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. 

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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.

Navigating the #GivingTuesday Waters

Image result for #GivingTuesday 2019 logosI imagine most of you are familiar with #GivingTuesday, the annual giving day that takes place the Tuesday after Thanksgiving. This year it will be on December 3.

Perhaps you’ve participated in the past and it’s been successful, or maybe it wasn’t. Perhaps you’re planning to participate for the first time. Maybe you’re wondering if it’s best to just skip it.

Giving Tuesday: You Have a Decision to Make — Yay or Nay?

A successful #GivingTuesday campaign is about more than just raising a lot of money. You also want to build relationships and make your donors feel good about supporting your organization. This is where it often falls short.

I’m not a huge fan of #GivingTuesday or any giving days, for that matter, because they focus too much on getting donations. Many of these donors are first-time donors who don’t give again. The end result is you’ve just spent a lot of time and effort on getting one-time gifts.

Whether you participate or not, #GivingTuesday is now part of the nonprofit landscape and if you’re doing a year-end appeal, you’ll need to factor it into your campaign.

I have a few suggestions to help make #GivingTuesday more successful and how to navigate around it if you’re not participating in it.

Is #GivingTuesday working for you?

If you’ve run a campaign in the past, check to see if people who gave the year before gave again. Go back as far as you can to check retention rates.

Also, who is donating on #GivingTuesday? Are they brand new donors or current donors who chose to donate on that day?

Segment your donors

Many organizations just blast a bunch of generic appeals without taking into account who they’re sending them to. If someone donated last year on #GivingTuesday, this is the perfect opportunity to thank them for that gift and ask them to donate again this year. If they donated two weeks ago, maybe they shouldn’t get an appeal right now.

The Importance of Segmenting Your Donors

Also, if you’re sending an appeal to your monthly donors, recognize them as monthly donors. They can either upgrade or give an additional gift. They get their own thank you, too. 

Should You Thank Monthly Donors Who Make an Extra Gift?

Focus on relationship building

Now that you’ve segmented your donors, you can to do a better job of building those important relationships. Keep your appeal donor-centered. Thank current donors and find a way to make a connection with potential donors.

Again, the problem with most #GivingTuesday appeals is they’re focused too much on getting donations. Also, the fact that it’s #GivingTuesday may not mean much to your donors. Give them a compelling reason to donate to your organization.

Use #GivingTuesday as a way to follow up with your donors

If you don’t want to launch a full #Giving Tuesday campaign (understandable), it can be a great opportunity to follow up with people who haven’t donated to your year-end appeal. You should be sending regular reminders, anyway.

Send email and social media messages before and on #Giving Tuesday encouraging people to donate. You can use the #Giving Tuesday logos, etc. if you’d like. Obviously, you’ll want to keep following up with anyone who didn’t donate on #GivingTuesday.

Keep in mind your donors will be barraged with email and social media messages on #GivingTuesday. Make yours stand out and be prepared to keep following up.

Pour on the gratitude

Your donors should be feeling the love right after they make their donation.

Make sure you have an engaging thank you landing page and thank you email for your online donors. You could even create ones especially for #GivingTuesday. Then you need to follow that with a phone call, handwritten note, or thank you letter.

Send welcome packets to new donors or welcome back messages to current donors.

#GivingTuesday has a transactional feel to it, although it doesn’t need to. Go the extra mile and do a good job of thanking these donors – both right after they’ve made their donation and throughout the year.

3 Ways to Follow Up with Your Donors After Giving Tuesday

The Ideal “Thank You” Timeline for Maximum Donor Retention

#GivingTuesday is not for us

Maybe you’ll decide to bypass #GivingTuesday all together. Keep in mind other organizations will be participating and your messages will be competing with the onslaught of #GivingTuesday appeals. 

You have an opportunity to stand out here by keeping your fundraising campaign focused on gratitude and relationship building. I believe year-end is a good time to ramp up your donor communication (examples include thank you messages, holiday greetings, and updates) so people don’t think you’re only asking them for money.

A New Approach to Giving Tuesday: Be different and stand out from the crowd

How did you do?  

When this year’s #GivingTuesday is over, make a plan to measure your results. Was it worth the time and effort?

I think you’ll find your #GivingTuesday campaign, or any fundraising campaign, will be more successful if you focus on more than just the giving part. And a big part of a successful campaign is getting repeat donations.

Your Post-Giving Tuesday Donor Retention System

How to Keep Your Giving Tuesday Donors

 

The Importance of Segmenting Your Donors

5786426902_1b9405e1a5_wYear-end fundraising time is here. I’ve already started receiving appeal letters and I know this is just the beginning. 

I get appeals from nonprofit organizations I don’t already support and many of these are generic and impersonal. This is annoying. But what’s even more annoying is receiving generic appeals from organizations I do support.

Maybe I’ve donated for at least five years. In many cases, I’m a monthly donor. Do these organizations recognize that? No, they don’t. I just receive a one-size-fits-all letter. 

This is a mistake. If you don’t segment your donors and send different letters to different types of donors, you’re telling them you don’t recognize them for who they are.

Do not send everyone the same letter. You don’t need to create 100 different types of letters. Four or five should be sufficient. Besides segmenting your appeal letters, you also need to segment your thank you letters. You need to segment your donor communication (newsletters, etc), too, but I’m only going to cover appeal and thank you letters in this post.

Your donors are getting tons of appeals right now, as we enter one of the busiest times of the year. Your appeal will stand out if it’s not the same old same old.

Here are a few different types of donor groups. Feel free to add more if that’s relevant. The more you can segment, the better. Investing in a good 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 good opportunity to ask for an upgrade. Many organizations don’t do this, but it’s a good way to increase your revenue. 

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, 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 just 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 abysmal. 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 packet 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 year-end gift. Here’s an example from the Southern Poverty Law Center.

What’s In My Mailbox | How are you upgrading your monthly donors?

When your donors renew or upgrade their monthly gifts, they, of course, get a super fabulous thank you.

Current donors who become monthly donors

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

Segmenting your donors can pay off

You might be panicking because this type of segmentation sounds like extra work. But it will be worth it if you can raise additional revenue and boost your retention rate.

11 Ways To Segment Your Donors To Improve Your Fundraising

How to Effectively Segment Your Donors and Audiences 

Show Some Donor Appreciation by Holding an Open House

46151444015_a1828a3de5_mMany nonprofits do a poor job of showing appreciation to their donors, but you don’t have to be one of them. 

There are many ways to show some donor appreciation. One idea is to have an open house at your organization. If you can’t hold one on-site, have it at a restaurant or other venue. You may be able to find someone to donate space.

Invite other supporters, too

You could just have an event for donors, but why not invite other supporters such as event attendees, email subscribers, and social media followers, as well? This could be a great way to convert these supporters into donors. Encourage your donors to bring a friend, too.

Coordinate it with your year-end appeal

Depending on your resources, you may only be able to hold one open house a year. If you can hold more, that’s great.

A good time to have your open house is before you launch your year-end appeal so you could hold one sometime between mid-September and early November.

Another option is spring if you have an appeal then, or you could make it a thank-you event.  

Winter is tricky unless you’re lucky enough to live someplace where it doesn’t snow. And summer’s not good since most people go away on vacation.

Whenever you decide to hold your open house, don’t ask for money at this event.

Keep it casual

No three-course dinners and speeches that go on and on. Hold a gathering where your supporters can drop in after work, and serve something to eat and drink. You may be able to get food and beverages donated or find a sponsor.

Have a brief program. You could show a video and/or let a client share his/her story. Your executive director or board chair should thank your guests and share some accomplishments and plans for the future. Remember to keep it brief. You don’t want anyone looking for the nearest escape route.

Create some photo displays and have literature available. You could also show a video on a laptop. Offer tours, if that makes sense.

Speaking of tours, you could offer them at other times, too. After I became a monthly donor, one organization invited me to arrange a tour. Even though I didn’t take them up on it, I thought it was a nice gesture.

7 Tips to Create an Amazing Donor Cultivation Tour

Get your board involved

You must have a good turnout from your board. Encourage board members to invite friends and other potential prospects.

Make everyone feel welcome

Don’t hide in the corner or spend all your time talking to your co-workers. Your staff and board need to mingle with your guests and make them feel welcome.

You may want to go over your organization’s talking points and brush up on your elevator pitches so everyone is prepared to talk about what you do and answer questions. And that doesn’t mean reciting your mission statement. Use language your attendees will understand.

How to Nail Your Nonprofit’s Elevator Pitch

Don’t forget the follow-up

Anyone who has taken time out of her/his busy schedule to attend your open house needs to be thanked. Follow up is crucial. Don’t miss out on this opportunity to build relationships.

Collect names and addresses of the people who attended and send a thank you note right away. This is a good project for your board. Don’t ask for money (that comes later).

Segment your open house attendees, so when you send your next appeal you can include a sentence that says, “It was great to see you at our open house.”

Not all your donors will attend your open house but will appreciate the invitation. Donors and other supporters who do come are showing you they’re interested in your organization. Keep them interested and keep showing appreciation and building relationships with them! This will help ensure they’ll continue to support you for a long time.

 

 

 

How to Stay on Track for the Rest of the Year

OLYMPUS DIGITAL CAMERACan you believe we’re already halfway through the year? I hope your fundraising and communications are going well so far. If not, you’re not alone. According to the 2019 Giving USA report, overall giving is down 1.7%.

5 Key Takeaways from the 2019 Giving USA Report

The mid-point of the year is always a good time to see if you’re meeting your fundraising and communications goals. If your fundraising is down, you’ll need to make some smart choices for the rest of the year. This often includes better donor communication.

If you never made a fundraising plan for 2019, stop right there and put one together now and use it for the remainder of the year.

Nonprofit Fundraising Plan: 6 Must-Do Steps For Success

No need to panic yet. There are ways you can stay on track and raise more money in the second half of the year. Here’s how.

Ask your donors for an upgrade

An obvious, but overlooked, way to raise more money is to ask your donors to upgrade their gifts. Even if you’re a smaller organization, it’s not too much to ask $25 donors to give $50, $50 donors to give $75, and so on.

Make a point to do this in your next fundraising campaign. If you don’t, you’re leaving money on the table.

How to Get Your Donors to Give More this Year than Last Year

Start or enhance your monthly giving program

I’m a big fan of monthly or recurring giving. It’s a great way to raise more money, as well as your donor retention rate. Retention rates for monthly donors are 90%, much much better than other retention rates.

If you don’t have a monthly giving program, plan to promote one in your next campaign. To get more monthly donors, send a special targeted letter to current donors inviting them to become monthly donors. This another good opportunity to upgrade smaller dollar donors, or any donors for that matter.

Also, do something special for your current monthly donors. Send them a thank you postcard or email. They’ve made a commitment to you, now make a commitment to them.

Get in touch with your lapsed donors

Reaching out to your lapsed donors could help you raise additional revenue. An organization I used to contribute to sent me a nice letter asking me to come back. I won’t go into a lot of detail, but I stopped donating to them mainly because my giving priorities changed. 

I was impressed that they made a special attempt to reach out, because most organizations don’t do that. Yes, you might get the usual generic letter.

In your next fundraising campaign, send targeted letters to your lapsed donors telling them you miss them and want them back. After your campaign is over, make an attempt to reach out to any additional lapsed donors.

Do a better job of thanking your donors

Last week’s post was all about doing a better job of thanking your donors by creating a thank you plan. 

Creating a Thank You Plan Will Help You Stay Focused on Gratitude All Year Round

Showing gratitude is just one part of the donor communication mix. Stay in touch throughout the year with donor-centered updates. Show your donors how they’re helping you make a difference.

You still have time to stay on track

If you’re falling short of your goals, you still have time to do better, but you have to make an effort.

Giving USA 2019 | How to fundraise smarter, not harder

Be sure to keep evaluating your progress for the rest of the year to help ensure a successful 2019.

3 Ways to Stay Ahead of Giving Trends

 

A Few Common Donor Communication Problems and How You Can Fix Them

8775923664_553640db9e_mSome nonprofits do a good job of communicating with their donors, but many do not and that’s a problem.

Mediocre or poor donor communication will hinder your success. If you wonder why your retention rates are floundering that may be the reason. Here are a few common donor communication problems and how you can fix them.

Sending your donors the same appeal letter

Your donors are not the same, so why are you sending everyone the same generic appeal letter? When you do this, you’re showing your donors you don’t know who they are.

I recently received a letter that was a good appeal, but didn’t recognize me as a monthly donor or acknowledge any previous donations. Monthly donors shouldn’t get a generic appeal like this. What should have happened is the organization should have thanked me for my monthly gifts and either asked for an upgrade or an additional one-time gift.

The same applies if someone is a theatre subscriber, museum member, or college alumni. I spend a significant amount of money on a theatre subscription. It’s perfectly fine for this theatre to ask for an additional donation, but I also want them to thank me for being a long-time subscriber.

This happens way too often. You should always recognize a donor’s past support.

Here’s an organization that did that. Their appeal letter opened with For the past 4 years, your generosity has made a world of difference. Wow, this organization knows me! The appeal included several instances where they mentioned how my support has made a difference.

What kind of message are you sending to your donors? That you recognize them for who they are or that they’re just a source of revenue for you?

6 easy ways to segment your fundraising appeal letter

Thank you letters that don’t focus on gratitude

The purpose of a thank you letter is to thank your donor. It’s not to brag about your organization or explain what your organization does. It’s also not a receipt. You can include a donation summary, but don’t lead with that or make it the main focus of your letter. If you do that, you’re implying that the donation is a transaction instead of the beginning or continuation of a relationship.

I use the term thank you letter, because that’s what most organizations send. Although, sometimes it’s just an email. You can do a better job of thanking your donors if you send a handwritten note or make a phone call.

I get so many thank you letters and emails that are uninspiring. They lead with the usual On Behalf of X organization before veering into receipt territory. Occasionally, I’ll get a card in the mail that pours on the gratitude with phrases like We cannot thank YOU enough and You make it possible.

Also, the thank you that you send after you receive a donation is just beginning, not the end, of a donor engagement journey that lasts throughout the year.

Take Thanking Your Donors to the Next Level

Newsletters that ignore donors

Newsletters are a big problem area. They’re usually too long, boring, and organization-focused. I recently received an eight-page newsletter written in the third person that primarily mentioned a bunch of accomplishments. It had no stories and read like a promotional piece, which is not the purpose of a donor newsletter.

Your newsletter should show your donors how they’re helping you make a difference.

The magic word you was nowhere to be found in any of the articles. That’s why your newsletter needs to be written in the second person dominated with phrases such as Thanks to you or Because of you.

The only time the organization mentioned donors and used the word you was in a section asking people to give to a Donor Advised Fund (DAF). It was basically a solicitation and required a minimum contribution of $100,000, which most people aren’t going to be able to do. As someone who gives $5.00 a month, I’m certainly not in that demographic.

They didn’t even thank their current donors before asking them to make such a big financial commitment. They would have been better off targeting people who would be likely to donate to their DAF.

You’re ignoring your donors (or at least most of them) when you include a message that’s only relevant to a small number of people.

Of course, you can share your success in your newsletter, but you need to let your donors know how they helped with that. Another organization did a better job with their newsletter. It included a cover letter thanking donors, as well as a success story and a section titled You Make a Difference.

A good rule of thumb for your newsletter is more donor appreciation – less bragging.

Why your fancy newsletter is failing you

You don’t want to upset your donors with poor communication. Send different appeals to different types of donors, write a thank you letter that focuses on gratitude, and continue that appreciation in your newsletter instead of bragging so much about your accomplishments.