The Importance of Building Relationships

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One of the most important things nonprofit organizations need to do is build relationships with their donors. Building relationships should be front and center in everything you do. Here are some ways you can incorporate building relationships in every aspect of your work.

Appeal letters aren’t just about raising money

You may think the primary purpose of an appeal letter is to raise money, but building relationships is just as important.

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

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

Let your donors know how much you appreciate them

Your focus on building relationships continues when you thank your donors. Send a handwritten note or make a phone call if you can.

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

Be sure to also shower your current donors with love to keep your relationship going.

Don’t miss out on opportunities to build relationships with your event attendees

I’m amazed how many organizations fail to establish a relationship when they hold an event. First, give your attendees an opportunity to sign up for your mailing list. Next, call or send thank you notes afterwards.

Besides thanking people for attending your event, let them know how much money you raised, and share specific ways their support is helping you make a difference. Then invite these supporters to connect in other ways such as signing up to receive your newsletter or volunteering.

The same thing applies if you hold a charity run or walkathon. These events often generate new donors. Someone might donate to your 10K because her friend is running in it. Thank everyone who donated and invite them to be a part of your community.

Turn a giving day into a relationship building day

My main objection to giving days, such as GivingTuesday, is they focus so much on asking. Instead of being part of the relentless begging, send a donor-centered appeal followed by a heartfelt thank you, new donor welcome packets, and an invitation to connect with you in other ways.

Relationship building is a year-round effort

It’s easier to stay focused on donors when you’re sending an appeal or thank you, but this is just the beginning. Many organizations seem to go on communication hiatus at certain times of the year, and you don’t want to do that.

Ideally, you should keep in touch with your donors every one to two weeks. You can do this with newsletters, updates, thank you messages, advocacy alerts, and surveys. You’ll have a better chance of building relationships if you keep your messages donor-centered and use channels your donors prefer.

Staying focused on building relationships will help you with your donor retention because you want donors who will support you for a long time.

Giving is Up. Donor Retention is Down. What to Do?

Why Your Donor Will Give Again  

 

 

 

 

 

 

 

 

 

Do You Need an Appeal Letter Refresher Course?

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You may have noticed an influx of appeal letters over the last few weeks. Some organizations do their main fundraising drive in the spring, especially if their fiscal year ends on June 30. Others do theirs at the end of the year and some do more than one.

That’s all fine. What’s not fine is the mediocre letters I see. Some of these organizations need a refresher course in appeal letter writing.

Whether you’re planning a spring campaign or one later in the year, here are a few things to keep in mind.

Don’t call it an annual appeal

Okay, you can use the term annual appeal around the office, but not in your appeal letter. That also goes for 2017 annual fund drive, 2017 Massachusetts Drive, or spring fund drive.

Some of the letters I received opened by saying their annual fund drive is underway. Others state it in a header or a teaser on the outer envelope.

The fact that your annual appeal is underway means nothing to your donors and is not a compelling way to open your appeal. The same goes for the end of your fiscal year.

Given how some people feel about fundraising, an envelope teaser that says “Spring Appeal Enclosed” could end up in the recycle bin. If you want to use a teaser, try something like “What if you awoke each day crying from hunger, but you had nothing to eat?

That organization opened their appeal with a story about Kevin, a six-month-old baby in Haiti who’s suffering from malnutrition. That’s what you need to do – open your appeal with an engaging story.

It should be obvious you’re sending an appeal unless you bury your ask. Your ask should come after the story.

Why should I give to your organization?

Most of the appeals I’ve received have come from organizations I don’t already support. I need a good reason to give to your organization and I’m not seeing that.

It’s clear these letters are one size fits all and most likely my name is on a list they purchased or exchanged. Even so, give me some indication that you know me as a person. If I already support hunger-relief organizations, emphasize how you’re making a difference because you know that’s important to me.

Another gift so soon?

I do most of my giving in December so if you’re sending me another appeal now, you need to convince me why I should give again so soon. In many cases, you never acknowledge that I’ve given before. It’s the same old boring stuff.

Of course, you can make more than one ask a year, but first I need to be thanked, and thanked well, and hear from you regularly.

Always thank donors for a previous gift. Let them know why you need an additional donation now. Perhaps you’re losing funding because of budget cuts or you want to launch a new program.

This is also a good opportunity to upgrade your current donors to monthly giving. And you can always try to woo back some of your lapsed donors with a personalized letter.

Enough with the mailing labels

Please don’t send me mailing labels, notepads, calendars, etc. It’s not going to help convince me to donate to your organization. One organization I’ve never supported just sent me a calendar. They opened their letter with “Because you’re someone who cares deeply for nature….” Okay, they tried to make a connection, but if I’m someone who cares about nature why would I want you to waste paper by sending me calendar I don’t need?

I’m sure I’m not the only one who finds your swag to be wasteful. Instead, invest your print budget in creating thank you cards and donor-centered updates.

Make your appeal shine

It’s never easy to raise money, but you’ll have a better chance if you send a donor-centered appeal that shows how you’re making a difference. Here’s more information on creating a great appeal.

Stand Out With an Amazing Appeal Letter

6 Ways to Improve Your Annual Fundraising Appeal

11 Top Fundraising Consultants Weigh In on Donation Request Letters

It’s Time for a Thank You Plan

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Do you think you’re doing a good job of thanking your donors? Think hard about this, because there’s a good chance you’re not. You may have every intention to, but thanking donors often takes a back seat to fundraising when you should spend equal time doing both.

This is why you need a thank you plan. You probably have a fundraising plan and maybe a donor relations plan, but a specific thank you plan is just as important. Donor retention rates continue to be poor and one reason is donors don’t feel appreciated. Creating a thank you plan will help you stay focused on gratitude all year round.  

Here’s what you need to include in your thank you plan.

Plan to make a good first impression with your thank you landing page

Your landing page is your first chance to say thank you and it often looks more like a boring receipt than something that’s going to make me feel good about making a donation.

Open with Thank you, Lisa! or You’re amazing!  Include an engaging photo and a short, easy to understand description of how the donation will help the people you serve. Put all the tax deductible information after your message or in the automatically generated thank you email.

If you use a third-party giving site, you might be able to customize the landing page. If not, follow up with a personal thank you email message within 48 hours.

How to Create Post Donation Thank You Pages That Delight Donors

Plan to write a warm and personal automatic thank you email

Set up an automatic thank you email to go out after someone donates online. This email thank you is more of a reassurance to let your donor know that you received her donation. You still need to thank her by mail or phone (see below).

Just because your thank you email is automatically generated, doesn’t mean it needs to sound like it was written by a robot. Write something warm and personal.

Thanking a Donor by Email: Best Practices and Examples

Plan to thank your donors by mail or phone

I’m a firm believer that every donor, no matter how much he’s given or whether he donated online, gets a thank you card or letter mailed to him or receives a phone call.

Try to thank your donors within 48 hours if you can. This shouldn’t be hard to do if you plan to carve out some time to thank your donors each day you get a donation. If you wait too long, you’re not making a good impression.

Instead of sending a generic, boring thank you letter, mail a handwritten card or call your donors. Calling your donors to thank them is something your board can do. It’s often a welcome surprise and can raise retention rates among first-time donors.

Find board members, staff, and volunteers to make phone calls or write thank you notes. Come up with sample scripts. You may also want to conduct a short training. Make sure to get your team together well before your next fundraising campaign so you’re ready to roll when the donations come in.

Here’s a sample phone script, which you can modify for a thank you note.

Hi, this is Mike Davis and I’m a board member at the Northside Community Food Bank. I’m calling to thank you for your generous donation of $50. Thanks to you, we can provide a family with a week’s worth of groceries. This is great. We’re seeing more people coming in right now because of cuts to food stamp programs. We really appreciate your support.

If you can’t send handwritten cards or call all your donors, send them a personal and heartfelt letter. Don’t start your letter with “On behalf of X organization we thank you for your donation of….” Open the letter with “You’re incredible” or “Because of you, Tara won’t go to bed hungry tonight.”

Add a personal handwritten note to the letter, preferably something that pertains to that particular donor. For example, if the donor has given before or attended one of your recent events, mention that. Make sure all letters are hand signed.

Let your donors know how much you appreciate them and highlight what your organization is doing with their donations.

In addition, write your thank you letter at the same time you write your appeal letter. Make sure they’re ready to go as soon as the donations come in.

How to Craft a Killer Thank You Letter

Steal This Thank You Letter! A Sample Donor Thank You Letter for Your Non-Profit

Plan to keep thanking your donors all year round

This is where having a thank you plan makes a difference because organizations usually send some kind of thank you letter after they receive a donation and then donor communication starts to wane after that.

Use your communications calendar to incorporate ways to thank your donors. Try to say thank you at least once a month. Here are some ways to do that.

  • Send cards or email messages at Thanksgiving, during the holidays, Valentine’s Day, or mix it up a little and send a note of gratitude in June or September when your donors won’t be expecting it. Try to send at least one or two gratitude messages a year by mail, since your donors will be more likely to see those.
  • Invite your donors to connect with you via email and social media. Keep them updated with accomplishments and success stories. Making all your communications donor-centered will help convey an attitude of gratitude. Be sure to keep thanking your donors in your newsletter and social media updates. Emphasize that you wouldn’t be able to do the work you do without your donors’ support.
  • Create a thank you video and share it on your thank you landing page, by email, and on social media.
  • Hold an open house at your organization or offer tours so your donors can see your nonprofit up close and personal.
  • Keep thinking of other ways to thank your donors.

Creating a thank you plan will make it easier to keep showing appreciation to your donors all year round. If you treat them well, maybe they’ll treat you well the next time you send a fundraising appeal.

Photo via One Way Stock

Don’t Be a Stranger

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I don’t know about you, but I haven’t heard much lately from the nonprofits I support. There’s been a scattering of updates, e-newsletters, action alerts, and appeals. But mostly – silence.

I know it’s quieter time, but that doesn’t mean you need to go AWOL. You should be communicating with your donors at least once a month. In fact, the period between campaigns is an excellent time to reach out. You don’t want to be a stranger. And, since many nonprofits seem to have decided to take a break from donor communication (not a wise decision), your message will be one of the few they’ll receive.

Here are some ways to show your donors that you’re not a stranger.

Share an update

Let your donors know how they’re helping you make a difference. Send something by mail if you can. Maybe a two-page update or infographic postcard. Here’s one of my favorites. Knock it Out of the Park  If it’s impossible to send something by mail right now, you can use email.

Say thank you

Thank your donors just because. Send them a nice thank you card or you can combine a thank you and an update. Have some fun and get creative here. 15 Creative Ways to Thank Donors

Create a better newsletter

You may already keep in touch with your newsletter. Newsletters can be a great way to engage, but before you get too complacent, I have to ask you, Is Your Newsletter Boring? Many of them are, but yours doesn’t have to be.

A good summer project for you is to create a better newsletter. Find some engaging stories to share. Think about what your donors want – Hint – It’s not a lot of bragging. 3 Ways Your Nonprofit Newsletter is Killing You

The general rule for newsletters is a monthly e-newsletter and four quarterly print newsletters. I like to recommend a short (maybe two articles) e-newsletter every two weeks. Our inboxes are overflowing right now. This way you can stay in touch regularly and not bombard people with too much information at once.

Tie in current events

There’s a lot going in the world right now. Will your organization be affected by any of the Trump administration’s policies or proposed budget cuts? Share ways your donors can help – perhaps by contacting their legislators, volunteering, or making a donation.

Focus on relationship building in your appeal

If you’re doing a fundraising appeal this spring, make the main focus relationship building. Thank donors for their past support, share some updates, and show them how their gift will help you make a difference.

Invite long-term donors to join your family of monthly donors. Send a special letter to your lapsed donors letting them know you miss them and want them back.

If you also did a year-end appeal, some of your donors may be reluctant to give again so soon. You certainly can ask for more than one gift a year, but why now?  Don’t just ask for a donation. Make a compelling case and stay focused on relationship building.

Don’t lose momentum

After I made a bunch of monthly gifts last year, several organizations sent me monthly thank you letters either by mail or email. This went on for a couple of months and then it pretty much stopped. Last month I only received two thank you letters. What happened here?

It’s easy to ride on all that year-end energy, but you have to keep it up. Whether it’s thank you letters to monthly donors or e-newsletters, once you start, you can’t stop. What kind of message does that send?  Use a communications calendar to help you communicate regularly.

Your donors want to hear from you throughout the year. Don’t be a stranger.

 

Make a Smart Investment

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Many nonprofits, especially small ones, are working with limited resources (money, staff, time). I know how hard that is and your default mode may be to say we can’t afford to do this.  

Be careful. What are you saying you can’t afford to do? It may be something you should be doing.

Here are a couple of areas you may be neglecting that I believe you can’t afford not to invest in. You’ll need to spend some money up front, but it will pay off in the long run.

Invest in a good database

If you’re using Excel instead of a database because it’s free, stop doing that. A spreadsheet is not a database. Your Worst Fundraising Enemy

A good database won’t be free, but there are affordable options for small organizations. Compare Non-Profit Software  You don’t want to limit yourself by choosing a database that can only hold a certain number of records or can only be used on one computer because you don’t want to pay for additional licenses.

A good 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.

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. No more Dear Friend. You can welcome new donors and thank donors for their previous support. You can send targeted mailings to lapsed donors to try to woo them back. You can record any personal information, such as conversations you had with a donor and their areas of interest.

Don’t cut corners when it comes to your donor data. You can’t afford to do that.

Invest in direct mail

If you never or rarely use direct mail, you’re missing out on an effective and more personal way to communicate with your donors. Think of the immense 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.

If money is tight, you don’t have to mail that often. Quality is more important than quantity but aim for at least four times a year.

Put some thought into what you send. Some ideas, besides appeal letters, include thank you cards; Thanksgiving, holiday, or Valentine’s Day cards; infographic postcards; and two to four-page newsletters and annual/progress reports. Make everything donor-centered like the examples in this post. Your Donors Are Your Partners  You could put a donation envelope in your newsletter to raise some additional revenue, but don’t 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 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 to communicate by mail, then you should too.

Invest in donor communications

Here’s some great wisdom from Tom Ahern If you do better donor-communications, you’ll have more money  This means thanking your donors and keeping in touch with them throughout the year.

Communication budgets often get the short shrift but creating thank you cards and infographic postcards are a smart investment. Perhaps you need to reallocate your budget to cover some of these expenses. You could also look into additional sources of unrestricted funding.

If you think you don’t have enough time or staff to send thank you cards, then call up your thank you army, which can include board members, volunteers, and all staff.

Don’t limit yourself by saying you can’t afford to do something important. If you invest in a good database, direct mail, and donor communications, you should be able to raise more money.

 

I Know You’re Busy, But…..

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Having too much to do is the norm at most nonprofits, especially small ones. You may be busy, but what are you saying you don’t have time to do? Are you spending too much time on what’s urgent and not what’s important?

It’s possible to stay on top of things, even if you feel you’re so busy you want to set fire to the paperwork on your desk. One big key is planning.  

Here are a few areas that nonprofits need to make a priority and how you can do that.

Thanking your donors

Many organizations do a poor job of thanking their donors. When you’re working on a fundraising appeal or an event, spend just as much time figuring out how you’ll thank your donors. Sending a handwritten note or making a phone call will make a better impression on your donors than the usual boring, generic thank you letter.

Find board members, staff, and volunteers to help. Recruit them ahead of time so you’re ready to go after an appeal or event. It doesn’t take that much time to write a short note or make a phone call, but it makes a huge difference. Get your team together for a thank-a-thon.

Also, spend some time creating an engaging thank you landing page and thank you email message. But wait, you’re not off the hook. You need to keep thanking your donors throughout the year – at least once a month.  Say Thank You Like You Mean It

Staying in touch with your donors

Your donors want to hear how they’re helping you make a difference, and you need to be in touch with them at least once or twice a month.

A newsletter can be a great way to stay in touch. Setting up a template and using an email service provider can save time and will provide consistency. Perhaps each issue will include a story/profile and some updates. You can plan these ahead of time. Create a story bank and fill it throughout the year.

Make a donor communications plan that could include your newsletter, updates (by mail, email, and social media), thank yous (see above), advocacy alerts, and surveys. A communications calendar will help you with this.

Managing your donor data

Don’t wait until a week before you send an appeal to update your database. Take care of address changes, bounced emails, etc. regularly.

I know it’s tedious, but this is important. Your donors won’t be happy if you misspell their names or send them three pieces of mail because you haven’t bothered to check for duplicate addresses. Managing Your Donor Data: 6 Actionable Tips

Measuring your progress

Make time at least once a quarter to see how you’re doing. Are you meeting your fundraising goals?  Is your spring event worth doing?  Are people reading your e-newsletter?

If something isn’t going well, figure out how you can make improvements or don’t spend your valuable time doing it anymore.

Here’s a sample dashboard you can use to help you measure your progress and figure out if what you’re doing is working. Library of Sample Dashboard Indicators

What’s keeping you busy?

What’s keeping you from taking on these important tasks? Do you really need another meeting?  If so, could you make it shorter?  

Doing a few things well is much better than trying to do too much. When Things Don’t Go As Planned Make time to do what’s important.

Your Donors Are Your Partners

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Your donors are not ATM machines and people you only communicate with when you need money. They are your partners and you can’t do your work without them.

Seeing your donors as your partners will help you with your donor relations and donor communication. Always keep your donor in mind.

Show your donors how they’re helping you make a difference

I recently received a Donor Impact Report from Project Bread, an organization that’s working to end hunger. I thought this four-page report did a great job of showing donors how they’re the organization’s partners. The report was filled with donor-centered language such as:

For our generous supporters who make our work possible – a closer look at your dollars at work.

Thanks to you, children are receiving the nutrition they need to succeed in the classroom and beyond.

You help children rise and shine.

Your support puts Chefs in Schools and Chefs in Head Start on the map.

You help us nourish healthy bodies and healthy minds.

You help us foster healthy eating habits to last a lifetime.

This is so much better than a bunch of boring facts and statistics or the usual “look how great we are.”

You is glue

Fundraising expert Tom Ahern came up with the phrase – You is glue. Remember this every time you communicate with your donors. So many appeal letters, thank you letters, newsletter articles, etc. come across as distant and impersonal and don’t consider the donor at all.

Always write to the donor and before you send that message, give it the you test.

Be a good partner

A partnership is a two-way street. Your donors have demonstrated their commitment to you by supporting your organization. You can return the favor with thank you letters that pour on the gratitude. Stay in touch with newsletters and “impact reports” such as the one I highlighted above.  I’m not crazy about the term Donor Impact Report because I think it sounds jargony. I do like the concept though, and you could call it something else such as a Gratitude Report or a Making a Difference Report.

Being a good partner means thinking of your donors first. Share information they’ll be interested in. Project Bread’s report included several success stories. Donors want to hear about the people they’re helping.

Your print newsletters and annual reports should be no more than four pages. Some of the examples I cited above are headlines, so busy donors can scan the report and quickly see the you-centered language even if they don’t have time to read the whole thing.

Being a good partner also means communicating via the same channels your donors use. Your donors will be more likely to see something that comes in the mail. If four-page mailers aren’t viable, you could send an oversized postcard. Of course, you can also use email and social media, but try to send updates by mail a few times a year.

A long-term partnership

You want your partnership with your donors to last a long time. This isn’t happening as retention rates continue to plummet. Seeing your donors as partners that you welcome when they first donate and then continue to show appreciation to and stay in touch with over time will help.