Why It’s Important to Segment Your Donors

Segmenting your donors is important in many ways. If you’re running a campaign, you can send different letters to different types of donors or segment by gift amount and encourage them to upgrade. You can also create a new donor welcome series, a special thank you mailing for monthly donors, or reach out to lapsed donors.

Your donors are not the same. Some donors have given for at least five years (these donors should get a lot of attention). Some are monthly donors. Yet, many nonprofit organizations fail to recognize that and send everyone the same messages. 

I often receive generic, one-size-fits-all communication from organizations that don’t acknowledge I’m a longtime donor or recognize that I’m a monthly donor. How do you think that makes me feel?

Besides creating a personal connection, another benefit of segmenting your donors is it can help you raise more money and boost your retention rate. If you haven’t been segmenting your donors and have been struggling with meeting your revenue and retention goals, that may be why. In this time of economic uncertainty, both for your nonprofit and your donors, segmenting could make a difference.

Isn’t it time for you to start segmenting your donors? If you’re already segmenting your donors, kudos to you!

You may be worried about how much time this will take. Plus, you don’t think your current CRM/database can handle it and it will cost too much to get a better one. 

In reality, it may cost you more not to segment. A good CRM/database is worth the investment because segmenting your donors will help you with retention, which costs less than trying to find new donors. 

Your appeals and thank you letters will stand out if you can personalize them and not send everyone the same generic letter. You don’t need to create a 100 different types of letters, though. Four or five should be sufficient. 

Here are a few different types of donor groups to help get you started. Remember, investing in a good CRM/database will help you with this.

Current single gift donors

An appeal letter to current single gift donors (Monthly donors get their own appeal. More on that below.) must acknowledge their past support. You can segment donors by gift amount and use this opportunity to ask for an upgrade. Many organizations don’t do this, but it’s a good way to increase your revenue.

Your donors will be more receptive to upgrading their gifts if you’ve been doing a good job of thanking them and staying in touch throughout the year.

If these donors give again, they should get a handwritten note, phone call, or letter letting them know how much you appreciate their continued support. If they’ve upgraded their gift, be sure to acknowledge that, too. 

Potential/new single gift donors

If you’re sending an appeal to someone who’s never donated to your nonprofit before, what is your connection to them? Are they volunteers, event attendees, or people on a list you purchased?

The more you can establish a connection, the better chance you have of getting a donation.

The retention rate for first-time donors is terrible. One of the reasons is poor communication. You can help boost your retention rate by making your new donors feel special.

New donors should get a handwritten note, phone call, or letter welcoming them as donors. Invite them to connect with you in other ways, such as signing up for your newsletter, following you on social media, and volunteering.

Then a week or so later, send them a welcome package by mail or email. Personalization is crucial for new donors.

One of the biggest hurdles nonprofits face is ensuring first-time donors give a second time. If they keep giving after that, they’re showing their commitment to your organization. That’s why the second gift is called a golden donation. Don’t blow it by ignoring this.

New monthly donors

Brand new donors who opt for monthly or other recurring donations get the same special thank you treatment mentioned above. Welcome them to your family of monthly donors. 

Your current monthly donors must get their own appeal that recognizes them as monthly donors. In this appeal, you can either ask them to upgrade their gift or give an additional gift. 

When your donors give an additional gift or upgrade their monthly gift, they, of course, get an amazing thank you.

Current donors who become monthly donors

Your current donors who decide to become monthly donors are also showing their commitment to you. They get a handwritten note, phone call, or letter thanking them for their continued support and for joining your family of monthly donors. From now on they should receive specialized appeals and other communication targeted to monthly donors. 

Segment as much as you can

While I’ve suggested a few ways you can segment, there are many more options. You can segment by gift amount and the number of years someone has been a donor. You can segment volunteers, event attendees, lapsed donors, and non-donors. You can also use segmentation in other types of communication, such as creating a special newsletter for monthly donors (or at the very least including a cover letter for monthly donors with your newsletter) and sending handwritten notes to people on their donor anniversary.

Segmenting your donors makes a difference
Spend some extra time segmenting your donors into different groups. Unfortunately, if you don’t, you’re missing out on opportunities to connect with your donors, raise additional revenue, and boost your retention rate.

How to Create a Fundraising Appeal That Will Help You Raise More Money

September is here. It’s back to school for the kids, pumpkin spice is everywhere, and depending on where you live, the humidity and hot weather are out of here.

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 more time 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 2025. 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 2025 Annual Appeal. That’s not inspiring. Instead, say something like – Find out how you can help kids learn to read. Remember, your goal is to get your donor to open the envelope

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 – Melanie, 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 Eastside Community Food Pantry. At first, Melanie 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 Melanie and other members of our community with healthy food when they need it. We’re seeing more people coming in right now because of rising food costs and cuts in benefits.

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. I realize some donors may be feeling pinched financially and won’t be able to give as much or at all, but some will give more. 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.

It’s not about your organization

Focus on your donors and your clients/community. Keep your organization in the background. 

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 successes 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. 

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, such as serif, 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 your 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 upcoming 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

Is Your Donor Engagement Actually Engaging?

You may think you’re practicing donor engagement by sending thank you letters and newsletters, but is the content actually engaging? It’s often formulaic and just downright dull.

Many nonprofits send all their donors the same appeal and thank you letters. In these letters, they 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.

It sounds obvious, but your donor engagement should be engaging. If it’s not, it’s time to move away from generic and impersonal communication. Your donors deserve better. Here are a few suggestions to help you improve your donor communication to make it more engaging.

Segment your donors

Your donors aren’t the same, so they shouldn’t all get the same letter or other types of communication. 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. Both because it allows you to send your messages to the right audience and you can personalize those messages. 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. 

Also, please stop sending Dear Friend letters. 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 CRM/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 will 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. Stay away from insider language

Connect with your donors by using language they’ll understand. Instead of writing about food insecurity, give an example of a single mother 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 writing about.

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

Make time for improvement

You may be between fundraising campaigns right now and have a little more time (or maybe not). If so, work on segmenting the donors in your database, if you haven’t already done that. Segment your donors on an ongoing basis. 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. Situations in the U.S. and throughout the world keep changing and your communication needs to be relevant. How is what’s going on now affecting your clients/community? 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 of your organization, a friend or family member, look at your messages. Something that’s clear to you may confuse others.

Create communication that shows your donors how much you appreciate them by recognizing who they are and giving them engaging content they can relate to.

Raise More Money With a Fundraising Appeal that Stands Out

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

How to Improve Your Communication for Better Donor Engagement

In my last post, I wrote about potential missed opportunities for donor engagement. You may think you’re practicing donor engagement by sending thank you letters and an e-newsletter, but is the content actually engaging? It’s often formulaic and just downright dull.

Many nonprofits send all their donors the same appeal and thank you letters. In these letters, they 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.

It sounds obvious, but your donor engagement should be engaging. If it’s not, it’s time to move away from generic and impersonal communication. Your donors deserve better. Here are a few suggestions to help you improve your donor communication.

Segment your donors

Your donors aren’t the same, so they shouldn’t all get the same letter or other types of communication. 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. Both because it allows you to send your messages to the right audience and you can personalize those messages. 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. 

Also, please stop sending Dear Friend letters. 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 CRM/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 will 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. Stay away from insider language

Connect with your donors by using language they’ll understand. Instead of writing about food insecurity, give an example of a single mother 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 writing about.

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

Make time for improvement

You may be between fundraising campaigns right now and have a little more time (or maybe not). If so, work on segmenting the donors in your database, if you haven’t already done that. Segment your donors on an ongoing basis. 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. Situations throughout the world keep changing and your communication needs to be relevant. 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 of your organization, a friend or family member, look at your messages. Something that’s clear to you may confuse others.

Create communication that shows your donors how much you appreciate them by recognizing who they are and giving them engaging content they can relate to.

Why You Need to Segment Your Donors

I’ve been emphasizing the importance of personalizing your communication lately. One way to do that is to segment your donors.

Your donors are not the same. Some donors have given for at least five years (these donors should get a lot of attention). Some are monthly donors. Yet, nonprofit organizations fail to recognize that and send everyone the same messages. 

I often receive generic, one-size-fits-all communication from organizations that don’t acknowledge I’m a longtime donor or recognize that I’m a monthly donor. How do you think that makes me feel?

Another benefit of segmenting your donors is it can help you raise more money. If you’ve been struggling to meet your revenue goals, that may be why.

Unfortunately, if you’re not segmenting your donors into different groups, you’re missing opportunities here –  both to connect with your donors and to raise additional revenue. 

Isn’t it time for you to start segmenting your donors? If you’re already segmenting your donors, kudos to you!

You may be worried about how much time this will take. Plus, you don’t think your current CRM/database can handle it and it will cost too much to get a better one. 

In reality, it may cost you more not to segment. A good CRM/database is worth the investment. Segmenting your donors will help you with retention, which costs less than trying to find new donors. 

Your appeals and thank you letters will stand out if you can personalize them and not send everyone the same generic letter. You don’t need to create a 100 different types of letters, though. Four or five should be sufficient. 

Here are a few different types of donor groups to help get you started. Remember, investing in a good CRM/database will help you with this.

Current single gift donors

An appeal letter to current single gift donors (Monthly donors get their own appeal. More on that below.) must acknowledge their past support. You can segment donors by gift amount and use this opportunity to ask for an upgrade. Many organizations don’t do this, but it’s a good way to increase your revenue.

Your donors will be more receptive to upgrading their gifts if you’ve been doing a good job of thanking them and staying in touch throughout the year.

If these donors give again, they should get a handwritten note, phone call, or letter letting them know how much you appreciate their continued support. If they’ve upgraded their gift, be sure to acknowledge that, too. 

Potential/new single gift donors

If you’re sending an appeal to someone who’s never donated to your nonprofit before, what is your connection to them? Are they volunteers, event attendees, or people on a list you purchased?

The more you can establish a connection, the better chance you have of getting a donation.

The retention rate for first-time donors is terrible. One of the reasons is poor communication. You can help boost your retention rate by making your new donors feel special.

New donors should get a handwritten note, phone call, or letter welcoming them as donors. Invite them to connect with you in other ways such as signing up for your newsletter, following you on social media, and volunteering.

Then a week or so later, send them a welcome package by mail or email. Personalization is essential for new donors.

One of the biggest hurdles nonprofits face is ensuring first-time donors give a second time. If they keep giving after that, they’re showing their commitment to your organization. That’s why the second gift is called a golden donation. Don’t blow it by ignoring this.

New monthly donors

Brand new donors who opt for monthly or other recurring donations get the same special thank you treatment mentioned above. Welcome them to your family of monthly donors. 

Current monthly donors

Your current monthly donors must get their own appeal that recognizes them as monthly donors. In this appeal, you can either ask them to upgrade their gift or give an additional gift. 

When your donors give an additional gift or upgrade their monthly gift, they, of course, get an amazing thank you.

Current donors who become monthly donors

Your current donors who decide to become monthly donors are also showing their commitment to you. They get a handwritten note, phone call, or letter thanking them for their continued support and for joining your family of monthly donors. From now on they should get specialized appeals and other communication targeted to monthly donors. 

Segment as much as you can

While I’ve suggested a few ways you can segment, there are many more options. You can segment by gift amount and number of years someone has been a donor. You can segment volunteers, event attendees, and non-donors. You can also use segmentation in other types of communication, such as creating a special newsletter for monthly donors (or at the very least including a cover letter for monthly donors with your newsletter) and sending handwritten notes to people on their donor anniversary.

Segmenting your donors makes a difference

We continue to face an uncertain economy. It’s possible some donors may cut back on their giving. Don’t let them choose between organizations that communicate throughout the year with engaging personalized appeals, thank yous, and updates or organizations that just send generic, one-size-fits-all communication. People always appreciate a personal connection.

Spending some extra time segmenting your donors and personalizing your communication will be worth it if you can raise additional revenue and boost your retention rate.

Don’t Wait Too Long to Start Planning Your Year-End Fundraising Campaign

It’s hard to think about fall when it’s been so hot in many parts of the United States and Europe, but September will be here before you know it.

Even though it might be sweltering outside, now is a good time to start planning your year-end fundraising campaign, hopefully in an air-conditioned space. If you’re behind in your revenue goals, you may want to launch it earlier than you have in the past. 

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 2023 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.

When do you want to launch your appeal? Plan on everything taking longer than you think it will, so earlier is better. Keep in mind you’ll be competing with many other organizations who are doing appeals. 

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. 

Maybe you want to send your appeal letters the first week in November. Maybe it’s better to send them in October. Whenever it is, make your goal to have the letters done at least a week before that. Work backwards to figure out how you can get to your proposed send date.

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 three years and you need to take that into account.

A good way to start is to create an engaging story for your appeal. Even though the public health emergency is over, COVID is still a part of our lives. Are your clients/community feeling the aftereffects of the pandemic? Are they facing economic challenges? 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 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.

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 tear their hair out, 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?

One 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?

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.

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. 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, but right now find that air-conditioned space and start planning your year-end campaign.

Best of luck!

Photo by CreditDebitPro

The Importance of Ask, Thank, Report

You’re probably familiar with the Ask, Thank, Report formula in fundraising. If not, you should be. Organizations that follow that tend to be more successful. 

It’s also referred to as Ask, Thank, Report, Repeat, because it’s something you need to keep doing. And what’s most important is to thank and report before you ask for another donation. 

Of course, formulas are good in theory, but you can’t just go through the motions. Done well, the ask, thank, report, repeat formula can help you raise more money, build relationships, and boost your retention rate.

Asking for donations is not all or nothing

Many nonprofit organizations spend a lot of time asking and not so much on thanking and reporting.

At certain times of the year, such as GivingTuesday and year-end, nonprofits bombard donors with a bunch of generic appeals. Other organizations are skittish about asking for money. They might bury the ask in the appeal or think donors don’t want to give during a pandemic or recession (absolutely not true).

A good fundraising appeal starts with a story, followed by a clear, prominent ask. You’ll want to repeat your ask at least once more in the appeal.

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. 

Your appeal should make people feel good about donating to your organization.

You can and should also thank and update/report back to your donors in your appeal.

Thanking your donors means thanking your donors

Your thank you letters/emails/handwritten notes need to be all about thanking your donors. Sounds obvious, right, but many thank you letters don’t do a great job of saying thank you.

First, your thank you letter (or better yet, a handwritten note) needs to open with something like You’re amazing! or Thanks to You! and not On behalf of X organization.

It shouldn’t come across as transactional and resemble a receipt. This is one of my biggest 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.

You also don’t need to explain what your organization does or ask for another gift. Remember, this is the thanking phase.

Let your donors know the impact of their gift. For example – Thanks to your generous donation of $50, a family can get a box of groceries at the Northside Community Food Pantry. This is crucial since we’re seeing more people come in due to rising food prices.

Address your thank you letter to a person and not Dear Friend.

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.

Keep your donors updated

The most common way to report back or update donors is a newsletter. These can be print, electronic, or a combination of both. You should definitely thank your donors in your newsletters and other updates. You can also ask for a donation. Many organizations put a donation envelope in their print newsletter and it’s a good way to raise additional revenue. It’s less successful in an e-newsletter. If you include too many calls to action in an email message, sometimes donors don’t respond to any of them. Also, if you do include an ask in your newsletter, make sure some of your other updates don’t include a donation request.

Your newsletter shouldn’t sound self-promotional and focus on all the wonderful things your organization is doing.  Donors want to see the impact of their gift, not hear you brag. Share at least one story. Client stories are best. Use phrases like Because of you and Thanks to donors like you. In addition, include engaging photos and other content your donors would like to see.

Another way to update your donors is with an impact report. I like that term better than annual report. You can also do one of these more than once a year. Shorter, more frequent updates are better than one of those long, boring traditional annual reports. Be sure to focus on how your donors helped you make a difference and don’t ask for a donation in your impact report. 

Something else you can do is to send a Donor Care Letter. It’s a way to share updates without putting together an actual newsletter. You can and should also send frequent updates by email and social media.

Repeat this throughout the year

Be sure to follow the ask, thank, report formula throughout the year. Most likely, you’ll need to do more thanking and reporting than you’re doing right now. Try to stay in touch with your donors at least once a month.  A communications calendar can help you with this.

Remember, the ask, thank, report formula should help you raise more money, build relationships, and boost your retention rate. The Better Fundraising Co. refers to this as the Virtuous Circle.

Improve Your Fundraising and Communications by Segmenting Your Donors

Do you send all your donors the same appeal and thank you letter? Do you also feel your appeals aren’t bringing you the donations you need?

Hmm, there may be a correlation here. If you’re not segmenting your donors into different groups, you’re missing a chance to raise more money and let your donors know you recognize them for who they are.

Your donors are not the same. Some donors have given for at least five years (these donors should get a lot of attention). Some are monthly donors. Yet, nonprofit organizations fail to recognize that and send everyone the same letter. 

I often receive generic, one-size-fits-all communication from organizations that don’t acknowledge I’m a longtime donor or recognize that I’m a monthly donor. Um, hello!

These organizations are missing opportunities to do a better job of connecting with their donors. Unfortunately, this happens way too often.

Don’t you think it’s time to start segmenting your donors? If you’re already segmenting your donors, kudos to you!

You may be worried about how much time this will take. Plus, you don’t think your current CRM/database can handle it and it will cost too much to get a better one. 

In reality, it may cost you more not to segment. A good CRM/database is worth the investment. Segmenting your donors will help you with retention, which costs less than trying to find new donors. 

You also don’t need to create a 100 different types of letters. Four or five should be sufficient. Your appeals and thank you letters will stand out if you can personalize them and not send everyone the same generic letter.

Here are a few different types of donor groups to help get you started. Remember, investing in a good CRM/database will help you with this.

Current single gift donors

An appeal letter to current single gift donors (Monthly donors get their own appeal. More on that below.) must acknowledge their past support. This is also a good opportunity to ask for an upgrade. Many organizations don’t do this, but it’s a good way to increase your revenue.

Your donors will be more receptive to upgrading their gifts if you’ve been doing a good job of thanking them and staying in touch throughout the year.

If these donors give again, they should get a handwritten note, phone call, or letter letting them know how much you appreciate their continued support. If they’ve upgraded their gift, be sure to acknowledge that, too. 

Potential/new single gift donors

If you’re sending an appeal to someone who’s never donated to your nonprofit before, what is your connection to them? Are they volunteers, event attendees, or people on a list you purchased?

The more you can establish a connection, the better chance you have of getting a donation.

The retention rate for first-time donors is horrible. One of the reasons is poor communication. You can help boost your retention rate by making your new donors feel special.

New donors should get a handwritten note, phone call, or letter welcoming them as donors. Invite them to connect with you in other ways such as signing up for your newsletter, following you on social media, and volunteering.

Then a week or so later, send them a welcome package by mail or email. Personalization is crucial with new donors.

One of the biggest hurdles nonprofits face is ensuring first-time donors give a second time. If they keep giving after that, they’re showing their commitment to your organization. That’s why the second gift is called a golden donation. Don’t blow it by ignoring this.

New monthly donors

Brand new donors who opt for monthly or other recurring donations get the same special thank you treatment mentioned above. Welcome them to your family of monthly donors. 

Current monthly donors

Your current monthly donors must get their own appeal that recognizes them as monthly donors. In this appeal, you can either ask them to upgrade their gift or give an additional gift. 

When your donors renew or upgrade their monthly gifts, they, of course, get an amazing thank you.

Current donors who become monthly donors

Your current donors who decide to become monthly donors are also showing their commitment to you. They get a handwritten note, phone call, or letter thanking them for their continued support and for joining your family of monthly donors. From now on they should get specialized appeals and other communications targeted to monthly donors. 

Segment as much as you can

While I’ve suggested a few ways you can segment, there are many more options. You can segment by gift amount and number of years someone has been a donor. You can segment volunteers, event attendees, and non-donors. You can also use segmentation in other types of communications, such as creating a special newsletter for monthly donors (or at the very least including a cover letter for monthly donors with your newsletter) and sending handwritten thank you notes to donors who have given for over two years.

Segmenting your donors makes a difference

As we continue to navigate through uncertain times, some donors may cut back on their giving. Don’t let them choose between organizations that communicate throughout the year with engaging personalized appeals, thank yous, and updates and organizations that just send generic, one-size-fits-all communications. People like personal connection.

Spending some extra time segmenting your donors and personalizing your communications will be worth it if you can raise additional revenue and boost your retention rate.

In a future post, I’ll highlight specific ways segmenting your donors can help you raise more money.

Time for a Little Nonprofit Spring Cleaning 

It’s spring here in the Northern Hemisphere, although depending on where you live, it may or may not feel like it. 

A lot of people use this time of the year to do some spring cleaning. I know, groan. I envy the people who have taken on a bunch of cleaning and decluttering projects since the pandemic started. I’m not one of them. 

I know I should do more. As much as I dislike cleaning and organizing, I’m happy once it gets done. Often getting started is the hardest part.

Your nonprofit organization may have put off some version of your own spring cleaning and decluttering. It’s been a tumultuous two years and counting.

Take some time to tackle these so-called cumbersome tasks. Just think how happy you’ll be when you’re done. You’ll also make some much-needed improvements to your infrastructure and donor communication.

Here are a few suggestions to help you get started.

Clean up your mailing lists and database/CRM

Has it been a while since you’ve updated your mailing lists? Did you have an influx of address changes, returned mail, and bounced emails after you sent your year-end appeal? This is a good time to clean up and update both your direct mail and email mailing lists.

Don’t wait until right before your next mailing to clean up your donor data. If it’s been a while since you’ve done this, then you really need to do what is known as data hygiene.

Even though it’s tedious, have someone who’s familiar with your donors (your development director?) go through your mailing lists and database/CRM (customer relationship management) to see if you need to make any additions, changes, and deletions.

Be meticulous. No donor wants to see her name misspelled, be addressed as Mrs. when she prefers Ms., or receive three mailings because you have duplicate records.

Your donor database is an important tool and it needs to be up-to-date and filled with accurate information about your donors.

CLEAN UP YOUR ACT: DONOR DATA MANAGEMENT FOR NONPROFITS

Donor Database Best Practices To Care For Your Data Like You Care For Your Donors

Run your donor list through the National Change of Address database. It may cost some money to do this, but it’s worth it if you come out with squeaky clean data. Do this at least once a year.

Also, if you haven’t already done this, segment your donors into different groups – new donors, returning donors, monthly donors, etc. You may need to make some changes. For example, if a single gift donor starts giving monthly.

Make This the Year You Segment Your Donors

You might also want to move some lapsed donors who haven’t donated for several years into an inactive file. Don’t do this until you’ve sent targeted, personalized appeals asking them to donate again. And if you’ve never gotten in touch with any lapsed donors from 2021, you could reach out to them now.

Do the same thing with your email list. It doesn’t make sense to send email to people who don’t respond to it. Give these people a chance to re-engage, and if they’re not even opening your emails, move them to an inactive file. Don’t worry if people unsubscribe. You’re better off with an email list of engaged subscribers.

What’s in My Inbox | The Benefits of Cleaning Your Email List

Maybe you need a better CRM/database. If you’re using a spreadsheet to store your donor records, then you need an actual database. Get the best one you can afford.

Choosing a Donor Database: The Ultimate Guide for Nonprofits

Spring is about bringing in the new and a better database would be a wise investment. It can help you raise more money. You can also save money by having clean mailing lists.

Freshen up your messages

Now that you’ve cleaned up your mailing lists and segmented your donors, it’s time to freshen up your messages, if you haven’t done that for a while. I’ve written about this in a couple of recent posts, emphasizing that your donor communication needs to reference the current situations and steer clear of generic language and jargon. If you’re still using templates from before March 2020, you need a refresh.

Your thank you letters need to actually thank your donors, not brag about your organization. Make sure your automatically generated thank you emails and landing pages don’t look like boring receipts. Create separate templates for new donors, current donors, and monthly donors.

Why You Need a Thank You Plan

Let go of what you don’t need

The pandemic forced many organizations to rethink the way they did certain things. You may have held an in-person event for years, but in the spring of 2020 had to switch to virtual or run an emergency campaign. Maybe this worked better for you.

In-person events take a lot of staff time and don’t always bring in that much money. It’s also not clear they’re safe to put on right now. Just like those old clothes taking up room in your closet or a file cabinet stuffed with years of paperwork, it may be time to let go of this event (or anything else that doesn’t serve you) and find a different way to raise money.

Think better rather than new

In uncertain times, it’s better to focus on what’s going to work for your nonprofit instead jumping onto the latest craze. Focus on what you can do better. Instead of going on TikTok, think about growing your monthly giving program and building relationships with your donors. These are proven ways to help you raise more money.

Don’t wait too long

I know you have a lot going on, but you need to take on these initiatives sooner rather than later. Just like the clutter and dust in your home won’t disappear on their own, the longer you ignore it, the worse it gets. 

Get started on these spring cleaning projects as soon as you can. You’ll be happy once they’re done. Your donors will also be happy if they don’t get duplicate mailings and a fundraising letter laced with jargon, but do receive a personalized appeal and a stellar thank you letter.

Image by Marco Verch