Nonprofit Marketing: How to use multi-channelcampaigns to convert first-time donors

The BriefNonprofits of all sizes face donor retention problems, and it looks like it’s only going to get worse. To tackle retention before it hits a catastrophic low, organizations must embrace a multi-channel approach to their marketing campaigns. It might be a little costly up front, but it will pay in lifelong donor relationships in the end.

In this white paper, you’ll learn:1. Why donor retention has become so difficult for nonprofits2. Tips for engaging and retaining first-time donors3. The critical channel you may be neglecting4. Why metrics matter

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Nonprofit Marketing: How to use multi-channel donor campaigns®

IntroductionFor nonprofits, donor retention is more critical than ever. It’s also more difficult. According to a 2014 report by the Association of Fundraising Professionals (AFP), every $100 gained by nonprofits in 2013 was offset by $92 dollars lost from gift attrition. But if your first-time donors aren’t coming back, don’t just assume it’s because they’re tightening their belts. In fact, charitable contributions are increasing year over year.

So what gives?

In short: competition. The number of public nonprofits increased by more than 30 percent between 2003 and 2013, so it’s a safe bet that if a donor is no longer giving to your organization, he’s giving elsewhere. How, then, do you keep donors engaged and actively giving in a sector that’s more crowded than ever before?

Start by targeting more than one channel. Organizations like the New York Philharmonic and charity: water leverage multi-channel marketing to earn new donors and retain the ones who are already giving. These are large, well-established organizations with robust donor bases, but smaller nonprofits can be just as successful by maximizing their multi-channel approach. New York Cares is an organization that’s doing just that. To find out how they do it, I caught up with Anne Corry, New York Cares’ deputy executive director-external affairs. Here are the four key takeaways.

1. Why donor retention has become so difficult for nonprofitsCorry stressed that reaching out to first-time donors as soon as possible should be a top priority—and with good reason. According to the AFP study, the median retention rate for first-time donors is just 23 percent, compared with 43 percent for all donors.

“That first year is critical,” Corry said. “Use every channel possible to reach [first-time donors]. Deter-mine what their motivation was to give. Was it in response to a specific program or campaign? Once you know that, mold your approach based around it and stay in touch with them. That way, when they’re ready to write their next check, your organization is top of mind.”

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“ The media rentention rate for first-time donors is 23%, compared with 43% for all donors.”

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® ®Nonprofit Marketing: How to use multi-channel donor campaigns

However, if your first-time donors can’t see what their gifts are accomplishing, you’re likely to lose them. That lack of transparency, Corry noted, is one of the primary reasons that donors don’t return. That’s where the power of storytelling comes in: whether it’s via social, direct mail or even an event, each channel you leverage should lead with a story that humanizes your organization’s cause.

“All you need is one good story,” Corry said. She stressed that presenting your organization’s impact in the context of a single human story is far more effective than pummeling donors with facts and statistics. “Lead with your best story, and be sure to humanize the issue.”

2. How to engage and retain first-time donorsOf course, it’s not just your story that matters. Many nonprofits fail to realize social’s potential for listening. In fact, a recent study by the Case Foundation and Social Media for Nonprofits found that 74 percent of organizations simply use social as a megaphone to promote events and activities, and not to listen to what their donors are saying.

“You’ve got to do more than just broadcast on social,” Corry said. “Listen to your donor’s feedback, and make sure they know that you’re listening. Thank them for their insight, and get into a conversa-tion with them whenever possible.”

And don’t be afraid to be controversial in order to get your donor’s attention. When Nonprofit Hub recapped 2013’s best social campaigns, the common denominator was a willingness to take a risk and deliver a bold message that got people talking. If you’re passionate and engaged, your donors will be, too.

3. The critical channel you may be neglectingOffering access to events is one of the most tried-and-true methods of adding value to donor relationships. Smaller, less event-focused nonprofits may struggle to capitalize on this channel. Corry encourages nonprofits of all sizes to take stock of what they can offer and find opportunities to bring your donors together.

“You’ve got to do more than broadcast on social...And don’t be afraid to be controversial. Whenever possible, start a conversation.”

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Nonprofit Marketing: How to use multi-channel donor campaigns®

“The real value in offering events is about making your donors—especially first-time givers—feel like insiders,” Corry said. “It’s about giving them access to something special and making them feel like they’re part of something larger than themselves.” One of the most effective ways New York Cares accomplishes this is by inviting donors to on-site visits.

“If you can get first-time donors involved in a volunteer event where they can see the good you’re doing, they’re almost always going to give again,” Corry said. “Let them see the work and do the work. When we can show them what their money is accomplishing across the city, they’re much more likely to stay engaged.”

4. Why metrics matterConverting first-time donors into lifelong supporters doesn’t happen by accident. To know what’s working and what’s not, invest in resources that will help you track donor lifecycles and retention rates.

“A database that tracks everything—who’s giving for the first time, who’s no longer giving, why they came, why they left, who’s increasing their donations and which channels they responded to—is absolutely worth the resources,” Corry said. “It might seem expensive up front, but this is a multi-year opportunity cost. Do your due diligence to find or build a database that can run reports on who’s coming back and who’s leaving. If it can track touch points and generate reminders about who you should be reaching out to next, that’s ideal.”

Drilling down on a subset of existing constituents that account for the largest chunk of donations can help you more easily read extant data on past giving practices, event attendance and demographic makeup to target the most likely new donors. Armed with such information, communications teams can complete more efficient outreach. In most cases, chances are good all this can be done with existing resources.

“Events give donors access to something special and make them feel like they’re part of something larger than themselves.”

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® ®Nonprofit Marketing: How to use multi-channel donor campaigns

About the author

Josh Mait is chief marketing officer at Relationship Science LLC (RelSci). His passion is building creatively- inspired, strategically-driven, successful organizations. He is a frequent contributor to the Guidestar blog as a non-profit data and marketing expert. Josh lives in Brooklyn with his wife, Kira, and their two daughters.

RelSci helps create competitive advantage for leading organizations through a crucial yet vastly underutilized asset: relationship capital with influential decision makers. RelSci’s nonprofit clients use the platform’s dossiers and relationship mapping technology to transform fundraising and donor acquisition strategy.

The takeawayAn effective multi-channel marketing campaign is a must for retaining first-time donors. Make sure you keep them engaged, solicit their feedback, show them where their money’s going and give them every opportunity to get involved. Once that’s in place, make sure you know what’s working and who’s sticking around. You’ll never be able to hold on to every donor, but if you’re smart about your marketing, you’ll hold on to many more than you were before.

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