Gift 2 in year 1 = increased retention

Over the past several years, Amergent has analyzed millions of gifts to nonprofit organizations and made several key discoveries when looking for ways to improve donor retention.

Finding: Donors who make a second gift in the first year of their relationship with you are much more likely to make a gift in their second year.

In fact, they are twice as likely to make a gift in the following year. As we looked at the data, we found that that second gift in their first year directly impacts the retention rate for year 2 – more than doubling the likelihood that the donor will contribute to your mission the second year. This example is typical of our clients’ results.

Therefore, efforts spent in the thank-you process, new donor welcome series and soliciting new donors to give again to the programs you already know they support is time and money well spent.

Most importantly, we recommend that you do everything in your power to shorten the time between when a donor makes their first gift and when they hear from you again. The longer you wait to continue the conversation, the less likely the renewal. Even waiting 6 months can drastically affect not only the amount of gifts, but also the size of the gift. 

During the 2011 giving season (October-December), you will acquire new donors. Do you have a plan for stewarding them and setting them on the path of a long-term relationship with your organization?
If not, we’d suggest that you read our recently published white paper, Donor Stewardship: Making Virtual Friends for Life. In it, you’ll find several other factors that can directly impact the number of donors who re-invest in your mission each year.

Download this free resource.