fundraising

Raise More Money With a Fundraising Appeal that Stands Out

Ann Green appeal letters, direct mail, donor retention, donor-centered, fundraising, writing, year-end appeal , , , , , ,

Can you believe it’s already September? Depending on where you live, you may or may not be getting that nice refreshing air September often brings. After a hot summer, I’m ready for that.

September also brings us to the start of the busiest time of the year for nonprofit organizations, especially if you’re doing a year-end appeal. 

Even though you may not launch your campaign until later in the fall, you should get started on your appeal letter now. If you haven’t even started thinking about your whole campaign, don’t wait any longer. Everything always takes longer than you think. 

You need to create an appeal that will stand out and resonate with your donors. If you’ve been using the same boring, generic template for years, it’s time for something new. 

You need a letter that takes into account what’s going on in 2024. How are the everchanging current situations affecting your clients/community?

Your appeal also needs to be personal – both for your donors and when you write about your clients/community. 

Here are some ways you can create a better appeal that stands out and can help you raise more money. 

Your envelope matters

You may not think your envelope makes much of a difference, but it does. You need to get your donors to open your letter. If you can’t get them to do that, then all your hard work has gone to waste.

Make it look as personal as possible. Use something other than the standard #10 white business envelope and steer clear of a window envelope because that makes it look like a bill. Think about using an oversized or colored envelope. 

Perhaps you’d like to include a teaser on the outer envelope. Fundraising experts are mixed on whether this is a good idea. It makes it look less personal, but a good teaser can capture your donor’s attention. This doesn’t mean one that says 2024 Annual Appeal. That’s not inspiring. Instead, say something like – Find out how you can help kids learn to read.

A hand-addressed envelope will look more personal. If that isn’t feasible, print directly on the envelope. You could also use mailing labels. Use some nice stamps if you can.

Create an inviting piece of mail.

Share a compelling story

A good appeal letter should open with a compelling story. Focus on a person or family and not your organization. Your donors want to hear about the people they’ll be helping. 

Here’s an example – Cara, a single mother with three kids, has gone through a lot over the past few years. It’s been hard to find work that pays enough and groceries are so expensive. Sometimes she’s forced to choose between buying groceries and paying the heating bill.

But thanks to generous donors like you (or because of our generous donors if you’re writing to people who haven’t given before), she’s been able to get boxes of healthy food at the Westside Community Food Pantry. At first, Cara was embarrassed that she had to rely on a food pantry to feed her family, but she’s always treated with respect and dignity when she visits. 

We want to continue providing Cara and other members of our community with healthy food when they need it.

You could also share a first-person story from a client/program recipient.

Include a photo

Include an engaging color photo in your letter or on your reply form. Photos can tell a story in an instant.

Next comes the ask

Ask for a donation at the beginning of the next paragraph (after the story). Make sure it’s prominent and clear. Also, ask your current donors if they can give a little more right now. Don’t be afraid to ask your donors to upgrade their gifts. People want to help if they can.

Phrase your ask like this – We’re so grateful for your previous gift of $50. We’re continuing to see more people coming into the food pantry right now. Would you be able to help us out a little more this time with a gift of $75?

Asking for an upgrade can help you raise more money. Also, if you’ve been doing a good job of engaging your donors throughout the year (and I hope that’s the case), they shouldn’t mind if you ask for a larger gift. Including the amount of your donor’s previous gift is helpful since people don’t often remember what they gave before.

Be sure the ask is the only call to action in your appeal. Don’t distract people with information about an upcoming event or volunteering. Save that for a different message.

Be donor-centered, as well as community-centered

There’s been some dichotomy over the past few years between being donor-centered and being community-centered, but I think you can be both. What you don’t want is to be organization-centered.

Show your donors how they can help you make a difference for your clients/community and how much you appreciate their role in that. Make your donors feel good about supporting your nonprofit.

At the same time, respect your clients/community by not undermining them when you use terms like at-risk youth or underserved communities. They are people, after all.

Share your success and challenges

Highlight some of your accomplishments, but you can share challenges, too. 

Show how you plan to continue your work with your donor’s help. Remember to stay donor-centered and community-centered! 

Personalization is crucial

Don’t send everyone the same appeal. Try to send different letters to current donors, monthly donors, lapsed donors, people on your mailing list who haven’t donated yet, event attendees, volunteers, and friends of board members. 

The more you can segment, the better, but at the very least, you must do these two things.

Send a personalized appeal to your current donors. They’re your best bet for getting donations. Let them know how much you appreciate their support. 

Also, send a specific appeal tailored to monthly donors, giving them the recognition they deserve. For your year-end appeal, I would thank them for all their generous support and ask them to give an additional gift. You can ask them to upgrade at a different time.

Don’t send a generic, one-size-fits-all appeal letter. Go the extra mile for your donors, so they’ll continue to support you.

Your appeal letter should also have a personal salutation (first names are best) and not be addressed to Dear Friend or Dear Valued Donor. How much do you value this relationship if you can’t even use a person’s name?

If this sounds like a lot of work, then give yourself plenty of time. This is important. Personalizing your letters can also help you raise more money.

Make it easy for your donors to give

Include a reply envelope with amounts to check off or a reply form and a return envelope. Create donation tiers that show what each amount will fund. Do this on your donation page, too.

If donors have given before, you can include that amount on the reply form and also customize their giving strings.

Some donors prefer to donate online. Direct them to a user-friendly donation page on your website. You could create a QR code for your letter and reply device. Make sure your donation page is mobile-friendly, too.

Offer a monthly or recurring giving option

Monthly gifts can generate more revenue, give you a steady source of income throughout the year, and improve donor retention. Encourage your donors to give $5, $10, or even $20 a month. This may be a more viable option for some of them. 

Be careful and don’t send an appeal to your current monthly donors that invites them to become monthly donors. That’s one reason why they need their own appeal.

Your letter must be easy to read (and scan)

Use short paragraphs and bulleted lists, along with bold or color for keywords, but keep it tasteful. Make it easy to read and scan. Most people won’t read your letter word for word. Use a simple font and at least a 12-point type (14 is even better).

Human attention spans are less than 10 seconds. But go figure, longer fundraising letters (four pages as opposed to two) have been shown to perform better, especially for prospective donors.

Resist the temptation to create a one-page letter. This often means cramming a bunch of tiny text on the page. With a longer letter, you’ll have more space to tell a story and repeat messages. You can also break up the text with a photo, testimonials, and short paragraphs. Printing on both sides of the page is fine, too.

Quality and readability are essential here. Make every word count. 

Think of your letter as a conversation with a friend

You can create a better, more personal appeal if you think of your letter as a conversation with a friend. That means not using jargon like at-risk youth and underserved communities. Be specific and use everyday language. Your goal should be for your reader to understand you.

Refer to your reader as you and use you a lot more than we.

Too many editors spoil the appeal

Your entire staff doesn’t need to be involved in writing your appeal. Generally, the more people you involve in writing your letter, the worse it becomes. Fundraising Consultant Tom Ahern refers to this as letter writing by committee.

Your best writer should craft it and then turn it over to your best editor. Whoever signs the letter (your Executive Director?) can take a quick look at it, but don’t send it to a committee.

If you don’t have someone on your staff who can write a good fundraising appeal, then hire a freelancer or consultant to do it.

Besides weakening the content, involving more people takes extra time.

Make a good lasting impression

Repeat your ask at the end of your appeal. Don’t forget to say please and thank you.

Be sure to add a P.S. People often gravitate to the P.S. as they scan the letter, so include something that will capture their attention. It may be the only thing they look at.  It should include information that’s already in your appeal – Please donate now to help us feed more families in the community.  Don’t distract people with information about volunteering, an event, etc.

Get your pens out

Include a short handwritten note, if you can. Make it relevant to each donor, such as thanking someone for a previous donation or hoping a potential donor will support you. You could also stick on a handwritten Post-it note. Hand-sign the letters in blue ink.

Spend some time writing a better, more personal appeal letter that will stand out and help bring you the donations you need. Good luck!

Image by Howard Lake

4 Key Lessons Nonprofits Should Learn from Businesses

Ann Green brand identity, Communications, community partnerships, donor engagement, donor relations, fundraising , , , , ,

Although nonprofits and businesses seem different, they share many similarities. Discover lessons nonprofits can learn from their for-profit counterparts here.

By Kyle Cannon

Although businesses and nonprofits operate in two different worlds, governed by their own unique rules, these organizations are more alike than one might initially think. Certain strategies apply to organizations in both industries—and nonprofits can experience major benefits from following in the footsteps of certain successful businesses.

To help your organization thrive long-term by building up good habits, this guide will cover four key lessons nonprofits should take from businesses. With these strategies, you’ll be well-positioned to secure loyal supporters, inspire increased generosity, and continue furthering your mission for years to come.

1. Give supporters a compelling reason to donate.

Much like a massage practice needs to convince customers to patronize its business, your nonprofit needs to give supporters a compelling reason to donate. While your organization isn’t necessarily focused on selling a specific product or service, your purpose is what supporters buy into. And it’s not enough to simply be a charitable organization—with over 1.8 million nonprofits registered in the U.S. alone, your organization needs to seriously consider how to set itself apart from others.

Here are a few tips for demonstrating that your nonprofit is deserving of support:

  • Emphasize your mission’s importance. For example, let’s say your animal shelter’s mission is to provide a second chance to animals in need by finding them loving families. You might explain that your mission is important because all pets deserve to be cared for and have a good quality of life.
  • Establish the issue you’re trying to address. Clearly outline what the issue is and why it’s important to fix it now rather than later. The animal shelter above might highlight high rates of animal abandonment in local communities and the negative impact these animals have on local wildlife to emphasize why it’s essential to rescue these animals and provide them with safe shelter.
  • Outline your impact. Explain how your nonprofit has already made a positive impact on its community. The animal shelter above might state that it has rescued over 5,000 dogs and cats since its inception and actively cares for over 300 animals at any given time.

If your nonprofit is well-established and has a base of loyal donors, research their giving motivations for key insights into why they support you. You can do this by sending out surveys or examining the data in your nonprofit constituent relationship management system (CRM). Use this information to improve the language you use around donating and make giving even more compelling.

2. Provide a positive supporter experience.

A crucial part of convincing consumers to make a purchase is the customer experience. Just think about how businesses offer generous return policies, leverage easy-to-use e-commerce platforms, and train employees to provide excellent service. Companies risk losing business when customers don’t enjoy the buying experience.

Your nonprofit can learn one key lesson from this: It’s crucial to establish a positive supporter experience that makes it easy for them to continue interacting with your organization. To that end, streamline how supporters:

  • Donate, such as by designing a responsive, mobile-optimized donation page that accepts various payment types
  • Volunteer, such as by offering a variety of volunteer opportunities that appeal to individuals with varying availabilities and commitment levels
  • Attend events, such as by creating an event page where supporters can RSVP and ensuring that your event-day check-in process is smooth and streamlined
  • Receive messages, such as by communicating with supporters regularly and through their preferred communication channels, whether that is email, social media, or something else

You may want to invest in software that helps you implement these best practices. This is also a key lesson your organization can learn from businesses—they’re not afraid to invest in tools that make their operations easier. Just as a spa might purchase massage software, your nonprofit can invest in a robust fundraising platform, nonprofit CRM, volunteer management software, or any other solution that aids you in your work.

3. Build a strong brand.

Branding is everything to businesses—it’s how they build recognition of their company and products. Just think about McDonald’s iconic golden arches or the stylized font of the Coca-Cola logo. As a nonprofit, you can follow the lead that businesses set and also focus on your branding to improve awareness for your mission.

According to MassageBook, there are two types of branding:

  • Visual. This includes your nonprofit’s logo, colors, and typography—essentially, any branding elements you can see.
  • Verbal. This refers to written choices you make, covering your mission statement, values, tone, grammar, and more.

Establish a thorough branding guide that describes how you’ll handle both visual and verbal branding elements. With the right strategy, you can help your nonprofit stand out in a sea of other charitable organizations. After establishing what your branding will look like, don’t forget to incorporate it into all of your marketing materials in a uniform manner to ensure that your audience immediately associates the material with your nonprofit.

4. Partner with like-minded organizations.

Businesses have long learned that partnerships with other organizations help them expand their reach, acquire more customers, and ultimately generate more revenue. Your nonprofit can similarly benefit from partnering with other mission-aligned organizations.

Here are a few types of organizations you should consider working with:

  • Other nonprofits. Other nonprofits with similar or adjacent missions may be happy to partner with yours to boost awareness of both your causes. For example, an environmental conservation nonprofit might work with an ocean conservation nonprofit to help the latter promote its upcoming event.
  • Foundations and grantmakers. Foundations and grantmakers provide financial support to nonprofits. To secure their support, you’ll need to undergo a grant application process and convince them that your nonprofit is worthy of their funds and will put them to good use.
  • Businesses. Corporate sponsorships aren’t limited to businesses—your nonprofit can also benefit from them! According to 360MatchPro, you can identify potential sponsors by exploring your network, researching local businesses, and using dedicated prospect research tools.

Keep in mind that a partnership should be mutually beneficial. As a nonprofit, this usually means that you’ll promote your partner’s brand, products and services, or mission alongside yours. For example, if you’re partnering with a nonprofit, you might host a co-branded awareness campaign to boost advocacy for both your causes. If you’ve acquired a corporate sponsor, you can include their branding on your event materials and specifically thank them in your end-of-event speech to help them get the word out about their brand.

And there you have it—four lessons nonprofits can take from businesses. Consider whether or not your organization is following these best practices and how you can implement them into your strategies to broaden your reach, acquire more donations, and work toward your mission more effectively.

Kyle Cannon is the product evangelist at MassageBook. He’s spent the past 8+ years developing a deep understanding of the joys and struggles massage therapists face daily, and he’s committed to helping them simplify and grow their practices every step of the way.

The Time to Start Planning Your Year-End Fundraising Campaign is Now

Ann Green appeal letters, database, direct mail, donation page, donor-centered, fundraising, gratitude, planning , , , , , ,

Can you believe it’s August already? Time flies and soon it will be September. I know It’s hard to think about fall when it’s been sweltering in many parts of the world, including places where it’s usually not that hot. Even so, September will be here before you know it. I’m already starting to see ads for back-to-school sales….

If you’re doing a year-end fundraising campaign, the time to start planning it is now, hopefully in an air-conditioned space. You don’t want to wait too long, especially if you’re behind in your revenue goals.

I’ve put together a checklist to help you get started. You can also use this for fundraising campaigns at other times of the year.

How much money do you need to raise?

You may have already set a goal for your year-end campaign in your 2024 fundraising plan (at least I hope you did) and maybe that has changed. 

You must determine how much money you need to raise before you start your campaign and raising as much as we can is not a goal.

Do you have a campaign plan?

Put together a plan for your campaign that includes a timeline, task list, and the different channels you’ll use. Make it as detailed as possible.

I strongly encourage you to mail an appeal letter. Direct mail appeals are more successful. You can also send an email appeal and follow up with email, as well. 

When do you want to launch your appeal? If you’re in the United States, it’s best to wait until after the November 5th election, and you know why. For those of you outside the US, you can start earlier. Whenever it is, make your goal to have the letters done at least a week before that, because things always take longer than you think they will. Work backwards to figure out how you can get to your proposed send date.

Keep in mind you’ll be competing with many other organizations who are doing appeals. Think about how you can make yours stand out.

Also, how are you mailing your appeal? Do you use a mail house or get staff and volunteers together to stuff envelopes? Either way, plan ahead, so you’re not scrambling at the last minute.

Do you have a good story and photo to share?

If you’ve been using the same boring, generic appeal letter template for the last few years, it’s time for a refresh. It’s a good idea to revise your templates at least once a year. Our world has changed a lot in the last few years and you need to take that into account.

A good way to start is to create an engaging story for your appeal. What challenges are your clients/community facing right now? Many people are struggling to make ends meet. Focus on them, not your organization. Each year is different and this is why you need new stories.  

You’ll want some good photos for your letter and donation page, too. Quotes and testimonials from clients will also enhance your appeal.

How can your donors help you make a difference?

Your appeal letter should focus on a need and let your donors know how they can help you make a difference. You might want to start by creating a brief and an outline.

You may be seeing more people at your food pantry because of rising food costs and cuts in benefits. Maybe your clients are struggling to find affordable housing.

You can also highlight some of the accomplishments you’ve made recently and state what you would like to do in the coming year, although these are usually more appropriate for a newsletter or impact report. 

One way to frame this is to describe a situation such as this. You run a tutoring program in your community and work with students who are falling behind in school. You can describe how thanks to your generous donors, your one-to-one tutoring program has helped students get better grades and are now less likely to be held back a year. You want to keep that going and serve more students.

Remember to focus on your clients/community and don’t brag about your organization.

Are your mailing lists in good shape?

Make sure your mailing lists are up-to-date. Check for duplicate addresses and typos. Your donors don’t want to receive three letters at the same time or have their names misspelled. Take a little time to do some data hygiene. Give your email list some attention, too.

Also, now is a good time to segment your mailing lists – current donors, monthly donors, lapsed donors, event attendees, etc. This is so important. Your current donors are your best source of donations. You should have more success if you can personalize your appeal letters. Acknowledge if someone has donated in the past or is a monthly donor. Donors like it when you recognize them for who they are, so don’t send everyone the same appeal.

Do you have enough letterhead, envelopes, and stamps?

Don’t wait until September or October to check your supply of letterhead and envelopes. Make sure you have enough. 

Speaking of envelopes, something besides the standard white business envelope can improve your response rate. Think about using an oversized, colored, or embellished envelope. If that’s not possible, don’t use a window envelope because it resembles a bill. A general rule is you don’t want any of your direct mail pieces to look like a bill or junk mail.

Even though many people donate online, you want to make it easy for donors who prefer to mail a check. Include a pledge envelope or a return envelope and a preprinted form with the donor’s contact information and the amount of their last gift.

Stamps are more personal, so you might want to find some nice ones to use. 

Is it easy to donate online?

Be sure your donation page is user-friendly and consistent with your other fundraising materials. Using a branded donation page and not a third-party site is best. Highlight your year-end appeal on your homepage and include a prominent Donate Now button.

One way to ensure a good experience is to have someone on your staff or, even better, someone outside of your organization make a donation on your website. If they want to run out of the room kicking and screaming, then you have some work to do.

Do you offer a monthly or recurring giving option?

I’m a huge fan of monthly giving. It’s a win-win for your organization. You can raise more money, boost your retention rate, receive a steady stream of revenue, and allow your donors to spread out their gifts.

If you don’t have a monthly giving program or have a small one, don’t wait any longer to start one or grow the one you have. Be sure to highlight it as a giving option.

Do you want to find a major funder who will give a matching gift?

Another good way to raise additional revenue is to find a major funder to match a portion or all of what you raise in your year-end appeal. If you want to go down this route, now would be a good time to reach out to these potential funders. 

How will you thank your donors?

Be sure to spend as much time on your thank you letter/note as you do on your appeal letter and write them at the same time. And if it’s been a while since you’ve freshened up your thank you templates, you know what you need to do. It’s so important to thank your donors and thank them well as soon as you receive their gifts, so have a thank you letter/note ready to go. Don’t treat thanking your donors as an afterthought.

Handwritten notes and phone calls are much better than a preprinted letter. Create or buy some thank you cards and start recruiting board members and volunteers to make thank you calls or write notes. 

You’ll want to put together a welcome plan for your new donors and that also needs to be ready to roll after the donations come in.

How will you keep up with your donor communication?

Even though you’ll be busy with your appeal, you want to ramp up your donor communication this fall. Keep engaging your donors and other supporters (who may become donors) by sharing updates and gratitude. Pour on the appreciation! 

Send at least one warm-up letter or email. How about a postcard? You could create a thank you video or a video that gives a behind-the-scenes look at your organization. Maybe you could hold an open house or offer tours. Just don’t disappear until appeal time. 

Yes, we’re still in a period of economic uncertainty. Some donors may not give as much or at all, but others will give more. They won’t give anything if you don’t ask.

There’s still plenty of time to go to the beach and get ice cream this summer, but right now find that air-conditioned space and start planning your year-end campaign.

Best of luck!

Photo by CreditScoreGeek.com

4 Tips for Uncovering Your Donors’ Giving Motivations

Ann Green Communications, database, donor engagement, donor relations, donor-centered, fundraising, planning , , , , ,

Donor motivations are the “why” that drives their support of your nonprofit. Learn how to uncover those motivations and inspire more support in this guide.

By Ryan Carpenter

For the last several years, nonprofits have struggled to make ends meet due to falling revenue, rising inflation, and an increase in community needs. Charitable giving saw a 2.1% decrease in 2023 after inflation, showing how challenging it is for donors and nonprofits to keep up with inflation rates.

Fortunately, there are ways your organization can battle these disheartening statistics. Whether you’re future-proofing your fundraisers by focusing on future giving initiatives or leveraging low-cost digital channels to acquire donors, your nonprofit can still inspire enough support to keep its operations going strong. However, these efforts will only be successful if you have a deep understanding of why your donors give.

In this guide, we’ll dive into what you can do to discover, analyze, and appeal to donor motivations and maintain a healthy level of funding for your cause.

1. Use ethical and organized data collection methods.

To enhance donor relations, NXUnite recommends conducting thorough research to learn as much as you can. However, you’ll need to consider the ethics of collecting this information. 

The three main ethics to keep in mind are consent, confidentiality, and communication. Get permission from donors when gathering information about them and always prioritize data security to keep their personal information private. You’ll need to maintain transparent communication with donors about how you’ll use their data and make sure staff members know how to appropriately handle and use donor data.

Additionally, use collection methods that yield clean, accurate, and organized data. This means the data is free of errors, duplications, and formatting inconsistencies. One option is to use online forms or surveys, like your donation page, that require donors to enter responses in a certain way. You can also use data gathered from social media, email, and other marketing platforms to see who is engaging with your communications. 

No matter what technology you’re using to collect data, make sure all of these findings are routed to your constituent relationship management (CRM) system so the information is consolidated in one unified platform.

2. Perform a deep data analysis.

Once you’ve collected and organized your supporter data, it’s time to analyze it. During this step, you’ll identify trends, opportunities, and other insights to guide your fundraising strategies and make outreach more effective. 

According to GivingDNA’s guide to data analytics for nonprofits, the following tips can help you discover more useful, accurate insights:

  • Screening more frequently. Some organizations neglect their data and only reference it on a quarterly (or even yearly!) basis. While this process takes time out of your busy schedule, trust that conducting screenings at least once a month is well worth it. For example, you could find an opportunity to secure a large donation from an existing supporter in less time than it takes to secure several smaller ones from new donors.
  • Referencing internal and external data. Don’t rely solely on the data you’ve collected about your donors. Compliment that information with data concerning broader trends in the nonprofit sector and your specific niche (e.g., giving patterns for animal welfare organizations). 
  • Segmenting donors. Donor segmentation involves sorting donors into groups based on shared characteristics. Doing so can help you identify and target your most loyal or valuable donors. Some tools will automatically segment and pinpoint these opportunities for you, so be on the lookout for those.
  • Studying a variety of attributes and data fields. Don’t limit your analysis to basic data points like demographic information or average gift size. While these are important to understand, they don’t always reveal the full picture. Dig into everything you know about your donors, including things like communication preferences and contributions to other organizations, to gain a comprehensive overview of their behavior.

Choosing a robust data analytics tool can also make a world of difference and help you quickly derive actionable insights from your data. Look for one that is designed specifically for nonprofits and assists with tasks like prospect identification and wealth screening.

3. Examine donors’ journeys.

Understanding the journey supporters follow between discovering your organization and making their first donation can help you peel back the layers to identify their reasons for giving. Mapping out this journey will show the touchpoints donors interact with, enable you to tailor experiences and communications to their position in the donor journey, reveal pain points and gaps that pose retention risks, and help you make data-driven decisions. 

Let’s look at an example. A nonprofit that focuses on environmental conservation is plotting out a donor journey for a segment of donors who are outdoorsy, interested in sustainable living, and make sporadic donations to peer organizations. The donor journey follows these stages:

  1. Awareness: The donor discovers the nonprofit through a social media campaign. At this stage, the nonprofit notes that this group of donors engages most with posts about sustainability and environmental justice, hinting at their interests.
  2. Consideration: The donor deepens their engagement by navigating to the nonprofit’s website and reading resources about its mission, programs, and goals. The organization identifies which pages these donors spend the most time on to infer which programs or issues inspire them to give.
  3. Decision: The supporter subscribes to the nonprofit’s newsletter and registers for a beach clean-up and recycling event. At the event, the donor asks staff about the specific ways your organization prioritizes sustainability before ultimately making a donation.
  4. Post-donation: After contributing, the donor receives thank-you messages from the nonprofit that highlight how the donation will be used. The donor responds positively, indicating that they approve of how their money is being used to further the mission.
  5. Engagement, advocacy, and referral: The donor continues to engage with the nonprofit, particularly with programs that promote maintaining natural spaces and advocating that more people start recycling. The donor promotes these programs online and even recruits like-minded friends and family to join in.

Each point in the donor journey can allow your nonprofit to see how, when, and why donors engage with and support your cause. However, make sure you have the right tools and technology in place to capture these metrics. When getting started, at least have a Google Analytics account in place to track website traffic, as well as platforms that will measure digital marketing engagement.

4. Personalize communications.

After you’ve worked to uncover your donors’ motivations, develop a nonprofit marketing plan that details how you’ll appeal to those motivations. In addition to segmenting your donors based on their giving preferences, habits, and interests, you can:

  • Share personalized thank-you notes that demonstrate the impact of donors’ support, explain how that funding will be used, and even feature testimonials or stories from beneficiaries.
  • Provide tailored impact reports that show the progress their favorite programs have made.
  • Make customized calls to action that relate directly to their interests and reasons for giving to your cause.
  • Send personalized recommendations for upcoming events, volunteer opportunities, and resources that they might enjoy.

When communications are relevant to your donors and their interests, they’ll be much more likely to engage and provide ongoing support for your cause. Additionally, supporters will feel more seen and connected to your organization when you show that you know who they are and what they value.

If current trends continue, stewarding and retaining a loyal donor base will only become more important. Understanding who your donors are and knowing their interests, passions, and histories with your cause will help you make personal and authentic appeals for support. Not only does this show that you’ve taken the time to get to know them, but it also convinces them that your nonprofit is the best equipped to address their concerns and make a significant impact.

Ryan Carpenter is the Vice President of Client Success at GivingDNA, an all-in-one fundraising analytics, data visualization, and wealth screening tool. He has experience and interest in developing innovative strategies that efficiently identify, cultivate, and solicit donors and prospects through effective engagement tactics. Ryan has a keen ability to synthesize large data sets and has a proven track record in creating successful cross-channel donor engagement strategies that deepen donor relationships.


If You Want Better Donor Engagement, Practice The 5 C’s of Good Nonprofit Communication

Ann Green Communications, donor engagement, donor-centered, fundraising, gratitude, writing , , , , ,

Are you having trouble with your donor engagement? If you answered yes, it may be because your communication is well, just meh. The remedy I like to recommend is the 5 C’s of good nonprofit communication. Keep these in mind when you’re writing a fundraising appeal, thank you letter, update, or any type of donor communication.  

Is it Clear?

What is your intention? What message are you sending to your donors? Are you asking for a donation, thanking them, or sharing an update? 

Whatever it is, make sure your message is clear. If you have a call to action, that needs to be clear, as well. You also want to stick to one call to action. Don’t distract your donors with too many choices. If you ask them to make a donation, volunteer, and contact their legislators in the same message, you run the risk of them not doing any of those.

You want your message to produce results. Plain and simple, your fundraising appeal should entice someone to donate. Your thank you letter should thank your donors (no bragging or explaining what your organization does) and make them feel good about donating.

Use language your donors will understand (no jargon). Keep out terms like food insecurity and underserved communities. Just because something is clear to you, doesn’t mean it will be clear to others. 

Is it Concise?

Can you say more with less? Eliminate any unnecessary adverbs, adjectives, and filler. Make your point right away. Concise writing doesn’t mean you need to be terse or all your print communication has to be one page. Sometimes it will need to be longer, but the same rules apply. 

Nonprofit organizations like to pack a lot of information into their monthly/quarterly newsletters and impact reports, but many donors won’t read something if it looks like it will be too long. 

Shorter, more frequent communication is better. This applies to the example I gave above about not putting more than one call to action in a message. You’ll have better results if you send separate messages for each call to action.

Also, most people skim, so use short paragraphs and lots of white space, especially for electronic communication.

Make all your words count.

Is it Conversational?

Write as if you’re having a conversation with a friend and be personable. Use the second person – where you refer to your donors as you and your organization as we. Remember to use you much more than we. 

Avoid using jargon, cliches, multi-syllable words, and the passive voice. Is that the way you talk to your friends? I hope not.

You may think you’re impressing your donors by using jargon and big words, but most likely you’re confusing them or even worse, alienating them. Connect with your donors by using language they’ll understand.

Is it Compelling?

Is whatever you’re writing going to capture someone’s attention right away and keep them interested? The average human attention span is eight seconds, so the odds are stacked against you. I don’t need to tell you there’s a lot of stuff competing for our attention right now. If you can’t stand out, your donors are going to move on to something else.

Start with a good opening sentence. Leading with a question is often good. Stories are also great. 

Put a human face on your stories and keep statistics to a minimum. Start a fundraising appeal with an engaging story that leads to a call to action.

Are you establishing a connection?

Donors are drawn to your organization because they feel a connection to your cause. You also need to establish a connection with them. You can start by segmenting your donors by different types, such as new donors, current donors, and monthly donors. 

Get to know your donors better and give them content you know they’ll be interested in. Hint – it’s not bragging about your organization. They want to know how they’re helping you make a difference for your clients/community. They also want to feel appreciated. Focus on building and sustaining relationships.

Do a better job with your donor engagement and improve your communication by practicing the 5 C’s.

We’re Halfway Through 2024. How Is Your Nonprofit Doing So Far?

Ann Green Communications, donor engagement, fundraising, gratitude, planning , , , ,

Believe it or not, we’re halfway through 2024. The midpoint of the year is always a good time to see if you’re meeting your fundraising and communications goals. For this post, I’m assuming your fiscal year is the same as the calendar year. If you’re on a different fiscal cycle, you can make the appropriate time adjustments.

Your fundraising revenue may be down. We’re still in an uncertain economy, but that doesn’t mean you should stop fundraising. Never stop fundraising! Donors will give if they can.

You may need to make some changes to your fundraising plan and other goals. And, if you never made a fundraising plan for this year, stop right there and put one together now and use it for the remainder of the year. Always have a plan.

Take a look at what’s working and what’s not. It will be different for every organization. If you’re doing okay, keep it up. If you’re falling short, figure out where you need to make changes.

If you’re relying too much on grants and events and those aren’t bringing in the revenue you need, focus more on individual giving. Many nonprofits raise the most money from individual giving. Summer is usually a less busy time for nonprofits. Take advantage of that with these suggestions to help you stay on track this year.

Start or enhance your monthly giving program

Monthly giving is doable for all sizes of nonprofit organizations, even small ones. It’s a great way to raise more money, as well as your donor retention rate. Retention rates for monthly donors are much better than other retention rates. You’ll have a steady stream of income and it may be more feasible for your donors, especially if they’re feeling pinched financially. It’s also one of the few types of fundraising that’s growing right now.

If you don’t have a monthly giving program, start one now. To get more monthly donors, send a special targeted letter to current donors inviting them to become monthly donors. This is a good opportunity to upgrade smaller dollar donors, or any donors for that matter.

Also, do something special for your current monthly donors. Send them a thank you postcard or email. They’ve made a commitment to you, now make a commitment to them.

I’ve always been a big fan of monthly giving, even more so over the last few years. They’re one of your most committed donor groups. 

Get in touch with your lapsed donors

This could be a good time to reach out to donors who haven’t given for a year or two. There are many reasons for that. Maybe they can’t afford to give right now. Maybe you’re doing a poor job with your donor communication. Maybe they were busy and forgot. Send them an engaging, personal appeal saying how much you’ve appreciated their support, state your need, and ask them to give a gift.

Look into higher levels of giving

Another advantage of monthly giving is that these donors are more likely to become mid-level and major donors. Starting a major gift program will take time, but it’s doable even for small organizations. Look into starting one soon. Organizations with strong major gift programs tend to do better financially.

Ramp up your donor engagement

Since summer is usually a slower time for fundraising, it’s a good time to show some donor appreciation and plan for fall. Don’t disappear over the summer.

Some donors will pull back on their giving, but that doesn’t mean ghosting them. Keep engaging with them to help ensure they’ll give again, if they can.

Make improvements to your donor communication

Many nonprofits can do a better job of communicating with their donors. Are you one of them?  Look at metrics such as website visits and email open rates. I know these don’t always tell the whole story, but if you’re not seeing a lot of engagement, figure out why.

Often, it’s because your content isn’t great or it’s too long. Maybe it’s layout and design. You could also be targeting the wrong audience. Summer is a good time to make some changes.

It’s not too late, yet

If you’re falling short of your goals, you still have time to do better, but you need to make an effort.

Be sure to keep evaluating your progress for the rest of the year. Even if you’re doing okay now, circumstances can change. You may want to monitor your progress more frequently (once a month instead of once a quarter) so you can try to stay on track. You don’t want to get caught off guard. 

Keep monitoring your progress to help ensure a successful year.

Photo by Aaron Davis

7 Donor Segmentation Strategies for Personalized Messages

Ann Green appeal letters, Communications, donor engagement, donor relations, donor retention, fundraising, planning, thank you letters , , , , , ,

Segmenting your donors allows you to send personalized messages that resonate with them and increase engagement. Check out these donor segmentation strategies.

By Gabrielle Perham

With so much information available at their fingertips, it can be overwhelming and difficult for your supporters to fully absorb it all. Among the thousands of brands, businesses, and other charitable organizations out there, your nonprofit has to figure out how to cut through the clutter and stand out to current and potential donors.

One of the top ways to grab donors’ attention is segmentation. By grouping donors into relevant segments, you can develop personalized messages that resonate with different subsets of your audience and encourage them to continue lending their support.

In this guide, we’ll present several different donor segmentation strategies your organization can leverage to personalize its communications.

1. Demographics

One of the simplest ways to segment your donors is by demographics. This information helps you understand your donors’ backgrounds and communication preferences. Demographics encompass a variety of different data points, such as:

  • Age
  • Gender
  • Level of education
  • Income range
  • Marital status
  • Geographic location

Insights from demographic data can help you learn more about your supporters and how they want to engage with your organization. For example, let’s say you segment donors by age and find that you have a large proportion of Millennials in your supporter base. Using that information, you can launch campaigns on the platforms Millennials are most likely to frequent, such as Facebook, Instagram, and YouTube.

Alternatively, you may use location data to send specialized newsletters highlighting relevant events and opportunities in people’s local areas. Start by determining which cities are most popular among your donor base. Then compile events hosted by your organization and similar nonprofits that your supporters might be interested in attending.

If you don’t have the demographic data you need readily available, consider enhancing your database through a demographic data append. This process involves using third-party sources to supplement your database and learn more about your supporters.

2. Giving History

Group donors based on their giving history, frequency, and patterns to tailor your fundraising strategies and stewardship efforts accordingly. Examples of segments in this category may include:

  • One-time donors
  • Recurring donors
  • Major donors
  • Campaign or cause-specific donors

Align your communication frequency with donors’ giving frequency. For instance, you may send monthly donors an update about the impact of their contributions once a month whereas you may contact annual donors every quarter with updates on your work.

You can also use giving history data to match your appreciation methods to donors’ level of commitment to your organization. For example, you should reserve more personal outreach methods, like phone calls, and more intensive donor appreciation tactics, like a donor wall, for major donors.

3. Donor Lifecycle Stage

Segmenting donors based on where they are in the donor lifecycle helps you meet their specific needs and move them through the donor journey more efficiently. The segments you create based on lifecycle stage may include:

  • New donors
  • Active donors
  • Lapsed donors
  • Reactivated donors
  • Donors with upgrade potential

This segmentation strategy can set you up for long-term, sustainable success by focusing on retaining current donors and re-engaging lapsed donors. You may send new donors background information about your organization while you thank active donors for their continued support. Use more urgent calls to action to win back lapsed donors and welcome reactivated donors back to your organization with updates on what they’ve missed.

4. Engagement Level

Some of your donors are likely involved in other aspects of your organization beyond donating. Maximize donor involvement and participation by sending them relevant communications based on their engagement level and history. 

For instance, you may create segments for donors who are also:

  • Regular volunteers
  • Event attendees
  • Advocates of your cause
  • Peer-to-peer fundraisers

Show donors that you care about their nonmonetary contributions to your organization by referencing their specific involvement in donation requests and thank-you messages, and send them information about upcoming opportunities they may be interested in.

5. Charitable Interests

If your mission encompasses a broad array of different cause areas and services, you may segment donors based on which causes, programs, or initiatives they’re most interested in supporting. These groups allow you to reach out to your donors with personalized appeals for relevant campaigns and offer opportunities that resonate with them.

For example, United Way’s website explains that the organization has three focus areas: health, education, and economic mobility. Depending on which areas their donors are most passionate about, this nonprofit’s fundraising team may group donors into three corresponding segments and send them updates and appeals related to their interests.

6. Giving Capacity

When you know donors’ giving capacity, you can tailor your donation asks accordingly and identify potential major donors. To determine giving capacity, conduct a wealth screening that examines the financial means of your existing donors.

According to AlumniFinder, wealth screening provides your organization with the following donor data points:

  • Business affiliations
  • Stock ownership
  • Home value

Besides determining giving capacity, this information can also help you capitalize on matching gift opportunities. 360MatchPro’s matching gift statistics guide explains that although many employers will match their employees’ donations to eligible nonprofits, 78% of donors are unaware if their company offers matching gifts. 

To raise awareness of matching gifts and secure more donation revenue for your organization, use employer data from your wealth screening to group employees who are eligible for matching gifts and highlight these opportunities for them.

7. Communication Preferences

Collect and store information about your supporters’ communication preferences in your donor database so you can reach your audience on the platforms they prefer, increasing the likelihood of engagement.

Survey your donors to determine whether they’d like to be contacted via one or all of the following:

  • Email
  • Direct mail
  • Phone calls
  • Social media
  • Text messages

Then, create relevant groups in your database, and sync them with your email marketing and social media management platforms so you can easily communicate with your supporters on their preferred channels.

Engaging your donors means keeping your organization top of mind through innovative, personalized communications. By segmenting your donor base, you offer a better, more individualized supporter experience and can build stronger donor relationships. Don’t be afraid to create more specific segments within these groups, too; the more specific you can get, the more relevant your communications will be.

Gabrielle Perham is the Director of Marketing & Sales Operations for Deep Sync. She joined the organization in 2017 and brings 20 years of experience in strategic marketing, branding, communications, sales enablement, and digital marketing. With a roll-up-your-sleeves-and-get-it-done attitude and a big-picture mindset, Gaby loves solving marketing and business challenges. She earned both a B.S. in Marketing and an M.B.A. in Marketing Management from the University of Tampa. Gaby enjoys spending time with her fiercely outspoken daughter; hiking and kayaking; rocking out in the first row of a live show; and giving back to her local community. 

What Kind of Experience Are You Giving Your Donors?

Ann Green appeal letters, Communications, donation page, donor engagement, email, fundraising, newsletter, thank you letters , , , , , ,

What kind of experience are you giving your donors when they interact with your organization? Is it good, bad, or somewhere in between? It’s important for you to look at things from their perspective, not yours. Let’s examine some of the different aspects of fundraising and donor communication to see what kind of experience you’re giving your donors.

The Fundraising Appeal Experience

Your donor receives an appeal from you. At least one appeal per campaign should come by mail because your donor will be more likely to see it and take action. It’s also a more personal way to connect. Donors can get a lot of fundraising appeals from many different organizations, especially on GivingTuesday and at year-end. What are you doing to make yours stand out?

Does your appeal address your donor by name and take into account any past giving? Is it easy to read (and scan) and include a story and a clear, prominent ask that lets the donor know how she can help make a difference for your clients/community?

Or is it a generic, long-winded mess in a tiny font? Are you using jargon and other language your donor won’t understand? Are you focusing too much on your organization so your donor feels like an afterthought?  

You only have a few seconds to capture your donor’s attention and get her to make a donation. If this is not a good experience for her, then I think you know what will or won’t happen.

The Giving Experience

Congratulations, someone has decided to donate to your nonprofit. Since most people give online, I’ll focus on that first.

They’re on your website ready to give. How’s that going to go? Does your Donate Now button stand out? Do you have a branded donation page (worth the investment) that’s easy to use and navigate? That means keeping it simple without too many fields to fill out and not making people set up an account. Be sure it’s focused on making a donation. You can include information about volunteering and other ways to get involved elsewhere, such as a thank you landing page. You don’t want to distract people from giving. It also needs to be accessible on a mobile device. If your donation page is a pain to deal with, you run the risk of someone giving up and not donating. 

Speaking of websites, your entire site needs to provide a good experience for your donors, as well.

While many donors give online now, some people are not comfortable doing that. Be sure your direct mail appeal includes a reply envelope/card so someone can send you a check. You can help your donors by filling out their name, address, and past giving amounts on the reply form. Depending on your CRM/database, you may be able to customize gift amount strings. Your mailing address should be included in your email appeal and on your website. 

Other donors may want to call you with a credit card number. Is it easy to reach you by phone? Several years ago I was working with an organization that was holding an event. Someone wanted to register by phone and the staff person tried to get her to register on their website. Hello, she wouldn’t have called you if she wanted to do that.

Every donor is different. Some donors are comfortable using their cell phones to make a donation and others aren’t. Many donors might see your letter and then go on their computer to give. Offer different options so you can meet your donors where they are to give them the best giving experience. 

The Thank You Experience

Okay, now your donor has made a gift (yea!), but her journey isn’t over. In fact, it’s just beginning.

If someone donates online, what happens next? Is she directed to a thank you landing page that showers her with appreciation or does it look like a transactional receipt? It’s not that hard to make an engaging landing page, maybe one that says Thank you, Diane! and includes a thank you photo or video and other ways to get involved.

The same goes for the automatically generated thank you email. Make sure your donor experiences some gratitude here. There’s no reason why you can’t craft an engaging thank you message. You could go one step further and have Development staff send an additional personal thank you email message to donors. Also, make sure the subject line says something like Thank you, Diane! or You did something great today! and not Donation Received. 

All donors whether they give online or by other means get a thank you by mail or phone. Donors may miss your email, but something by mail or phone will stand out. If you can send a handwritten thank you card or make a thank you call, you’re doing more than most organizations.  

At the very least, send a thank you letter, maybe with a short personal handwritten note. The recommendation is to get thank you letters out within 48 hours. If that’s going to result in a mediocre letter (which many of them are), then it’s okay to take a week to produce an amazing letter. An amazing letter is one that’s personal and takes into account whether a donor has given before. It’s also all about thanking the donor – not bragging, explaining what your organization does, and asking for another gift.

Don’t wait too long, though. What are telling your donors if it takes you months to send a thank you letter? They deserve a better experience.

To give your donors the best thank you experience, make a plan to show gratitude once a month. Use this opportunity to send a handwritten note. It’s always a welcome surprise if you do.

The Donor Engagement Experience

Showing gratitude is just one way to engage with your donors. They also want to hear how their gift is making a difference.

You may send newsletters, impact reports, and other updates, but what kind of experience are you providing? Are you sharing stories and other content you know your donors will be interested in? Or is your newsletter or impact report just one big, boring bragfest? Even if you’re sharing stories, are you making them engaging? 

Are you getting to know your donors? You could send them a short survey and ask what drew them to your organization. Do you send welcome packages to new donors? Do you do something special for long-term donors? Do you invite donors to engage with you in other ways, such as volunteering?

Keep in touch with your donors at least once a month. A communications calendar will help you with this. Remember the ask, thank, report, repeat formula. If all you do is send generic appeals, you’re not giving your donors a good experience.

Think of your donors at every level of their journey to give them the best experience possible.

How to Form Mission-Aligned Partnerships for Your Nonprofit

Ann Green Communications, community partnerships, donor engagement, donor relations, fundraising, gratitude , , , ,

Partnerships with organizations that share your values can yield much-needed support for your nonprofit. Learn how to find a like-minded partner in this guide.

By Casey Dorman

In 2022, 360MatchPro reports that companies donated $21 billion to nonprofits, and 88% of all public companies have Environmental, Social, and Governance (ESG) initiatives. Clearly, giving back is important to many businesses and their stakeholders. So, nonprofit organizations like yours should capitalize on this trend by building relationships with like-minded businesses and nonprofits.

When you look for a community partner, it’s important to choose one that aligns with your mission. For example, if you run an animal shelter, working with a pet business like a dog groomer makes sense as you both have a passion for animal welfare. 

In this guide, we’ll explore some of the simple steps your nonprofit can take to find a partner that shares your values and can provide the support you’re looking for.

What are the benefits of building community partnerships?

The most obvious benefit to a partnership is the possibility of additional funding—but these collaborations have much more to offer. Some of the other top benefits of community partnerships include:

  • Extended reach. Engage donors from audiences your nonprofit wouldn’t otherwise have. For example, working with a K-12 school will expose your nonprofit to students and school staff, as well as parents, grandparents, and other family members.
  • Access to more resources. Your partner may share more than just funding with you. Industry expertise, access to their professional network, in-kind donations, and volunteer support are just a few examples.  
  • Boosted credibility. Working with a reputable, respected organization can boost your reputation in the community. This fosters trust between you and your supporters, leading to sustainable, lasting relationships.
  • Exposure to diverse perspectives. This fuels innovation, helping your nonprofit get out of unproductive ruts. A more business-oriented approach could reveal new solutions to issues you may have wrestled with for a long time. Or, a fellow nonprofit could share some of their effective fundraising and donor engagement tips.

Working with community fixtures like beloved, decades-old restaurants or the charming local library shows that you want to connect with and serve your community. Community members will be more likely to support your organization when they know they’ll see the direct impact of your work on their town.

What are some tips for finding like-minded partners?

Expand your search to a variety of organizations.

You may think that only businesses are interested in partnering with nonprofits. While businesses are often willing to support nonprofits to further their Corporate Social Responsibility (CSR) efforts, there are a variety of community-based organizations you could pair up with. Some of these organizations include:

  • Fellow nonprofits and grantmaking organizations like foundations
  • Educational institutions, including K-12 schools, universities, and libraries
  • Cultural institutions, like museums
  • Churches and other faith-based organizations

Broadening your search beyond businesses will not only give you more collaboration options but also help you reach different audiences and provide more diverse resources. These relationships are often founded on the basis of mutual support which can make the partnership more sustainable.

Perform thorough interviews.

Communication is key in a partnership, and it starts with being clear about your expectations from the start. To find a partner who shares your passion for your cause, ask questions like:

  • What are your organization’s core values or mission? Businesses (like Patagonia) often list their values on their website, but it’s still important to ask. This way you can learn what each value means to the organization and how they apply it to their practice.
  • Have you worked with nonprofits in the past? If so, can you provide examples? Seeing other organizations the prospective partner has worked with can give you more insight into the causes they care about.
  • What resources or support can you provide our organization? Get an idea of the funding or other resources the partner is willing to provide. For example, a restaurant might provide free dinners at your meal center.
  • What commitment level are you looking for in a partnership? Determine how much responsibility the partner wishes to carry in the partnership. Some partners may just want to give your nonprofit more funding and exposure while others have more capacity to go above and beyond. 

Make sure to cover more logistical questions during the interview as well, like how the partner will track impact metrics during the partnership. For example, maybe your dog rescue wants to work with local organizations to spread awareness of proper spay, neuter, and vaccination practices. A dog boarding business that uses kennel management software like Gingr could track the number of sterilized and vaccinated dogs they serve before and after the campaign.

Start small.

During your interviews with potential partners, you’ll find that not all of them are willing or able to offer you significant funding, volunteers, or in-kind resources. However, with the right stewardship techniques, smaller collaborations can grow to large-scale partnerships one day. 

For example, let’s say a pet-care business’ ultimate goal is to partner with an animal shelter to encourage people to adopt pets rather than purchasing them from stores or breeders. However, the pet-care business doesn’t have the bandwidth or resources to support a full-fledged marketing campaign. 

You could start with something simple instead. Your nonprofit could hold a dog-friendly 5K and work with a local dog daycare to support the fundraising event. In this case, the dog daycare might sponsor the event in exchange for their logo being on promotional materials. Or, they might send a few volunteers to monitor the dogs’ behavior and hand out coupons for their services. 

If this event goes well, the dog daycare might start taking on more responsibilities in future partnerships and eventually agree to support a cause marketing campaign.

Whether a partnership offers small or large-scale support, it’s crucial to always thank the partner to show how much you value them. Show your appreciation by sending them thank-you notes, calling them to express your gratitude, and sharing impact metrics. Communicating the impact of their partnership with your nonprofit will get them excited to work with you again and continue doing good work in the community. 

Casey Dorman is the Sales Manager at Gingr software. Originally from Indianapolis, Casey now lives in Colorado with his wife and dog, Dexter. His hobbies include hiking, skiing, and visiting local breweries.

Future-proof your fundraising: 3 ways to thrive long-term

Ann Green Communications, fundraising, legacy giving, marketing, monthly donors, planning , , , ,

Is your nonprofit poised for long-term growth? Check out these future-proof nonprofit fundraising strategies based on today’s top philanthropic trends.

By Patrick Schmitt

Achieving your mission takes time and resources. As a nonprofit professional, you know this all too well and likely implement all kinds of cost-saving and efficiency-boosting practices into your work.

But can you be more proactive and go beyond mitigation? Do your fundraising practices look forward and actively build a foundation for long-term success? Are you missing opportunities to engage with donors in new ways?

This often means investing in new forms of fundraising or making significant updates to existing practices. But for many small nonprofits, making these changes can feel less than feasible.

However, as we’re constantly reminded, we’re living in unpredictable times—economic turbulence, heightened political and social tensions, the rise of AI, changing donor habits and preferences – the list goes on. There’s no telling what the future may bring, but your nonprofit needs to be there to shine a light and help lead your community.

Let’s explore some forward-thinking and (perhaps surprisingly) accessible ways for small nonprofits to drive sustained success and reduce the need for constant cost-cutting and budget anxiety.

The three future-proof nonprofit fundraising strategies explained in this article:  projectable revenue streams, non-cash giving, and mid-level donor stewardship.

1. Build more projectable revenue sources.

Building a pipeline of future giving is massively helpful—it fuels your operations and growth and it’s predictable, allowing you to plan more effectively.

There are two key types of projectable future giving to keep in mind:

  • Deferred giving
  • Recurring giving

Deferred giving, also called planned or legacy giving, is often neglected by small shops but is increasingly understood as a game-changer for nonprofits of all sizes. It’s an especially smart choice now as we begin to see “the Great Wealth Transfer” unfold, with shifting demographic trends resulting in large amounts of saved assets being disbursed to heirs and beneficiaries. 

But planned giving is also very accessible—any donor, regardless of wealth, can easily create bequests. And since these gifts are given from assets rather than cash on hand, they give donors the chance to drive sustained impact without impacting day-to-day finances (while also tapping into tax benefits here and now). The FreeWill guide to planned giving programs covers the essential steps nonprofits of all sizes should take to get started.

You’re likely more familiar with the ins and outs of recurring giving, facilitated through recurring giving programs or membership programs. It’s easy to get started—simply add a recurring giving option to your donation form, create a new web page and other materials that explain why repeat gifts are so impactful for your mission, and begin promoting the option.

As always, anchor your messaging about new forms of giving with impact, and don’t be afraid to be transparent. As a growing nonprofit, your committed supporters will be motivated by messages that clearly explain why you’re prioritizing these initiatives to ensure your mission’s long-term future.

2. Take more (or your first) steps into the world of non-cash gifts.

Donor preferences are rapidly diversifying. Tax code changes, the state of the economy, and ever-increasing financialization and digitization all point to increased interest in non-cash gifts.

By tapping into these trends and offering more flexibility to donors, nonprofits have seen substantial long-term growth. One study found that nonprofits that accept non-cash gifts grow six times faster than those that don’t.

Key types of non-cash gifts that should be on nonprofits’ radar include:

  • Grants from donor-advised funds (DAFs). These philanthropic quasi-savings accounts allow donors to put away funds for future giving to be saved and grown.
  • Gifts of stock. This includes stock from public and private companies and mutual funds and is a savvy choice for donors looking to rebalance their portfolios and secure added tax benefits.
  • In-kind gifts. These are any non-financial gifts, including materials and equipment, real estate, cars, you name it. Donors may seek to offload unneeded tangible assets to secure tax benefits, and you never know who among your community may have something they’d like to donate.
  • Cryptocurrency donations. Steadily rising in popularity among younger and more diverse groups of donors, gifts of crypto are new but certainly worth exploring if you think your donor base may be a good match.

If you’re prioritizing non-cash giving for the first time, we recommend starting with DAFs simply because their growth in popularity and volume has been explosive. Payouts to nonprofits from DAFs grew a record 28.2% in 2021, hitting $45.74 billion. Nonprofits also received 32% more DAF grants and 56% more grant dollars in 2022 than in 2021.

However, DAF fundraising is notoriously opaque—the names of DAF account owners aren’t disclosed, and these accounts are managed by a wide range of organizations including banks, financial service providers, and community foundations. 

To get started, try a simple survey. Ask donors if they’ve heard of, have, or are interested in donor-advised funds, and use your findings as the basis for future outreach. Contact local community foundations to introduce your organization and ask if they sponsor DAFs so they might recommend you as a grantee to their account holders. Add DAF giving as a new section on your Ways to Give page.

3. Invest in your mid-level donors.

Mid-level donors, often defined as those who give between $1,000 and $10,000 a year, are the key to long-term growth due to their high levels of loyalty and engagement. These supporters also tie together many of the trends that we’re currently seeing play out for nonprofits. Check out these statistics from Seachange Strategies’ most recent Missing Middle Report:

  • 31% of mid-level donors have made a bequest and another 23% say they plan to make one in the future.
  • 20% have donor-advised funds (DAF) and another 8% are considering starting one.
  • The majority of these donors say that in the past two years, their giving stayed the same or even grew amid political and cultural polarization (94%), global instability (94%), and economic uncertainty (87%).

What steps does your nonprofit currently take to steward and retain these donors?

For many organizations, the answer is “not enough,” and that’s understandable—fostering relationships with the highest-impact donors and running broad campaigns naturally take center stage for busy teams. But consider these easy steps you can take to better engage with them.

Start by understanding who these donors are. Revisit your segmentation strategies and rethink your donor pyramid or pipeline frameworks. The report cited above highlights that mid-level donors generally don’t demonstrate the same characteristics as major donors, so they’re easily missed if your focus is elsewhere.

Identify this segment of donors for your nonprofit and reach out to express your gratitude for their past support. If you want to prioritize deferred, recurring, or non-cash giving, try focusing on this group first. Develop tailored messaging to drive engagement, make asks, and retain their support, whether that’s through joining a membership program, creating a bequest, signing up to volunteer, or another action that will push your mission forward in the long run.

To work toward your mission effectively and responsibly, you need to do more than just trim expenses and seek new ways to be efficient. You also must proactively look forward and build a solid runway for your organization to grow.

With all the trends discussed above, it’s an exciting time for growing nonprofits. Take stock of your current practices and donor preferences, and weigh your options. While there’s no one-size-fits-all growth strategy, there are tons of easy first steps you can take to find the perfect route for your unique organization.

Patrick Schmitt and fellow co-CEO Jenny Xia founded FreeWill at Stanford University’s Graduate School of Business in 2016. FreeWill’s charitable giving platform makes it easier for nonprofit fundraising teams to unlock transformational gifts, and to date has generated over $6.6 billion in new gift commitments for thousands of nonprofit organizations. Patrick hosts FreeWill’s popular webinar series, educating thousands of nonprofit fundraising professionals each month about planned and non-cash giving strategies.

Before FreeWill, Patrick was the Head of Innovation at Change.org, where he helped grow the organization to 100 million users in four years. Prior to that, he ran email marketing for President Obama and served as Campaign Director for MoveOn.org.