The results are in, and the news is generally bleak. The 2024 Fundraising Effectiveness Project Report* shows downward trends in numbers of donors (down 4.5%), and retention (down 2.6%). First-time donor retention is at its lowest-ever recorded rate. Less than one in five new donors (acquired in 2023) gave again. New donors accounted for 40%…
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How will you connect with donors in a manner that deepens their connection with you? How will you match their passions and values to the passions and values you enact?
You can’t — unless you explicitly ask donors for their feedback.
You do this with friends, family, co-workers, and neighbors, don’t you? “What do you think?” “Which color looks better?” “Paper or plastic?” “Italian or Thai?”
Guessing about what floats your donor’s boat is as bad as guessing whether your family prefers Italian or Thai food for dinner. It’s a recipe for disaster. Or at least for satisfying exactly no one.
There’s a better way.
I get lots of questions about what to include in donor surveys. But that’s the wrong place to begin.
You can’t bring top value to your donor survey unless you’re specific about what value you want to receive and deliver. The great thing about donor surveys is they’re a genuine “twofer.”
This is, after all, at the heart of all successful fundraising and marketing. The donor gives something of value (usually time and/or money) and you return something of value (usually an intangible “feel good;” a sense of meaning, purpose and connection). Donors are focused on value; you need to focus there too. But it’s tricky to do this unles you endeavor to get inside your donor’s head and find out how their values match those your organization enacts.
If you’ve had “do a survey” on your back burner for a while, now’s the time to move it to the forefront and give it a closer and more purposeful look. Ask the “Why are we doing this?” question. What pieces of your particular donor puzzle are you looking to uncover? Begin with asking: How will I know this survey was successful?
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I recently received a prickly thank you letter that made my blood boil. Not because it was so bad, but because it wasn’t good. It didn’t make me want to renew my support. And that’s unforgiveable. Because the point of the first gift is to get a second one. Otherwise, donor acquisition costs you …
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In my last article, I wrote about why establishing and building trust should be part of your nonprofit and personal mission.
Because trust is the foundation of all lasting relationships.
If you don’t build trust, or if you somehow manage to destroy it, you’re going to lose your donor.
It’s an uphill battle, requiring a proactive approach.
Sadly, most nonprofits do a profoundly poor job of this. By now you’re likely familiar with the stats on donor retention from the Fundraising Effectiveness Project. The most recent report revealed only 13.8% of first-time donors renewed. Only half of all donors renew, which is still an appallingly low rate — but certainly speaks to the importance of securing a second gift..
If you want to improve on these retention rates (and you definitely can!), I’m going to suggest you develop a plan to build trust.
Trust is built not simply by what you say, but by what you do. Not just once, but consistently over time.
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For good things once a year is not enough. Why do so many of us only eat turkey once a year? Or pumpkin pie? I’ve no idea! It’s surely not rational. These are special foods we value and take great delight in. Yet we get into a bad habit of thinking on auto pilot. If it’s not Thanksgiving, the idea of roasting a turkey or making cranberry sauce doesn’t even enter most or our heads. And egg nog, hot mulled cider, panettone and stollen are mostly Christmas things. And then there are the once-a-year only potato latkes. Why are we missing out on an opportunity for greater joy and satisfaction?
When things are good, they bear repeating.
And this is most certainly the case with expressing gratitude to your valued supporters!
“Joe, hello! I just called because, in thinking over the past few days about all for which I’m grateful, I realized I’m grateful for you and all you do to make our community a more caring place. I just wanted you to know how much your support is appreciated. Thanks so much, and may the new year bring many blessings.”
Here’s a great piece of advice you can use year-round, but particularly at the end of the year when you make your final “clean up” calls to acquire and/or renew donors who’ve not yet given to you. And by “use,” I mean do the opposite of what they recommend. I came upon the advice in…
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This relates to one of Robert Cialdini’s principles of influence and persuasion: “commitment and consistency.”
The main point is this:
Because we are wired to want to be consistent.
That to which we commit, especially publicly, becomes congruent with our self image.
What does this mean for you as a fundraiser?
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I’m a huge fan of the Greater Good Science Center at U.C. Berkeley, and often apply their research to nonprofit fundraising and marketing. This particular article really strikes me today, because it talks about times when we feel isolated from others: How to Find Your Purpose in Life.
Over my 30 years of practice as an in-house development professional, I’ve encountered a lot of people feeling isolated. It’s one of the reasons they reach out to social benefit organizations, because they crave community and purpose. Depending on what’s going on in the broader world around us, this feeling can be more or less at the forefront of people’s experience. When this feeling creeps in, this is a time for you to rededicate yourself to your fundamental role as a philanthropy facilitator. Or, as my mentor (and who some call the “father of fundraising)” Hank Rosso said: your role in “the gentle art of teaching the joy of giving.”
Here’s what it boils down to:
You serve your donors every bit as much as they serve your organization’s mission.
Please allow that to sink in.
You have a mission and purpose. Donors can help you get there.
Your donors are looking for purpose. You can help them find it.
It’s a symbiotic relationship. And you have a role in fostering that relationship. What is that role?
Your job is to facilitate your donor’s philanthropic journey. Their journey to discover their purpose.
So what’s this really all about?
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“Give me one moment in time.
When I’m more than I thought could be.
When all of my dreams are a heartbeat away.
And the answers are all up to me.”
Ah, the lyrics remembered from a Whitney Houston song sung at the 1988 Olympics Opening Ceremonies. The Olympic torch. The parade of nations. The stories, stories and stories.
Chills run down my spine. The hairs stand straight on my neck. A lump comes to my throat.
Cheesy, I know. But it gets to me.
We all yearn for that one moment where we step outside our daily, mundane lives and exceed our wildest expectations.
When we’re bigger than ourselves.
And gold medal philanthropy facilitators.
The Olympics lifts us up. At its best, philanthropy does this as well.
It inspires us.
It engages us fully.
It’s as addictive as chocolate when done right.
In fact, MRI data show us when people even simply contemplate giving, the pleasure centers of their brain light up. The very same area of the brain that lights up when we eat chocolate! One might call this the “philanthropic high.”
And, unlike other addictions, this one is good for us!
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Everything I learned about saying “thank you” I learned from:
According to Burk’s research from Donor-Centered Fundraising, more than 80% of thank you letters start with “Thank you for your generous gift of…” or “On behalf of the Board of Directors, thank you for your generous gift of…”