Making Smart Investments is More Important than Ever

10688617385_ce1214d44d_w (1)Nonprofit organizations will be facing some tough times ahead. During an economic downturn, the need for nonprofit services grows while some donors won’t be able to give as much, if at all.

Your first inclination may be to make cuts or continue working with a bare-bones budget with the mindset “we can’t afford this.” 

I understand you want to be cautious. But you also want to use caution before you eliminate something you think you can’t afford. It may be something you should be investing in.

This is why you need to make smart investments. It may seem counterintuitive to spend money when you have so little, but if you make the right decisions, these investments can help you raise more money.

Invest in a good CRM/database

A good CRM (Customer Relationship Management)/database is a must for a number of reasons. First, it can help you raise more money. You can segment your donors by gift amount and politely ask them to give a little more in your next appeal – $35 or $50 instead of $25.

A good database can also help you with retention, which will save you money since it costs less to keep donors than to acquire new ones. You can personalize your letters and email messages. Some CRM’s also have an email component. Otherwise, make sure to invest in a good email service provider, too.

Personalized letters and messages mean you can address your donors by name and not Dear Friend. You can welcome new donors and thank current donors for their previous support. You can send targeted mailings to lapsed donors to try to woo them back. You can send special mailings to your monthly donors. You can record any personal information, such as conversations you had with a donor and their areas of interest.

You also want a CRM that everyone on your staff can access remotely. When the pandemic hit earlier this year and most everyone was forced to work from home, organizations that could access their CRM and still communicate with their donors had a clear advantage.

Invest in the best CRM/donor database you can afford, and Excel is not a database.

Nonprofit Software

Nonprofit CRM | Complete Guide to Choosing the Best Solution

Invest in monthly giving

Monthly donations are more important than ever now. If you already have monthly donors, or any type of recurring donor, you’ve been receiving a steady stream of revenue throughout the pandemic and economic downtown.

If you don’t have a monthly giving program or you want to grow the one you have, it’s not hard to do. Plus it’s a win-win for your organization since you can raise more money and raise your retention rate as well. The retention rate for monthly donors 90%. That’s significantly higher than other retention rates. 

It’s also easier for your donors if they’re worried about their financial situation, but still want to help. They can make small donations of $5.00 or $10.00 a month instead of giving the entire amount at once. 

Monthly giving is an investment you must make.

Invest in donor communications and that includes direct mail

Years ago, I was working at a nonprofit and our executive director said we shouldn’t do an e-newsletter anymore because we needed to concentrate on raising money.

I wish I knew then what I know now. Fundraising isn’t just about sending appeals. And to quote Tom Ahern – If you do better donor communications, you’ll have more money. 

Yet many nonprofits have a similar view. They don’t want to spend much time thanking their donors and sending newsletters and other updates, even though those types of donor communications can help you raise more money, provided you do it well. 

You don’t want to skimp on your communications budget and that includes direct mail. If you never or rarely use direct mail, you’re missing out on an effective and more personal way to communicate with your donors. Think of the enormous amount of email and social media posts you receive as opposed to postal mail. Your donors will be more likely to see your messages if you send them by mail.

Yes, direct mail is more expensive, but you don’t have to mail that often. Quality is more important than quantity but aim for three or four times a year, if you can.

Creating thank you cards and infographic postcards are a smart investment and a necessity, not a luxury. Thank you cards are a much better investment than mailing labels and other useless swag.

A few ways you can use direct mail without breaking your budget are to clean up your mailing lists to avoid costly duplicate mailings, spread thank you mailings throughout the year – perhaps sending something to a small number of donors each month, and look into special nonprofit mailing rates. You may also be able to get print materials done pro bono or do them in-house, as long as they look professional.

Shorter is better. Lengthy communication (goodbye long annual reports) will cost more and your donors are less likely to read it.

Of course, you can use email and social media, but your primary reason for communicating those ways shouldn’t be because it’s cheaper. It should be because that’s what your donors use. If your donors prefer you to communicate by mail, then you should honor their request.

You want to communicate with your donors at least once or twice a month. Use a communications calendar to help you with this.

5 Rules for a Successful Donor Communications Program

9 Best Practices for Communications That Stand Out

Nonprofit Fundraising: The Case for Direct Mail

Don’t limit yourself by saying you can’t afford certain expenses. If you invest in a good CRM/database, monthly giving, and donor communications, you should be able to raise more money.

Image by Thomas Lapperre  www.bloeise.nl.

Telling Your Stories in the Current Climate

18761109699_50d9b19a78_oWe’re halfway through 2020 and it looks like this will be a year that will stand out in history. We’re having a global pandemic, along with a severe economic downturn. The horrific killing of George Floyd by a police officer spawned protests against racism and police brutality.

Systemic racism is something that’s been part of the United States (and other countries) for centuries. Are we just now realizing that Aunt Jemima is a racist symbol?

It’s not surprising that the COVID-19 outbreak and economic devastation are affecting BIPOC (Black, Indigenous, and People of Color) communities at a much higher level. It’s very likely that all of these situations are affecting the people/community you work with.

I want to briefly address racism right now. If your nonprofit organization works with the BIPOC community, then they are affected by racism. If you’re working on issues such as affordable housing, homelessness, education, health care, etc, these have ties to racism.

Your organization shouldn’t be afraid to talk about racism when you tell your stories or communicate in other ways. Vu Lee addressed this last month.

Have nonprofit and philanthropy become the “white moderate” that Dr. King warned us about?

You may have made a statement against racism, which is a good first step. Don’t stop with that.

Donors want to hear your stories

Stories are one of the best ways to communicate with your donors. Unfortunately, you’re probably not using them enough. That’s a mistake because people respond better to stories than a bunch of facts and statistics. Stories bring the work you do to life by using everyday language to create a scene.

You may be reluctant to use stories because it’s more work for your organization, but that shouldn’t stop you. I know it’s even harder now since the COVID-19 outbreak has upended the way you work. Maybe everyone is still working at home or only some of you are back at the office. You can still do this. The summer is a good time to come up with some new stories.

Your stories need to be relevant

Just as it’s been for the last few months, your stories need to take the current climate into account. That’s why you new need ones. You’re seeing real people with real problems in real time. These posts address this more.

4 Resources to Help Shift the Narrative for Equity in Nonprofit Communications

HOW TO TELL YOUR NONPROFIT’S STORY, EVEN IN THE MIDST OF CRISIS

How to Communicate with Supporters During COVID-19: Nonprofit & Brand Examples

Create a culture of storytelling

If you create a storytelling culture in your organization, you can make storytelling the norm instead of the exception.

Work with your program staff to create stories that will help you connect with your donors. Everyone needs to understand how important this is. Share stories at staff meetings and/or set up regular meetings with program staff to gather stories. Do this virtually if you’re not in the office.

When you put together a story, ask.

  • Why is this important?
  • Who is affected?
  • Why would your donors be interested in this story?
  • Are you using clear, everyday language (no jargon) to make sure your donors understand your story?
  • How are your donors helping you make a difference or How can your donors help you make a difference?

Client or program recipient stories are best, especially now.

Another way to find stories is to put a Share Your Story page on your website. This could be a good way to get some current, relevant stories.

4 INSPIRATIONAL “SHARE YOUR STORY” PAGES THAT WILL KNOCK YOUR SOCKS OFF

Create a story bank to help you organize all your stories. Take advantage of slower times of the year to gather your stories. You want to use stories as much as possible. Use them in your appeals, thank you letters, newsletters, updates, annual reports, website, blog, and other types of social media. You can use the same stories in different channels.

Language is important

It’s time to stop using jargon such as at-risk and underserved. These terms undermine your clients/community. These aren’t terms your donors use, anyway. Use language they’ll understand. 

You also don’t want to give the impression that your organization is coming in to save someone. This is especially important if the majority of your staff and donors are white, but your clients are people of color. This is known as white savior complex. Most likely that’s not intentional on your part, but watching how you tell your stories will help you avoid that. Be an ally and be respectful of your clients/community.

I have to admit I don’t know the best way to approach some of this and would welcome suggestions.

Your stories aren’t about your organization

Remember, your stories aren’t about your organization. Your organization may have had to make a lot of changes to do some of the work you do, but that’s not your story. Your story is why this is important for the people/community you work with. 

Maybe you had to change the way you run your food pantry, but what’s most important is that people in the community continue to have access to healthy food. 

Make your stories personal 

Use people’s names to make your stories more personal. I realize you might run into confidentiality issues, but you can change names to protect someone’s privacy. You could also do a composite story, but don’t make up anything.

Fundraising with Names Have Been Changed Disclaimers

There continues to be a lot going on and your organization can’t ignore the current climate. Tell stories that address these situations and be respectful of the people/community you work with.

Finally, COVID-19 isn’t going away anytime soon. Please be smart – wear a mask, practice social distancing, and avoid crowds. Stay safe and be well!

 

How Nonprofits Can Benefit from Remote Work

49833571136_54d28261f7_wThe nonprofit sector is experiencing an urgent need to conduct business from a remote location. The perks of this arrangement include preventing workers and volunteers from contracting illnesses, spending less money on overhead, having people across the world become involved in your organization, and more. However, it does take work to make your organization function in a digital world.

Communication is key

Just about everyone knows that communication is crucial to running a successful organization. However, a remote work environment can make this more challenging. Therefore, it’s more important than ever to be proactive and communicate with your team.

No matter the size of your organization, reaching out to all staff on a regular basis to check in is important. Setting up meetings with tools such as Zoom or Google Hangouts allows you to visually check in with staff and make sure they have what they need to complete their tasks, as well as holding them accountable for their work. This is also a great time to address triumphs and challenges in their day-to-day lives.

Encouraging employees to have casual conversations is also important in building an organizational culture. Instant messaging apps such as Slack or Discord provide a great outlet for employees to talk to one another in a more casual setting. These applications are also great for quick questions and a way for teams to talk throughout the day.

Follow Cybersecurity Best Practices

As a nonprofit, donors and those you serve depend on you to keep their personal information secure. Cybersecurity starts with your employees. It’s important to train everyone affiliated with your organization on cybersecurity best practices. This includes things such as how to identify a phishing email, the importance of using strong passwords, and what to do if they suspect a cyberattack.

It’s also very important to use the proper software. Provide organizational laptops, if you are able to, and require that employees only work on these devices. If this isn’t feasible, stress the importance of staff installing an antivirus program on whichever device they use. In addition, stress the importance of using a Virtual Private Network (VPN) if employees are working from a public Wi-Fi network, such as those at libraries and coffee shops if those are open.

If you are the victim of a cyberattack, it’s important to be upfront and honest with donors and the public. Having data backed up in another location will help you put everything back together quicker. However, when it comes to cybersecurity, an ounce of prevention is worth a pound of cure.

Work smarter, not harder

Creating an efficient workflow is important for every organization, but even more so for nonprofits. Technology like Robotic Process Automation (RPA) can streamline many day-to-day tasks for your organization. A few examples would be emailing potential donors, donation processing, website chatbots, and tracking for tax and payroll purposes. These automated “bots” can be programmed from any location to perform any task for your organization, and can even make basic decisions on their own.

Automating tasks can help save you money on payroll and overhead, as well as making your organization active 24/7/365. This also frees up your workforce for tasks that require a human touch, such as connecting with donors and the public, creating strategy, and creating content for your nonprofit. In today’s world, this is technology that can be used by organizations of any size.

Be visible

In 2020, having a digital presence is more important than ever. This means having an easy-to-use and up-to-date website; being active on social media platforms; and reaching out to donors, other organizations, and the general public.

One great way to take advantage of online communication is communicating via video chat. Studies have shown that communicating visually is far more effective than audio-only communication. Reaching out to potential donors and volunteers via video is a great way to boost fundraising efforts. Thanking donors with a personalized video call is an excellent substitute for letting someone know you appreciate them if you can’t communicate in person.

Finally, in a sluggish economy, it’s especially important to communicate with the general public about what you’re doing and that you’re still active in the community. You can do this with frequent posting by email and on social media platforms, as well as encouraging staff to share updates on their own personal accounts.

In today’s unprecedented times, nonprofit organizations are some of the first to struggle. However, this does not mean that work needs to come to a standstill. Remote work and e-commerce are critically important today, and this trend will only continue in the future. Working to create a strong remote workplace will benefit your organization now, and in years to come. 

You Have Options When Creating Your Annual Report

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

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

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

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

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

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

Your annual report is for your donors

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

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

Make it a gratitude report

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

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

Oregon Zoo Gratitude Report

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

How are you making a difference?

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

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

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

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

Tell a story

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

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

Make it visual

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

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

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

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

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

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

Planning is key

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

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

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

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

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

How to Craft a 1-Page Nonprofit Annual Report

Donor-Centered Nonprofit Annual Reports

Best Nonprofit Annual Reports 2019

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

Photo by CreditDebitPro

Make a Good Impression by Showing Some #DonorLove

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

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

We can do better!

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

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

8 Strategies to Celebrate Nonprofit Donors on Valentine’s Day

Happy Valentine’s Day: Donor Love Infographic

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

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

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

Create a thank you photo

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

Image result for pictures of people holding thank you signs

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

Make a video

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

Thanks to our compassionate community!

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

How to Create a Donor Thank You Video

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

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

Nonprofit Thank You Video Script

A Thank You Video to Promote Donor Retention

Send a card

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

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

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

Share an update or success story

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

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

Back to basics

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

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

Make thanking your donors a priority

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

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

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

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

Create a system for expressing gratitude

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

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

20 Engaging Ideas for Donation Thank You Letters

Thanking a Donor by Email: Best Practices and Examples

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

How Monthly Giving is a Win-Win for Your Nonprofit

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

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

You can raise more money

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

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

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

Check out this retention rate

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

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

Getting started

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

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

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

Are you missing this key fundraising “system?”

Make monthly giving the go-to option

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

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

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

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

Show some #donorlove

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

The Importance of Segmenting Your Donors

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

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

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

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

Reach out at least once a month

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

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

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

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

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

The Holy Grail of Fundraising

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

Be accommodating

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

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

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

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

Once a monthly donor, always a monthly donor

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

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

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

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

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

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

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

Quick Tips to Create a Great Monthly Giving Program

How to start a monthly giving program for your small nonprofit

Vector Art by Epic Top 10

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.

How to Put Together a Communications Calendar

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In my last few posts, I’ve emphasized the importance of keeping in touch with your donors throughout the year.

Some nonprofit organizations are good at communicating with their donors, but many are not. Often the only times you hear from these organizations is when they’re asking for donations.

Raising money is only part of the fundraising equation. You also need to thank donors, keep them updated on how their gifts are helping you make a difference, and build relationships.

To do all that you need to communicate with your donors at least once or twice a month throughout the year. If that sounds impossible, it will be a whole lot easier if you put together a communications calendar (also known as an editorial calendar).

I like the term communications calendar because it emphasizes the importance of communicating with your donors and other supporters all-year-round.

Some of you may already have a communications calendar, which is great. Now is a good time to update yours for the coming year. For the rest of you, here are some suggestions to help you get started. Even though it will take a little time to put together, it will be worth it in the end because you’ll be able to do a better job of communicating with your donors.

This is not just a job for your marketing department. All departments need to work together. Figure out what information you need to share and when to share it. You want a consistent stream of information – not three emails in one day and nothing for three weeks.

As you put together your communications calendar, think about how you will use different channels and which audience(s) should receive your messages. You may only send direct mail a few times a year (and I hope you do use direct mail), but send an e-newsletter once a month and communicate by social media several times a week. You’ll often use several different channels when you send a fundraising appeal or promote an event.

Start big by looking at the entire year and then break it down by months and weeks. You’ll keep adding to your communications calendar throughout the year.

Here are some categories you can use in your communications calendar. Some items will be time-sensitive and others won’t be.

Updates

You need to keep your donors updated on how they’re helping you make a difference. Your print and e-newsletter should be included in your communications calendar. If you don’t do a newsletter, make a plan to share updates another way – maybe by postcard, email, and/or social media. Sometimes short updates are more effective.

News stories

There’s a whole lot going on in the news these days. You won’t be able to predict news stories in advance. However, if there’s a hot item in the news that’s relevant to the work you do, that could be something to share or use as an example of how you’re helping to make a difference for the people/community you serve.

Legislation

Advocacy alerts are a wonderful way to engage with your supporters. Be on the lookout for any federal or state legislation that’s relevant to your organization. Encourage people to contact their legislators about an issue or a bill. Then report back to them with any updates, and thank them for getting involved.

Time of year

Is there something going on during a particular month that’s pertinent to your organization? Perhaps it’s homelessness or foster care awareness month.

Thanksgiving, the holidays, and winter can be a difficult time for some people. How can you weave that into a good story to share with your supporters?  In addition, think of creative ways to connect at other times of the year such as Valentine’s Day, spring, and back-to-school time.

Keep in mind your organization’s anniversary doesn’t mean much to donors unless you can tie that in with how they’re helping you make a difference.

Events

Does your organization hold any events? Besides your events, are there other events in your community that would be of interest to your supporters? This is a great thing to share on social media.

Fundraising and recruitment

Be sure to add your fundraising appeals to your communications calendar. Obviously, your fundraising campaigns are important, but you also want to show gratitude and send updates during this time without inundating your donors with too many messages. Planning ahead will help you strike this balance.

If your organization has specific times it needs to recruit volunteers, add that to your calendar, as well.

Thank your donors

This is crucial! Find different ways to let your donors know how much you appreciate them. You can combine a thank you with an update. Do this at least once a month.

Ongoing content

If you’re making a difference, you have stories to tell. Share a story at least once a month. Client success stories (either in the first or third person) are best. You could also profile a board member, volunteer, donor, or staff member. Be sure to highlight what drew them to your organization.

Create a story bank to help you with this.

Keep going

As you hear about other relevant information, add it to your calendar so you can stay connected with your donors/supporters throughout the year.

Here is more information to help you create a communications/editorial calendar. A couple of these links also include templates.

How to create and use a nonprofit editorial calendar

Creating the Perfect Editorial Calendar – A Cinderella Story

How to Create a Nonprofit Editorial Calendar

EDITORIAL CALENDARS – RESOURCES FOR YOU

Make Your New Donors Feel Welcome

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

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

Start with a special thank you

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

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

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

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

Create a welcome plan

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

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

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

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

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

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

The simple secret to keeping new donors that most nonprofits forget

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

How to Welcome New Donors and Keep Them Engaged

Who are your new donors?

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

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

Make your current donors feel special, too

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

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

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

Keep it up

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

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

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

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

 

Be Thankful for Your Donors

6643935221_7fb0c5195e_wThanksgiving is coming up and it’s a time of the year in the U.S. when we show gratitude to the special people in our lives. Your donors are special people and they deserve to be showered with gratitude.

This doesn’t happen nearly as often as it should. But you need to spend just as much time thanking your donors as you do on fundraising.

Here are a few ways to thank your donors and let them know they’re special.

Wish your donors a Happy Thanksgiving

Send your donors a special Thanksgiving message. If you can send a card or postcard, that’s great, but an email message is also fine.

Let your donors know how grateful you are to have them as part of your family. Share a success story and a photo or video. Your donors will appreciate a heartfelt message, especially when they’re being barraged with year-end appeals.

But don’t stop with Thanksgiving

Thanksgiving isn’t the only time to show some #donorlove. The holidays, New Year’s, and Valentine’s Day come to mind, but mix it up a little and find other times of the year to say thank you. In fact, you don’t even need a reason. Just thank your donors.

Whatever you decide, DO NOT include a donation envelope or any other type of ask with your thank you message. This is known as a thask and it’s guaranteed to deflate your donor’s good feelings in an instant.

Incorporate thanking your donors into your year-end fundraising campaign

Many of you are working on your year-end fundraising campaign. I know you’re trying to raise money, but you should also be showing gratitude. Does your appeal thank donors for their past or potential gifts?

Besides wishing your donors a Happy Thanksgiving, find other ways to show gratitude while you’re also sending appeals. This is especially important around #GivingTuesday and I’ll write more about that in my next post.

Be ready to thank your donors as soon as you receive a donation

Most of you know you need to thank your donors right away, within 48 hours if you can. This usually doesn’t happen or it’s done poorly. Every single donor, no matter how much they’ve given or whether they donated online, gets a thank you card/letter mailed to them or receives a phone call.

I’m sure you’ve spent a lot of time and effort getting your fundraising appeal out. Perhaps you’ve recruited other staff or volunteers to help you.

You need to do the same thing when you thank your donors. Get your board, other staff, and volunteers together to make phone calls, write thank you notes, or include a handwritten note on a thank you letter.

Do a better job of thanking your donors

Your donors deserve more than just the same, lame generic thank you letter.

I write a lot about thanking donors. Here are a couple of recent posts that cover ways to do a better job of thanking your donors.

The Purpose of a Thank You Letter is to Thank Your Donors

How to Make Your Online Thanks Yous More Personal

The initial thank you right after you receive a donation is important. So is the next one and the one after that and the one after that….

Thanking your donors is not a one-time deal. You want to thank your donors at least once a month. Here are some ideas to show gratitude throughout the year.

  • Send a handwritten note.
  • Create a thank you video and share it on your website, by email, and on social media.
  • Send welcome packets to your new donors.
  • Invite your donors to connect with you via email and social media. Keep them updated with accomplishments and success stories. Making all your communications donor-centered will help convey an attitude of gratitude.
  • Thank your donors in your newsletters and other updates. Emphasize that you wouldn’t be able to do the work you do without their support.
  • Hold an open house at your organization or offer tours so your donors can see your nonprofit up close and personal.
  • Thank your donors just because they’re great.
  • Keep thinking of other ways to thank your donors.

This Thanksgiving and throughout the year, show some gratitude to your donors and make them feel special. Don’t they deserve it?