Part One: Keep the donors you have

Donations are crucial to the operations of all nonprofit organizations. Unfortunately for many organizations, in recent years donation numbers have continued to drop. According to a survey of nonprofits in 2014, for every $100 in new donations these organizations lost $95 in lapsed or reduced donations. Although that is still a 5% gain, these figures are disappointing to say the least.

Along with losses in this area, nonprofits are also feeling the impact of a reduction in repeat donations. In the survey, charities stated that the percentage of 2013 donors that made repeat gifts to their organizations in 2014 was only 43%; meaning that more donors leave than stay.

How to retain: It’s one thing to attract new donors to your organization. However, it can be a more difficult task retaining new supporters. Here are some ways you can increase your donor retention:

• Show them how they’ve helped you: One of the best ways to retain and engage donors is by showing them the positive impact they have had on your organization and your beneficiaries. A recent study found that nonprofits can greatly affect how they retain and gain donors by constantly sharing quality content with them. Whether through infographics, blogs, or a “Year in Review” email, you should try to keep your donors in the loop on what wonderful things your nonprofit is doing with their donations.
• Link the donation to the project: Donors also like to see the direct link between their donation and your project. Breaking down your projects or programs into elements that donors can sponsor can help them to better visualize this link. For example, instead of requesting a donation of $100 towards your meal program, request a donation of $100 to provide meals for a family of 4 for a week. By telling a story about their donation, you help them to feel more connected to your cause.
• “A simple ‘Thank You’ would be nice”: This one seems obvious, and most organization do send an email or letter to recognize a donation. But how can you take it to the next level? Call them! That’s right, with a good ol’ telephone. In Penelope Burk’s book, she reports that 95% of donors would appreciate a thank you call within 2 days of donating and 85% said such a thank you call would influence them to give again. By simply reaching out to donors in the most personal form of telecommunication, you have the potential to exponentially increase your organization’s donor retention.
• Different strategies for different folks: You have a diverse group of donors, and they deserve communication that appeals to their unique characteristics. Creating different communication strategies for your different donor segments will give your organization greater appeal to donors’ personal attributes and habits. By doing so, you will create loyalty among your donors, thus making them come back and continue to contribute to your organization’s mission.
• Give them an upgrade: Once you’ve segmented your donors in a robust donor management solution, you can get a better idea of their habits: communications, frequency of giving, and interactions. With this information, you will have the information needed to move your donors up the ladder i.e. from an annual donor to a monthly donor. Upgrading donors allows you to increase interactions and donor commitment, which in turn can increase your retention.
• Data adds credibility: When showing your donors how they’ve helped you, it is crucial to use hard data on your nonprofit’s successes and accomplishments. Why? Data adds credibility! Specific information on your achievements builds donors’ confidence in your organization and will keep them coming back to support your quantifiable mission.
• “Don’t you forget about me”: Keep in touch! Donors send appreciation and communication when they provide you with money, so return the favour; send them some attention and conversation. This is critical in donor retention, and even more important after donation; there must be contact within the first 90 days. This communication will increase retention, but only if it’s interesting. Don’t send a traditional newsletter or review, but instead throw a video, event invitation, and/or a personalized welcome message their way.
• Be friends: This can be difficult, especially for organizations with large donor bases. At the same time, is it really that hard to be friendly? Of course it’s not. In the communications, whether email, phone, or print, be sure to use personal pronouns, include a reply email (of a real person), and don’t always make a “monetary ask”; sometimes asking for participation in volunteering, social sharing, and events can have a bigger impact on retention. Just use a casual tone and be approachable, and you’ll be fine.

You can find more ideas for retaining your donors in this free eBook: How your data can change the world: 5 nonprofit tips for using better data to do more good

Nicola Dickinson is the founding partner at Altus Dynamics and feels that the best is yet to come. A believer in the nonprofit sector, Nicola won’t stop her drive for Altus to not only be a great place to work but an important partner to growing nonprofit organizations.

Today, you can find Nicola listening to customers, supporting the employees in their professional development and leading the sales team to break new barriers in ERP and CRM for Nonprofits. If you catch Nicola in the hallway she’ll take any opportunity to share why ‘Together for the Greater Good’ is truly Altus Dynamics’s purpose – working together as a team and with our customers all for the greater good.

Nicola, a busy mother of two, has a long history of volunteer experience from Kidney Foundation Door to Door campaigns, start up triathlons for cancer research and her latest volunteer experience in mentoring young entrepreneurs at Futurepreneur. You can connect with her on LinkedIn or Twitter.