Three Fundraising New Year's Resolutions for 2011

1.

Rethink suspending appeals to donors immediately after you receive a gift

Some organizations practice politeness to an extreme. They believe that their donors should not be solicited right after they have made one gift… that the donor should be rested after giving a gift.

Amergent did an analysis of a donor file where new donors were acquired with an initial gift between $10-$24 (the most popular 1st gift amount) in 2008. Based on the time it took for them to make their 2nd gift… we see a direct correlation to how much overall income they have generated in this 3-year timetable.

The chart above shows that the sooner a donor can choose to make their second gift, the better it is for their long-term revenue potential.

This shows that if a donor makes an additional gift within 60 days, their Revenue per Donor ($86-$97) is almost twice the value of those making one gift per year ($45).

The closer the proximity of two gifts, the better!

The moral of the story? Let the donors decide when they want to give to you!

These days it’s difficult to secure a monthly pledge from a larger universe of loyal donors.  While there will always be donors who will be able to make monthly gifts, there are many more that would be willing to making a smaller, but regular commitment.

The trick is to have an offer that’s easy for the greatest number of donors. You need a retention strategy for all donors who give only one or two gifts per year – especially all of your new donors! There will be key times to invite these donors with an offer to give more, for example, right after they have been thanked for their 1st gift of the year, or prior to the organization’s busiest fundraising season.

The right offer will inspire donors by including assurances that their regular gift amount is all that’s needed, that you’re only looking for a pledge of 3 gifts in 3 months (not 12 gifts).

Using this strategy, we found retention increases ~10% points for each extra gift received. In this example, 3+ gift-givers were renewed at 75% or more; 1 gift-givers were renewed at 50%.

Despite the current economy, a loyal group of donors have steadfastly increased their giving; they are demonstrating they feel you need their gifts more than ever.

Who are they? Has their giving changed over time? What are you doing to recognize these wonderful people?

We recognize loyalty as much more than the donors’ most recent gift, or even the sum of their giving throughout the year. Don’t forget the donors that have continued to support you, even with modest gifts, through thick and thin. Here are some ideas for what you can do:

• Donor stewardship communications that simply express gratitude… giving thanks and showing appreciation is a simple, but expected, right thing to do for donors who deserve it.
• Every loyal group of donors should be invited to tell you why they enjoy giving and why they are so happy to help you.
• Actively listening to these donors' needs and interests helps you discover what to say to other donors to inspire them to give like these donors.
• Provide events that recognize lifetime giving to inform and inspire donors to plan how they will continue to give.
• Is there anything they want to do to make a really significant gift? Being open to a restricted gift at this point does everyone a world of good.