How to Rock Donor Thank You Calls

7 Keys to Rock Thank You Calls and Retain More Donors

You’ve got to make donor retention more of a priority to survive and thrive in today’s competitive nonprofit marketplace.

Research shows the average nonprofit in the U.S. loses 81% of donors after the first gift!!!!!

In and out a revolving door is too expensive to be sustainable.

To make matters worse, the probability a donor will make five consecutive gifts is only 10-15%. These numbers are just not sustainable for most organizations. By the time you’ve added a new donor most of your previous new donors are out the door.

And, by the way, did you know donor acquisition costs you money?  Yup. On average, it will cost you $1.00 – $1.25 to bring in a new donor dollar. So… the value of a new donor to your organization is wrapped up in the concept of donor lifetime value. Once you have a new donor, the cost to renew them is much less expensive than the cost to acquire them. Just like in for profit marketing, keeping a current customer is easier than finding a new one.  But… you have to actively engage in customer cultivation and renewal strategies.

If you don’t energetically renew and upgrade donors over time, you may as well never have recruited them.

Allow that to sink in a moment.

Might you effectively be wasting a lot of time, energy and money on acquisition? Could some of your resources be more effectively deployed to donor retention?

I’m going to go out on a limb and wager the answer is a resounding YES.

Do you know what your donor retention rate is? If you do, there’s hope for you to improve it. Read on.

If you don’t, you don’t even know there’s something that needs fixing! Read on.

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Woman breathing, sunset

Want a true philanthropic culture? Make it the air you breathe.

Woman breathing, sunsetYour organization won’t survive and thrive with only great fundraising technicians. You—and the entire social benefit sector—need organizational-development-grounded philanthropic facilitators. In fact, you need a team – maybe an entire village – filled with them!

This is what it looks like in a culture of philanthropy. And it involves more feelings than tangibles. What does it feel like where you work?

Your organization’s culture can make or break your fundraising – and just about everything else. If you don’t foster a culture in which people want to work, great professionals won’t apply for, or stick with, jobs. You have to be intentional in creating a culture that attracts, retains and grows professionals. The kind who will inevitably build sustaining relationships with supporters.

Here are some things you can do to build a true philanthropic culture.

Say what the culture is, get buy-in; demonstrate it.

To foster an authentic values-based organizational culture, you must first identify and write down the main beliefs that make up the culture. This can be simple – as little as a sentence or single paragraph – but this written manifestation of the culture you want to foster is critical to helping people understand the culture.

Here are some questions to ask yourself or, better yet, to do as a group exercise with a team of staff and/or board.

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R.I.P. Donor Pyramid?

Swirling fractalThe modern model is more like a vortex — an energized circle where everyone is equal. People move in and out as needed, and your job is to keep the energy flowing.

NOTE: My article on the topic of moving away from the donor pyramid model for donor acquisition, cultivation and major gift solicitation recently resurfaced on social media dialogue, so I thought it was time for a reprint.

Why do we always think of donors with pyramids? The pyramids were built in Egypt. On the backs of slaves. It took a very, very long time. The cost, in human terms, was untenable and unsustainable.

That’s why you don’t see many pyramids being built these days.

Except in nonprofits, where building the donor pyramid is still the holy grail. Get ’em in. Move ’em up. Acquire through direct mail. Convert to monthly donor or sustainer. Acquire through events. Convert to mail. Up, up, up … to the pinnacle of major and planned gifts!

Except for one tiny thing.

It doesn’t work.

Pyramid building is so 2630 BCE. Nobody’s got 100,000 workers (aka direct-mail donors) building a solid pyramid anymore. Many so-called pyramids really look like hourglasses. Or upside-down pyramids. Or plateaus. Even the pyramid-shaped ones are resting on shaky foundations of donors who move in and out, in and out — eight out of 10 newly acquired bottom-of-the-pyramid donors leave — making the “foundation” more like a river than a solid, secure slab of mortar. The days of the donor pyramid model are gone!

Digital toppled the donor pyramid. Actually, it crumbled it … slowly, surely … until there was nothing left but an empty frame. A triangle on paper. The donors no longer fit inside of it.

R.I.P. donor pyramid. You had a good run.

The donor pyramid (sometimes call the donor ladder) was a great model for linear thinkers like me. It was neat and orderly. Engage folks from the bottom up, level by level, one step at a time. It was stable.

Or so we thought,

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So You Want More Major Gifts This Year? Here’s the Secret!

Dream anything, then think.All you’ve got to do is ask!

Seriously. The number one reason people don’t make a major gift – or any gift for that matter – is no one asks them.

But I’m getting a bit ahead of myself.

Before you can ask, you have to know a few basics:

  • Who will you ask?
  • What will you ask for?
  • When will you know they’re ready to be asked?
  • Where should you ask?
  • How should you ask?
  • Why are you asking?

Let’s take these fundamentals one at a time.

Who will you ask?

Not everyone in your donor base is a major gift prospect. Even if they were, you probably don’t have the bandwidth to cultivate and solicit all of them right now. It’s just common sense to prioritize those donors with whom you’re most likely to succeed. There’s no hard and fast rule as to how to pick this priority group.

I generally advise starting with

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Frame in front of ocean view

Reframe Fundraising: Responsibility, Privilege and Opportunity

Frame in front of ocean view Fundraising is too often seen, at best, as a ‘necessary evil.’

When viewed this way, folks – staff and volunteers alike – understandably prefer not to touch it with a 10-foot pole. Who wants to place themselves on the side of ‘evil?’

Yipes stripes!

But that’s not what fundraising is at all.

The tagline for my business, Clairification, is “philanthropy, not fundraising.” I often talk to folks about how the word philanthropy comes from the Greek and translates into “love of humankind.”  Nothing evil about that!

In fact, if you ask folks to throw out the first word that comes to mind when you say ‘fundraising,’ and then ask them to do the same when you say ‘philanthropy,’ you’ll see it breaks down pretty neatly between good and evil.

Why it’s Important to Reframe Fundraising

If you’re coming at fundraising from the perspective of ‘necessary evil’ or ‘no pain, no gain,’ you’re never going to be effective. Especially when it comes to asking individuals, one-to-one, for passionate gifts.

As long as you hate it, donors will be able to tell you hate it. I call this wallowing in the pain. Never a good approach. Distaste for asking begets distaste for giving.  It’s done grudgingly, not passionately.

When donors can sense you’d rather be doing anything else than asking them for a gift, guess what happens?  They follow your lead!  In other words, they feel they’d rather be doing anything else than making a gift.

But there’s more to reframing fundraising so it’s seen as a really, truly good thing.

I like to reframe it thusly:

  • It’s a responsibility.
  • It’s a privilege.
  • It’s an opportunity.

Fundraising is a Responsibility

If you’re fortunate enough to be a successful nonprofit, this means you’re helping solve some of the world’s most pressing problems.

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Top Strategies to Overcome Fear of Nonprofit Fundraising

How often have you heard someone say “I hate fundraising; I’ll do anything else,” or something along those lines?

Every time I hear this, my response is to get curious. “What makes you say this? How does fundraising make you feel?” Generally I’ll get a range of responses; mostly they boil down to some variation on the theme of FEAR.

Board members aren’t lazy because they’re afraid of asking for money. Your staff aren’t slackers because they fear fundraising.  They’re just scared, and need help overcoming their fears and anxieties. That’s your job if you’re the fundraiser!

Today we’re going to look at how to get around these fears, so you can turn reluctant fundraisers into ready ones. Honestly, it’s not rocket science; it’s just not something most of us are taught. Very few people are “natural fundraisers,” so falling back on “some people are good at this; others are not” is neither true nor helpful.  Everyone can become good at facilitating philanthropy – once their fears are addressed.

How to Overcome Fear-Based Barriers to Fundraising

It’s the job of a nonprofit’s leadership to work with insiders and stakeholders (staff and volunteers) to help them feel both passionate about the cause and confident in the fundraising process. Below you’ll find some top strategies to address challenges within your own organization so you can transform folks from fearful and reluctant to joyful and ready fundraisers.

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Top 10 Questions to Answer before Asking for a Nonprofit Major Gift

You can’t just call someone up out of the blue and ask them for a major gift to your campaign. Period. Full stop.

This won’t work any better than building a house before you’ve found the right location, created a blueprint, laid a foundation and brought in just the right crew to build according to your specifications.

In both cases, first you must lay the groundwork. I like to think of this as making sure all the pre-conditions to a successful ask are in place before I make someone an offer I know they won’t be able to refuse.  And I’ll know I’m ready to pop the question because first I’ll have answered “Yes!” to all of the ten questions that follow.

10 Critical, Powerful Questions to Lay the Groundwork for Successful Asks

1.  Is this the right prospect? 

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