You Have Options When Creating Your Annual Report

37807079994_1c564aee84_wAre you dreading putting together your annual report?  You think it’s time-consuming, but it’s something you always do. Plus your board wants you to do it, although you’re not sure your donors actually read it.

And why would donors want to read an annual report when many of them are long, boring, and basically a demonstration of the organization patting itself on the back?

Annual reports don’t have to be a negative experience for you or your donors. You have options when creating your annual report. 

First, you don’t have to do one, but you do have to share accomplishments with your donors. You might want to ditch the annual report and send short progress reports a couple of times a year or monthly e-updates instead.

If you decide to do an annual report, I encourage you to move away from the traditional multi-page one. Aim for something no longer than four pages. Shorter is better.

Here are a few things to keep in mind to help you create an annual report that won’t put your donors to sleep and make it a little easier for you to put together.

Your annual report is for your donors

Keep your donors in mind when you create your annual report and include information you know will interest them.

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

Make it a gratitude report

Donors want to feel good about giving to your nonprofit. Think of this as a gratitude report. You may want to call it that instead of an annual report.

Focus on thanking your donors for their role in helping you make a difference. Get inspired by these examples.

Oregon Zoo Gratitude Report

Power of Storytelling | The most moving gratitude report I’ve ever seen

How are you making a difference?

The theme of many annual reports is look how great we are. They are organization centered and not donor-centered.  

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

Focus on the why and not the what. Something like this – Thanks to you, 85% of the students in our tutoring program have improved their math skills and now have a better chance of graduating from high school on time.

Phrases like Thanks to you and Because of you should dominate your annual report.

Tell a story

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

For example –  Kevin, a junior at Douglas High School, couldn’t stand math. “I don’t understand it and when am I going to actually use Geometry?” he asked. Geometry was worse than Algebra, which was” horrible.” Then Kevin started meeting weekly with Josh, one of our volunteer tutors. It was a struggle at first, but thanks to Josh’s patience and encouragement, Kevin is starting to understand math and is doing much better. Now he doesn’t dread Geometry class.

Make it visual

Your donors are busy and don’t have a lot of time to read your report. Engage them with some great photos, which can tell a story in an instant. Choose photos of people participating in an activity, such as Josh helping Kevin with his math.

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

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

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

Beware of using jargon. Most of your donors don’t use words like underserved or at-risk, and neither should you. Use everyday language such as – Because of you, we found affordable housing for over 100 homeless families. Now they no longer have to live in a shelter, a motel, or their cars and have a place to call home.

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

Planning is key

One problem with annual reports is organizations send them out months after the year is over and at that point the information is outdated.

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

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

Of course, a shorter report or an infographic postcard will help ensure your 2019 report doesn’t arrive in your donor’s mailbox the following spring or later. Remember, you also have the option of not doing one and sending periodic short updates.

Whatever you decide, put together an annual report that’s a better experience for everyone. Read on for more information about creating a great annual, or even better –  a gratitude report.

How to Craft a 1-Page Nonprofit Annual Report

Donor-Centered Nonprofit Annual Reports

Best Nonprofit Annual Reports 2019

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

Photo by CreditDebitPro

Is Your Communication Donor-Centered?

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

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

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

Fundraising Appeals

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

Thank you letters

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

Newsletters

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

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

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

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

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

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

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

Degrees of Donor-Centricity

#1 Tip to Create a Donor-Centered Appeal Letter

 

Make a Good Impression by Showing Some #DonorLove

4810189_15c7e30d55_zNot long ago while I was scrolling through my email, one message stood out. It was a thank you video from a nonprofit organization. A week or so before that I received a thank you card from another nonprofit.

Unfortunately, those are the only examples of #DonorLove from the last few weeks that I can share with you. I’d also like to tell you I received a bunch of wonderful thank yous after I made my year-end gifts, but I can’t. Most of them were automatically generated thank you emails or the usual boring form letter.

We can do better!

I don’t know where your organization stands, but if you’re like many, you’re sleepwalking through your #DonorLove practice. Thanking your donors is not a we do this after we receive a donation and then we don’t have to do anything situation. 

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

8 Strategies to Celebrate Nonprofit Donors on Valentine’s Day

Happy Valentine’s Day: Donor Love Infographic

Maybe you would rather not go the Valentine’s Day route, but you should still do something to show appreciation this month (and every month). The holidays are over and February can be a dreary month. Your donors would appreciate a little mood booster.

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

Here are a few ways you can show some #DonorLove.

Create a thank you photo

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

Image result for pictures of people holding thank you signs

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

Make a video

Videos are becoming an increasingly popular way to connect. Here’s a link to the thank you video I recently received. 

Thanks to our compassionate community!

It’s simple, yet effective, so don’t worry if you weren’t a film major. It’s not too hard to create a video.

How to Create a Donor Thank You Video

One idea for your video is to show a bunch of people saying thank you. You’ll want your video to be short, donor-centered, and show your organization’s work up close and personal.

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

Nonprofit Thank You Video Script

A Thank You Video to Promote Donor Retention

Send a card

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

That said, I do think you should make every effort to send a card to ALL your donors at least once a year. You can spread it out so you mail a certain number of cards each month, ensuring all your donors get one sometime in the year. I also think it’s nice to send something during times of the year when donors might least expect it, such as May or September.

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

Share an update or success story

In addition to saying thank you, share a brief update or success story. Emphasize how you couldn’t have helped someone without your donor’s support. For example –Thanks to you, Jeremy won’t go to bed hungry tonight.

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

Back to basics

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

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

Make thanking your donors a priority

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

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

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

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

Create a system for expressing gratitude

Keep thinking of ways to show some #DonorLove. Stand out and impress your donors. 

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

20 Engaging Ideas for Donation Thank You Letters

Thanking a Donor by Email: Best Practices and Examples

You don’t even need to wait for a holiday or special occasion. Just thank your donors because they’re amazing and you wouldn’t be able to make a difference without them.

How Monthly Giving is a Win-Win for Your Nonprofit

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

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

You can raise more money

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

It’s easier on their bank accounts. It can also give you a consistent stream of revenue throughout the year instead of certain times, such as when you do individual appeals and events and when grants come in.

Monthly gifts are smaller, but you can raise a lot of money with lots of small gifts. Political candidates do it all the time. Also, monthly gifts aren’t as small as you think. The average monthly gift is $24 a month.

Check out this retention rate

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

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

Getting started

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

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

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

Are you missing this key fundraising “system?”

Make monthly giving the go-to option

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

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

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

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

Show some #donorlove

You need to do a good job of thanking your monthly donors. Go the extra mile and segment your monthly donors into new monthly donors, current monthly donors, and current donors who become monthly donors, which I explain more in the post below. 

The Importance of Segmenting Your Donors

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

Many organizations send a monthly acknowledgment email or letter, and most are just okay. Some are basically only receipts. And while it’s helpful to know the organization received your donation, you’re not practicing good stewardship if that’s all you do.

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

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

Reach out at least once a month

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

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

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

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

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

The Holy Grail of Fundraising

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

Be accommodating

I highly recommend a contact person for your monthly donors in case they need to update their credit card information or make a change to their gift, hopefully, an upgrade. Include this information in their welcome letter.

Another way to help out your monthly donors is to let them know when their credit cards are about to expire. Don’t rely on your donors to remember this, because most likely they won’t.

Set up a system where you can flag credit cards that will expire in the next month or two. Then send these donors a friendly reminder email or letter. This will help you, as well, so you can keep receiving a steady stream of donations.

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

Once a monthly donor, always a monthly donor

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

I think the best way to raise additional money from monthly donors is to ask them to upgrade their monthly gift. Be as specific as possible. For example – We’re so happy you’re part of our family of monthly donors and are grateful for your gift of $5.00 a month. Could you help us out a little more this time with a gift of $7.00 or even $10.00 a month?

You can also ask monthly donors for an additional gift during one of your fundraising campaigns, but you MUST recognize they’re monthly donors – We really appreciate your gift of $10 a month. Could you help us out a little more right now with an additional gift? We want to expand our tutoring program to three more high schools.

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

But if you let those committed, monthly donors know you think they’re special, they’ll be more likely to upgrade or give an additional gift.

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

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

Quick Tips to Create a Great Monthly Giving Program

How to start a monthly giving program for your small nonprofit

Vector Art by Epic Top 10

Donor Relationships: 5 Challenges and How to Overcome Them

by Steven Shattuck

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

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

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

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

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

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

Bloomerang_Ann Green Nonprofit_Donor Relationships_ 5 Challenges and How to Overcome Them_Feature 1

1. Donor Dissatisfaction

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

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

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

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

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

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

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2. Limited Time for Personal Interactions

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

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

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

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

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

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

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

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3. Treating Donors like an ATM

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

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

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

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

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

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

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4. Lack of Prioritization of Retention

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

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

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

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

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

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

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

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

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5. Limited Technology

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

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

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

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

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

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

Author: Steven Shattuck

Chief Engagement Officer at Bloomerang

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

Looking at the New Year with 20/20 Vision

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

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

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

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

You must have fundraising and communications plans

One key to success is good planning. 

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

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

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

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

Write your annual fundraising plan with these 6 steps

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

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

12 (Amazingly Easy) Step by Step Fundraising Plan Templates

Build a Better Nonprofit Marketing Plan: Here’s How

How to Integrate Your Nonprofit Fundraising Plan With Your Marketing Plan

Measure your progress

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

20 KPIs For Your Nonprofit To Track

Pay attention to your donor retention

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

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

A Guide to Donor Retention

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

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

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

3 Concrete Strategies to Address The Donor Retention Crisis

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

Emphasize monthly giving 

Staying on the retention theme, the retention rate for monthly donors is 90%. Work on starting or growing your monthly giving program so you can have a bunch of highly committed donors. A good way to start is to invite your current donors to become monthly donors.

Incorporating Monthly Giving Into Your Fundraising

How to start a monthly giving program for your small nonprofit

20 Monthly Giving Intentions for 2020

Make building relationships a priority 

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

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

Good relationships with your donors will help you with retention.

Build Relationships With Your Donors Every Step of the Way

Build Loyal Donor Relationships in 3 Easy Steps

Show some gratitude, too

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

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

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

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

Best of luck for a successful 2020.

Make Your New Donors Feel Welcome

2504910532_2315cd5597_zAs your year-end donations come in, you may notice you have some new donors. Don’t jump for joy yet, the likelihood these donors will stick with you continues to drop. 

You’ve focused a lot of time and energy on acquiring your new donors. Now you need to work on keeping them for a long time.

Start with a special thank you

By now you should know the importance of thanking your donors as soon as possible and doing a good job of thanking them.

If someone donates online, it’s hard to tailor the thank you email specifically to new donors. But you can do that with a phone call, handwritten note, or thank you letter.

Try to call your new donors or send a handwritten note. This will make a great impression on them. Get together a group of board members, other volunteers, and staff for a thankathon.

*Make sure these are actually new donors. A good database will help you avoid any snafus.*

Create a welcome plan

A week or two after the initial thank you, send a welcome package. You can do this by mail, email, or a combination of both.

Welcome your new donors. Thank them again and show them other ways they can connect with you. Invite them to subscribe to your newsletter, join you on social media, and volunteer.

Your welcome package should include a warm introductory message and a few facts about your organization, but don’t brag too much. Keep it donor-centered. You could also direct people to your website for more information about your organization.

Be careful about how much information you send. Donors want to feel welcome not overwhelmed.

I don’t recommend sending unsolicited swag. You could offer your new donors a gift and they can let you know if they want to receive it, but it’s not necessary.

What donors really want from you is to know how they’re helping you make a difference.

The simple secret to keeping new donors that most nonprofits forget

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

How to Welcome New Donors and Keep Them Engaged

Who are your new donors?

They could be event attendees, volunteers, or newsletter subscribers. If you know, refer to that in your thank you note or phone call. If not, send a short survey with your welcome package and ask, “How did you hear about us?”

Another question to ask is whether your donors prefer print or electronic communication. Short surveys are also a good way to connect throughout the year. The more you know about your donors the easier it will be to communicate with them.

Make your current donors feel special, too

While I’ve been focusing on new donors in this post, retention rates for current donors are also declining. The biggest hurdle is getting from the first to the second gift, but don’t rest easy after that.

If you’re not acknowledging a donor’s past support, you’re making a huge mistake. Imagine how you would feel if you gave to an organization for over five years and they never thank you for your long-time support.  

These valuable, long-term donors could leave at any time, so ignore them at your own peril. Make sure they get a special thank you from you.

Keep it up

You should also know you need to communicate with your donors regularly. Plan on special mailings or emails specifically targeted to new donors. Try to send something by mail if you can. It’s more personal and your donors are more likely to see it. 

Think of other ways to do something special for your new donors too, such as offering tours of your facility or holding an open house.

Of course, don’t ignore your other donors. Keep reaching out – at least once or twice a month. Show appreciation and update them on your success.

A huge factor in donor retention is a good donor relations plan that you will carry out regularly as long as your donors support you, which hopefully will be for many years.