Fundraising in an Ever-Changing World

We’ve been through so much over the last two years – the pandemic, an economic downturn, supply chain issues, inflation, a racial reckoning, political turmoil, and climate disasters. Now we can add the war in Ukraine. 

Your nonprofit organization has gone through a lot and is continuing to navigate this ever-changing world. It’s important to not give up and keep persevering.

Don’t stop fundraising

Whatever is going on in the world, please don’t stop fundraising! I know the crisis in Ukraine is on all of our minds right now. Your donors may be supporting organizations that are helping Ukrainians, but that doesn’t mean they’ll stop giving to your organization. Let them decide.

Fundraising in Times of Crisis: What Helps Ukraine Most Right Now?

Fundraising in a time of war: what should you do?

You don’t need to be in crisis!

Donors will give if they can. If you’re short on revenue, here are a few ways to raise more money.

Maybe you have a fundraising campaign planned for the spring. If not, you could run an emergency campaign. These were successful at the height of the pandemic. I’m sure you have pressing needs and a lot of people are still struggling now.

Organizations with a strong monthly giving program have done well. Monthly giving makes sense on so many levels. Nonprofits receive a steady stream of revenue throughout the year, monthly giving makes it easier for donors to spread out their gifts, and the monthly donor retention rate is 90%. Monthly donors are also more likely to become major donors and legacy donors. Having a strong monthly giving program will help during times of uncertainty.

Why Monthly Giving is Important for Your Nonprofit Organization

Another option is to reach out to your lapsed donors. Donors stop giving for a variety of reasons. Maybe things have been tough for them financially or they were just too overwhelmed to donate. 

Circumstances change. Reach out to donors who have given in the past, but who haven’t donated in the last year or two. Send them personalized appeals. If you find out a donor can’t afford to give right now, respect that, but keep sending messages of gratitude and updates, unless they opt out. I’ll go into that more below.

The right way to win back lapsed donors

Nonprofit organizations are essential

Never forget that nonprofit organizations are essential. Kudos to you for continuing to provide essential services as best you could.

It doesn’t matter what type of work you do, whether you work with refugees, in human services, protect the environment, or are an arts/culture organization, just to name a few. Your work is important!  

Don’t go silent

One reason donors stop giving is because they rarely hear from you or when they do, your messages are uninspiring. This is something you can control.

Imagine this scenario – Jane Donor has been supporting ten nonprofit organizations. She’s feeling pinched financially right now and has decided to only support seven this year. Which ones will she choose? The ones that regularly send personal messages of gratitude and engaging updates or the ones that rarely or never communicate unless they’re asking for donations?

It’s important to keep up with your donor engagement. An underlying theme of many of my posts is better communication will help you raise more money. 

Even if it’s hard, you can’t ignore your donors. You don’t need to take on too much. Aim for short, high-quality messages once or twice a month. Just don’t go silent.

You can’t ignore current situations

When I see communication that doesn’t reference the pandemic or other current situations, it makes me wonder if the organization is using a template that needs to be revised. It’s a good idea to refresh your messages at least once a year, but in this ever-changing world, you’ll need to do it more often. I elaborated on this in my last post. 

Steer Clear of Generic Communication

The good news is that over the last two years, most donor communication is more personal and less generic. Some specifically reference situations such as the pandemic, economic uncertainty, and systemic racism, while others mention a challenging two years. You also have specific needs and an urgency. Organizations that made this clear raised more money.

Your organization has faced challenges, everyone has, and you need to acknowledge that.

What the future holds

It would be nice to think the worst of COVID is behind us, but we don’t know that. Another crisis may also be looming out there. All this uncertainty makes it harder to plan. Plus, it’s stressful.

Many of the practices we implemented at the start of the pandemic may need to stay. We may be looking at a hybrid of in-person and virtual gatherings for a while. That includes events, donor meetings, and the workplace. If you’ve found some of these have worked better for your nonprofit, you could keep them for the time being.

Donors are going to expect honest communication about your need and want to hear about your success and challenges. No going back to generic messages. If you’ve communicated more with your donors over the last two years, keep that up. If you’ve been holding back, you need to do more. Don’t be afraid to ask for donations. Keep up the better communication. 

Keep up your essential work!

Fundraising in Inflation and Under Threat of Nuclear War. 7 Survival Tips for 2022

Don’t Be Tone Deaf on Ukraine

Steer Clear of Generic Communication

Are you still sending all your donors the same appeal and thank you letters? In these letters, you never thank a donor for their past support or acknowledge they’re a monthly donor.

If that’s not bad enough, many of these letters use vague and impersonal language and even worse, jargon.

Since the pandemic started, some nonprofits have done better and have created more nuanced, personal communication. Let’s keep this up and all do better. Your donors deserve that.

Steer clear of anything generic and create something more personal. Here’s what you can do.

Segment your donors

Your donors aren’t the same, so they shouldn’t all get the same letter. Segment your donors into different groups as much as you can. At the very least, create different letters for new donors, repeat donors, and monthly donors. You can also personalize letters to lapsed donors, event attendees, volunteers, etc.

I emphasize segmenting your donors a lot in my posts because it’s so important. Donors like it if you recognize their past giving or anything that shows them this is more than a generic, one-size-fits-all message.

Make This the Year You Segment Your Donors

Donor Segmentation | Comprehensive Guide + Tips For Success

And while we’re on the subject of personalization, please stop sending Dear Friend letters, as well. You’re not being a good friend if you don’t even use your donors’ names.

I know this will take more time, but it’s worth the investment. So is a good database to help you with this. Your donors will feel appreciated and are more likely to give again, possibly at a higher level.

Use language your donors understand

If you use vague, generic language and jargon, you’re going to instantly bore and/or confuse your donors. Most of your donors don’t have a medical or social services background. They don’t use terms like food insecurity, at-risk populations, and underserved communities, and neither should you.

Connect with your donors by using language they’ll understand. Instead of talking about food insecurity, give an example of a family choosing between buying groceries and paying the heating bill.

What do you mean by at-risk or underserved? Are high school students less likely to graduate on time? Do residents of a certain community not have good health care nearby? Is housing too expensive? Get specific, but at the same time, keep it simple. Also, terms like at-risk and underserved undermine your clients/community. Remember, these are human beings you’re talking about.

Let’s Try to Stop Using Jargon So Much

How Jargon Destroys Nonprofit Fundraising & Marketing

A great way to steer clear of generic language and jargon is to tell stories. Most people respond better to a human-interest story than a bunch of boring statistics.

Make Connections With Your Donors by Sharing Stories

Why your good story leads to a better world

Make time for improvement

You may be between fundraising campaigns right now and have a little more time (maybe). If so, work on segmenting the donors in your database, if you haven’t already done that. Segmenting your donors isn’t a one-time deal. Make changes as needed. For example, some of your single-gift donors may have upgraded to monthly. If you can do this after every campaign, you should have fairly up-to-date information on your donors.

In addition, dust off those templates and freshen up your appeal letters and thank you letters. We’re living in an ever-changing world and you need to acknowledge current situations in your communication. Create letter templates for different donor groups and replace your vague, generic language with something clear, conversational, and specific.

You can also use this time to add new stories to your story bank or start putting one together, if you don’t already have one

Have someone outside your organization, a friend or family member, look at your messages. Something that’s clear to you may mean nothing to others.

Steer clear of your generic communication with something that shows your donors how much you appreciate them by recognizing who they are and giving them engaging content they can relate to.

Spring Forward to Better Donor Retention

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

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

You need good donor relations

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

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

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

New beginnings

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

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

5 Ways to Improve New Donor Retention

One-and-done fundraising is just March Madness

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

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

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

A consistent stream of donor communication is key

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

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

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

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

How will you reach out?

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

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

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

Donor Retention Strategies: Get Donors to Give Again

7 Donor Retention Tips for Growing Organizations

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

3 Strategies to Find New Nonprofit Supporters Online

Are you ready to build your nonprofit’s online audience in the new year? Consider these three innovative strategies to connect with new supporters in 2022.

By Cassie Losquadro, Solutions Executive at GoodUnited

There are many strategies for discovering new donors for your nonprofit. Perhaps you rely on word of mouth and encourage existing supporters to share their stories and bring their peers into the fold. Or, perhaps you use direct mail to send information about upcoming events in your local area.

These strategies aren’t bad, by any means. However, there is power in embracing entrepreneurship and taking a risk on innovative strategies to find new supporters online.

For example, your nonprofit likely has an entire audience of potential supporters online that you haven’t encountered or attempted to engage with before. By embracing the third wave of giving, social fundraising, you can not only find those online supporters but also retain them for the long term.

This guide will focus on three social fundraising-driven strategies for finding new supporters online, including:

  • Virtual-First Fundraising
  • Thank-You Notes
  • Conversational Messaging

The GoodUnited team specializes in helping nonprofits elevate their social giving practices, so we’ve seen firsthand the power that these strategies can have when discovering new supporters online. With that in mind, all three of the following strategies are related to social giving— whether it’s virtual-first fundraising experiences, thanking existing supporters, or stewarding social supporters for long-term relationships.

Let’s dive in.

Virtual-First Fundraising

Virtual-first or virtual-native fundraising experiences describe fundraisers that are created to take place entirely online through social networking sites. Rather than planning a traditional, in-person fundraiser and formulating ways to incorporate online engagement into it, virtual-native fundraisers are conceptualized with the internet in mind from step one.

This is part of what we call the third shift in fundraising, a new frontier for nonprofit efforts. First, nonprofits were fundraising through direct mail and using mailing addresses to send and receive gifts. Later, the second shift occurred as nonprofits embraced online fundraising through email and websites. Now, the third shift— fully in-channel fundraising and engagement through virtual-first fundraising— is here.

Virtual-native fundraising is so powerful because research has shown that it’s an additive fundraising method.

With more traditional fundraising efforts, your nonprofit likely carefully builds a fundraising calendar in which campaigns don’t overlap (or if they do, they target different audiences). This is because you don’t want to target the same donors over and over again in a short time period. Soliciting donations soon after a supporter has given to your organization can lead to donor burnout.

However, the additive nature of virtual-native fundraisers alleviates this concern. “Additive” essentially means that the fundraisers build on top of your existing campaigns, rather than drawing support away from them in the form of donors giving to the virtual campaign over another one. This is possible because virtual-first fundraisers connect with an entirely new audience — an online audience that is likely to be interested in your nonprofit but hasn’t engaged with it before.

This is noticeable in the Challenges on Facebook hosted by Susan G. Komen in 2021. The nonprofit connected with 13,000 new supporters, 90% of whom were new to Komen. 

To make the most of virtual-native fundraising in 2022, consider following Komen’s lead and incorporating Challenges on Facebook into your strategy. A Challenge is a time-bound peer-to-peer fundraising effort. During the Challenge, participants complete a task (such as running, walking, or calisthenics) while raising funds for your nonprofit using a Facebook fundraiser. Participants are added to a Facebook group to connect with one another and experience a digital community.

Here are the basic steps of hosting a Challenge on Facebook:

  1. Choose a Challenge task.
  2. Create the corresponding Challenge group on Facebook.
  3. Use Facebook ads to spread the word about the fundraiser.
  4. Once participants sign up and the Challenge begins, engage with the group by sharing discussion topics, fundraising tips, and more.

To maximize the audience-discovery potential of these fundraisers, target your ad campaigns to groups that are outside of your normal audience— such as lookalike audiences that haven’t engaged with your nonprofit before. Additionally, hold multiple events throughout the year. By layering Challenges on Facebook into your fundraising strategy, you’ll have a diverse, multichannel fundraising calendar that maximizes revenue.

Thank-You Notes

Online fundraising has evolved— now, with social fundraising tools, your supporters can start fundraisers on behalf of your nonprofit and drive those fundraisers across the finish line before you’re even aware of them. This is a major benefit of online fundraising, as donations can come in without any additional work from your nonprofit. However, it’s also a challenge as you may have existing online supporters that you’re simply unaware of!

The best way to capture one-time social supporters— for example, individuals who conduct a birthday fundraiser for your nonprofit on Facebook but haven’t engaged with you otherwise— as long-term champions is by thanking them for their efforts.

One example of expressing appreciation virtually is posting thank-you comments on all fundraisers started for your nonprofit on Facebook.

While Facebook won’t notify you when users create a fundraiser on your behalf, you can discover newly-created fundraisers using the Sort & Filter tool. Essentially, you’ll navigate to the “Fundraisers” section of your nonprofit’s profile and use the tool to:

  • Sort to show recently-created fundraisers first.
  • Filter out any fundraisers on which you’ve already posted a thank-you note.

This tool is crucial as the default “Fundraisers” view will first show campaigns that are closest to their goals or that are almost at their end date. This means you could be overlooking newer campaigns, especially if those campaigns take longer to raise a significant amount.

Once you’ve sorted and filtered your campaigns, go through and post thank-you notes on each individual campaign. Admittedly, this can be a time-intensive process, especially for nonprofits that have a significant amount of social support. Consider working with a social fundraising services provider, which can automate much of this process for you.

Discovering new supporters online isn’t always finding entirely new people to connect with— sometimes, it’s making the most of the support you already have, but that you’re unaware of.

Bonus! This section focuses on how to thank individuals who start fundraisers on your behalf. But what about the supporters who donate to those fundraisers? GoodUnited has a full guide to thanking donors on Facebook to help you get started.

Conversational Messaging

Discovering individuals online who are interested in your nonprofit and willing to fundraise on your behalf is only part of the challenge. The second part is engaging with those individuals, building a relationship between them and your nonprofit, and retaining them for years to come.

One of the best ways to do this online is through conversational messaging, or one-on-one conversations between a representative from your nonprofit and an online supporter held via a social media chat functionality. For example, in the thank-you notes from the previous section, you can invite supporters to start a chat with your nonprofit using Messenger. In Messenger, you can share:

  • Gratitude: Thank the supporter for their work on behalf of your nonprofit and discuss the impact that the funds they raised will have. The more specific you can get, the better!
  • Educational Information: From the donation payout process to whether Facebook fundraising has fees— it doesn’t— your supporters will likely have many questions about how social fundraising works.
  • Opportunities: You can share upcoming fundraisers and volunteer campaigns that the individual can participate in. Or, you can share information about matching gift programs so the supporter can speak with their employer about beginning the gift match process!
  • Questions and Surveys: This could be as straightforward as asking the supporter about what types of opportunities and communications they’d like to receive in the future, or more complex such as sharing a link to an external survey where they can provide additional information.
  • Additional Contact Data: One of the biggest controversies with social fundraising is that Facebook retains most donor and participant data, which can make it challenging for nonprofits to connect with supporters off of the platform down the line. In your messaging sequence, ask them to share additional contact information such as their mailing and email addresses. This way, you can connect with that supporter in your multichannel efforts as well!

Conversational messaging is so powerful because it can be customized to each of your individual supporters’ interests and needs. Rather than sending out information en masse, which is how social media has been used previously, you can tailor your communications to build a relationship with each individual.

And, if you’re worried about holding conversations with hundreds or even thousands of social supporters, there are social fundraising services providers that can assist with that task as well. They can create custom automated messaging sequences that are tailored to both your nonprofit and your supporters, creating a realistic and valuable experience for each individual who opts in to chat with your organization via Messenger.

Wrapping Up: Next Steps After Discovering New Supporters Online

When you discover a new audience online, you’ll suddenly have access to a wealth of information— contact details, preferences, demographics, and more. Prioritize your nonprofit’s data hygiene as you expand your online engagement efforts to ensure your organization’s constituent relationship management (CRM) system isn’t overwhelmed by all of your new supporters.

From there, it’s up to you to continue engaging with these supporters and building relationships over time! Aim to treat your newfound online supporters as you would those discovered through more traditional means. By embracing the third wave of giving, social fundraising, you’ll be set up for success in the coming years. Good luck!

Cassie Losquadro is a sales leader at GoodUnited, the social giving solution. Cassie has spent the last 5 years in the fundraising technology space. Cassie is energized by working with nonprofit leaders and changemakers who are to a person, saving the world through their initiatives. Hailing from Rhode Island, Cassie lives in Charleston, SC with her husband, two children, and a rescue pup, Bella. Connect with Cassie on LinkedIn: https://www.linkedin.com/in/cassiefaella/

How You Can Create a Better Annual Report

What do you think of when you hear the word annual report? If you’re a donor you might think “Oh, it’s that long, boring thing I don’t have time to read.” If you’re a nonprofit professional, you might think “It’s such a pain to put together.”

What do you do? Organizations need to share accomplishments and show gratitude to their donors, but is the annual report the way to do that? It can be if you do it well. 

Unfortunately, many nonprofits fall short with this. Most annual reports are too long, boring, and basically a demonstration of the organization patting itself on the back. There’s often very little appreciation for donors. And yes, it’s time-consuming to put together.

It’s possible to make this a better experience for both donors and nonprofit organizations. Here’s how.

You don’t have to do an annual report

One way to make this a better experience is to not do an annual report at all. This doesn’t let you off the hook for sharing accomplishments with your donors. You could send short progress reports a couple of times a year or monthly e-updates instead. This makes a lot of sense if taking on a big report sounds too overwhelming.

If you decide to do an annual report, I encourage you to move away from the traditional multi-page one. Aim for something no longer than four pages. Bigger isn’t always better.

Why One Size Doesn’t Fit All

Your annual report is for your donors

Keep your donors in mind when you create your annual report and include information you know will interest them. Also, donors have a lot going on, so that’s another reason not to create a huge report that they may or may not read.

You might want to consider different types of annual reports for different donor groups. You could send an oversized postcard with photos and infographics or a one-to-two-page report to most of your donors. Your grant and corporate funders might want more detail, but not 20 pages. See if you can impress them with no more than four pages.

Make it a gratitude report

Donors want to feel good about giving to your nonprofit. Think of this as a gratitude report. You may want to call it that instead of an annual report. Many donors have stepped up to help during the past two years and deserve to be thanked for that.

Focus on thanking your donors for their role in helping you make a difference. 

What’s in My Mailbox | This Nonprofit Gratitude Report Shines

Why You Should Stop Saying “Annual Report” (And What to Call it Instead)

Address the current situations

We’re still in a pandemic, which I’m sure is affecting your work. We’re also dealing with a precarious economy and the heightened awareness of systemic racism. Your donors will want you to address these situations and focus on how they’re affecting your clients/community. I go into more detail about this below.

How are you making a difference?

The theme of many annual reports is look how great we are. They’re organization-centered instead of being donor-centered and community-centered.

They also include a bunch of statistics, such as the number of clients served. You need to share specific accomplishments that show how you’re making a difference.

Focus on the why and not the what. I know your organization has had to make a lot of changes due to the pandemic, but what’s most important is why you needed to do that.

You can say something like this – Over the past two years, we have seen triple the number of people at the Riverside Community Food Bank. As COVID rates fluctuate, we need to ensure that we can continue to serve people safely. Thanks to donors like you, we are able to meet our demands and provide local residents with boxes of healthy food.

Phrases like Thanks to you and Because of you should dominate your annual report or any type of impact report.

Tell a story

Donors want to hear about the people they’re helping. You can tell a story with words, a photo, or a video. 

For example – Diana, a single mother with three kids, has been trying to make ends meet with periodic work. Ever since the pandemic started it’s been a struggle for her family. She could barely afford groceries, rent, and utilities. Diana had never gone to a food bank before and felt ashamed to have to do that. But when she reached out to the Riverside Community Food Bank, she was treated with respect and dignity. Now she’s able to bring home healthy food for her family.

Make it visual

Your donors have a lot going on and won’t have much time to read your report. Engage them with some great photos, which can tell a story in an instant. Choose photos of people participating in an activity, such as volunteers working at a food bank or a one-to-one tutoring session. Be sure to get permission if you want to use pictures of clients.

Use colorful charts or infographics to highlight your financials. This is a great way to keep it simple and easy to understand. Include some quotes and short testimonials to help break up the text.

Be sure your report is easy to read (and scan). Use at least a 12-point font and black type on a white background. A colored background may be pretty, but it makes it hard to read. You can, however, add a splash of color with headings, charts, and infographics.

Write as if you’re having a conversation with a friend

Beware of using jargon. Most of your donors don’t use words like underserved or at-risk, and neither should you. Use everyday language such as – Because of you, we found affordable housing for over 100 homeless families. This is even more important as COVID-19 continues to be a part of our lives and living in a shelter or with other families isn’t always safe. Now, these families have a place to call home.

Write in the second person and use a warm, friendly tone. Use you much more than we.

Skip the donor list

Think twice about including a donor list in your annual report. It takes up a lot of space and there are better ways to show appreciation. If you feel you must have a donor list, you could put one on your website or just include major funders. 

Planning is key

I know putting together an annual report can be time-consuming. One way to make it easier is to set aside a time each month to make a list of accomplishments. This way you’re not going crazy at the end of the year trying to come up with a list. You can just turn to the list you’ve been working on throughout the year.

This will help ensure that your 2021 annual report doesn’t go out in the middle of 2022. Ideally, you should send out an annual report by the first quarter of the following year. When nonprofits sent out their 2019 reports after the pandemic started, it seemed irrelevant.

You also want to create a story and photo bank and you can draw from those when you put together your annual report.

Creating a shorter report or an infographic postcard will also help make this easier for you. Remember, you also have the option of not doing an annual report and sending periodic short updates instead.

Whatever you decide, put together an annual report that’s a better experience for everyone. Here is more information about creating a great annual or impact report.

Useful Tips & Resources for Your Nonprofit’s Annual Report

Your Nonprofit Annual Report: 10 Things to Include This Year

Nonprofit Annual Reports: 8 Essential Tips [& Template]

How to Craft a 1-Page Nonprofit Annual Report

How You Can Improve Your Donor Communication

One of the many lessons since the pandemic started is generic, organization-centered communication has to go.

I know there has been some conflict about donor-centered vs community-centered over the last two years and I think we can have both. What you don’t want is to be organization-centered. You can’t communicate with your donors without focusing on them. This is true for any type of audience. Write to your readers.

Explained: Donor-Centric and Community Centric Fundraising

We’re also seeing real people with real problems. Using vague, generic terms such as at-risk and underserved is demeaning to your clients/community.

You can do better if you make some of these improvements to your donor communication.

Fundraising Appeals

  • Your fundraising appeal shouldn’t be 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 your clients/community.
  • Segment your appeal 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.
  • Address your appeal to a person and not Dear Friend.
  • Don’t use jargon or other language your donors won’t understand. Instead of saying we’re helping at-risk youth, say something like – With your support, our tutoring program can help more students graduate from high school on time. Many students fell behind when the pandemic started.
  • Your appeal should make people feel good about donating to your organization.

Thank you letters

  • Your thank you letter shouldn’t come across as transactional and resemble a receipt. This is one of my huge pet peeves. Yes, you need to acknowledge the donation is tax-deductible, etc, but most donors are more concerned about how their gift made a difference.
  • Your thank you letter (or better yet, a handwritten note) needs to be filled with appreciation. Start your letter with You’re amazing! or Thanks to You!, and not On behalf of X organization.
  • Address your thank you letter to a person and not Dear Friend.
  • Tell 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 Westside Community Food Bank. This is crucial since we’ve been seeing triple the number of people over the past two years.
  • 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

  • Your newsletter shouldn’t sound self-promotional and focus on all the wonderful things your organization is doing. Since the pandemic started, I’ve seen organizations patting themselves on the back because of all the changes they needed to make to their programs. What’s most important is how this is affecting your clients/community. Yes, you may have changed the protocols (possibly several times depending on COVID positivity rates) at your homeless shelter, but that’s because you needed to continue to offer a safe place to those who need it.  
  • Write your newsletter 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.
  • Include stories about clients, engaging photos, and other content your donors like to see. Remember, donors want to see the impact of their gift.
  • Use the right channels. Perhaps you only send an e-newsletter, but some of your donors prefer print.
  • Show gratitude to your donors/supporters in your newsletter.

These suggestions for improvement can be used in other types of donor communication such as annual reports, your website, email messages, and social media posts.

Better donor communication can help you build relationships. This is especially important now when your goals should be donor retention and sustaining long-term donors.

9 Best Practices for Communications That Stand Out

Nonprofit Communication Best Practices To Make Communications More Impactful 

Improving Donor Communications: 7 Tactics to Keep In Mind

Image credit –  www.epictop10.com

Go Above and Beyond When You Thank Your Donors

Many donors have gone above and beyond to help nonprofit organizations over the last two years.

This means you need to go above and beyond when you thank them. Are you doing that? Most likely, you’re not. I know running your organization is hard right now, but you need to prioritize donor appreciation.

Thanking your donors is not just something you do after you receive a donation and then do nothing for a while. 

Gratitude is something you need to show all year-round and with Valentine’s Day coming up, it’s a great opportunity to thank your donors and show them how much you appreciate their support.

Maybe you would rather not go the Valentine’s Day route, which is understandable. But you should still do something to show appreciation this month (and every month). The holidays are over and February can be a dreary month, even in the best of times. Your donors could use a little kindness right now.

This is also a good opportunity to keep in touch with the people who gave to your year-end appeal, especially first-time donors. If you haven’t shown any appreciation since your year-end appeal, you don’t want to wait much longer.

Here are a few ways you can go above and beyond when you thank your donors.

Create a thank you photo

Make your donor’s day with a great photo like this one.

You can send thank you photos via email and social media, use one to create a card, and include one on your thank you landing page.

Make a video

Videos are a great way to connect with your donors. They’re simple, yet effective, so don’t worry if you weren’t a film major. It’s not too hard to create a video.

How to Create a Donor Thank You Video

One idea for your video is to show a bunch of people saying thank you. You’ll want your video to be short, donor-centered, and show your organization’s work up close and personal. You can also create personalized videos, which are always a nice gesture.

Your thank you landing page is the perfect place to put a video. This is your first opportunity to say thank you and most landing pages are just boring receipts (and receipts fall short when it comes to showing gratitude). You can also put your thank you video on your website and share it by email and social media.

10 Tips For Thanking Your Donors With Video

Nonprofit Thank You Video Script

Send a card

A handwritten note will also brighten your donor’s day. If you don’t have the budget to send cards to everyone, send them to your most valuable donors. These may not be the ones who give you the most money. Do you have donors who have supported your organization for more than three years? How about more than five years? These are your valuable donors. Other valuable donors are the ones who have been generous since the pandemic started. Don’t take any of these donors for granted.

That said, I do think you should make every effort to send a card to ALL your donors at least once a year. You can spread it out so you mail a certain number of cards each month, ensuring all your donors get one sometime during the year. 

Most organizations don’t send thank you cards, so you’ll stand out if you do.

Share an update 

In addition to saying thank you, share a brief update on your success and challenges. Emphasize how you couldn’t have helped someone without your donor’s support. For example –Thanks to you, David won’t go to bed hungry tonight. It’s been tough for his family to make ends meet this year.

Phrases like Thanks to you or Because of you should dominate your newsletters and updates.

Plan to do better

Make this the year you do a better job of thanking your donors. Thank your donors right away and send a thank you note/letter or make a phone call. Electronic thank yous aren’t good enough.

Be personal and conversational when you thank your donors. Don’t use jargon or other language they won’t understand. Write from the heart, but be sincere. Give specific examples of how your donors are helping you make a difference.

Also, make sure your thank you note/letter puts gratitude front and center. You don’t need to explain what your organization does, brag, or ask for another donation. You have plenty of opportunities to ask for donations. Plain and simple, the purpose of a thank you letter is to thank your donors.

Make thanking your donors a priority

I’m a big proponent of communicating by mail, even if it’s only a few times a year. It’s much more personal. Yet, many nonprofits are skittish about spending too much on mailing costs.

If your budget doesn’t allow you to mail handwritten cards, is there a way you can change that? You may be able to get a print shop to donate cards. You could also look for additional sources of unrestricted funding to cover cards and postage. Think of these as essential expenses for your essential donors.

Maybe you need a change of culture – a culture of gratitude. This comes from the top, but you also need to get your board, all staff, and volunteers invested and involved in thanking your donors. 

You can’t say thank you enough. Make a commitment to thank your donors at least once a month. Create a thank you plan to help you with this. Planning ahead and creating systems makes a difference.

Keep thinking of ways to let your donors know how much you appreciate them. You don’t even need to wait for a holiday or special occasion. Just thank your donors because they’re amazing and you wouldn’t be able to make a difference without them.

Keep reading for more ways you can go above and beyond when you thank your donors.

Donor Appreciation: Creating a Strategy (And 22+ Ideas!) 

15 Sincere Ways to Say Thank You to Your Donors

Thank You Letters Donors Will Love

Why Monthly Giving is Important for Your Nonprofit Organization

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

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

Monthly giving helps you raise more money

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

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

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

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

It raises your retention rate, too

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

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

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

How to get started

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

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

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

10 Quick Tips to Create a Great Monthly Giving Program

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

Make monthly giving the go-to option

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

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

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

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

Make your monthly donors feel special

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

Make This the Year You Segment Your Donors

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

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

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

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

Best Practices For Recognizing, Thanking And Retaining Monthly Donors

Thanking and Retaining Your Monthly Donors

Practical, Creative Ideas to Thank Monthly Donors

Reach out at least once a month

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

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

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

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

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

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

Go all out for your monthly donors

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

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

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

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

Once a monthly donor, always a monthly donor

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

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

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

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

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

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

More on monthly giving.

Nonprofit Monthly Giving Programs Don’t Market Themselves

The Ultimate Guide to Monthly Giving Programs (+ Examples)

5 Benefits of Recurring Giving Programs for Nonprofits

Fundraising Should be About Building Relationships, Not Making a Transaction

Why does making a donation often feel like a transaction? Organizations get so caught up in the raising money part, that they forget about building relationships with their donors.

Yes, relationships! This is just as important as raising money. 

It’s hard to keep raising money if you don’t build a good relationship with your donors. The two go together. 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.

You’ll have more success if you move away from transactional fundraising and focus on building relationships. Here are some suggestions.

Stop using transactional language

First, the word transaction should not appear anywhere in your fundraising. Sometimes I see the words “Transaction complete” after I make an online donation. That’s not giving me a nice, warm, fuzzy feeling at all. I made a gift, not a transaction.

Even more prevalent is the word receipt, which is often used in lieu of thank you. After a donor makes a gift, they should feel appreciated. 

An email subject line is one of your first chances to connect with your donor. How would you feel if this is what you saw? 

“Your Recurring Donation Receipt” 

“Donation tax receipt”

This again is emphasizing the transaction. Payment information should not be the lead of any type of thank you. Where are the words thank you?

It’s not easy to find good thank you email subject lines. Here are some that are better.

“Thank you for your generous monthly gift”

“You are wonderful!”

“Your monthly gift in action” 

That last subject line leads into an email that emphasizes how the donor is helping that organization make a difference, which is a good example of building relationships.

When organizations lead their fundraising appeals by saying “It’s our annual appeal” or “It’s GivingTuesday,” they’re not connecting with their donors by concentrating on why donors give. 

Many donors don’t care that it’s your year-end appeal. They care about your work and want to help. Instead, say something like, How you can help families put food on the table. 

Make relationship building part of your fundraising campaigns

You need to build relationships before, during, and after each of your fundraising campaigns.

Before your next appeal, send your donors an update to let them know how they’re helping you make a difference. This is especially important if you do more than one fundraising campaign a year. You don’t want your donors to think the only time they hear from you is when you’re asking for money.

Segment your donors

One way to help ensure you’re focusing on relationships is to segment your donors and personalize your appeal letters and other types of donor communication. 

Don’t send the same appeal to everyone on your mailing list. What is your relationship with these individuals? Maybe they’ve given once or many times. Perhaps they’re event attendees, volunteers, e-newsletter subscribers, or friends of board members. Mention your relationship in your appeal letter. For example, thank a long-time donor for supporting you these past five years.

Monthly donors get their own appeal letter. This doesn’t happen enough and it’s one of my biggest pet peeves. Build relationships with these committed donors. Recognize they’re monthly donors and either invite them to upgrade their gift or give an additional donation.

Make This the Year You Segment Your Donors

Create an attitude of gratitude

Your focus on building relationships continues when you thank your donors. Many organizations do a poor job with this. Send a handwritten note or make a phone call, if you can.

Welcome your new donors. Let them know how much you appreciate this new relationship. If you don’t, it’s likely to be a short relationship.

Be sure to also shower your current donors with love to keep your relationship going. Do something special for donors who have supported you for several years.

Make sure your donors get a heartfelt thank you, not something that resembles a receipt.

Thanking donors is something you can do at any time of the year. I think one of the best ways to connect is by sending a handwritten note. It always warms my heart when an organization does this.

Holiday cards are a nice way to reach out, but don’t put a donation envelope in one. You have other opportunities to make appeals. Make it 100% about showing appreciation.

You can also send thank you cards at other times of the year. If money is tight, spread out your mailings over the year so each donor gets at least one card.

Don’t miss out on opportunities to build relationships

There are many ways you can build relationships with your donors throughout the year. 

You can give donors other opportunities to connect, such as volunteering, participating in advocacy alerts, and signing up for your newsletter. Done well, a newsletter or another form of an update is a good relationship-building tool. You could also offer virtual tours or Zoom discussions.

I’m amazed that after I attend an event, support someone in a walkathon, or give a memorial gift, most organizations don’t do a good job of building a relationship. I could be a potential long-time donor. Personally, I would never give a memorial gift or support someone in a charity walk if I didn’t believe in that organization’s cause. Don’t miss out on a potential opportunity to build longer-term relationships.

Have a relationship-building day

My main objection to giving days, such as GivingTuesday, is they focus so much on asking. What if we put all the time and energy we focus on giving days into a relationship-building day?

I’m not saying you can’t participate in giving days, but instead of the relentless begging, follow the formula above and build relationships before, during, and after your appeal.

Of course, you could choose not to participate in a giving day and have an all-out relationship-building day instead.

Giving Tuesday: What if it was called Living Schmoozeday?

Build relationships all year round

It’s easier to stay focused on donors when you’re sending an appeal or thank you, but this is just the beginning. Many organizations go on communication hiatus at certain times of the year and that’s a huge mistake. Ideally, you should keep in touch with your donors every one to two weeks, once a month at the most.

Stay focused on relationships. Good relationships with your donors will help you raise more money and keep your donors for a long time. 

9 Ways to Build Strong Donor Relationships

4 Relationship-Building Strategies for Nonprofits to Know

How Your Nonprofit Can Ensure Success in the New Year

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

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

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

Here are some ways to ensure a more successful year.

Have a plan in place

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

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

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

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

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

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

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

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

How to Prepare a Nonprofit Fundraising Plan

6 Simple Fundraising Plan Tips [With Free Templates!]

Nonprofit Marketing Plan in 8 Steps (+ Free Templates!)

Communications Planning 101: What Every Nonprofit Needs to Know

Pay attention to your donor retention

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

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

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

A Guide to Donor Retention

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

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

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

Donor Retention Strategies: Get Donors to Give Again

Ultimate Guide to Donor Retention

Make Time to Welcome Your New Donors

Step up your monthly giving program

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

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

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

Monthly donors are also potential major and legacy donors.

Why Monthly Giving Makes Sense

10 Quick Tips to Create a Great Monthly Giving Program

Do a better job of communicating with your donors 

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

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

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

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

Keep relationships front and center

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

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

Good relationships with your donors will help you with retention.

How to Build Authentic Relationships With Nonprofit Donors

Don’t forget about gratitude

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

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

A Donor Resolution for 2022 You Will Want to Keep

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

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

6 New Years Resolution Ideas for Nonprofits

Preparing for 2022: What Your Nonprofit Should Know

Photo by Marco Verch