Are You Shortchanging Your Donors?

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Your donors made a commitment to your organization by giving to you. Are you making the same commitment to them?

Donors have a choice. There are many nonprofits they could donate to, but they chose yours, along with others I’m sure.

Donors can also choose to stop giving to your organization and this could happen if you shortchange them by not giving them the recognition and appreciation they deserve.

Here are a few examples of ways you could be shortchanging your donors. Are you a guilty party?

Treating all donors the same

Your donors are not the same, yet many organizations send the same appeal and thank you letters to all their donors.

Don’t do that. At the very least, send different communication to new donors, current donors, and monthly donors. Welcome new donors, thank donors for their previous support, and acknowledge those ever so important monthly donors.

To take it a step further, get to know your donors better. A survey is a great way to do that. You could pop one in an e-newsletter or include one in the welcome packet you should be sending to new donors.

You can survey donors about what drew them to your organization, what issues are important to them, or what their communication preferences are. This way you can share information you know they’ll be interested in. Also, if you find out your donors don’t spend much time on social media and prefer email, you can concentrate your efforts there.

Some organizations allow donors to give to different initiatives. If you’re one of them, send communication specific to that program. For example, send one group an engaging update on early education and another something on childhood hunger.

Strengthen Your Donor Segmentation: 7 Successful Strategies

3 Examples of Nonprofit Donor Surveys

Not communicating enough

Funny how nonprofits go all out during appeal time and after that you hear almost nothing. You need to communicate throughout the year. Make a point to reach out to your donors between once a week and once a month. A communications calendar will help with this.

Some organizations do a good job of thanking and updating throughout the year. Others, not so much. Your donors were drawn to your organization because they’re interested in the work you do. Let them know how they’re helping you make a difference.

Find creative ways to stay in touch. One organization sent me a quiz by email, which was a great, interactive way to find out more about a certain issue.

Not communicating well

I could write an entire post about poor communication. Okay, maybe you have a newsletter, but it’s not very good. Yes, you thank your donors, but all you send is an organization-centered, generic email.

Thank your donors like you mean it. Share stories in your in your newsletter that your donors want to read (remember the survey I mentioned above). Ditch your jargon and write in a conversational style your donors will understand.

Another problem is getting bogged down in the details with a bunch of long-winded text. Get your donors interested right away. They’re busy and aren’t going to read a long, boring newsletter or annual report.

Short and more frequent is the way to go. If you email a short, and of course engaging, update every two weeks or so your donors shouldn’t get the impression you’re not interested in them.

You also want to communicate by mail periodically. You could write an amazingly personal email, but it’s so easy for that to get lost in your donor’s inbox. And what if you find out some of your donors don’t use electronic communication very often?

At the very least, make a point to send at least one non-ask piece by mail. One suggestion I like to recommend for organizations with tight mailing budgets is to spread the love throughout the year. Send a small number of handwritten notes or postcards each month ensuring that every donor gets one. Also, imagine their surprise when they get a note from you in May or September when they’re not expecting anything.

Your donors are important and they need to know that. Don’t shortchange them by treating them all the same, not communicating enough, and doing a poor job of communicating with them.

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Is This The Best You Can Do?

3986997574_5aa55585a4_mI sometimes wonder if nonprofit organizations are doing the best they can when they communicate with their donors. Unfortunately, there are a lot of examples of poor communication out there.

It doesn’t have to be like this. You can do a better job of communicating with your donors if you make an effort.

Does your thank you letter make your donors smile?

I find some of the worst examples come from thank you letters or what I like to call the thank you experience (for online donors it’s the thank you landing page, thank you email, and a thank you by mail or phone). Often it’s a lack of thank you experience.

At the end of last year, I gave an example of a thank you landing page and thank you email which were basically just transactional receipts. Some Observations From the Year-End Fundraising Season

This organization also sent a thank you letter about a week after I made the donation. I was pleasantly surprised because most nonprofits don’t mail a thank you letter if you donate online, although they should.

My good feelings vanished when I saw this letter was also just a receipt. It was from the Chief Financial Officer and opened with – This letter serves to acknowledge receipt by X Organization of a donation of X dated 11/27/18. Then it when on to say my husband and I may be entitled to claim a tax deduction. At the very end, the organization said – Thank you for your generous contribution.

This organization seems to think the most important part of a donation is the tax deduction rather than making the donor feel appreciated.

The organization redeemed itself a little by sending another letter from the President, which was dated January 10. This was an actual thank you letter, although not an outstanding one (more on that in a future post).

The problem here is this organization left me with a bad impression by making their initial thank you a receipt. I should have received the actual thank you letter at the beginning of December, not six weeks after I made the donation.  I would have combined the two letters, leading with the thank you and including the tax-deductible information at the end.

Contrast this with a rare handwritten thank you note I received from Reach Out and Read, which gave specific examples by telling me my gift will enrich the lives of children by providing them with books at their wellness visits. and Their parents will receive information about the importance of reading to their children daily.

One question you can ask yourself as you write a thank you letter is will this letter make my donors smile?  It won’t if it’s like the first example but should if it resembles the second one.

I encourage you to spend six minutes watching this video How to write a great thank you letter to your year end donors, which will help you create a thank you letter that will make your donors smile.

One key to good thank you letters is giving it the personal touch. TY Thursday: A Personal Letter is Better Than a Personalized One

Fundraising appeal dodgeball

#GivingTuesday and the end of December bring back memories of playing dodgeball in gym class. Nonprofits are hurling a constant stream of email appeals with pleas for “last chance to donate.” Really, you can’t donate after December 31?

I was barraged with emails at the end of December even though I gave gifts in November or am a monthly donor. Most were just generic appeals, although a few added a thank you to people who have already donated. Personalization didn’t exist.

Fundraising letters weren’t much better. Organizations I don’t support tried to entice me with useless mailing labels and notepads. Organizations I do support don’t acknowledge my past giving.

To paraphrase one of my favorite Seth Godin quotes – More isn’t better. Better is better. –  Instead of a constant blast of appeals, work on making them better.

5 Lessons From Year-End For Fundraisers Like You

Donors Are Ticked Off By Excess Solitication

What’s holding you back?

Now that we’re in the New Year, this is a good time to figure out how you can make improvements in your donor communication.

Although a handwritten thank you note is better than a letter, you may not be able to send notes to all your donors. But that shouldn’t stop you from writing a good, heartfelt letter. Also, show your online donors some love by sprucing up your landing page and thank you email so they don’t resemble a receipt.

Maybe you can write short, personal notes on your thank you letters. Recruit board members and volunteers to help you with this.

Perhaps you’ve been sending the same boring appeal letters and thank you letters for years. Write a better letter that focuses more on relationships with your donors instead of a transaction.

Segment your donors. At the very least, thank current donors for their past support. Investing in a good database will help this.

Take time to make improvements in your donor communication so your donors don’t wonder – Is this the best you can do?

A Few Ways You Can Raise More Money in 2019

Happy New Year! I expect many of you launched a year-end appeal last year. I hope it was successful. If it wasn’t, I have some suggestions about how you can raise more money – both now and throughout the year.

Reach out to your lapsed donors

Take advantage of this now. Look to see who donated in 2017, but didn’t give this year. It’s possible some people meant to give but were too busy.

Send these donors a personalized appeal or give them a call. Let them know you miss them and want them back. You can go back another year or two, as well.

Take a good look at your list of lapsed donors. They’re not all the same. Do you have someone who’s given consistently over the last few years, but not this year, or are you looking at a person who gave once five years ago?

Eventually you’ll want to move some of your lapsed donors to an inactive file. This will save you money because you won’t be mailing appeals to people who aren’t going to donate.

But you can raise more money with a pesonalized appeal to donors who are likely to give again.

5 ways to win back your lapsed donors

We Want You Back! A Simple Strategy for Reactivating Lapsed Donors

Emphasize monthly giving

A great way to raise more money is by having a monthly/recurring giving program. Monthly donors usually give more and their retention rate is 90%.

If you don’t have a monthly giving program, make this the year you start one. You can also try to get current donors to upgrade to monthly giving.

Your best bet for monthly donors are people who’ve given at least twice. These are donors who have shown a commitment to you. This doesn’t mean you can’t ask first-time donors. You can include information about monthly giving in the welcome packet you send to new donors. You do welcome new donors, right?

Donors who gave in November or December may not be ready to give again so soon. Make a plan to specifically invite people to become monthly donors in the spring or at other times of the year.

Incorporating Monthly Giving Into Your Fundraising

Quick Tips to Create a Great Monthly Giving Program

Remember the two R’s

Now I’m going to tell you how you can raise more money without asking for money. You need to remember the two R’s – retention and relationships.

It’s easier and less expensive to keep your donors than to find new ones. Yet, many nonprofits have abysmal retention rates, especially for first-time donors. Now is a good time to figure out your retention rate.

One way to raise your retention rate is with the second R – relationships. Building relationships with your donors is a key component of fundraising.

This starts with a good thank you experience and continues as you update your donors regularly throughout the year letting them know how they’re helping you make a difference.

One reason you may be behind in your fundraising goals is because you just blasted out a bunch of generic appeals without targeting them to specific donors and trying to build relationships.

How To Actually Calculate Donor Retention (The Right Way) & 8 Essential Tips For Effective Donor Retention

What Comes Next

The New Year is a good time to evaluate what’s working and what’s not in your fundraising. You should be able to raise more money by reaching out to your lapsed donors, starting or growing a monthly giving program, paying attention to your donor retention, and focusing on building relationships.

Photo by: http://401kcalculator.org

Some Observations From the Year-End Fundraising Season

We’re right in the thick of year-end fundraising season. If you have a campaign underway, I hope it’s going well for you, although it may be too early to tell.

A good fundraising campaign is more than just sending out a bunch of appeals and hoping the donations come in.

I get a lot of appeals, some from organizations I support and some from ones I don’t. I’d like to share a few observations from the year-end fundraising season.

Most of what I’m going to cover focuses on organizations I already support. For those I don’t, I’ll just say your generic Dear Friend letters aren’t giving me a compelling reason to give. And that includes your triple match offer. That said, organizations I already support aren’t pouring on the inspiration either.

Fundraising is not a transaction

Don’t get me started on the transactional aspect of #Giving Tuesday. I was barraged with email appeals, many of which were not that different from the ones I received the day before on Cyber Monday.

Most of my gifts are monthly donations which automatically renew, so I didn’t make that many gifts on #GivingTuesday. I thought I was making donations, but some organizations viewed it as a transaction.

One organization’s landing page looked like this.

************************************************************************

THANK YOU!

You may print this page for your records. A receipt has also been emailed to you.

ORDER INFORMATION

Your Transaction has been Approved!

Merchant: xxx

Description: Donation for Specific fund

Email: agreen…

Name: Ann Green

Company:

Phone: xxx

Street Address: xxx

City: xxx

State: xxx

ZIP Code: xxx

PAYMENT INFORMATION

Amount:

Transaction ID: 61419346676

Payment Method: Visa  xxx

Date/Time

QUESTIONS?

If you have questions or need assistance with your donation, call  xxx or email us at xxx

************************************************************************

The thank you email they sent included the subject line – Transaction Receipt from xxx

Ugh! I made a donation not a transaction. Whatever software they’re using seems to be geared towards purchases, not donations, and that’s a problem unless they include a warm, heartfelt message with their “auto-receipt.” That didn’t happen. All I got besides Thank you for your support, was a generic description of what the organization does.

Another organization sent a transaction receipt and let me know  – This order is now complete. Transaction approved! I also received a couple of “donation receipts.”

Can we please stop using the word transaction? There’s nothing wrong with including a receipt, but that’s not the only thing you should send.

Create an amazing thank you landing page and an equally amazing thank you email and put the receipt at the end.

Four Ways to Improve Your Thank You Redirect Page to Retain More Online Donors

A little less generic communication, a little more segmentation

Actually, a lot more segmentation. Only a handful of the appeal letters I received thanked me for my past support. One letter opened with Words cannot express how grateful I am to have you as part of our team.

Most of the email appeals were just generic requests. The ones I received on #GivingTuesday made a big deal about it being #GivingTuesday. I wish they would have made a bigger deal about recognizing me personally.

One organization did acknowledge the gift I gave a year ago on #GivingTuesday, even though it was a monthly gift that automatically renews.

What I would like to see first is organizations saying thank you for being a donor, and don’t bury that at the end of the letter. Make it prominent.

Next, as someone who makes mostly monthly gifts, I want to be acknowledged as a monthly donor. These donations automatically renew, but it’s fine to ask for an additional donation or an upgrade.

After thanking me for my generous support as a monthly donor, one organization asked if I would like to make a special gift this month or increase my regular pledge. Another organization sent a request to increase my gift by $1.00 a month. Unfortunately, those are the exceptions not the rule.

It will take a little more work, but send different appeals to potential donors, current donors, and monthly donors.

Keep telling your stories

I’ll end on a more positive note. The appeals that stood out included stories, as well as photos.  One that caught my eye was a first-person story from a boy named Jacob. In his handwriting (most likely), Jacob recounts his battle with leukemia – When I was 4½, I was told that I had leukemia. For 2½ years, I went through a lot of bad stuff…… Another story came from an animal therapy dog named Tova who made a request to Help Me Help More Humans.

Taking a creative approach is much better than bragging about your organization or opening your letter by saying you have a challenge match, which isn’t necessarily a bad thing, but opening with a story would have been better.

If you’re not raising enough money or keeping your donors this year, you may need to look at fundraising as more than a transaction, segment your donors, and share some good stories.

What Comes Next

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I imagine most of you have sent out your year-end appeal. You may think your work is done for now, but it’s not.

In fact, what comes next is even more important, especially if you want to keep your donors for a long time.

Fundraising isn’t just about raising money. It’s also about building relationships and making your donors feel good about giving to your organization.

Some of you may already be doing what I’m going to suggest below. Kudos to you! But I can guarantee some of you aren’t doing these crucial relationship building steps.

Do a good job of thanking your donors

The key word here is good. A good thank you is not the same boring email or letter you’ve been using for way too long. A good thank you is also not something you send weeks after you’ve received a donation.

You want your donors to feel good about making a donation. A handwritten note or phone call is always better than a letter, but if you only have the means to do a letter, make it awesome.

Create a welcome plan for your new donors

The retention rate for new donors continues to be abysmal.

One way to help ensure people will give again is to create a welcome plan, which will provide you with ways to let your new donors know how much you appreciate them.

If you specifically welcome your new donors, you’ll stand out because most organizations don’t do this. Make sure your welcome plan consists of ways to communicate throughout the year and not just the initial welcome message. The following post has more helpful information on welcoming new donors. Nonprofit Retention: All Donors Aren’t Created Equal

Make your current donors feel special, too

You may think your most valuable donors are the ones who give the most money, but what about the people who have supported your organization for three, five, or even ten years? These are your valuable donors.

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

This is why segmenting your donors and personalizing their correspondence is crucial, so is a good database to help you with this. Strengthen Your Donor Segmentation: 7 Successful Strategies

Make a plan to specifically recognize your long-term donors.

Send holiday and New Year’s greetings

The holidays give us the perfect opportunity to reach out. Send holiday and New Year’s greetings by mail or email. Do not include any type of ask with this. If you need to send fundraising reminders, make that a separate message.

Don’t hold back on your other donor communication

I know you’re swamped with your year-end fundraising, but this is not the time to scale back on your donor communication. Continue to send your newsletter and other updates. Keep them donor-centered.

Intersperse your fundraising appeals with messages in which you’re not asking for donations.

Keep going

Your first New Year’s resolution should be to communicate with your donors more. Many nonprofits seem to go quiet between fundraising campaigns. Don’t be one of them.

Keep reaching out to your donors – at least once or twice a month. Show appreciation and update them on how they’re helping you make a difference.

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

You want to keep your donors for a long time and making them feel good about supporting your organization will help you with this.

Image via ImgCop.com

Make #GivingTuesday More Than Just a Giving Day

Image result for giving tuesday logo 2018I’m sure you’ve all heard of #GivingTuesday, the annual giving day that takes place the Tuesday after Thanksgiving. This year it will be on November 27.

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.

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’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. That may be because they were drawn into whatever gimmicks the organizations were using to get donations and/or the organizations failed to build relationships afterward.

I have a few suggestions to help make #GivingTuesday more successful or 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 choose to donate on that day?

Focus on relationship building

Never miss an opportunity to build relationships, whether you’re reaching out to new donors or following up with current ones. Keep your appeal donor-centered. Thank current donors and find a way to make a connection with potential donors.

I realize the purpose of a fundraising appeal is to ask for donations, but don’t forget to build relationships, too. Again, the problem with most #GivingTuesday appeals is they’re focused too much on getting donations.

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 doing 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. 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.

How about #GratitudeTuesday instead?

Maybe you’ll decide to bypass #GivingTuesday all together and make it a day to show some gratitude to your donors.

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

Attitude of Gratitude: A Different Kind of Giving Tuesday

Remember that your donors may not see your messages that day so send some #donorlove on other days around that time, such as Thanksgiving.

Donors are going to get a lot of appeals from you at year-end so you also want to use this time to communicate in ways in which you’re not asking for money.

Don’t forget to say thank you

Speaking of showing 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.

5 creative ways to thank #GivingTuesday donors

5 Ways to Thank Your #GivingTuesday Donors

How did you do?  

When this year’s #GivingTuesday is over, make a plan to measure your results, whether you do a full campaign, a follow-up, or a thank you fest. Was it worth the time and effort?

I think you’ll find that 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.

Tips for Keeping New Donors After a Giving Day

3 Ways to Turn #GivingTuesday Donors Into Year-Round Supporters

 

Incorporating Monthly Giving Into Your Fundraising

Image via Bloomerang

Most of you are getting ready to launch your year-end appeal if you haven’t already done so. I hope your organization also has a monthly/recurring giving program. If you don’t, you’re missing out on a great way to raise more money and receive a constant stream of revenue throughout the year.

Plus, monthly giving will raise your retention rate. According to the Fundraising Effectiveness Project, the retention rate for monthly donors is 90%. These donors are committed to your organization!

To keep things simple, I’m going to use the term monthly giving, but you should offer your donors other options, such as quarterly giving.

How to get started

If you don’t already have a monthly giving program, try to set one up before your year-end appeal and let your donors know about it. If that’s not possible, make it one of your first New Year’s resolutions for 2019.

Setting up a monthly giving program will take a little work up front but will pay off in the end. Mention it in your appeal letters and make it a prominent option on your donation page.

Some organizations’ donation pages aren’t set up for monthly giving. I experienced this recently when I tried to make a donation. If I wanted to make a recurring gift, I had to contact the organization and in the interest of time, I chose a one-time gift.

Make it easy for everyone and set up a monthly giving option on your donation page.

Quick Tips to Create a Great Monthly Giving Program

Invite your current donors to become monthly donors

One way to get monthly donors is to ask your current donors to switch to monthly giving. Send targeted appeals to donors who have given at least twice. These donors have already shown you their commitment.

Let them know how much you appreciate their support and invite them to join your family of monthly donors. Show them how their $50 or $100 gift is helping you make a difference and how they can help even more with gifts of $5 or $10 a month.

Monthly donors get their own special appeal

If you already have monthly donors, send them a special appeal. Don’t send them a generic appeal that doesn’t recognize that they’re monthly donors. You should be personalizing and segmenting all your appeal letters, anyway.

Thank them for being a monthly donor and let them know you couldn’t do your work without their continued support. Politely ask monthly donors who’ve supported you for at least six months if they can upgrade their gift.

Monthly donors also get their own thank you letters

Not only do monthly donors get their own thank you letters, handwritten notes, or phone calls, you need separate letters for brand new monthly donors and current single-gift donors who’ve become monthly donors. I covered this in a recent post.

 Take Thanking Your Donors to the Next Level

Don’t shortchange your monthly donors with a generic thank you letter.

I make most of my donations monthly. The thank yous I receive range from pretty good to dreadful to nonexistent.

Some organizations will send a monthly acknowledgment by email. I don’t mind these because it lets me know my donation was charged. Often I get the same boring email each month with an equally sleep-inducing subject line such as Subsequent Sustaining Thank You. One organization uses the subject line You Are AMAZING, which is pretty amazing, and rare.

Since your donors have committed to donating every month, show them the same courtesy by communicating with them at least once a month. Those generic thank you emails don’t count.

You could send an e-mail update and at least a couple of updates by mail. Show your donors how they’re helping you make difference in your updates. Share a story or give specific examples.

A few ways I’ve seen organizations recognize their monthly donors are by giving them a special shout out in their newsletter, thanking them in their annual report, and inviting them to take a tour of the organization. Other ideas include an open house, a thank you video, a thank you postcard, and a handwritten note. Whatever you do, keep in touch throughout the year.

Pay attention to your monthly donors

All donors are special, but monthly donors are extra special because they’ve made this commitment to you. Therefore, you’re doing a huge disservice when you don’t recognize them for who they are. You can send requests for an additional single gift but not without thanking them for their monthly support.

Speaking of paying attention, you need to keep track of when a donor’s gift is about to expire. One way to avoid that is to not include an expiration option on your donation page. But that only solves part of the problem because credit cards have expiration dates. Don’t rely on your donors to keep track of this. They’re busy and have a lot of other things to worry about.

Set up a system where you can flag credit card expiration dates. A month ahead of time, send your donors a friendly reminder letting them know it’s time to renew their monthly donation. You can also ask for an upgrade and, of course, thank them. If you don’t do this, you’ll lose money and you’re showing your donors you don’t care because you’re not paying attention to them.

What Can You Do If Your Monthly Donors’ Payments Are Not Coming In?

Monthly giving is a proven way to raise more money and improve donor retention. I hope you’ll take the time to start or grow a monthly giving program for your organization.

Monthly giving resources