7 Tips to Improve Nonprofit Donor Communication

As a nonprofit, communicating with your supporters is crucial to establishing lifelong donor relationships. Find out how you can make every message count.

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By Gerard Tonti

Donors are the backbone of any nonprofit. Their generosity funds both the daily tasks and the overall mission of the organization. And yet, many donors feel under-appreciated and are uninformed about the great things these nonprofits are doing with their donations!

If you are a nonprofit professional, it is crucial that you place a much-needed emphasis on the donors who are backing your mission. So, how can you do that? 

For one thing, take a look at your current donor communication practices. Do you adequately thank your donors for their generous gifts? Do you keep in touch with your supporters on a regular basis, rather than only to request a new donation?

If you answered no to either question, consider upping your donor communication strategy. Even if you answered yes, there is always room for improvement.

Here are 7 ways to improve your nonprofit’s communication:

  1. Personalize your messages.
  2. Encourage interaction.
  3. Segment your audience.
  4. Focus on the donor.
  5. Schedule communications.
  6. Manage donor data.
  7. Report and track metrics.

Ready to get started? Let’s jump in.

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1. Personalize your messages.

Adding a personal flair to your communication is a great way to get your donor’s attention and strengthen the connection they feel to your nonprofit, which boosts donor retention.

A few key details that really bring a personal touch to your messages include:

  • Donor’s name
  • Donation amount
  • Date of donation

This is the difference between “Thanks for the donation!” and “Thank you, [Sabrina], for your generous gift of [$100] on [January 1st, 2020].” This lets the donor know that you really appreciate this particular gift.

Consider implementing these details into customized thank-you’s for each donor. Most likely, you already send some sort of thank you message— but chances are, it might be a little bland. Thinking outside the box with your messaging leads to higher levels of engagement and a more personal response.

Consider creating a video, writing a note, mailing a personalized thank you card, or giving a shout out on social media to further show your donor appreciation. Look for opportunities to use more detailed information about your donor, such as the name of their pet or their birthday.

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2. Encourage interaction.

Donor communication does not have to (and should not) be one-sided. Ask questions or send out surveys to encourage your supporters to communicate with you. This way, you better understand your donor network and they feel more included in the organization. 

Ask questions, such as:

  • What led you to donate in the first place?
  • What attracted you to our organization?
  • What interests you most about our mission?
  • What impact do you most hope to see?
  • Could you see yourself becoming more involved?

Engaging with your donors in the digital era is especially easy. Through email and social media platforms like Facebook, Twitter, and Instagram, supporters are able to contact you in mere seconds. Let them know that you want to hear from them by inviting replies to emails and responses to social media posts. 

Most importantly, listen to their answers. Try to implement any feedback you receive and thank your donors for their great suggestions. Be sure to respond to their online posts and questions in order to establish personal connections.

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3. Segment your audience.

Unfortunately, donor communication is not one size fits all—at least it shouldn’t be. First-time donors should not be getting the same messages as monthly recurring donors.

To establish good communication practices, it is crucial that you first segment your donors. This allows you to send targeted messages customized to a smaller group of donors who share similar qualities. 

For example, you might divide your donors into these categories:

  • New donors: First-time donor messaging requires special consideration. A whopping 81% of first-time donors never give again, but you want to fight against this statistic by engaging donors right off the bat. Make sure to appreciate your new donors and their support for your cause. You want to get that second donation, also known as a golden donation.
  • Recurring donors: Recurring donations are transferred automatically on the agreed upon schedule. For instance, monthly donors have committed to an ongoing donation each month for an undefined period of time. These donors are some of your nonprofit’s most important supporters. Consistent gifts provide stability, especially outside of peak donation season, and smaller donations add up quickly.
  • Repeat donors: As opposed to recurring donations, a repeat donor is someone who has given to your organization before but has not committed to an ongoing donation agreement. Your messages to this group can encourage donors to opt for a monthly giving program.
  • Lapsed donors: These are donors who used to give to your organization but have since stopped their donations (typically defined by a lack of gifts over a 12-month period). Create a strategy to reconnect with these supporters who have already established a connection to your organization.
  • Members: If your organization is comprised of members, they tend to seek a more personal relationship, and desire frequent, ongoing communication. Click here to find out how to best manage your members. Consider sending a birthday message or telling them you miss them if their engagement starts to falter.

Depending on the specifics of your organization, you may choose to segment your donors in different ways and with different strategies. A segmented audience allows you to craft more direct and relevant messages to each individual and improves overall donor communication.

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4. Focus on the donor.

There is an important difference between corporate communication and donor communication. The distinctions may be subtle, but they are powerful. Corporate communication places a focus on your organization and what you are doing, while donor communication shifts to an emphasis on the importance of each donor

While it can be tempting to take the opportunity to brag about your nonprofit and your abundance of success stories, (and don’t worry: there’s still a time for that!) it is an excellent practice to focus on the importance of the donor. 

Experts suggest using adjectives such as kind, caring, compassionate, helpful, and generous — the key characteristics of a moral person— to describe the donor and their gift. It’s human nature; donors like to be told that they are needed and important to your cause. Focusing on the donor is a great practice for improving your donor stewardship, too!

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5. Schedule communications.

Because it is so vital to keep up your donor communications year-round, it is a good idea to implement a schedule to manage your ongoing communication. Some experts suggest at least one to two messages each month, which can get daunting and/or repetitive.

One way to do this effectively is to plan with a communications calendar (or editorial calendar) that allows you to draft out messages throughout the year. This is a great tool to keep up with your donor communication and ensure that it doesn’t fall through the cracks as a lesser priority.

A calendar is excellent for drafting time-sensitive messages, especially ones that you have access to ahead of time. A few examples include:

  • Holidays: Getting involved in holidays like Valentine’s day (“we love our donors”) and Thanksgiving (“we are so thankful for our donors”) is a great way to make use of the calendar and annual celebrations. You may also choose to recognize days or months specific to your cause, such as World Hunger Day or Human Trafficking Prevention Month.
  • National events: For example, the Presidential Election! The election effect is real when it comes to donors giving to their favorite social and political charities. Leverage this with strategic messaging to take advantage of current events (especially when they relate to your nonprofit’s cause).
  • Fundraising season: Get started with your year-end fundraising by planning messages ahead of time. You already know that Giving Tuesday and the holiday season are especially generous times for donors; get that head start in the early months of the year to maximize your impact!

Overall, using a calendar to plan out your communications is crucial for ensuring the best donor communication practices. Just make sure to switch things up sometimes to keep your communication fresh. 

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6. Manage donor data.

To best target your communication to specific donors, take a look at your donor data collected by your donation pages and stored in your constituent relationship management (CRM) system, also known as your donor database. When you can use that data and make actionable insights, your CRM becomes an excellent resource to understand your audience and how they want to communicate.

For example, when your donation page asks for contact information, allow your donors to select their preferred method of communication (text message, phone call, email, physical mail, etc.) or the best time to contact them (day, evening, weekends) and then honor it. Donors appreciate when you actually take their preferences into consideration— and may become frustrated when you don’t. 

Check out Salsa’s tips for keeping your data in top shape so that it becomes the most useful tool you have. Keeping your CRM data clean, organized, and updated is a great strategy for ensuring useful data for your communication practices.

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7. Track and report metrics.

One of the best ways to improve your donor communication skills is to start with a better understanding of your current donor relations practices and how well they are working. Then, as you start to integrate these new ideas into your strategy, track certain metrics to read your successes and failures.

Useful metrics to track include:

  • Open rates: The percentage of recipients who opened your message.
  • Impressions: The number of times your message was viewed.
  • Conversion rates: The percentage of recipients who completed a desired action.
  • Bounce rates: The percentage of emails that never made it to an individual’s inbox.

Many CRM and communication software can provide this information, which you definitely want to take advantage of.

By collecting and analyzing this data, you can compare and contrast various communication channels with each other to determine which tactics are working well, and which could use a revamp. 

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When you implement these 7 tips and tricks into your donor communication strategy, you will begin to notice a significant improvement in your donor relationships. And with improved donor relationships, comes increased rates of donor retention!

Gerard Tonti is the Senior Creative Developer at Salsa Labs, the premier fundraising software company for growth-focused nonprofits. 

Gerard’s marketing focus on content creation, conversion optimization, and modern marketing technology helps him coach nonprofit development teams on digital fundraising best practices.

 

Let Your Donors Know How Lucky You Are to Have Them

422810636_b02ba5dfed_mIn a recent Grow Report, fundraising expert  Pamela Grow wrote about a time she had just started a new development job and the donors hadn’t been thanked for over eight months (yikes!). When she expressed concern about this to an outside consultant, the consultant replied, “In my experience, donors are lucky to get a postcard.”

Really? What nonprofit organizations should be saying is, “We’re lucky to have our donors.” And this includes all donors, even ones who give smaller gifts. Smaller gift donors often have the potential to give more. Also, don’t discount a loyal donor who’s given $25 a year for 10 years. Maybe she’s passionate about your cause, but that’s all she can afford. You don’t want to lose her.

Do your donors know how lucky you feel to have them support your organization? They should. Take time this month to let them know that and keep letting them know that throughout the year. St. Patrick’s Day is coming up so you could use that as a theme.

You need more than luck 

Luck isn’t everything, though. You have to work at it. Donors don’t magically donate, or more important, keep donating to your organization. In fact, if you ignore them or communicate poorly, they’re unlikely to donate again.

It takes more than leprechauns granting wishes. You need good donor relations and consistent, engaging communication. Donor relations should be easier than raising money, and it can be fun, too. But not only do you have to work at it, you need to make it a priority!

New beginnings

If you don’t want to use St.Patrick’s Day as a theme, spring is just around the corner (yea!). Spring is a time for new beginnings. Maybe you can share a new initiative that you were able to launch with your donors’ help.

Speaking of new beginnings, think about sending something special to your first-time donors. Let them know how much you appreciate this new relationship. If you don’t, it’s likely to be a short-term relationship. Donor retention continues to be poor for first-time donors. Don’t let these donors slip away.

Reach out to your loyal donors

While engaging with first-time donors is important, you don’t want to ignore your longer-term donors. Organizations rarely acknowledge past giving. I gave an example above about a loyal donor who’s given for 10 years.

If you have donors who’ve given for more than three years, do something special for them. Let them know you’re lucky to have them in your family of donors.

Build relationships throughout the year

Building relationships is one of the most important components of fundraising. It’s something you need to do throughout the year.

Don’t just communicate with donors when you have a fundraising campaign or an event. The in-between times are just important. Let your donors know how lucky you are to have them and keep doing that again and again.

Show some donor appreciation at least once a month. A communications calendar will help you with this.

Your donors need to know how lucky you are to have them. It’s not hard to do that, but you can’t rely on just luck. 

Get inspired by some of these ideas.

15 Creative Ways to Thank Donors

12 Ways to Inspire and Delight Your Donors…With Examples!

10 Donor Recognition Ideas for Nonprofits

 

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

 

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. 

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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. 

Bloomerang_Ann Green Nonprofit_Donor Relationships_ 5 Challenges and How to Overcome Them_Feature5

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