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7 Strategies to Revolutionize Your Nonprofit Culture to Stop Losing Donors

I hear a lot of complaining about donors.

They should do this:

    • Be more compliant.
    • Not make us work so hard to please them.
    • Treat us like we know what we’re doing.
    • Give just because it’s the ‘right’ thing to do.

They shouldn’t do that:

    • Give any way other than ‘unrestricted.
    • Demand specifics on how their money was spent.
    • Act like they know more than we do.
    • Require reports that take us hours to complete.

What about what YOU should and should not do to build sustainable, fulfilling relationships with your supporters?

I don’t hear enough of “What can we do to delight our donors today?”

I hear too much of “We already sent a thank you; that’s enough, and they shouldn’t expect more.”

Shouldn’t they?

Donors are people first, philanthropists second. And people need to know they’re important to you.

Let me tell you a true story.

A close friend of mine used to complain to me about her husband all the time. Why? Because he didn’t tell her he loved her enough. Understatement of the year.

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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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Transactional Nonprofit Work vs. Transformational Donor-Led Progress

Transactional Nonprofit Work vs. Transformational Philanthropic Progress

Greg Warner of Market Smart writes a lot about the difference between “work” and “progress.” I appreciate the distinction, both professionally and personally. I think you can use this notion, so I’m going to suggest a way to extend this idea to your nonprofit fundraising.

Warner notes in Why You Should Never Get a Job and Go to Work: “work” is tedious and negative; “progress” is inspiring and positive.

This is about being intentional about where you’re going.

It’s somewhat about perception and desitnation, but I’d argue it’s largely about the journey.

Your journey. Your donor’s journey.

And how everyone feels about the endeavor.

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Photo of a cobweb

4 Timely Nonprofit Fundraising and Communications Strategies

Photo of a cobwebSpring is always a good time for rebirth and dusting away the cobwebs.  And what a grave, dusty, cobwebby year it’s been.

As I sat down to write today’s article, I found my mind jumping from idea to idea. After all, it’s been pretty hard to focus with everything going on. So I took a deep breath, closed my eyes, and tried to pull together the various challenges I’ve seen nonprofit leaders, and fundraisers, grapple with in the past year.

I thought: what can people do now to set themselves up for success as we move forward into high fundraising season at the end of this coming year.

It’s not too soon to be thinking about this.

I ended up with four tips I hope you’ll find relevant and timely.

1. How to Message During Uncertain Times

Whether it’s a marketing or fundraising communication, keep these four basics in mind.

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Girls sharing secrets

5 Secret Nonprofit Donor Retention Action Strategies

Girls sharing secretsGiving 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.

Treadmills Are Only Good in the Gym

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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Why Donor Wooing Requires WOWing

cashier-Pixabay1791106_640The Unfair Exchange Bernadette Jiwa, The Story of Telling.

That will be eight dollars,’ the woman, who is carefully weighing and wrapping two serves of freshly made fettuccine for us to take home, says.

As my husband is about to hand her the cash, she takes another handful of the pasta from behind the glass and adds it to our package.

She doesn’t announce that she’s giving us twenty per cent extra for free.
She doesn’t even invite us to notice the gesture at all.
It’s enough for her that she knows she has added value.

We think of value as a hard metric—the anticipated fair exchange of this for that.

But value can be a surprising, generous, unfair exchange.

Something that is given because we can, not because we must.

Ah… value.

Wow, wow, WOW!

This is what all fundraising, fundamentally, is about.

A value-for-value exchange.

Yet one side of the exchange is a hard metric: The donor’s cold, hard cash.

While the other side of the exchange is something decidedly less tangible: Freely given gratitude from you and your organization.

Or at least that’s how it should work.

The Difference between ‘We Must’ and ‘We Can’ 

What does your donor love and loyalty plan look like?

Do you even have such a plan?

If the only reason you acknowledge donations is because you feel you ‘must,’ it’s likely your donors aren’t walking away from the encounter feeling much more than matter-of-fact. The transactional receipts many organizations send out are registered by the donors as “Ho, hum. Guess I’ll go file this with my tax receipts.”

This kind of exchange is fair, sure.

But it’s not generous.

WHAT ELSE DO YOU HAVE TO GIVE?

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8 Strategies to Celebrate Nonprofit Donors on Valentine’s Day

I love a good celebration.

And nothing is more worth celebrating than a holiday, and your donors!

So… let me wish you a happy Groundhog Day! Whether or not the groundhog sees their shadow, chances are good we’re still in for a long season of time during which donors could really use a little extra love from you. As I’ve written before, during this season of isolation and uncertaintly, people — your donors included — are love starved.

You’ve still got time to send a little love your donors’ way!

Why might this be something for you to consider, amidst all the other “to-do’s” on your plate?

If you don’t do a lot more donor loving, you’re going to do a lot more donor losing.

I hope by now you know donor retention is the name of the game. It costs so much more to acquire a new donor than to keep an existing one. Yet too few nonprofits have serious, intentional donor stewardship programs in place. Because of that, on average, nonprofits lose nearly 8 out of 10 first-time donors and close to 6 out of 10 of all donors.

Don’t be one of those organizations!

If donors only hear from you when you want something from them, they’re not likely to give more. Or even give again.

Be generous! Show donors how much their support means to you.

Really, donor love should be like breathing for you. In and out. Out and in.

  • They love you, and show you.
  • You love them, and show them.

You’ll be amazed at how a little love can go a long way.

This year why not dedicate Valentine’s Day to giving, not asking?

If you can’t send valentines to every donor, pick a segment or two.

Think about those donors for whom you’d like to show some special love, because they showed you some. Show them you noticed! They could be:

  • Major donors.
  • Monthly donors.
  • Donors who’ve given faithfully for five years or more.
  • Donors who increased their giving this year.
  • First-time donors of $100+.
  • Donors who also volunteer.
  • Board and committee members.
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headstand kid

#GivingTuesday in Reverse: Do’s and Don’ts

headstand kidI’ve written in the past about why I like to turn the tables on #GivingTuesday by actually giving to your donors, rather than asking them to give again — yet one more time — during this busiest fundraising time of the year.

I’m not suggesting you not ask multiple times at the end of the year. You should. You must! However…

Your asks should flow together as a coordinated campaign.  And you should do whatever you can to really stand out in your donor’s inbox.

The problem with #GivingTuesday?

Everybody and their dog is asking on this particular day. 

There’s so much competition, you’re not likely to bring in many new donors.

For the most part, you’ll be preaching to the choir. The choir that already sings your song. That already loves you. That already gives to you.  At best you’ll be eeking out a small additional gift from them.  Or you may just secure their annual gift on this particular day; so… no net gain.  At worst you’ll tick them off by asking them to give, yet again, without showing them enough well-deserved gratitude.

There’s a time and a place for everything. 

And, as I often say, if you want gifts you must give them!   Which is why giving gratitude to donors is such a powerful thing to do.  Another way to understand the meaning of “Giving” Tuesday.

Sometimes Nonprofits Try Turning Things on Their Head But Don’t Quite Succeed

Today, I want to evaluate an example

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Thankful for Thanksgiving

Happy Days of Thanks(for)Giving

Thankful for ThanksgivingThis Thursday folks in the United States will celebrate what I consider to be the social benefit sector holiday of the year:

So it’s time for my annual Thanks(for)Giving post!

Just think about what ‘Thanksgiving’ means.  Literally, it’s a day for giving thanks for blessings.

Who, and what, do you count among yours?

I know when we go around the table at my family Thanksgivings, saying what we’re grateful for this year, most folks respond with a people-based answer. Sure, they’re happy about the feast in front of them. But they’re most grateful for caring friends… loving family…. and for being together sharing the warmth of good company. This year the company may be virtual, but the gratitude for shared connection will be the same.

Who are you grateful to at your organization?

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