your website successfully secured donors, but how do you keep them giving year after year?
TRANSCRIPT
Your PresenterJay B. Love
• 30 Years of Technology Leadership • Over 20,000 Database Installations • Former Founder & CEO of eTapestry • Former CEO of Master Software/Fund-‐Master • AFP Board Member • AFP Ethics Committee Chairman • Center on Philanthropy at IU Board Member • Innovation Fund at Butler University Board Member • Gleaners Food Bank Board Member • Co-‐Chair of Indianapolis YMCA Capital Campaign
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In our surveys, less than 45% of fundraisers knew their current donor retention rate.
Do you know your retention rate?
Fundraising Effectiveness Project (FEP) A project to help nonprofit organizations
measure and compare.
Participating Donor Software Firms: • Donor2/Campus Management Corporation
• PhilanthrAppeal (FundTrack Software) • DonorPerfect Fundraising Software
• The Raiser’s Edge ® (Blackbaud) • eTapestry
• Avectra • Bloomerang
• Sage Software • MatchMaker FundRaising Software
• Telosa Software (Exceed!) • Metafile
Fundraising Effectiveness Survey »
2014 Results »
http://www.afpneworleans.afpnet.org/International/RepResdetail.cfm?ItemNumber=28547
43%! (highest since 2007)
Donor Attrition Over Five Years
# of Donors Attrition Rate
Donors Remaining After 1 Year
Donors Remaining After 2 Years
Donors Remaining After 3 Years
Donors Remaining After 4 Years
Donors Remaining After 5 Years
1,000 20% 800 640 512 410 328
1,000 40% 600 360 216 130 78
1,000 60% 400 160 64 26 10
So what?
So what?Improving donor retention rates by just 10% can increase the lifetime value of your database by 150-‐200%! - Dr. Adrian Sergeant,Bloomerang Chief Scientist
# of Donors in Current 12 Months (from the previous years pool)
divided by # of Donors in Previous 12 Months
Calculating your retention rate »
https://bloomerang.co/retention
Online donors »
http://www1.networkforgood.org/online-‐giving-‐continues-‐grow-‐charities-‐across-‐country
Online donors »
http://www1.networkforgood.org/online-‐giving-‐continues-‐grow-‐charities-‐across-‐country
Online donors »
http://www1.networkforgood.org/online-‐giving-‐continues-‐grow-‐charities-‐across-‐country
Online donors »
http://www1.networkforgood.org/online-‐giving-‐continues-‐grow-‐charities-‐across-‐country
• Online giving accounts for less than 10% of all charitable giving • (only 2% according to The Chronicle of Philanthropy)
• 30% of annual giving occurs in the month of December. • (10% of annual giving occurs on the last 3 days of the year.)
• Branded giving pages account for 54% of online giving. Branded giving pages raise six times more in contributions than generic giving pages.
• P2P (peer-‐to-‐peer) growing the fastest • Employee Giving is the largest online segment
Online donors »
• 5% -‐ thought charity did not need them • 8% -‐ no info on how monies were used • 9% -‐ no memory of supporting • 13% -‐ never got thanked for donating • 16% -‐ death • 18% -‐ poor service or communication • 36% -‐ others more deserving • 54% -‐ could no longer afford
Why nonprofit donors leave »
https://www.linkedin.com/today/post/article/20140520191728-746287--infographic-why-donors-stop-their-support
• 5% -‐ thought charity did not need them • 8% -‐ no info on how monies were used • 9% -‐ no memory of supporting • 13% -‐ never got thanked for donating • 16% -‐ death • 18% -‐ poor service or communication • 36% -‐ others more deserving • 54% -‐ could no longer afford
Why nonprofit donors leave »
https://www.linkedin.com/today/post/article/20140520191728-746287--infographic-why-donors-stop-their-support
• 5% -‐ thought charity did not need them • 8% -‐ no info on how monies were used • 9% -‐ no memory of supporting • 13% -‐ never got thanked for donating • 18% -‐ poor service or communication • 36% -‐ others more deserving
Poor communication = 89%!
Why nonprofit donors leave »
https://www.linkedin.com/today/post/article/20140520191728-746287--infographic-why-donors-stop-their-support
Donor communications » “Successful donor communications are quite simple. At heart, they are love letters to donors & prospects, woven through with clear cries for help.” - Tom Ahern, Bloomerang Donor Communications Head Coach
http://aherncomm.com
https://bloomerang.co/blog/infographic-‐the-‐great-‐5-‐donor-‐communications-‐experiment
https://bloomerang.co/blog/infographic-‐the-‐great-‐5-‐donor-‐communications-‐experiment
$5 experiment »• 48/50 email receipts • 17/50 snail mail letters • 3/50 hand written notes • 0/50 phone calls (19 asked for phone #s)
• Acknowledge offline gift within 48 hours • First-‐time donors who get a personal thank you within 48 hours are 4x more likely to give a second gift.
• Acknowledge online gifts within 1 hour • Send payment processor email • Send branded email from organization
How to improve retention »
Email acknowledgements »
https://bloomerang.co/blog/5-‐ways-‐to-‐excite-‐and-‐keep-‐new-‐online-‐donors/
• Survey within 90 days • Snail mail should include handwritten note • Call ALL new donors (if you ask / receive phone # on donation form) • A three-‐minute thank-‐you call will boost first-‐year retention by 30%.
• Schedule in-‐person meetings • Make second ask quickly and appropriately
How to improve retention »
Seattle’s Lakeside Upper School counts … Bill Gates among its alumni. Rumor has it a fundraiser for the high school called Gates, who asked: “How much is everyone else giving?” About $75 he was told. “So put me down for $75,” said Gates.
-‐-‐ Forbes, Jan 22, 1996, p. 16
Pay attention to dollar retention »
https://twitter.com/Mercetheseries/status/474366392712847360
Acknowledgement via social media »
Volunteers are 10x more likely to donate to your organization than non-‐volunteers. (source)
Thank.
Them.
Duh.
Acknowledgement via social media »
• Utilize communication preference • Make the donor the star of the show
• more “you” than “we” • State exactly how donation will be used • Communicate impact
Acknowledgement content tips »
Monthly giving »
Source: Target Analytics, 2009 DonorCentrics US Recurring Giving Benchmarking Analysis
• Make it an option on donation forms • Suggest donation amounts • Ask quickly after the first gift (upgrade)
Monthly giving »
P2P donors give to the fundraiser, not the org! 1. Have the fundraiser contact last year’s donors. 2. Have the fundraiser re-‐introduce the charity in the gift acknowledgement. 3. Start a dialogue in the first follow-‐up.
P2P acknowledgement »
https://bloomerang.co/blog/3-‐tips-‐for-‐improving-‐p2p-‐donor-‐retention/
• It’s not about you. It’s about the donor. • Get that second gift. • If you ask for a phone #, call. • Make social media a communications preference.
• Segment and personalize.
Final thoughts »
Free educational resources »
https://bloomerang.co/resources
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