database

Making The Right Investments Can Help You Raise More Money

Ann Green Communications, database, direct mail, monthly donors , , ,

You may have heard that nonprofit giving declined in 2022. It’s been a tumultuous few years. Some organizations saw a COVID bump, but now we’re dealing with an uncertain economy. If you’re interested in the numbers, read the latest results from M + R Benchmarks and The Fundraising Effectiveness Project.

If your giving has gone down, you may have cut back on some expenses. While that’s understandable on one level, you need to be careful before you nix something you think you can’t afford. It may be something you should be investing in.

Instead of going on autopilot and saying “We can’t afford this,” think carefully about making the right investments. Stay away from the scarcity mindset.

Here are a few areas you should be investing more money in. The good news is if you do it well, these investments can help you raise more money.

Invest in a good CRM/database

Plain and simple, a good CRM (customer relationship management)/database can help you raise more money. You can segment your donors by giving amount and politely ask them to give a little more in your next appeal – $35 or $50 instead of $25. Many organizations don’t ask their donors to upgrade their gifts and you’re leaving money on the table when you neglect to do this.

A good database can help you with retention, which will save you money since it costs less to keep donors than to acquire new ones. Donor retention continues to be a huge problem.

You can personalize your letters and email messages. Make sure to invest in a good email service provider, too. Personalized letters and messages mean you can address your donors by name and not Dear Friend. You can welcome new donors and thank current donors for their previous support. You can send targeted mailings to lapsed donors to try to woo them back. You can send special mailings to your monthly donors. You can record any personal information, such as conversations you had with a donor and their areas of interest.

In short, you can do a lot with a good CRM/database. Invest in the best one you can afford, and Excel is not a database.

If you’re worried about spending $50 to $100 a month on a CRM/database, you may be able to recoup that expense if you can ask for an upgrade and personalize your communication.

Invest in direct mail

You may not use direct mail that much, especially over the last few years. Some organizations were never or rarely using it before the pandemic.

If that’s the case for you, you’re missing out on an effective and more personal way to communicate with your donors. Think of the enormous amount of email and social media posts you receive as opposed to postal mail. Your donors will be more likely to see your messages if you send them by mail.

Yes, direct mail is more expensive, but you don’t have to mail that often. Quality is more important than quantity but aim for at least three or four times a year.

Give a little thought to what you send. Some ideas, besides appeal letters, include thank you letters/cards; Thanksgiving, holiday, and/or Valentine’s Day cards; infographic postcards; two to four-page newsletters; and impact reports. You could put a donation envelope in your newsletter to raise some additional revenue, but do not put one in a thank you or holiday card. I wouldn’t  recommend putting one in an impact report either, especially if you only do one a year.

Shorter is better. Lengthy communication will cost more and your donors are less likely to read it. 

A few ways you can use direct mail without breaking your budget are to clean up your mailing lists to avoid costly duplicate mailings, spread thank you mailings throughout the year – perhaps sending something to a small number of donors each month, and look into special nonprofit mailing rates. You may also be able to get print materials done pro bono or do them in-house, as long as they look professional.

Of course, you can use email, but your primary reason for communicating that way shouldn’t be because it’s cheaper. Both direct mail and email have their place, but in many cases, direct mail is more effective.

Invest in monthly giving

If you don’t have a robust monthly giving program, you’re missing out on a great way to raise more money. Monthly giving is one of the few types of fundraising that saw an increase last year. It’s good for all nonprofit organizations, but it’s especially useful for small nonprofits.

All it takes is for someone to start giving $5.00 or $10.00 a month (hopefully more). These small gifts add up. Also, the retention rate for monthly donors is around 90%. Plus, they’re more likely to become major and legacy donors.

Don’t wait any longer to invest in this proven way to raise more money.

Invest in donor communications

By donor communications I mean thank you letters/notes, newsletters, and other updates. Some organizations don’t prioritize these and want to spend their time “raising money.” They don’t seem to realize they can raise more money with better donor communications. Remember this formula – ask, thank, report, repeat.

Don’t skimp on your communications budget. Creating thank you cards and infographic postcards is a good investment and a necessity, not a luxury. Thank you cards are a much better investment than mailing labels and other useless swag.

Maybe you need to reallocate your budget to cover some of these expenses. You could also look into additional sources of unrestricted funding. 

Of course, you can also use email and social media to communicate with donors. This reiterates the need for a good email service provider with professional looking templates for your email newsletter and other updates.

Invest in infrastrucure

We need to stop treating overhead or infrastructure as something bad. Some funders want us to spend our budget on programs, but how can we successfully run our programs if we don’t have enough staff and can barely afford to pay the people we do have? A rotating door of development staff makes it hard to maintain those important relationships. We also have to pay rent and other expenses.

Until these funders stop worrying so much about overhead, you may want to invest some time in finding unrestricted funding sources – often individual gifts, such as monthly donations and major gifts.

Don’t limit yourself by saying you can’t afford certain expenses. If you make the right investments, you should be able to raise more money.

Photo by creditdebitpro

Make Time for Some Spring Cleaning

Ann Green Communications, database, donor engagement, email, planning, thank you letters, writing , , , , ,

It’s spring here in the Northern Hemisphere, although in the Boston area spring doesn’t fully kick in until May. 

A lot of people use this time of the year to do some spring cleaning. I know, groan. I envy the people who do that because usually 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 be putting off some version of your own spring cleaning and decluttering. Make 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 CRM/database

Has it been a while since you 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 CRM/database 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 essential tool and it needs to be up-to-date and filled with accurate information about 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.

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 2022, 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.

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. Ideally, you should do this at least once a year. I mentioned this in a recent post, emphasizing that your donor communication needs to be clear, conversational, and specific. Stay away from generic language and jargon. 

There’s a good chance your thank you letters need a refresh. Your thank you letters need to actually thank your donors, not brag about your organization. Also, 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.

 Weed and grow 

People who have gardens spend a lot of time getting rid of weeds to ensure a beautiful garden. I’m no gardener. I live in a townhouse and don’t have a yard, but even I know I need to cut off the dead leaves on my houseplants to help them grow.

What are your weeds? Perhaps it’s events or grants. These can take a lot of time and don’t always bring in that much money.

If that’s the case for you, a better option is to grow your individual giving program. Start with monthly giving. You can think of this as a houseplant approach, relatively easy to take on and maintain. Then move on to major and legacy giving. These will take more time, just like a seedling that with care and attention will grow into a tree.

As you work on your weeding, this article on simplicity might be helpful. It suggests you do an audit of various aspects of your life and ask –  Is it necessary and is it creating energy? If you answer “Yes” to both, keep it. If you answer “No” to both, remove it. If you answer “Yes” to one, think about it. 

For your nonprofit, the energy question can be turned around and you can ask if something is depleting your energy. You could also ask, is it producing results?

It can be hard to let go. Maybe you’ve held a particular event for years. But like weeds in a garden, it might be prohibiting your growth. Let go of this event (or whatever doesn’t serve you) and find ways to raise money that will help you grow.

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, along with the weeds in your garden, they 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 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. Your organization will also benefit by taking on initiatives that help you grow.

Pay Attention to Your Donor Retention

Ann Green Communications, database, donor engagement, donor relations, donor retention, gratitude, planning , , , , , ,

Donor retention continues to be a problem for nonprofit organizations. Many organizations spend a lot of 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.

Acquiring new donors is more expensive than keeping the ones you already have, so it’s important for you to keep track of your retention rate. 

There are many reasons donors don’t give again. Some you can’t control, but many you can. Maybe you’re losing donors because you’re either not communicating enough or communicating poorly. Fortunately, this is something you can fix, but you need to give it your full attention.

Pay attention to your donor relationships

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.

Follow the ask, thank, report formula and give more attention to thanking and reporting. Donors are not ATM’s. They were drawn to your organization because they felt a connection to your work. They want to feel appreciated and hear how they’re helping you make a difference for your clients/community.

If you don’t pay attention to building relationships, your donors are less likely to give again.

Pay attention to your first-time donors

The retention rate for first-time donors is around 20%. 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. 

Create a welcome plan that includes a series of messages for new donors. Recruit board members to make thank you phone calls. This is a proven strategy that results in donors giving again.

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

But don’t stop there, you also want to acknowledge your longer-term donors and make them feel special.

Pay attention to your lapsed donors

A lapsed donor is someone who hasn’t donated for at least a year. Make a plan to reach out to some of these donors and invite them to give again. Also, ask why they haven’t given. Maybe they forgot. Maybe they can’t afford to give right now. Maybe they were never thanked.

If a donor can’t afford to give right now, stay engaged with them. Maybe they’ll give again in the future. Also, some donors may choose to cut back on their giving. Don’t let them choose between an organization that does a great job of thanking them and sending engaging updates and the one that just sends a bunch of generic appeals.

Donor engagement is so important. A study by Donor Voice shows that donors are more likely to give again when they feel appreciated and the organization lets them know the impact of their gifts.

Pay attention to growing your monthly giving program

I’m a big proponent of monthly giving. Monthly donors have a much higher retention rate. Getting more monthly donors is one way to raise your overall retention rate.

Reach out to your single gift donors who have given at least twice and ask them to join your family of monthly donors. You can also invite donors to give monthly in your welcome package.

Pay attention to your donor communication 

Do you 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. Remember the ask, thank, report formula. This is crucial for good donor retention. 

Try to reach out by mail at least a few times a year. It’s more personal and your donors are more likely to see your messages. It doesn’t have to be anything elaborate. A handwritten thank you card or a postcard infographic can be a quick, but effective, way to engage. 

Putting together a communications calendar will help you with this. 

You also want to focus on quality. Just because you send thank you letters and newsletters, doesn’t mean you’re actually engaging with your donors. Write a heartfelt, personal thank you and create a newsletter and other updates with content they’ll be interested in.

Pay attention to your donor data

Something else that will help you with donor retention is to invest in a good CRM/database. This will let you segment donors and personalize their communication. Then you can send targeted communication to new donors, long-time donors, lapsed donors, potential donors, etc. Invest in the best database you can afford. It should pay off.

You may think that paying attention to your donor retention sounds like a lot of work. Well, so is finding new donors.

Bloomerang has a lot of great information on donor retention and keep reading for more ways to pay attention to your donor retention.

Focus on Donor Retention This Year

Donor Retention Strategies: Get Donors to Give Again

Engage, request, repeat: The proven formula for retaining donors

Image via One Way Stock

3 Technology Tools For Improved Nonprofit Grant Management

Ann Green database, grants, planning , ,

Are you looking for tips to elevate your grant management strategy in 2023? Explore three technology tools that can level up your grant fundraising efforts.

By Carl Diesing

Alongside moves management and capital campaigns, grant fundraising is one of the most intricate fundraising activities that a nonprofit organization will undertake.

Rooted in a foundation of strong relationships with grantmaking organizations, successful grant fundraising requires nonprofits to manage and track multiple priorities— specific application requirements, timelines, funding usage guidelines, and reporting expectations. The process is complicated for nonprofits managing a single grant, and that’s before considering that often organizations are juggling many applications and ongoing donor relationships at the same time.

In this guide, we’re going to briefly cover three popular technology tools for grant management. For an in-depth look at grant management and how these tools can assist your nonprofit, explore DNL OmniMedia’s guide on the topic.

Here are the tools we’ll review:

  • Salesforce’s foundationConnect
  • Blackbaud’s Financial Edge NXT
  • EveryAction

Whether you’ve received a foundation grant to be used for a specific project or you’ve been accepted into the ongoing Google Ad Grants program, all grants come with ongoing stipulations and reporting requirements after they’re won. Effective grant management is crucial to remain compliant, but it’s incredibly difficult to stay organized with sub-par grant management software.

The following three solutions are distinguished from the competition in the world of grant management software. 

Salesforce’s foundationConnect

Though Salesforce first emerged as a provider of corporate business solutions, the vendor ventured into the nonprofit world when it created its Nonprofit Success Pack— an overlay that configures the main Salesforce constituent relationship management solutions to be useful for philanthropic organizations. Investing in software can help your nonprofit raise more funds. 

Since then, several nonprofit-specific Salesforce Apps and overlays have emerged to further align with the specific needs of philanthropy. One example is Salesforce’s foundationConnect, a grant management system created to be useful for both grantmakers and grantees alike.

Salesforce’s foundationConnect elevates the grant management process by:

  • Giving grantmakers the tools to track grant funding through all of the major stages in the process, from receiving applications, to dispersing funds, to measuring the outcomes achieved with dispersed funds.
  • Providing applicants with a portal made specifically for grantees, in which they can not only submit completed applications but save in-progress applications while documentation is finalized.
  • Generating status reports for both grantmakers and grantees at each step in the process, so both sides can access ongoing updates as needed.

As a nonprofit, it’s unlikely that you’ll be purchasing and implementing foundationConnect for your own organization’s software lineup. Rather, you’ll interact with it if you choose to apply for a grant with a foundation that uses the system. Regardless, from the grantee’s perspective, it’s still a solution that will elevate your nonprofit’s grant management process when you encounter it.

Blackbaud’s Financial Edge NXT

Blackbaud is a highly-regarded provider in the world of nonprofit technology, with numerous constituent relationship management, marketing, and fundraising solutions available for mid-sized to enterprise organizations. Its grant management solution is called Financial Edge NXT and was created to assist grantees with post-award management once they’ve been granted funding.

To illustrate the importance of post-award management, consider the example of challenge grants.

Double the Donation’s guide to challenge grants defines them as “donations that are made to a nonprofit by a grant-making party once the nonprofit organization has successfully fulfilled a predetermined list of requirements.” Most often, these requirements revolve around raising a specific amount of funding independently before the nonprofit can receive the grant. But, that initial fundraising often has specific parameters as well— including the timeframe in which it must be raised, which types of donations are eligible, and how updates about the process need to be communicated with the grantor. Meeting the “challenge” is reliant on effective post-award management.

Challenge grants are only one example of the importance of post-award management. Most grants require dispersed funds to be used on a specific timeline and for a project or area of operations. The exact use of dispersed funds needs to be reported back to the funder on a predetermined timeline and in the reporting style of the funder’s choice.

Financial Edge NXT was created with an understanding of the complexity of post-award management and has the following functionality to make the process less harrowing for grantees:

  • Multi-Grant Management: Nonprofits that have received numerous grants, each with unique usage, reporting, and timeline requirements, can easily add each grant opportunity to the system to track and meet the requirements.
  • Detailed Records: Record the history of the grant, associated projects, usage thus far, and more within each grant record. This information can be used for your annual report.
  • Reimbursement Management: In the instance that some costs are to be reimbursed by the grantmaker, grantees can record both direct and indirect costs associated with the grant.

Because Financial Edge NXT can be used to manage numerous grants at once, it’s the ideal solution for nonprofits looking to create evergreen grant fundraising procedures. You can create processes within the system, train your team, and use the same procedures for years to come.

EveryAction

EveryAction provides a constituent relationship management solution that’s known most for its advocacy features. However, within this CRM are a number of useful major gift and grant management features to improve the process for nonprofits.

What’s most interesting about EveryAction’s CRM is that, rather than investing in an additional grant management solution, you can access the tools built-in to your CRM. This includes features such as:

  • Workflows to guide your team through identifying and researching funding opportunities prior to submitting applications.
  • The ability to track deadlines and documents from the applications through fund usage and outcomes reporting.
  • Results analysis to help your nonprofit understand areas of improvement for future campaigns.

For advocacy organizations looking to implement grant fundraising into their efforts, it’s hard to find a grant management solution better suited than EveryAction.

Bonus! Tips for Choosing the Right Grant Management Software For Your Nonprofit

We’ve discussed three different grant management tools in this guide, and there are numerous other solutions available for nonprofits. However, it’s important to recognize that not all solutions are created equal— and, when funding as significant as a grant is on the line, choosing the right solution for your specific circumstances is crucial.

To wrap up, keep the following three tips in mind when researching grant management tools for your nonprofit:

  • Partner with a consultant. A nonprofit technology consultant can examine your current software solutions alongside your grant fundraising goals and help you choose the right management software with both in mind. Further, this partner can manage grant management software implementation to ensure your team is positioned for success.
  • Integrate your grant management tools with your other solutions. Your constituent relationship management solution contains the most comprehensive view of your nonprofit’s activities, including how funds are allocated and used for different projects and expenses. An integration between your grant management solution and your CRM ensures that there is a seamless transfer of information between your nonprofit’s main database and your grant solution.
  • Create a grant management plan before funding is awarded. Don’t invest in grant management software after you’ve already won a grant. It takes time to implement new software and train your team to use it, and that time could slow down the management of your grant. Aim to fortify your grant management software and processes before you begin applying for grants, so you can reap the benefits from the start of the application process through disbursement and beyond.

Whether you choose to implement a complete grant management system or simply seek grant management-specific tools when you upgrade your CRM, the choice will be worthwhile in advancing your grant management procedures.

Carl Diesing co-founded DNL OmniMedia in 2006 and has grown the team to accommodate clients with ongoing web development projects. Together DNL OmniMedia has worked with over 100 organizations to assist them with accomplishing their online goals. As Managing Director of DNL OmniMedia, Carl works with nonprofits and their technology to foster fundraising, create awareness, cure disease, and solve social issues. Carl lives in the Hudson Valley with his wife Sarah and their two children Charlie and Evelyn.

A Few Ways You Can Raise More Money This Year

Ann Green appeal letters, Communications, database, donor engagement, donor retention, fundraising, monthly donors , , , , ,

It’s year-end fundraising time. You may have already started your campaign or are planning to soon. 

Nonprofit organizations rely on year-end for a good chunk of their revenue. Maybe you haven’t raised as much money as you planned this year and need to make up for that. Maybe your fundraising appeals never seem to perform as well as you would like.

Fundraising is hard and you can’t just send a bunch of generic appeals and hope the money comes in. If you want to raise more money, you need to put in some extra effort.

One way to raise more money is to segment your donors and send targeted appeals. You also need to have a good CRM/database and follow the ask, thank, update, repeat formula. 

Here are a few ways you can use these tactics to raise more money.

Ask for an upgrade

Many nonprofits don’t ask their donors to upgrade their gifts and they’re missing an opportunity to raise more money. You may be reluctant to ask donors to give more right now because of the uncertain economy, but that’s why you should ask. 

Your clients/community may be struggling and your need is growing. If you can relay this to your donors, some of them will give more. Many donors step up during tough times.

Of course, some of them won’t be able to give more now, but it’s unlikely any of them will upgrade if you don’t ask. They’ll also be more receptive to upgrading their gift if you’ve done a good job of thanking them and sharing updates throughout the year.

Target your upgrade asks based on past giving. Be reasonable. A donor who gave $50 is unlikely to give $500. Here’s an example.

We really appreciate your past gift of $50. Could you help us out a little more this time with a gift of $75?  We’re seeing more people at our food pantry right now because of rising food prices. Your generosity will help our community during this difficult time.

If your donors upgrade their gifts, do something special for them such as sending a handwritten thank you note or creating a personalized thank you video.

Promote monthly giving

Monthly donors are the backbone of nonprofit organizations. The retention rate is an impressive 90%.

The more monthly donors you have, the better. Promoting monthly giving is always a good way to raise additional revenue. You can also send targeted appeals to donors encouraging them to convert to monthly giving.

Your best bet is single gift donors who have supported you for at least two years. They’ve already shown some commitment to your organization. Now it’s time to take that to the next level.

You could do this at year-end, as well as other times of the year. You want to ask for gifts more than once a year, so this can be another opportunity to request an upgrade.

You could also reach out to your new donors in a few months to encourage them to join your family of monthly donors.

Here’s a sample ask. We really appreciate your past gift of $50. Could you make your generous support count even more by becoming a monthly donor? Five or 10 a month will help us serve more families at our food pantry.

Once your donors start giving monthly, they should always be acknowledged as monthly donors. Be sure to give them a special thank you (see above).

Get in touch with your lapsed donors

In January or whenever you finish a campaign, get in touch with your lapsed donors. Not all lapsed donors are the same. A donor who gave last year is more likely to give than the mother of a staff member who left your organization five years ago.

Donors who gave a year ago but not this year may have been too busy to give at year-end. Focus your efforts on more recent donors. If you have donors who haven’t given for several years, you may want to move them to an inactive file. It’s costing you money to mail appeals to donors who are unlikely to give.

You can create appeals based on how long a donor has lapsed. If that’s too complicated, try an ask like this.

We really appreciate the $50 gift you made in 2021. This helped us serve more families at our food pantry. We’re still seeing a growing number of people coming in because of rising food prices. Could you help us out again with another gift of $50 or more?

Some donors won’t give again. Maybe they can’t afford to. More likely it’s because of poor communication. Remember –  ask, thank, update, repeat.

If your lapsed donors give again, be sure to give them an extra special thank you, so they’ll continue to support you without interruption.

I know there’s a lot of economic uncertainty, but it’s important to be savvy. Spend some time segmenting your donors and sending targeted appeals. Don’t forget about showing appreciation and sharing updates, too. All of this can help you can raise more money 

Your Fundraising Campaign Will be More Successful if You Go Multichannel

Ann Green appeal letters, Communications, database, fundraising, multichannel, planning , , ,

Year-end fundraising season is starting to gear up. I’m already seeing appeal letters in my mailbox and this is just the beginning.

Speaking of appeal letters, you should plan to send one by mail. I know email is easier and less expensive, but people respond better to mail and it’s well worth the investment. 

However, if you just send one fundraising letter and wait for the donations to come in, you’ll be disappointed. Your donors have a lot going on and may put your letter aside to handle later, and then never get to it.

Of course, you can also send email appeals, but you’ll need to plan to send more than one appeal due to the enormous volume of email people receive. Some donors will respond to the first appeal, but most are going to need a few reminders.

Your fundraising campaign will be more successful if you use a combination of mail, email, social media, and phone calls. Some donors may respond to your direct mail piece but will donate online. This is what I usually do. Others will see your email message but prefer to send a check. You could also include a text to give option.

You’ll have a lot of competition since you’re not the only organization seeking year-end donations. Most nonprofits rely on year-end for the bulk of their fundraising. Plus, donors may be overwhelmed with everything that’s going on in the world, but they still want to help.

This is why you need a multichannel fundraising campaign with a series of asks.

BEFORE YOU START

Clean up your mailing lists/database

If you haven’t already done this, clean up and organize your mailing lists/database. Do you have both postal and email addresses for all your donors? Be sure to segment your donors into different groups (current, monthly, etc), as well. Having good donor data is a must.

Make it easy to donate online

You need to have a donation page that’s engaging and easy to use on all platforms, including mobile. Test all links in email messages and social media posts. The last thing you want is a donor contacting you about a broken link or have to hunt around on your website for a link to your donation page.

When you’re ready to launch your campaign, include a blurb on your homepage that says your appeal is underway. Make sure your donate button is in a prominent place.

Which channels do your donors use?

Don’t spend a lot of time on channels your donors aren’t using. Figure out in advance where you want to focus your efforts.

SAMPLE SCHEDULE AND STRATEGY

Come up with a schedule of when the appeals will go out. I’ve created a sample schedule below. Of course, you can adjust the time frame as needed and use this for campaigns at other times of the year. 

That said, I do recommend starting your year-end campaign sooner than later. Remember, you’re not the only game in town. If you’ve already mailed your appeal, you can start planning your reminders.

Also, if you haven’t already done this, you could send your donors a warm-up letter or email before you launch your campaign.

October 26

Give your supporters a heads-up by email and social media. Let them know your year-end appeal is underway and they should receive a letter from you soon, provided you have their mailing address. Encourage them to donate online right now. This means your donation page needs to be in great shape.

Keep in mind the fact your year-end appeal is going on will matter to some donors and not to others. Use an enticing subject line such as  – How you can help local families put food on the table.  

Make sure it’s obvious your message is coming from your organization so you have a better chance of getting it opened. 

Week of October 31

Mail your appeal letters. I know mid-term elections are coming up in the U.S., but that doesn’t always affect nonprofit fundraising.

Week of November 7

Start sending follow-up reminders via email and social media. Weekly or regular reminders are a proven way to help you raise more money. If possible, don’t send reminders to people who have already donated. Otherwise, be sure to thank your recent donors. You can even phrase your reminders as more of a thank you or an update.

Thank you so much to all of you who donated to our year-end appeal. We’re well on our way to serving more families at the Eastside Community Food Pantry. This is crucial. We’re still seeing more people coming in because of rising food costs.

If you haven’t donated yet, please help us out today by visiting our website (include a link to your donation page) or sending us a check (provide address).

Week of November 14

Send another round of reminders. A reminder this week is important, especially if your donors have been blasted with political emails and may not have seen your earlier messages.

Week of November 21

Send a reminder, along with a Happy Thanksgiving message. You could skip the reminder and make this week all about gratitude.

Week of November 28 

November 29 is #GivingTuesday so you could tie that into a reminder message. You may already have a campaign planned.

Your donors’ inboxes will be bursting at the seams on #GivingTuesday and your messages can easily get lost in the chaos. Make your messages stand out and remember to show some gratitude, too. 

Also, not all of your donors will care that it’s #GivingTuesday. Focus on how they can help you make a difference.

Make sure your reminders don’t look like spam. And, keep it positive. Don’t make your donors feel bad because they haven’t donated yet.

Week of December 5

Start making reminder calls, along with sending electronic messages. If time is an issue, you could just call people who have donated before. That’s probably most effective. Leaving a voice mail message is fine. 

It’s a busy time of the year and your donors may need a gentle prompt.

The rest of December and beyond

Keep sending reminders throughout December. It’s tricky because you want to get your messages across without being annoying. This is another reason why you should only send reminders to people who haven’t donated yet.

Be sure to keep up with your donor communication (newsletter and other updates). You don’t want the only messages your donors receive to be fundraising appeals. December is also a great time to show some appreciation and send holiday greetings.

The end of December is the busiest time of this already busy fundraising season. Send a reminder email on December 29th, 30th, and 31st. This is also proven to be an effective strategy. And, it’s especially relevant if your fiscal year ends on December 31 or your donor wants to give before the end of the calendar year.

Even though you’re trying to raise money, don’t forget about building relationships, too. That’s just as important.

Look to see who hasn’t contributed yet. Concentrate on people who are most likely to donate, such as past donors. You may need to send another letter or a reminder postcard to donors who don’t use electronic communication. The more you can personalize it, the better.

You can continue following up in the New Year when donors aren’t as busy.

Once is not enough. Your fundraising campaign will be more successful with multiple asks and by using multiple channels. Good luck!

  •                                                

Improve Your Fundraising and Communications by Segmenting Your Donors

Ann Green appeal letters, Communications, database, donor retention, fundraising, thank you letters , , , ,

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.

Are You Missing Out by Not Making Good Investments?

Ann Green Communications, database, donor engagement, donor relations, monthly donors , , ,

Your nonprofit organization may have cut back on some expenses over the past two years. When times are tough, some organizations, especially small ones with limited resources, veer towards trimming and often say “we can’t afford this.” This is known as the scarcity mindset.

Be careful before you nix something you think you can’t afford. It may be something you should be investing in.

This doesn’t mean going wild with your budget. You need to make good investments. Here are a few areas you should be investing more money in. The good news is if you do it right, these investments can help you raise more money.

Invest in a good CRM/database

Plain and simple, a good CRM (customer relationship management)/database can help you raise more money. You can segment your donors by amount and politely ask them to give a little more in your next appeal – $35 or $50 instead of $25. Many organizations don’t ask their donors to upgrade their gifts and you’re leaving money on the table when you neglect to do this.

A good database can help you with retention, which will save you money since it costs less to keep donors than to acquire new ones. You can personalize your letters and email messages. Make sure to invest in a good email service provider, too.

Personalized letters and messages mean you can address your donors by name and not Dear Friend. You can welcome new donors and thank current donors for their previous support. You can send targeted mailings to lapsed donors to try to woo them back. You can send special mailings to your monthly donors. You can record any personal information, such as conversations you had with a donor and their areas of interest.

In short, you can do a lot with a good CRM/database. Invest in the best one you can afford, and Excel is not a database.

Worried about spending $50 to $100 a month on a CRM/database? You may be able to make it back if you can ask for an upgrade and personalize your communication.

Nonprofit CRM Software

Invest in direct mail

You may not use direct mail that much, especially over the last two years. Some organizations were never or rarely using it before the pandemic.

If that’s the case for you, you’re missing out on an effective and more personal way to communicate with your donors. Think of the enormous amount of email and social media posts you receive as opposed to postal mail. Your donors will be more likely to see your messages if you send them by mail.

Yes, direct mail is more expensive, but you don’t have to mail that often. Quality is more important than quantity but aim for three or four times a year.

Give a little thought to what you send. Some ideas, besides appeal letters, include thank you letters/cards; Thanksgiving, holiday, or Valentine’s Day cards; infographic postcards; two to four-page newsletters; and annual/progress reports. You could put a donation envelope in your newsletter to raise some additional revenue, but do not put one in a thank you or holiday card.

Shorter is better. Lengthy communication will cost more and your donors are less likely to read it. 

A few ways you can use direct mail without breaking your budget are to clean up your mailing lists to avoid costly duplicate mailings, spread thank you mailings throughout the year – perhaps sending something to a small number of donors each month, and look into special nonprofit mailing rates. You may also be able to get print materials done pro bono or do them in-house, as long as they look professional.

Of course, you can use email and social media, but your primary reason for communicating that way shouldn’t be because it’s cheaper. It should be because that’s what your donors use. If your donors prefer you to communicate by mail, then that’s what you should do.

Direct Mail vs. Email Marketing for Nonprofits

Invest in monthly giving

If you don’t have a robust monthly giving program, you’re missing out on a great way to raise more money. Monthly giving is good for all nonprofit organizations, but it’s especially useful for small nonprofits.

All it takes is for someone to start giving $5.00 or $10.00 a month (hopefully more). These small gifts add up. The retention rate for monthly donors is an impressive 90%. Plus, they’re more likely to become major and legacy donors.

Why Monthly Giving is Important for Your Nonprofit Organization

Invest in donor communications

By donor communications I mean thank you letters/notes, newsletters, and other updates. Some organizations don’t prioritize these and want to spend their time “raising money.” They don’t seem to realize they can raise more money with better donor communications. Remember this cycle – ask, thank, report, repeat.

Don’t skimp on your communications budget. Creating thank you cards and infographic postcards is a good investment and a necessity, not a luxury. Thank you cards are a much better investment than mailing labels and other useless swag.

Maybe you need to reallocate your budget to cover some of these expenses. You could also look into additional sources of unrestricted funding. 

Remember, you can also use email and social media to communicate with donors. This reiterates the need for a good email service provider with professional looking templates for your e-newsletter and other updates.

Donor Communication for Nonprofits: Essentials & Best Practices

Invest in infrastrucure

We need to stop treating overhead or infrastructure as something bad. Some funders want us to spend our budget on programs, but how can we successfully run our programs if we don’t have enough staff and can barely afford to pay the people we do have? A rotating door of development staff makes it hard to maintain those important relationships. Even though some people may be working from home, we still have rent and other expenses.

Until these funders stop worrying so much about overhead, you may want to invest some time in finding unrestricted funding sources – often individual gifts, such as monthly donations and major gifts.

Why The Nonprofit Sector Can No Longer Dance Around Infrastructure Challenges

Don’t limit yourself by saying you can’t afford certain expenses. If you make the right investments, you should be able to raise more money.

Photo via www.hilltopfinance.co.uk/

Time for a Little Nonprofit Spring Cleaning 

Ann Green appeal letters, database, email, planning, thank you letters, writing , , , ,

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

Make This the Year You Segment Your Donors

Ann Green appeal letters, Communications, database, donor retention, donor-centered, monthly donors , , , , ,

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

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

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

Sometimes smaller organizations do a better job of personalization. Not that long ago, I received a generic, one-size-fits-all appeal from a large, national organization. I’m a monthly donor and they didn’t acknowledge that. In fact, the letter included a blurb encouraging people to become monthly donors. Um….

That organization missed an opportunity to do a better job of connecting with their donors. Unfortunately, they are one of many.

When you’re too big to succeed

If you’re not segmenting your donors, make this the year you start. And if you’re already segmenting your donors, kudos to you!

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

In reality, it may cost you more not to segment.  A good database/CRM is worth the investment. Segmenting your donors will help you with retention, which costs more than trying to find new donors. Donor stewardship/engagement is usually easier and it’s more fun.

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

Here are a few different types of donor groups. You may want to include others. The more you can segment, the better. Remember, investing in a good CRM/database will help you with this.

Current single gift donors

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

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

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

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

Potential/new single gift donors

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

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

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

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

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

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

New monthly donors

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

Current monthly donors

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

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

Current donors who become monthly donors

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

Segmenting your donors makes a difference

In these uncertain times, some donors may cut back on their giving. Don’t let them choose between organizations that communicate throughout the year with engaging personalized appeals, thank yous, and updates and organizations who just send generic, one-size-fits-all communications. People are also looking for a personal connection right now. 

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

Here’s more information about segmenting your donors.

How to Segment Your Donors

Donor Segmentation: The Ultimate Guide for Nonprofits

4 Smart Donor Segmentation Strategies for Nonprofits

KEY DONOR SEGMENTS FOR A BETTER YEAR-END APPEAL