Do the Best that You Can

Times are tough now and there’s so much uncertainty. Everyone is feeling it. I’m sure your nonprofit organization has been dealing with many challenges over the last several months.

Even though it’s hard, you need to keep going. If you haven’t been fundraising or have done very little of it, you’ll need to unless you have a good amount of reserve funding, which many organizations don’t.

If you’re wondering whether or not you should run your fall fundraising campaign, here are a couple of things to keep in mind. You can’t raise money if you don’t ask. Also, what would happen if your organization didn’t exist?  

The need your clients/community face is still there and has most likely increased. And while social and human service organizations are vital, arts and culture organizations are also important for the community. 

We need our nonprofit organizations to succeed.

You can do this! Just do the best that you can and that may mean going smaller in some instances. 

Quality counts

You want to get started on your year-end campaign as soon as possible. Now would be good. One of the first things you should do is figure out what worked and what didn’t from past campaigns. 

I wrote about getting ready for your year-end campaign in a previous post. You want to produce quality fundraising appeals and thank you letters. Don’t use the same templates you’ve used in the past. You must address the current situations. I’ll have more on this in future posts.

It’s worth the time and effort to craft a stellar appeal because it should help you raise more money.

Segment your donors

One aspect of a good appeal letter 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.

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!

Mail your letters if you can

You should try to mail your appeal letters if you can. This is a proven way to raise money. I know mail can be expensive and who knows what’s going on with the post office. Everyone may have to work remotely again later this fall. I hope that’s not the case. Do your part to keep COVID at bay.

If cost is an issue, you could just mail letters to current donors and monthly donors and send email to other donor groups. Think segmentation! 

This is a good opportunity to look at your previous fundraising campaigns. If you have people on your mailing list who have never given or haven’t given for a while, it’s probably in your best interest not to mail them a letter. For lapsed donors who haven’t given for more than three years, you could send them a targeted letter or email telling them you miss them and want them back. If that doesn’t produce results, consider moving them to an inactive file. 

Focus on donors who will be more likely to give.

An electronic campaign can work

If it’s impossible to mail your appeals, run a high-quality email campaign with lots of reminders, but not so many that you overwhelm your donors. Think quality, not quantity. Don’t make it like the onslaught of political emails I’m getting now.

Use enticing subject lines and the amazing appeal you’re going to create. Many organizations ran successful electronic campaigns in the spring when the pandemic broke out so this is something that can work. 

These organizations were able to access their CRM/database remotely and you want to make sure you can do that.

If you can only do electronic thank yous right now, make them sparkle. You could make a thank you video, photo, or word cloud. And remember, thanking your donors isn’t a one and done deal. Keep thanking them throughout the year. 

Use this opportunity to see what channels your donors are using. Maybe social media makes sense for you, maybe it doesn’t. Also, consider calling some of your longer-term donors, especially if they don’t use email.

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.

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

Retention: Still Your Best Strategy

Make time for what’s important and take care of yourself

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.

Donor Retention Strategies: From CRMs to Annual Reports

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By Jay Love

Nonprofit professionals have a lot on their minds. You’re probably thinking about methods to keep your staff and constituents safe during the pandemic, effective work-from-home strategies to keep everyone productive, and how to maintain programming while adhering to social distancing guidelines. 

Whatever you do, don’t stop fundraising during these difficult times. While this fundraising may look different, it should never cease entirely. You need revenue to keep your organization alive amidst a shifting economy. 

Not only that, but it’s imperative that you analyze your fundraising strategy and consider additional strategies you can take to ensure that when all of this has subsided, your organization comes out on top.

This means one of your organization’s main priorities right now should be maintaining and improving your donor retention rate.

According to Bloomerang’s donor retention guide, the average donor retention rate has been sitting between 40% and 50% for the last fifteen years. The image below shows its progression.

Bloomerang_Ann Green Nonprofit_Donor Retention ExampleYour nonprofit should aim to be above average in your donor retention now so when the pandemic ends, you’ll have developed these relationships and have an even stronger base of support. 

A higher donor retention rate translates directly to higher revenue for a few reasons. First, retaining donors is substantially less expensive than acquiring new donors. Second, donor gifts tend to increase as they develop stronger connections with your mission. Finally, donor retention leads to a more predictable revenue stream, putting it in a good position to increase steadily. 

In order to increase your nonprofit’s donor retention rate and secure additional funding, even during difficult times, we recommend the following strategies: 

  1. Make donor retention a priority. 
  2. Create strong first impressions. 
  3. Focus on engagement. 
  4. Stay transparent with supporters. 

Here at Bloomerang, we’ve helped nonprofits just like yours increase their fundraising revenue by focusing their attention on donor retention. These strategies can help you too! Let’s get started. 

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1. Make donor retention a priority. 

In order to effectively improve your organization’s donor retention, you must make it a priority. You simply can’t wish that it will improve, barely adjust your approach, and then expect your rates to drastically increase. Rather, you should recognize that the work you put into developing your donor retention strategies is directly correlated to the results you’ll see in your fundraising revenue. 

One of the best ways to make sure you’re making donor retention a priority is to put donor retention information front-and-center for you and your staff to see. 

To do this, you may consider the following placements: 

  • On the fundraising dashboard in your CRM. The best option is to choose a CRM (Customer Relationship Management) solution that emphasizes donor retention and its importance for your organization. This will automatically track your retention rate for your team to see. Plus, effective engagement and donation tracking within donor profiles will help drive your retention rates up. This guide can help you choose a solution that prioritizes your donor retention rates. 

Bloomerang_Ann Green Nonprofit_CRM Example

  • In regular communication documents with your team. If your team hosts regular organization-wide check-in meetings, create a standing slide in your presentation tool to update them about the current progress and status of your donor retention rate. 
  • On your office’s wall. When your team is back in the office, consider tracking your progress with a “donor retention meter” posted in a common space. This meter should show your current donor retention rate, your goal rate, and the trend line that measures your progress so far. 

If your organization sets quarterly or annual goals, consider incorporating donor retention into these goals. This will make sure your whole team is on the same page and working toward improving these metrics. 

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2. Create strong first impressions. 

Donor retention is all about strengthening your relationships with supporters. The beginning of that relationship is crucial for achieving your retention goals. After all, the majority of donors donate once and then never again. 

According to reports from the Fundraising Effectiveness Project, the average new donor retention rate is very low (around 20%) while repeat donor retention rates jump drastically (to over 60%). This means if your nonprofit can convince people to donate a second time, chances are they’ll keep giving in the future. That’s why the second donation is often referred to as the golden donation

Bloomerang_Ann Green Nonprofit_new vs existing donor retention comparisonTo make sure your nonprofit begins relationships with supporters on the right foot, we recommend you consider the following strategies: 

  • Streamline the donation process. Donation abandonment occurs when you’re able to get people to your donation page, but they never hit “submit” on the donation itself. This can occur when your donation process is not optimized. We recommend strategically organizing your donation page so the process is quick and easy for supporters to complete. You can do this by only asking for the information you need, ensuring everything fits on one page, and including a clear “submit” button. 
  • Send immediate appreciation. In addition to including a confirmation page after the donation is submitted, be sure your organization is following up immediately after every donation by sending a thank-you note. This will further confirm that you received the donation and show your donor that you’re grateful for their contribution. Consider sending new supporters a welcome packet or other information to greet them after their initial gift.
  • Call your new supporters. Calling new supporters personally shows them your organization cares deeply and wants to start a relationship. It’s a more personal way to thank them. In fact, our own research shows that calling donors at least once within 90 days of their first donation increases first-time donor retention by over 20%

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As you can see, increasing the first-time donor retention rate is an effective first step to take in increasing your overall donor retention. You’re lucky to have such incredible supporters for your cause. Show them that gratitude and kick off your relationships right!

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3. Focus on engagement. 

Nonprofits have a bad habit of treating their donors like ATMs. When you need funding for something, your donors are there to support you. Well, that’s not quite right. Your donors are happy to help support your organization when they feel engaged and connected to your cause. 

Therefore, it’s important that nonprofits focus their attention on enhancing the engagement of and experience given to your donors. After all, they’ve already given to your cause, signaling that they want to be involved. 

Focus on engaging your supporters by: 

  • Showing them they’re partners in your mission. Give your supporters an opportunity to provide input on your organization’s activities through feedback and potential (virtual) meetings. This is especially important for your major donors. It shows them they’re true partners. After all, without their generous contributions, your philanthropic activities wouldn’t be possible. 
  • Tracking supporter engagement activities. Keeping track of supporters’ engagement can help your organization see when donors are in danger of lapsing so you can prevent that from happening. It also shows the types of activities your supporters are interested in so you can personalize outreach for further involvement. For example, if a donor has attended all of your events throughout the last year, you might send a personalized invitation to your next one because you know they enjoy that type of activity. 
  • Communicating with them frequently. Frequent communication is the key to staying at the forefront of your donors’ minds. Make sure to strike the perfect balance between contacting them frequently and not overloading their inboxes. Every communication you send should include helpful information so you’re not just sending messages solely for the sake of staying in contact. 

If you’re not sure how to incorporate additional engagement activities into your fundraising strategy, a nonprofit consultant may be able to help you refine your strategy. To find a consultant who is a good fit with your nonprofit, check out listings of top firms from trusted organizations. For instance, you may reference Bloomerang’s consultant directory or Aly Sterling Philanthropy’s list of top consultants.

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4. Stay transparent with supporters. 

Your supporters appreciate transparency. Not only do they want to know your organization is using their contributions wisely, they also want to help truly further your mission about which you and your supporters are both passionate. 

This means you should be transparent with your supporters about the successful strategies you try as well as those that aren’t successful. When you run into troubles or setbacks, communicate these, but be sure to also provide context. For instance, if you have a negative return on a fundraising campaign, explain what went wrong and how you’ll remedy the situation going forward. 

You can use resources such as email, your tax forms, your website, and newsletters to communicate ongoing updates and campaigns with your supporters. Our favorite method for summarizing and synthesizing your financial and philanthropic information to supporters is through your annual report

Your annual report should be used to support a larger fundraising strategy while honestly communicating status and progress to supporters. 

Some of the important elements to include in your nonprofit annual report are: 

  • Financial data. Provide a graph or a visual that makes it easy for supporters to see how much of your funding went towards philanthropic initiatives, overhead expenses, and fundraising costs. 
  • Projects completed. Tell your supporters about your wins from last year. Show them the impact of their support by explaining the projects and programs you were able to implement together. 
  • Donor appreciation. Consider giving a shout-out to your top supporters in your annual report. This shows these individuals how much they mean to your cause and can drive others to give more in hopes of being featured next year. 

In addition to your annual report this year, you may consider sending a report to supporters about the impact the pandemic has had on your organization. What were the disruptions it caused? Then, be sure to explain how you’ll get back on track, as well as how supporters can help with this process. 

Transparency instills a sense of trust with your supporters. If they think you’re being dishonest in any way, they won’t trust you and will likely stop giving. Building trust through transparent communication is key to building more effective relationships with supporters. 

Donor retention stems from building strong relationships with your supporters. This is especially important during difficult times such as these. Focus your time now on building relationships and improving donor retention so when things go back to normal, your organization will come out on top. Good luck!

 Jay Love, Co-Founder and current Chief Relationship Officer at Bloomerang

Jay has served this sector for 33 years and is considered the most well-known senior statesman whose advice is sought constantly.

Prior to Bloomerang, he was the CEO and Co-Founder of eTapestry for 11 years, which at the time was the leading SaaS technology company serving the charity sector. Jay and his team grew the company to more than 10,000 nonprofit clients, charting a decade of record growth.

He is a graduate of Butler University with a B.S. in Business Administration. Over the years, he has given more than 2,500 speeches around the world for the charity sector and is often the voice of new technology for fundraisers.

Let Your Monthly Donors Know They Matter

49721980232_404e8b4a08_wI write about monthly donors a lot because it’s an important part of nonprofit fundraising.

Monthly donations are more important than ever now. If you already have monthly donors, or any type of recurring donor, you’ve been receiving a steady stream of revenue as we continue to navigate through this economic downtown.

You may have had events planned this spring that won’t bring in the money you had hoped for. But your monthly donations should keep coming in. If you’ve been fundraising during the COVID-19 outbreak, which you should be, you may be seeing some additional revenue. Keep it up.

Of course, your monthly donors, and all donors, are so much more than the money they give. They matter and they need to know that.

Check in with your monthly donors

If you’ve been silent the last couple of months, your first communication with your monthly donors needs to be a check-in. Ask how they’re doing. Let them know how much you appreciate their support and give specific examples of how their continued support is helping the people/community you serve right now.

Make a request for an additional gift or upgrade

Don’t send your monthly donors a generic fundraising appeal. Recognize them as monthly donors and thank them for that. Ask for an additional gift or upgrade. An additional one-time gift may be more feasible, but it never hurts to ask for an upgrade. 

Keep in mind your appeal needs to be clear, specific, and relevant to the current situation.

Do a great job of thanking your monthly donors

Once you receive a donation, your monthly donors get an extra special thank you. Thank them specifically for their additional gift or upgrade. If they’re new donors or current single gift donors who have become monthly donors, welcome them to your family of monthly donors.

If you’re one of the organizations that send thank you emails to your monthly donors each month, could you please make them less generic by addressing how your donors’ gifts are helping right now?

Promote monthly giving

When you’re fundraising, which you know you should be doing, put monthly giving front and center. Mention it in your appeal and make it a prominent part of your donation page.

If donors are worried about their financial situation right now, giving $5.00 or $10.00 a month may be more doable.

It will help you as well. On average, monthly donors give more. Besides being able to raise more money and have a steady stream of revenue, the retention rate for monthly donors is an impressive 90%. That’s significantly higher than other retention rates.

Monthly giving is a win-win for your nonprofit organization. 

Stay in touch with your monthly donors

Send updates to your monthly donors letting them know how their gifts are helping right now. I received an email from an organization with the subject line – Ann, look what you’ve done!  

The message opened with  – The stories below showcase how your invaluable monthly support is being put to action, responding to hunger on the front lines of the COVID-19 crisis. Each story included the ever so important, because of your monthly donations or because of your monthly support.

Try to stay in touch with your donors every week or two. It can and should be something relatively short. I’ve been recommending shorter, more frequent communication over the past few weeks.

You can do this! Keeping it short will make it easier.

What happens if monthly donors stop giving

There’s been some talk lately of donors discontinuing their monthly gifts. If that happens, reach out to them by phone or email and ask why. If they’re concerned about their financial situation, let them know you understand and hope they’ll be able to support you again in the future. Thank them for supporting you in the past and stay in touch with engaging updates.

4 Tips for Avoiding Monthly Donor Churn During COVID-19 (and Beyond)

If you find out donors stopped supporting you because of poor communication or they don’t feel you’re making enough of an impact, that’s something you can change.

While some monthly donors might be discontinuing their gifts, others are stepping up and giving additional donations. It will be different for every organization so pay attention to what going on with your monthly donors.

Good News About Monthly Donors…

Pay attention to expiring credit cards

Something else you want to monitor is expiring credit cards. If you haven’t already done this, set up a system where you can flag any credit cards that are going to expire in the next month or two. Don’t rely on your donors to keep track of this, especially now.

Email or call any donors whose credit cards are in danger of expiring. Of course, thank them for being a monthly donor, and include a donation link and/or give a phone number where they can update their credit card information. You could also encourage donors to give via an electronic funds transfer from their bank account instead. Then neither you nor your donors need to worry about credit cards expiring.

Your nonprofit may struggle for a while so you don’t want to miss out on these donations.

Your monthly donors made a commitment to you with their continuous support. Make the same commitment to them by letting them know they matter.

 

How to do a Better Job of Donor Engagement

1411805770_c4776a4e8a_wDonor engagement is always important, and it’s especially important right now. Your inclination may be to do less when you actually should be doing more.

Donor Communications: Now is the time for MORE communications, not less

I’d put your more formal newsletter on hold right now and send short updates instead. This will help you stay in touch more often. Aim for once a week, if you can, or every other week. I’ve been advocating for shorter, more frequent updates for a while and now is a good time to start doing this.

In the best of times, nonprofit organizations don’t do a very good job with their donor engagement. Both by not communicating enough and/or sending something that’s uninspiring.

The fact that you have a donor newsletter doesn’t mean you’re engaging with people. Most newsletters are boring and organization-centered. Often they contain articles that don’t interest your donors. That needs to change.

Here are a few ways to do a better job with your donor engagement – both now and in the future.

Relevance rules

Your updates must be relevant to the current COVID-19 situation. Otherwise, it’s beyond clueless. Try to send updates in which you aren’t asking for donations. You can still do fundraising in separate messages. In fact, you should still be fundraising. Share success stories if you can.

HOW TO BE RELEVANT NOW (AND WHAT NOT TO SAY)

Some organizations are sharing their 2019 annual reports. Doing this now emphasizes how quickly an annual report becomes out of date. If you had sent it in January or February, it would have been more relevant. 

Perhaps your annual report was already in the works, so if you feel you must share it now, you have to reference the current situation.

Should we send our scheduled appeal/newsletter/annual report in the midst of COVID-19?

Remember that an annual report is for your donors, and do you think your donors are that interested in what you did last year?

Your donors are interested in what you’re doing NOW. 

Being donor-centered is key

After all, it’s donor engagement, not organizational engagement. Think about what your donors want to hear. Most likely it’s how you’re making difference for the people/community you serve during this time of crisis. Let your donors know how they’re helping you with this.

I realize nonprofits have gone to great lengths to change the way they do things. That’s great, but don’t brag about your organization. Maybe you run a community dinner every Thursday and now you have to serve boxed to-go meals. Instead of patting yourself on the back explaining how you were able to pull this off, say something like – Thanks to donors like you, we are able to continue providing much-needed healthy dinners to people in the community.

Focus on your mission

Why you’re doing something is more important than how or what. If your homeless shelter has to take on extra measures to keep it clean, emphasize the importance of the health and safety of your clients, many of whom are at greater risk of getting COVID-19. You want to continue to provide them with a safe place where they will be treated with dignity and respect.

If you decide to do your usual monthly e-newsletter, don’t give it the subject line April Newsletter. A better subject line would be – Find out how you’re helping families continue to put food on the table.

All stories/articles should pertain to the current situation. You can thank your major funders, in fact, you should thank all your donors, but bring your focus back to your mission. 

Find ways to stay in touch

It shouldn’t be that hard to find something to share. Remember, shorter is better. Maybe just one subject consisting of a few paragraphs. Your donors don’t want something that’s going to require too much attention. You could also go the visual route by including a photo or video.

An organization that works with immigrants and refugees had a group of people make masks for health care workers and posted a picture of the colorful masks they made.

Museums are offering virtual tours. Some theatres are showing videos of performances. If you’re an environmental organization, you could share nature photos or videos. If you work with animals, pictures of our furry friends are always welcome.

You could send an advocacy alert. These are a great way to engage without asking for a donation. One organization is asking people to contact their federal legislators to make it easier for people to get food stamps, which would reduce the burden on food banks.

Maybe you could use some volunteer help. In my last post, I mentioned getting volunteers to help with thank you calls or personalized emails. Perhaps you have other projects for virtual volunteers. Give a shout-out to any volunteers who are helping you right now.

This is a good time to revise your communications calendar to help you plan ways to stay in touch during this time.

HEARTBEATS AND REMARKABLES OF NONPROFIT COMMUNICATIONS

Use the right channels

Most likely you’ll communicate by email and social media. Monitor what channels your donors are using. If only a handful of people are on Instagram, don’t use it much. Pay attention to their engagement and track open rates, click-throughs, likes, comments, etc. Of course, people may miss your electronic messages, which is one of the reasons you should communicate regularly.

Send something by mail if you can. You could also use the phone if you’ve established a connection with people that way. Maybe they gave a donation to help you get laptops for your tutoring programs. You can let them know that the kids and their tutors are meeting via Zoom so they can continue their weekly reading time.

Be sure to keep your website up to date, too. It needs to address the current situation on your home page, donation page, and other sections that include updates.

Pay attention to your donor retention 

Good donor engagement often leads to good donor retention. As the economy worsens, it will be harder for some people to give this year, but hopefully, they’ll give again when they can.

They may give less or cut back on organizations they donate to. Don’t let yours be one of them. They might decide between the organization that sends handwritten notes or the one that just blasts generic fundraising appeals.

The need for nonprofits will grow for a while. You’ll need your donors and keeping them engaged will help you get through the tough times ahead.

Donor Preservation in the Pandemic

Stay safe, wear a mask when you’re out in public, be well, and practice random or not so random acts of kindness as much as possible.

7 Tips to Improve Nonprofit Donor Communication

As a nonprofit, communicating with your supporters is crucial to establishing lifelong donor relationships. Find out how you can make every message count.

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By Gerard Tonti

Donors are the backbone of any nonprofit. Their generosity funds both the daily tasks and the overall mission of the organization. And yet, many donors feel under-appreciated and are uninformed about the great things these nonprofits are doing with their donations!

If you are a nonprofit professional, it is crucial that you place a much-needed emphasis on the donors who are backing your mission. So, how can you do that? 

For one thing, take a look at your current donor communication practices. Do you adequately thank your donors for their generous gifts? Do you keep in touch with your supporters on a regular basis, rather than only to request a new donation?

If you answered no to either question, consider upping your donor communication strategy. Even if you answered yes, there is always room for improvement.

Here are 7 ways to improve your nonprofit’s communication:

  1. Personalize your messages.
  2. Encourage interaction.
  3. Segment your audience.
  4. Focus on the donor.
  5. Schedule communications.
  6. Manage donor data.
  7. Report and track metrics.

Ready to get started? Let’s jump in.

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1. Personalize your messages.

Adding a personal flair to your communication is a great way to get your donor’s attention and strengthen the connection they feel to your nonprofit, which boosts donor retention.

A few key details that really bring a personal touch to your messages include:

  • Donor’s name
  • Donation amount
  • Date of donation

This is the difference between “Thanks for the donation!” and “Thank you, [Sabrina], for your generous gift of [$100] on [January 1st, 2020].” This lets the donor know that you really appreciate this particular gift.

Consider implementing these details into customized thank-you’s for each donor. Most likely, you already send some sort of thank you message— but chances are, it might be a little bland. Thinking outside the box with your messaging leads to higher levels of engagement and a more personal response.

Consider creating a video, writing a note, mailing a personalized thank you card, or giving a shout out on social media to further show your donor appreciation. Look for opportunities to use more detailed information about your donor, such as the name of their pet or their birthday.

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2. Encourage interaction.

Donor communication does not have to (and should not) be one-sided. Ask questions or send out surveys to encourage your supporters to communicate with you. This way, you better understand your donor network and they feel more included in the organization. 

Ask questions, such as:

  • What led you to donate in the first place?
  • What attracted you to our organization?
  • What interests you most about our mission?
  • What impact do you most hope to see?
  • Could you see yourself becoming more involved?

Engaging with your donors in the digital era is especially easy. Through email and social media platforms like Facebook, Twitter, and Instagram, supporters are able to contact you in mere seconds. Let them know that you want to hear from them by inviting replies to emails and responses to social media posts. 

Most importantly, listen to their answers. Try to implement any feedback you receive and thank your donors for their great suggestions. Be sure to respond to their online posts and questions in order to establish personal connections.

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3. Segment your audience.

Unfortunately, donor communication is not one size fits all—at least it shouldn’t be. First-time donors should not be getting the same messages as monthly recurring donors.

To establish good communication practices, it is crucial that you first segment your donors. This allows you to send targeted messages customized to a smaller group of donors who share similar qualities. 

For example, you might divide your donors into these categories:

  • New donors: First-time donor messaging requires special consideration. A whopping 81% of first-time donors never give again, but you want to fight against this statistic by engaging donors right off the bat. Make sure to appreciate your new donors and their support for your cause. You want to get that second donation, also known as a golden donation.
  • Recurring donors: Recurring donations are transferred automatically on the agreed upon schedule. For instance, monthly donors have committed to an ongoing donation each month for an undefined period of time. These donors are some of your nonprofit’s most important supporters. Consistent gifts provide stability, especially outside of peak donation season, and smaller donations add up quickly.
  • Repeat donors: As opposed to recurring donations, a repeat donor is someone who has given to your organization before but has not committed to an ongoing donation agreement. Your messages to this group can encourage donors to opt for a monthly giving program.
  • Lapsed donors: These are donors who used to give to your organization but have since stopped their donations (typically defined by a lack of gifts over a 12-month period). Create a strategy to reconnect with these supporters who have already established a connection to your organization.
  • Members: If your organization is comprised of members, they tend to seek a more personal relationship, and desire frequent, ongoing communication. Click here to find out how to best manage your members. Consider sending a birthday message or telling them you miss them if their engagement starts to falter.

Depending on the specifics of your organization, you may choose to segment your donors in different ways and with different strategies. A segmented audience allows you to craft more direct and relevant messages to each individual and improves overall donor communication.

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4. Focus on the donor.

There is an important difference between corporate communication and donor communication. The distinctions may be subtle, but they are powerful. Corporate communication places a focus on your organization and what you are doing, while donor communication shifts to an emphasis on the importance of each donor

While it can be tempting to take the opportunity to brag about your nonprofit and your abundance of success stories, (and don’t worry: there’s still a time for that!) it is an excellent practice to focus on the importance of the donor. 

Experts suggest using adjectives such as kind, caring, compassionate, helpful, and generous — the key characteristics of a moral person— to describe the donor and their gift. It’s human nature; donors like to be told that they are needed and important to your cause. Focusing on the donor is a great practice for improving your donor stewardship, too!

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5. Schedule communications.

Because it is so vital to keep up your donor communications year-round, it is a good idea to implement a schedule to manage your ongoing communication. Some experts suggest at least one to two messages each month, which can get daunting and/or repetitive.

One way to do this effectively is to plan with a communications calendar (or editorial calendar) that allows you to draft out messages throughout the year. This is a great tool to keep up with your donor communication and ensure that it doesn’t fall through the cracks as a lesser priority.

A calendar is excellent for drafting time-sensitive messages, especially ones that you have access to ahead of time. A few examples include:

  • Holidays: Getting involved in holidays like Valentine’s day (“we love our donors”) and Thanksgiving (“we are so thankful for our donors”) is a great way to make use of the calendar and annual celebrations. You may also choose to recognize days or months specific to your cause, such as World Hunger Day or Human Trafficking Prevention Month.
  • National events: For example, the Presidential Election! The election effect is real when it comes to donors giving to their favorite social and political charities. Leverage this with strategic messaging to take advantage of current events (especially when they relate to your nonprofit’s cause).
  • Fundraising season: Get started with your year-end fundraising by planning messages ahead of time. You already know that Giving Tuesday and the holiday season are especially generous times for donors; get that head start in the early months of the year to maximize your impact!

Overall, using a calendar to plan out your communications is crucial for ensuring the best donor communication practices. Just make sure to switch things up sometimes to keep your communication fresh. 

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6. Manage donor data.

To best target your communication to specific donors, take a look at your donor data collected by your donation pages and stored in your constituent relationship management (CRM) system, also known as your donor database. When you can use that data and make actionable insights, your CRM becomes an excellent resource to understand your audience and how they want to communicate.

For example, when your donation page asks for contact information, allow your donors to select their preferred method of communication (text message, phone call, email, physical mail, etc.) or the best time to contact them (day, evening, weekends) and then honor it. Donors appreciate when you actually take their preferences into consideration— and may become frustrated when you don’t. 

Check out Salsa’s tips for keeping your data in top shape so that it becomes the most useful tool you have. Keeping your CRM data clean, organized, and updated is a great strategy for ensuring useful data for your communication practices.

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7. Track and report metrics.

One of the best ways to improve your donor communication skills is to start with a better understanding of your current donor relations practices and how well they are working. Then, as you start to integrate these new ideas into your strategy, track certain metrics to read your successes and failures.

Useful metrics to track include:

  • Open rates: The percentage of recipients who opened your message.
  • Impressions: The number of times your message was viewed.
  • Conversion rates: The percentage of recipients who completed a desired action.
  • Bounce rates: The percentage of emails that never made it to an individual’s inbox.

Many CRM and communication software can provide this information, which you definitely want to take advantage of.

By collecting and analyzing this data, you can compare and contrast various communication channels with each other to determine which tactics are working well, and which could use a revamp. 

____________________________________________________________________________

When you implement these 7 tips and tricks into your donor communication strategy, you will begin to notice a significant improvement in your donor relationships. And with improved donor relationships, comes increased rates of donor retention!

Gerard Tonti is the Senior Creative Developer at Salsa Labs, the premier fundraising software company for growth-focused nonprofits. 

Gerard’s marketing focus on content creation, conversion optimization, and modern marketing technology helps him coach nonprofit development teams on digital fundraising best practices.

 

Let Your Donors Know How Lucky You Are to Have Them

422810636_b02ba5dfed_mIn a recent Grow Report, fundraising expert  Pamela Grow wrote about a time she had just started a new development job and the donors hadn’t been thanked for over eight months (yikes!). When she expressed concern about this to an outside consultant, the consultant replied, “In my experience, donors are lucky to get a postcard.”

Really? What nonprofit organizations should be saying is, “We’re lucky to have our donors.” And this includes all donors, even ones who give smaller gifts. Smaller gift donors often have the potential to give more. Also, don’t discount a loyal donor who’s given $25 a year for 10 years. Maybe she’s passionate about your cause, but that’s all she can afford. You don’t want to lose her.

Do your donors know how lucky you feel to have them support your organization? They should. Take time this month to let them know that and keep letting them know that throughout the year. St. Patrick’s Day is coming up so you could use that as a theme.

You need more than luck 

Luck isn’t everything, though. You have to work at it. Donors don’t magically donate, or more important, keep donating to your organization. In fact, if you ignore them or communicate poorly, they’re unlikely to donate again.

It takes more than leprechauns granting wishes. You need good donor relations and consistent, engaging communication. Donor relations should be easier than raising money, and it can be fun, too. But not only do you have to work at it, you need to make it a priority!

New beginnings

If you don’t want to use St.Patrick’s Day as a theme, spring is just around the corner (yea!). Spring is 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. Donor retention continues to be poor for first-time donors. Don’t let these donors slip away.

Reach out to your loyal donors

While engaging with first-time donors is important, you don’t want to ignore your longer-term donors. Organizations rarely acknowledge past giving. I gave an example above about a loyal donor who’s given for 10 years.

If you have donors who’ve given for more than three years, do something special for them. Let them know you’re lucky to have them in your family of donors.

Build relationships throughout the year

Building relationships is one of the most important components of fundraising. It’s something you need to do throughout the year.

Don’t just communicate with donors when you have a fundraising campaign or an event. The in-between times are just important. Let your donors know how lucky you are to have them and keep doing that again and again.

Show some donor appreciation at least once a month. A communications calendar will help you with this.

Your donors need to know how lucky you are to have them. It’s not hard to do that, but you can’t rely on just luck. 

Get inspired by some of these ideas.

15 Creative Ways to Thank Donors

12 Ways to Inspire and Delight Your Donors…With Examples!

10 Donor Recognition Ideas for Nonprofits

 

Is Your Communication Donor-Centered?

3346775346_a98133c942_wIs your communication donor-centered?  Really, is it? Because often it’s not. You see countless examples of generic, organization-centered communication that barely acknowledges the donor.

Plain and simple, donor-centered means focusing on your donors’ needs and interests, acknowledging them in your letters and other communication, and taking into account that not all donors are the same.

Can you do that? Just to make sure, before you send your next appeal, thank you letter, or newsletter, run it through this donor-centered checklist.

Fundraising Appeals

  • Is your fundraising appeal focused too much on your organization – rambling on about how great you are? Your organization may be great, but let your donors figure that out. Your donors are the ones who are great, and they want to hear how they can help you make a difference for the people/community you serve.
  • Is your appeal segmented to the appropriate audience? Thank past donors or reference your relationship to a potential donor. Maybe they’re event attendees, volunteers, or friends of board members.
  • Is your appeal addressed to a person and not Dear Friend?
  • Is your appeal vague, impersonal, and filled with jargon your donors won’t understand? Don’t say we’re helping at-risk youth. A donor-centered appeal would say something like – With your support, we can help more students graduate from high school on time.
  • Does your appeal make people feel good about donating to your organization?

Thank you letters

  • Does your thank you letter come across as transactional and resemble a receipt? Yes, you need to acknowledge the donation is tax-deductible, etc, but most donors are more concerned about how their gift made a difference.
  • Does your thank you letter (or better yet, a handwritten note) shower your donors with love?  Start your letter with You’re amazing or Thanks to You!, and not On behalf of X organization.
  • Is your thank you letter addressed to a person and not Dear Friend?
  • Are you telling your donors the impact of their gift?  For example – Thanks to your generous donation of $50, a family can get a box of groceries at the Southside Community Food Bank.
  • Do you recognize each donor?  Is this the first time someone has donated?  If someone donated before, did she increase her gift?  Acknowledge this in your letter/note.

Newsletters

  • Does your newsletter sound self-promotional and focus on all the wonderful things your organization is doing instead of showing your donors how they’re helping you make a difference?
  • Is your newsletter written in the second person? Write to the donor and use the word you more often than we. How to Perform the “You” Test for Donor-Centered Communications – Do You Pass?  Keep in mind, all your donor communication should be written in the second person. It’s much more personal.
  • Does your newsletter include success stories, engaging photos, and other content your donors like to see?
  • Are you using the right channels?  Perhaps you only send an e-newsletter, but some of your donors prefer print.
  • Are you showing gratitude to your donors in your newsletter?

Remember to always think of your donors first. This applies to everyone in your organization.

No Really, What is a ‘Donor-Centric Culture’?

Use this checklist for other donor communication such as annual reports (these are rarely donor-centered), your website, email messages, and social media posts.

Make sure the messages you send to your donors focus on them and make them feel special. Staying donor-centered can help you build relationships. This is especially important as retention rates continue to decline.

Read on for more information about the importance of being donor-centered.

A donor-centered organization, your donors, & relationship building

Degrees of Donor-Centricity

#1 Tip to Create a Donor-Centered Appeal Letter

 

How Monthly Giving is a Win-Win for Your Nonprofit

48257299076_b34347f77e_wA few weeks ago I wrote about ways to help you become more successful in 2020. One of those was to emphasize monthly giving. I’d like to elaborate on that some more in this post.

Monthly giving is a win-win for your nonprofit. You can raise more money and boost your retention rate. Also, once donors opt into monthly giving, it’s an easier way for them to support your organization.

You can raise more money

Monthly or recurring donations can help donors spread out their gifts. They may 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’s easier on their bank accounts. 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 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 monthly gift is $24 a month.

Check out this retention rate

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. 

Getting started

If you don’t already have a monthly giving program, make this the year you start one. It’s not as hard as you think.

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. 

Are you missing this key fundraising “system?”

Make monthly giving the go-to option

Make 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, 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, is that happening if your minimum deters someone from giving at all? You often have to invest a little to raise more money.

Show some #donorlove

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, which I explain more in the post below. 

The Importance of Segmenting 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 while it’s helpful to know the organization received your donation, you’re not practicing good stewardship if that’s all you do.

You could spruce up these monthly acknowledgments, both by not making them sound like they were written by a robot and by providing some donor-centered 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. Thank your donors and let them know how their monthly donations are helping you make a difference.

Reach out at least once a month

Besides showing #donorlove, here are some other ways to reach out to your monthly donors.

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.

Hold an open house for monthly donors. Even if they don’t attend, they’ll appreciate the invitation. You could also offer tours, either at a specific time or on request.

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.  

The Holy Grail of Fundraising

These donors made a commitment to you by giving every month. Make the same commitment to them by reaching out at least once a month. Create a special section in your communications calendar specifically for monthly donors to help with this.

Be accommodating

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.

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.

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 or letter. This will help you, as well, so you can keep receiving a steady stream of donations.

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 credit cards expiring.

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. Could you help us out a little more this time 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 want to expand our tutoring program to three more high schools.

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.

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. Read on for more about monthly giving.

Planning Your Monthly Giving Strategy For The Year: A Step-By-Step Guide

Quick Tips to Create a Great Monthly Giving Program

How to start a monthly giving program for your small nonprofit

Vector Art by Epic Top 10

Donor Relationships: 5 Challenges and How to Overcome Them

by Steven Shattuck

Donor relationship development is vital for your nonprofit’s retention rate and revenue consistency. Overcome the challenges of relationship building.

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Building donor relationships is one of the most important things your nonprofit can do in order to maintain a consistent revenue stream and fund your mission. This is because effective donor relationships lead to higher retention rates. 

However, there are some challenges that many nonprofits run into when it comes to building these relationships, and many organizations can’t seem to overcome the common roadblocks!

That’s why we’ve created this guide. We want to make sure nonprofits have no excuse to let donor relationships go to the wayside. Each of the challenges we’ve stated here is directly related to statistics compiled by Ann Green originating from Bloomerang Chief Scientist Adrian Sargeant and Fundraising Effectiveness Project research. These challenges and related statistics are as follows: 

  • Donor Dissatisfaction – 36% of lapsed donors leave because they thought other organizations were more deserving of their contribution. 
  • Limited Time for Personal Interactions – 9% of lapsed donors left because the organization didn’t leave a lasting impression on them.
  • Donors are Treated like ATMs – 54% of lapsed donors did so because they could no longer afford to contribute. 
  • Lack of Prioritization of Retention – The average donor retention rate after the first gift is 19%, while it’s 63% after the second donation. 
  • Limited Technology – 18% of lapsed donors did so due to poor communication strategies. 

Ready to dive a little deeper into the implication of these statistics and how your nonprofit can overcome these common challenges? Let’s get started. 

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1. Donor Dissatisfaction

36% of lapsed donors leave because they thought other organizations were more deserving of their contribution. 

These donors leave because they’re dissatisfied with your organization. This doesn’t mean that other organizations are truly more deserving, but that they give the impression of being so with their communication strategy. Therefore, to overcome this challenge, your nonprofit needs to show all of your supporters that your organization makes the biggest splash using their donation. 

This concept can be boiled down to a single word: impact. 

In order to show your donors the impact that they make toward your mission, consider the following strategies: 

  • Tell impact stories at every opportunity. You don’t have to wait for the annual report or gala to tell stories about who has benefited from your programs and services. Weave them into acknowledgments, appeals, and stewardship pieces. There’s no limit to the amount of good news you can send. 
  • Communicate project progress updates to your supporters. Supporters want to know that your organization is moving forward with your mission. Expressing progress on larger projects is a great way to show campaign donors (and those who may have contributed to another campaign) that your nonprofit is always moving forward. 
  • Acknowledge achievements made through past gifts. Don’t make long-term donors feel like they haven’t made a dent in the issue your nonprofit is trying to alleviate. While your mission may never be truly completed, this is about being more than just donor-centric. Donors should be recognized for the impact they’ve made even when they’re being asked to fund new initiatives.

As your nonprofit creates its communication strategy, be sure you’re taking intentional steps to tell your supporters about the impact they’ve made on your nonprofit. This will help ensure they’re satisfied with the choice they make to give. 

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2. Limited Time for Personal Interactions

9% of lapsed donors leave because they have no memory of supporting the nonprofit.

If a donor doesn’t remember giving to your nonprofit, this is much deeper than simply a memory problem. The issue is really that your nonprofit didn’t make an impression on that individual. 

Personalizing your communications with supporters shows that your organization wants to develop a relationship with them. 

Relationships are not one-sided. If your nonprofit is sending the same message to all of your supporters, you’re not making the effort to get to know them. Essentially, this implies the expectation that your supporters should do all of the work to get to know your nonprofit, but you won’t do the same for them. The challenge is that there’s not enough time to individually communicate with each and every donor. 

There are several ways you can overcome this challenge. Consider the following strategies: 

  • Segment your supporters. Segmentation is the tried and true strategy that allows your organization to address the individual interests of your supporters without sending individual emails to each one. Create donor segments based on commonalities in their donor profiles. Then, when it comes time to communicate, you can craft messages that specifically target recipients with those traits and commonalities. 
  • Include personal details in messages. With the best software, your nonprofit should be able to autofill personal details like your supporters’ preferred name, past donation amount, past campaigns supported, and more. Bloomerang’s guide to nonprofit CRM software explains how personalization leads to donor cultivation and larger donations over time. 
  • Conduct research before interacting with major donors. Before your staff members go to meet with major donors or major prospects, make sure they have access to plenty of information from that person’s donor profile to help guide the conversation. You should always conduct research about individual donors before meeting with them in person to remind you about their interests, their past involvement, and future opportunities. 

Making the most of the limited time your nonprofit has is what matters most for personalizing conversations. Automate as much of this personalization as you can and don’t be afraid to take the time to research individuals when the opportunity presents itself. It will be worth it!

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3. Treating Donors like an ATM

54% of lapsed donors left because they could no longer afford to give.

Your donors are not ATMs. Too many nonprofits reach out to their supporters only when they need donations to help with projects and campaigns. Donors who receive too many asks for donations too frequently start feeling used. This is especially true if your supporter wants to contribute, but can’t afford to (as happens with such a large percentage of lapsed donors). 

In order to make sure your donors don’t feel like you’re simply using them for their cash, you should approach them with a variety of opportunities for engagement. 

Providing new and unique opportunities helps donors stay engaged with your nonprofit even as the economy or their personal finances fluctuate. Create a communications calendar so you can be sure to space out fundraising asks and ensure a variety of opportunities throughout the year. You may choose to include opportunities such as: 

  • Recurring donation opportunities. Instead of giving all at once, recurring donations allow supporters to give a smaller amount every month. It impacts their finances less while still resulting in the same final donation at the end of the year.
  • Encouraging volunteers. Ask your supporters to donate time rather than money. This helps your nonprofit get more done around the office or at an event and ensures the supporter still feels connected to your cause. 
  • Asking for in-kind donations. If you know your supporters have access to materials or a resource that your nonprofit could make use of, you may consider asking for an in-kind donation rather than a monetary one. 
  • Take unique fundraising approaches. Instead of just asking for straight donations, you may offer programs that make donating more approachable. For instance, Funds2Orgs’ fundraising ideas guide includes unique options like shoe drive fundraisers, raffles, penny wars, used book sales, and restaurant giving nights.

Building a relationship with your donors means making sure they know that you appreciate their support, not just their cash. Give them plenty of opportunities to show you how they can help in addition to your traditional giving pages. 

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4. Lack of Prioritization of Retention

First-time donor retention is 19%, while it is 63% for repeat donors

As we said in the beginning, building donor relationships is especially important to improve your nonprofit’s donor retention rate. One common challenge that nonprofits run into is that they simply don’t see the importance of retention. 

Organizations tend to think that they have to continuously expand and acquire new supporters in order to grow. However, if you’re not retaining these donors that you acquire over a long period of time, how can you expect to continue growing? 

The key to nonprofit growth is striking a balance between your donor retention and donor acquisition strategies. And to do this, your nonprofit should focus on the “golden donation.” This is the second donation an individual makes to your organization. After the golden donation, your supporters are 63% more likely to continue giving to your nonprofit. 

In order to prioritize donor retention, your nonprofit should be sure to: 

  • Make sure new donors feel welcome. Thank them immediately for giving to your organization and stress how grateful you are for their support. 
  • Create a complete stewardship plan. Be sure you know what strategies you’re going to use to steward donors throughout the calendar year. 
  • Be better than average. With first-time donor retention so low across the board, don’t settle for being average. Keep working to help your nonprofit advance and grow quickly. 

Make sure donor retention is one of the metrics your nonprofit keeps at the forefront of your CRM dashboard so your staff members are always thinking about it.

Your nonprofit’s priorities show through as you design your growth strategy. Make sure you’re emphasizing building relationships and improving retention as one of your top priorities. 

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5. Limited Technology

18% of lapsed donors leave due to poor service or communication

Did you notice a commonality between the above strategies? They all allow you to leverage technology in order to build your relationships. You can use technology to help communicate impact, save time, create a communications plan, and track your retention rate. 

This requires your nonprofit to have access to effective technology. Investing in a cheap solution runs the risk of it not being high enough quality to help the nonprofit grow. By cheap, we don’t mean that all inexpensive solutions are bad. Cheap quality is what your nonprofit should avoid. 

Before investing in a software solution where the price seems too good to be true, make sure you conduct your research to make sure you’ll have access to everything you need. 

If 18% of lapsed donors leave due to ineffective communication or service, the last thing you want is for your tech to limit you in these areas. Make sure your nonprofit has the capability to offer the best communication and service to your supporters. If you’re unsure of how to start looking for the best tech, check out this guide to purchasing top-notch software. 

Building donor relationships is the key to establishing effective donor retention. While there are challenges to building relationships, overcoming them will help your nonprofit continue growing and get closer to achieving your mission.

Author: Steven Shattuck

Chief Engagement Officer at Bloomerang

Steven Shattuck is Chief Engagement Officer at Bloomerang and Executive Director of Launch Cause. A prolific writer and speaker, Steven is a contributor to “Fundraising Principles and Practice: Second Edition” and volunteers his time on the Project Work Group of the Fundraising Effectiveness Project and is an AFP Center for Fundraising Innovation (CFI) committee member.

Looking at the New Year with 20/20 Vision

49309556946_7d4841c90f_wHappy New Year, everyone! Wow, it’s 2020, and I couldn’t resist the 20/20 pun. Not only are we entering a new year, we’re also entering a new decade.

Many people use the New Year to make changes and improvements in their lives. You can do the same for your nonprofit organization. 

As with personal resolutions, you want to set realistic goals that you can stick with over time. Going back to the 20/20 theme, you want to set these goals and make these plans with clear vision.

Here are a few ways to help you ensure success in 2020.

You must have fundraising and communications plans

One key to success is good planning. 

If you haven’t made fundraising and communications plans yet, do that now! Don’t go too far into the New Year without plans in place.

Take a look back at 2019 to see what worked and what didn’t in your fundraising and communications. Incorporate what you’ve learned into your 2020 plans.

Be sure to include donor engagement and donor retention in your fundraising plan.

If you didn’t have a concrete plan last year and you weren’t as successful as you would have liked, that may be why.

Write your annual fundraising plan with these 6 steps

Here’s a Sample Fundraising Plan for Your Non-Profit

Do’s and Don’ts for Your Annual Fundraising Plan

12 (Amazingly Easy) Step by Step Fundraising Plan Templates

Build a Better Nonprofit Marketing Plan: Here’s How

How to Integrate Your Nonprofit Fundraising Plan With Your Marketing Plan

Measure your progress

Make sure you evaluate your progress at least once a quarter. It will be easier to stay successful if you can continually measure your progress and make any necessary changes before it’s too late.

20 KPIs For Your Nonprofit To Track

Pay attention to your donor retention

Make this 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.

One Thing Most Nonprofits Stink at (Donor Retention) and How You Can Change It

3 Concrete Strategies to Address The Donor Retention Crisis

Also, the New Year is a good time to get in touch with any lapsed donors, especially ones who gave a year ago. They may just need a gentle reminder. 

Emphasize monthly giving 

Staying on the retention theme, the retention rate for monthly donors is 90%. 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.

Incorporating Monthly Giving Into Your Fundraising

How to start a monthly giving program for your small nonprofit

20 Monthly Giving Intentions for 2020

Make building relationships a priority 

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.

Build Relationships With Your Donors Every Step of the Way

Build Loyal Donor Relationships in 3 Easy Steps

Show some gratitude, too

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 with this.

Nonprofit Donor Thank You’s: What are You Doing to Stand Out?

Start the New Year off by making fundraising and communications plans. Then monitor your progress, pay attention to your retention rates, and work on building relationships with your donors. 

Best of luck for a successful 2020.