I’m going to guess “yes.” I’m sure some will hate me for saying this, but after 30+ years in the nonprofit trenches and another 10+ as a coach and consultant, I’m still amazed at how small many of us think. In 2008 during the big recession, and 2020 during the pandemic, all I heard was…
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For at least the past seven years I’ve been actively encouraging nonprofits of all stripes to prioritize beginning or ramping up their monthly giving program.
Not a lot of nonprofits were really leaning into this then. But, as much sense as it made then, it makes even more sense now.
So, I’m going to ask you: How are you doing with this?
Here’s why I’m asking.
If there’s anything the pandemic years have taught us,not to mention recent climate-related disasters, you need a dependable source of income in order:
It turns out there’s nothing as dependable as monthly donors.
In fact, donors who give to you recurrently sustain you so well a monthly giving strategy is often called a sustainer program.
Do you deserve a group of people who will sustain you through thick and thin?
Of course you do!
But you don’t always get what you deserve – unless you make it happen.
As someone poetic so eloquently put it:
“Nothing will work unless you do.”
— Maya Angelou
Let’s get down to work!
There are four steps to a successful monthly giving work plan:
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In my last article I talked about the importance of making a good first impression with potential donors.
It’s extremely important to have a strategy in place, just as if you were going on a first date. Those who plan ahead do well. Those who don’t? Not so much.
Both dating, and donor wooing, are a delicate dance.
But, let’s say you did a good job. Your donor prospect made a gift!
Now what?
If you like them (of course you do!), and want a second date (of course!), you’ve got to make a good second impression. And third, fourth and fifth impression. The value of a first-time donor (which often costs as much as $1.25 to generate $1.00) is not realized in that initial gift. Sustainable fundraising is all about donor lifetime value.
So, after the first gift, you definitely want a plan in place to thank and cultivate this donor throughout the year. Some communications will have an ask included, but most will be designed to build your donor’s interest, engagement and loyalty. Once the relationship is sufficiently built, it’s time to seek that second gift.
Let’s talk about the renewal appeal, and why so many of them are just gosh-darn awful.
Maybe it’s because of the “monkey see, monkey do” nature of human beings. We see someone else do something and assume it’s good practice. Especially when they’re a household name, just bigger than us, or someone we, another staff member or board representative hold in high regard.
DetailsThe single most important lesson I ever learned. Begin with the why. Always. If you don’t, you’re likely to work very hard and not achieve much of value. Why? Because you didn’t begin your endeavor by asking yourself: “Why am I doing this?” “What’s the value in this work upon which I’m about to embark?”…
DetailsYears ago I happened on a Forbes article describing 5 Ways to Make a Killer First Impression. LIke a bolt of lightning, it struck me: It’s not only prospective employers or on matches who form an instant opinion of you! It’s also true for prospective philanthropic supporters. You should be dating your donors! Were you…
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Giving is an emotional experience. It deserves an emotional response.
Be human.
Ever notice how sometimes when we put on our work hats we cease to be human? How we somehow morph into little robotic “professionals” and become enamored of jargon?
“Lybnts.” “Sybnts.” “Recaptures.”
Not that those things aren’t important. You need goals and objectives.
And given the dreadful state of donor retention in the U.S. today (and in the U.K and Canada as well), it’s vital you be able to measure how you’re doing. Because growth in giving is a factor not just of how many new donors and dollars you acquire, but also of how many donors and dollars you lose.
If you lose as many current donors as you gain new ones, you’re getting nowhere. Fast.
Slow down.
Think about what you’re doing and why. You may need to change your frame of mind.
When you acquire a new donor, is it for that one-time transaction? If so, that’s not a very thoughtful strategy, because it costs more money than you make to acquire new donors. In fact, you likely won’t make back your investment for 18 months or so. You won’t make it back at all if you don’t renew that donor.
Nonprofits, sadly, have been on a non-stop treadmill. Donors in. Donors out. Donors in. Donors out. So… something about just measuring this stuff isn’t really working.
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Really, donors definitely want to rock and roll with you. It brings them joy and meaning!
Yet, I’m going to go out on a limb and say it’s doubtful you’re rocking along with your donors unless you’re making robust use of your donor database for this purpose.
In other words, you must make donor engagement and retention a TOP priority.
Retention lives or dies in how effectively, or not, you use your database to support your relationship-building, loyalty-driving efforts.
If you think of your database as a largely undifferentiated mailing list, you’re not going to realize your potential to:
Really, I just can’t bear to think of you not maximizing return on your investment.
And that won’t happen unless you focus on donor lifetime value.
And lifetime value will be very, very small — unless you retain and upgrade donors over time.
In Part 1 we looked at establishing event goals and objectives; then determining if an event was the most efficient and effective way to achieve desired outcomes. In Part 2 we reviewed 4 top event planning tips. In this last article of a three-part series on event planning we’ll look specifically at how to make the event “stick” emotionally.
1. Overall, we’ve recognized most events are less about actual monetary return on investment (ROI) than they are about return on engagement (ROE). In other words, if you’re doing an event purely to raise money there are other more cost-effective fundraising strategies.
2. However, events done right are an excellent awareness-raising, branding and donor cultivation tool. You just have to go into events fully cognizant of what success will look like, both from your organization’s and your donor’s perspectives. Only armed with this understanding can you create events that will be worth your while.
3. Today we look at ways to make events – once you’ve decided to hold them – fulfill both your and your donors’ dreams. This is where you deliver on becoming unforgettable — in a truly great way — so the next time you reach out you are warmly embraced. In other words, this is the first step to getting event attendees to stick with you over time.
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In my last article (Part 1 of a three-part event planning series) I offered a compendium of common sense event planning advice. It centered on the wisdom offered to Alice by the Cheshire Cat when she asked which road she should take:
“Would you tell me, please, which way I ought to go from here?”
“That depends a good deal on where you want to get to,” said the Cat.
“I don’t much care where–” said Alice.
“Then it doesn’t matter which way you go,” said the Cat.— Alice in Wonderland
When it comes to special events, your goal is important.
Once you settle on a direction, then you’re able to pick the best road to take you there.
Hopefully you read the previous article, determined an event was your best strategic option to reach your primary end goal, and now you’re ready to get to work!
This means your invitation to the event should incorporate the following:
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Let’s begin with the Big Kahuna piece of advice: Ask yourself WHY you want to do this event.
Were you to bring your event proposal to a wise shaman or mentor, this is the question they would ask you first – well before asking what theme or format you have in mind or what color scheme you want to use!
And yet this is the one question I find nonprofits failing to ask. Does anyone in leadership on your staff or board think either of these things?
Events are neither inevitable nor primary.
Events are merely a means to an end.
And since they are extremely resource-intensive, one thing is critical — and too many nonprofits skip right over this step. Please, don’t let that be you!
Think long and hard before embarking on a strategy that could potentially derail other more lucrative and cost-effective approaches.
Events have their place, to be sure; it’s up to you to put them in their place. You must take charge, lest your event(s) take charge of you!
You don’t buy a drill because you need a drill. More likely, you need to create a hole. And there’s something particular you want to fill that hole with, right? Maybe the drill will give you that perfect hole or, perhaps, there’s another more effective tool. It depends on the size and purpose of your desired hole. The same is true with nonprofit special events.
No matter what one or more board members or other leaders think would be swell. No, you hold an event for a specific purpose. For example, to:
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