Monthly Donors

Practical, Creative Ideas to Thank Monthly Donors

Reach out at least once a month

Your monthly donors made a commitment to you by giving every month. Make the same commitment to them by reaching out at least once a month.

You could create a special newsletter for monthly donors or include a cover letter referencing monthly donors. If that’s too much, you could give a shout out to your monthly donors and include information on how to become a monthly donor in your newsletter.

A thank you video is always welcome. Consider personalizing it, if you can. Think about offering a video tour or Zoom discussions for monthly donors.

You could include a list of your monthly donors in a newsletter, annual report, or on your website. Donor lists are just one of many ways to show appreciation and not the only one, so do much more than just that. Of course, honor any donor’s wish to remain anonymous.

Thank yous, newsletters, and updates are not a one-time time deal. Keep it up throughout the year. Many nonprofits start out communicating regularly with their monthly donors and then disappear after a couple of months. You need to stay in touch with your donors right now.

Create a special section in your communications calendar specifically for monthly donors to help you with this.

Go all out for your monthly donors

I highly recommend a contact person for your monthly donors in case they need to update their credit card information or make a change to their gift, hopefully an upgrade. Include this information in their welcome letter or email. If you send a monthly acknowledgment email, be sure to include a link where your donor can make changes.

Another way to help out your monthly donors is to let them know when their credit cards are about to expire. Don’t rely on your donors to remember this, because most likely they won’t, especially now. You also don’t want to miss out on any revenue. Remember, small donations add up.

Set up a system where you can flag credit cards that will expire in the next month or two. Then send these donors a friendly reminder email/letter or give them a call. 

You could encourage donors to give via an electronic funds transfer from their bank account instead. Then neither you nor your donors need to worry about expiring credit cards.

Once a monthly donor, always a monthly donor

Once someone becomes a monthly donor, you must always recognize them as such. You most certainly should send fundraising appeals to monthly donors, but not the same ones you send to other donors.

I think the best way to raise additional money from monthly donors is to ask them to upgrade their monthly gift. Be as specific as possible. For example – We’re so happy you’re part of our family of monthly donors and are grateful for your gift of $5.00 a month. We’re serving triple the number of people at the community food bank right now. At the same time, we’re not getting as many people to come in and volunteer. Could you help us out a little more with a gift of $7.00 or even $10.00 a month?

You can also ask monthly donors for an additional gift during one of your fundraising campaigns, but you MUST recognize they’re monthly donors – We really appreciate your gift of $10 a month. Could you help us out a little more right now with an additional gift? We need to keep running our tutoring program virtually for the time being and we want to continue serving as many students as we can.

If you send the usual generic appeal, imagine your donor saying – “I already give you $10 a month and you don’t seem to know that.”

But if you let those committed monthly donors know you think they’re special, they’ll be more likely to upgrade or give an additional gift. Many monthly donors have stepped up and given additional donations during the pandemic. That’s what you want. And, if they do give an additional donation, be sure to send thank them for that. Here’s the opening from a great thank you card I just received – “How generous of you to make a gift that goes above and beyond your monthly donations.

Don’t miss out on this proven way to raise more money, boost donor retention rates, and provide an easier giving option for your donors. 

More on monthly giving.

Nonprofit Monthly Giving Programs Don’t Market Themselves

The Ultimate Guide to Monthly Giving Programs (+ Examples)

5 Benefits of Recurring Giving Programs for Nonprofits

How Your Nonprofit Can Ensure Success in the New Year

The New Year is here. Do you wonder what’s ahead for us? The last two years have brought about so much change and uncertainty. Sometimes it’s hard to predict what’s going to happen next. 

I’m sure your nonprofit continues to face challenges, but since the pandemic started many organizations were able to confront these challenges and make changes to the way they ran their programs and implemented their fundraising and communications. Some were successful and some weren’t.

If 2021 was not a successful year for your organization, you can work to make 2022 better. 

Here are some ways to ensure a more successful year.

Have a plan in place

You must have fundraising and communications plans. If you haven’t put together these plans yet, do that now! 

You know from recent past experience that you may need to make changes to your plans. In 2020, organizations that were able to make changes to a plan already in place were most successful.

Take a look back at 2021 to see what worked and what didn’t in your fundraising and communications. Incorporate what you’ve learned into your 2022 plans. 

Be sure your fundraising plan includes a diverse stream of revenue. Individual giving has been fairly successful throughout the pandemic. A lot of small donations can add up!

Planning an in-person event right now is tricky. If you rely on event revenue, it might be best to stick with virtual or have a plan to shift to virtual, depending on what’s happening with the virus.

Revisit your fundraising and communications plans regularly and make changes as needed. You may need to do this more often now.

Remember that donor engagement and donor retention should be part of your fundraising plan. Those are key to your success.

[Free Download!] Nonprofit Development Plan | 3 Helpful Tips

How to Prepare a Nonprofit Fundraising Plan

6 Simple Fundraising Plan Tips [With Free Templates!]

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Communications Planning 101: What Every Nonprofit Needs to Know

Pay attention to your donor retention

Many donors have stepped up over the past two years to support nonprofit organizations. You don’t want to lose these valuable donors.

Donor retention should be a priority. You’ll have more success if you work to keep the donors you already have instead of focusing on getting new ones.

First, if you don’t already know it, figure out your retention rate. Do this after every fundraising campaign.

A Guide to Donor Retention

If it’s low, it’s something you can fix, usually with better communication. Donor retention is a huge problem for nonprofits. Your goal should be to have donors who support you for a long time.

It’s easier and less expensive to keep your current donors than to find new ones, so, once again, make donor retention a priority.

That said, you may have some new donors who saw a need and felt a connection to your cause. Don’t let these donors slip away either.

Donor Retention Strategies: Get Donors to Give Again

Ultimate Guide to Donor Retention

Make Time to Welcome Your New Donors

Step up your monthly giving program

Speaking of retention, the retention rate for monthly donors is 90%. These donors are dedicated to your nonprofit. 

Monthly giving makes sense at any time, but it’s been especially crucial over the last two years. Organizations that had monthly giving programs saw a steady stream of revenue throughout the year. Donors who opt for monthly giving find it’s easier on their finances. Dedicated monthly donors have also stepped up and have given additional donations.

Work on starting or growing your monthly giving program so you can have a bunch of highly committed donors. A good way to start is to invite your current donors to become monthly donors.

Monthly donors are also potential major and legacy donors.

Why Monthly Giving Makes Sense

10 Quick Tips to Create a Great Monthly Giving Program

Do a better job of communicating with your donors 

Lets’s say goodbye to boring, generic communication. Over the past two years, donors have seen real people with real problems in real time. They turned on the news and saw long lines at food banks. They’ve witnessed a much-needed awareness of systemic racism in our society. 

It makes a difference if you can put things in human terms. Organizations that do this did a better job of connecting with their donors.

Stop using jargon, such as at-risk and underserved. These terms are demeaning to your clients, especially if they’re people of color. Tell more stories and go easy on the statistics. If you’re making a difference, you have stories to tell.

Better communication also means more frequent communication. Donors want to hear from you and they want to feel appreciated, too. Better, more frequent communication will help you raise more money. A communications calendar will help you with this. 

Keep relationships front and center

You may think the most important component of fundraising is raising money. While that’s important, so is building relationships with your donors. 

It’s hard to raise money year after year if you don’t build a good relationship with your donors. Every single interaction with your donors needs to focus on building relationships. That includes fundraising appeals. It’s possible to raise money and build relationships at the same time.

Good relationships with your donors will help you with retention.

How to Build Authentic Relationships With Nonprofit Donors

Don’t forget about gratitude

A big part of building relationships is showing gratitude to your donors. Many nonprofits do a poor job with this. 

You need to start by sending a heartfelt thank you immediately after you receive a donation and then find ways to thank your donors throughout the year. Put together a thank you plan to help you with this.

A Donor Resolution for 2022 You Will Want to Keep

Start the New Year off by making fundraising and communications plans, if you haven’t already done so. Prioritize donor retention, donor engagement, and monthly giving. This will help bring you more success in 2022.

Here are a few more ideas on how to plan for the New Year.

6 New Years Resolution Ideas for Nonprofits

Preparing for 2022: What Your Nonprofit Should Know

Photo by Marco Verch

Make Time to Welcome Your New Donors

I hope your year-end fundraising campaign is going well. Perhaps you also participated in #GivingTuesday. The latter often brings in new donors and that’s never something you want to take for granted. 

Even in this time of continued uncertainty, these donors saw a need and found a connection to your cause. Or maybe they were drawn into whatever #GivingTuesday promotion you initiated, but I like to think they wanted to help you make a difference. 

Unfortunately, the likelihood these donors will stick with you is also uncertain. Retention rates for first-time donors average around 20%.

That’s why it’s so important to get a second donation, also known as a golden donation. Once you get that golden donation, you’re more likely to have long-time donors who will stick with you. One way to ensure that, is to make your new donors feel welcome.

Start with a special thank you

According to fundraising expert, Dr. Adrian Sargeant, “The thank you is the single most important piece of communication that your donors get. They have a higher recall of it than the appeal that generated the gift.”

This is something to keep in mind, especially for your new donors.

If someone donates online, it’s hard to tailor the thank you email specifically to new donors. But you can do that with a phone call, handwritten note, or thank you letter.

Try to call your new donors or send a handwritten note. This will make a great impression on them. Get together a group of board members, other volunteers, and staff to help you. If that’s not possible, create a thank you letter specifically for your new donors.

*Make sure these are actually new donors. A good database will help you avoid any missteps.*

Create a welcome plan

A week or two after the initial thank you, send a welcome package. You can do this by mail, email, or a combination of both.

Welcome your new donors. Thank them again and show them other ways they can connect with you. Invite them to subscribe to your newsletter, join you on social media, and volunteer.

Your welcome package should include a warm introductory message and a few facts about your organization, but don’t brag too much. Keep it donor-centered. You could also direct people to your website for more information about your organization.

Be careful about how much information you send. Donors want to feel welcome not overwhelmed.

I don’t recommend sending unsolicited swag. Personally, I don’t like it, but some donors might. You could offer your new donors a gift and they can let you know if they want to receive it, but it’s not necessary. What donors really want from you is to know how they’re helping you make a difference.

How To Build Relationships With A Storytelling Welcome Email Series

7 Things to Include in Your New Donor Welcome Kit

How to Write a Nonprofit Welcome Email (With Examples!)

Who are your new donors?

They could be event attendees, volunteers, or newsletter subscribers. If you know, refer to that in your thank you note, letter, or phone call. If not, send a short survey with your welcome package and ask, “How did you hear about us?” or “What drew you to our organization?” 

Another question to ask is whether your donors prefer print or electronic communication. Short surveys are also a good way to connect throughout the year. The more you know about your donors the easier it will be to communicate with them.

Make your current donors feel special, too

While I’ve been focusing on new donors in this post, retention rates for current donors aren’t anything to celebrate. Remember the golden donation, but don’t stop there. You want a third (would that be platinum?) and a fourth, etc. donation.  

If you’re not acknowledging a donor’s past support, you’re making a huge mistake. Imagine how you would feel if you gave to an organization for over five years and they never thank you for your long-time support.  

These valuable, long-time donors could leave at any time, so ignore them at your own peril. Make sure they also get a special thank you from you.

Keep it up throughout the year

It’s so important to communicate with your donors regularly. Plan on special mailings or emails specifically targeted to new donors. Try to send something by mail if you can. It’s more personal and your donors are more likely to see it. 

Think of other ways to do something special for your new donors too, such as offering virtual tours or an invitation to a Zoom discussion.

Of course, don’t ignore your other donors. Keep reaching out – at least once or twice a month. 

Show appreciation and share updates. A huge factor in donor retention is a good donor relations plan that you’ll carry out regularly as long as your donors support you, which hopefully will be for many years.

How to Make #GivingTuesday a Better Experience for Your Donors

Logos - GivingTuesday

I imagine most of you are familiar with #GivingTuesday, the annual giving day that takes place the Tuesday after Thanksgiving. This year it will be on November 30.

I’m not going to tell you whether or not you should participate in #GivingTuesday. Perhaps you’ve participated in the past and it’s been successful, or maybe it wasn’t. Perhaps you’re planning to participate for the first time. Maybe you’re on the fence. 

Should we do Giving Tuesday this year?

Whether you participate or not, #GivingTuesday is part of the nonprofit landscape and if you’re doing a year-end appeal, you’ll need to factor it into your campaign. If you do participate, you want to make it a better experience for your donors instead of the usual barrage of generic email messages.

Here are a few things to keep in mind as #GivingTuesday approaches.

Just because it’s #Giving Tuesday isn’t a compelling reason to give

I see so many emails that say donate because it’s #GivingTuesday. Many donors don’t care if it’s #GivingTuesday or it’s your “annual appeal.” That’s often not why they donate. They give because they care about your cause and want to help make a difference. 

Let them know that with their help Darren can sleep in a warm bed tonight or Sarah can boost her reading skills.

We’re still in a pandemic and people and communities are struggling. You need to acknowledge this in your appeals.

It’s not just about the money

A successful #GivingTuesday campaign is about more than just raising a lot of money. You also want to build relationships and make your donors feel good about supporting your organization. This is where it often falls short.

I haven’t been a huge fan of #GivingTuesday or any giving days, for that matter, because they focus too much on getting donations. Many of these donors are first-time donors who don’t give again. The end result is you’ve just spent a lot of time and effort on getting one-time gifts. That’s not what you want. You need donors who will support you for many years.

Make it personal and segment your donors

Don’t just blast a bunch of generic appeals that resemble Black Friday ads or those relentless requests for political donations. I received so many emails for the Virginia governor’s race and I don’t even live in Virginia.

Giving Tuesday and Why We’re Killing It

You also don’t want to send all your donors the same appeal. If someone donated last year on #GivingTuesday, this is the perfect opportunity to thank them for that gift and ask them to donate again this year. If they donated two weeks ago, maybe they shouldn’t get an appeal right now.

Acknowledge past donors and make a connection with potential donors. 

Make This the Year You Segment Your Donors

Focus on building relationships with your donors instead of pleading for donations.

Also, if you’re sending an appeal to your monthly donors, recognize them as monthly donors. They can either upgrade or give an additional gift. They get their own thank you, too. Monthly donors are one of your most loyal types of donors. Be sure to make them feel special.

Should You Thank Monthly Donors Who Make an Extra Gift?

If you’re one of the few organizations that send more personalized appeals, then kudos to you because that’s what everyone needs to do. I saw some evidence of more personalized, nuanced appeals in 2020, so let’s keep that up.

Use #GivingTuesday as a way to follow up with your donors

If you don’t want to launch a full #Giving Tuesday campaign (understandable), it can be a great opportunity to follow up with people who haven’t donated to your year-end appeal. You should be sending regular reminders, anyway.

Send email and social media messages before and on #Giving Tuesday encouraging people to donate. You can use the #GivingTuesday logos, etc. if you’d like. Obviously, you’ll want to keep following up with anyone who didn’t donate on #GivingTuesday.

Keep in mind your donors will be barraged with email and social media messages on #GivingTuesday. Make yours stand out and be prepared to keep following up.

Get ready for gratitude

Your donors should be feeling the love right after they make their donation.

Make sure you have an engaging thank you landing page and thank you email for your online donors. You could even create ones especially for #GivingTuesday. Then you need to follow that with a phone call, handwritten note, or thank you letter.

Send welcome packages to new donors or welcome back messages to current donors. 

#GivingTuesday has a transactional feel to it, although it doesn’t need to. Go the extra mile and do a good job of thanking these donors – both right after they’ve made their donation and throughout the year.

3 Ways to Follow Up with Your Donors After Giving Tuesday

We’re going to skip #GivingTuesday 

Maybe you’ll decide to bypass #GivingTuesday altogether. Remember, other organizations will be participating and your messages will be competing with the onslaught of #GivingTuesday appeals. 

You have an opportunity to stand out here by keeping your fundraising campaign focused on gratitude and relationship building. Year-end is a good time to ramp up your donor communication (examples include thank you messages, holiday greetings, and updates) so people don’t think you’re only asking them for money.

A New Approach to Giving Tuesday: Be different and stand out from the crowd

Give back to your donors

I think you’ll find your #GivingTuesday campaign, or any fundraising campaign, will be more successful if you focus on more than just the giving part. And a big part of a successful campaign is getting repeat donations. This means giving back to your donors, as well.

Read on for more information on how to make #GivingTuesday a better experience for your donors.

TIS THE SEASON: BUT IS GIVING TUESDAY REALLY COMMUNITY-CENTERED?

Giving Tuesday Without Giving Gratitude

3 Things to Include in Your Giving Tuesday Thank You Message

How to make #GivingTuesday more than a gimme

Following Up After #GivingTuesday: 5 Crucial Steps

STANDING OUT IN THE NOISY SPACE OF THE NON-PROFIT SECTOR

Make This the Year You Segment Your Donors

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.

When you’re too big to succeed

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.

Are We Sure An Automated Email Welcome Series For New Donors Is A Good Idea?

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.

How to Segment Your Donors

Donor Segmentation: The Ultimate Guide for Nonprofits

4 Smart Donor Segmentation Strategies for Nonprofits

KEY DONOR SEGMENTS FOR A BETTER YEAR-END APPEAL

Keep Calm and Stay Strong

As summer wanes and we move toward fall, many nonprofit organizations are entering the busiest time of the year as they launch their year-end fundraising campaigns. In the best of times, this is stressful, and we are not in the best of times.

We’re still living in a time of uncertainty. I feel there’s more uncertainty now than last year. In the spring it looked like we were on track to something better and then along comes the Delta variant, not to mention low vaccination rates in some states.

I’m sure your nonprofit organization is still dealing with many challenges. People may have returned to the office and now you’re wondering if that’s safe. You may be falling short of your revenue goals. You may be stressed out figuring out how you’ll pull off your year-end campaign and that’s understandable, but it’s important to keep calm and stay strong.

The need your clients/community face is still there. You can’t raise money if you don’t ask. Donors still want to help if they can.

It’s possible to get through the next few months. Do the best that you can, but make smart choices that will help you succeed.

Plan ahead

My last few posts had a plan-ahead theme. You want to start gearing up for your year-end appeal as soon as possible. This includes figuring out how you’ll thank your donors and getting your website in shape. Now would be a good time to get started.

If this sounds overwhelming, take a deep breath, and start working on a few things each day. Putting together a quality campaign will help you raise more money.

Segment your donors

One aspect of a good fundraising appeal is personalization. You must segment your donors as much as you can. At the very least, segment them by current donors, monthly donors, and people who haven’t donated before.

You’ll have the best luck with people who’ve donated before, and they’re going to want to see a letter that thanks them for their past support.

You can ask past donors to upgrade their gifts. This is an easy way to raise more money, yet many organizations don’t do this because they don’t segment their donors.

Monthly donors are the backbone of many nonprofit organizations and have a retention rate of 90%. Any time you communicate with them you must recognize them as monthly donors. You can ask your monthly donors to upgrade or give an additional donation.

Donors who have supported you before deserve a great appeal letter, and thank you letter too!

Focus on retention 

Donor retention should always be one of your top priorities – before, during, and after your appeal. Remember, your best bet for donations are your current donors. Think about sending a warm-up letter or email to these donors before your next appeal. Don’t ignore them.

Focusing on retention will help during tough economic times. Some donors may not be able to give this year, but maybe they’ll be able to in the future. Keep engaging with them.

A Guide to Donor Retention

Make time for what’s important 

I’m not trying to give you more work. I’m trying to give you better work. You may be saying you don’t have time to do some of these things, but this is important. 

What’s taking so much of your time? Is it meetings you don’t need to have? Are you chasing fundraising sources that don’t make sense? Maybe that online auction or event isn’t worth the time since you don’t raise much money.

Recess time

I just heard a story on the news about how important recess is for kids, especially during these difficult times. Adults need recess, too. Maybe you won’t go out on the playground, but why not?  

There are plenty of things you can do to take care of yourself. Don’t eat lunch in your workspace (at the office or at home). Take breaks! Step away from your screens. Go for a walk, exercise, do yoga, or maybe even take a short nap. I love this phrase – Rest is not a luxury, it’s a necessity. It will make you more productive.

I know there’s a lot going on both at your organization and in the world. Make time for what’s important, take care of yourself, and do the best that you can.

Photo by Marco Verch