*Part two in a series of articles about donor retention; this part focuses on retaining first-time donors. Read The Data of Donor Retention: Part 1, which focused on retaining first-time donors.
Part one in this series discussed the high cost of donor attrition and the significant financial impact that sound donor retention practices can have on an organization’s fundraising. This month I delve into more specific tips for retaining donors.
1. Say thank you.
Seems obvious right? Thank your donor the moment after they make or pledge a gift. Use the occasion of a conversation to say thank you or, if you’re finalizing the gift over email, be sure to express thanks that way. Then, follow up with a handwritten note. More thoughts on thank you notes can be found here. There will likely be other opportunities to express thanks throughout the year and to demonstrate the impact of the donor’s gift (like an annual report, impact report, or program update), but one idea I suggest is sending a formal fiscal-year end thank you note signed by your organization’s leadership. This letter can double as a statement of charitable giving for tax purposes for those organizations whose fiscal years align with the calendar year. For organizations on a different cycle, the letter serves as an opportunity to close out the year and reset, setting up the opportunity to solicit a gift early in the next fiscal year. (For example, if your fiscal year ends in June, sending a note early in the month to thank a donor for their previous year’s gift allows another touch to remind them of their impact. It also lays the groundwork for summer outreach to discuss a new gift early in the next fiscal year.)
2. Communicate often across a variety of platforms.
If you are worried about over communicating (how many times can you check in to see how someone is doing?), use different mediums. I can’t overstress this tip. Make sure that all donors are subscribed to organizational updates. I know there can be hesitancy to subscribe high-level donors to general organizational lists, but doing so offers a donor the opportunity to read about the organization on their own time and about a variety of organizational issues. In the last year, I took a bit of time to check the open rates of my clients’ emails and have been pleased to see that many engaged, high-level donors opened the general organizational updates and clicked through them. Encourage all donors to follow your organization on social media. Other ideas include:
- Invite donors to small virtual salons with various organizational professionals who can share updates and impact stories (especially in an area that the donor’s gift supported).
- Send an article or resource of interest directly to a donor—I find this tactic extremely effective. Donors are usually appreciative to read something that they may not otherwise have seen.
- Reach out to a donor when you want feedback on an idea.
- Send a quick text message if you are thinking about a donor or see/read something that reminds you of them—if they are comfortable with texting!
3. Segment donors and target your approach:
- New donors: Those giving for the first time, typically at a lower dollar level (part one of this article addresses this group)
- Loyal donors: Those who have given for multiple years, as well as monthly or annual donors
- Major donors: Large gifts from both repeat or first-time donors
- Planned giving donors: They may or may not fit into any of the categories above
Loyal donors are sometimes overlooked. While their individual gifts may not be large, their giving over time adds up and makes them excellent candidates to become major donors or planned giving donors. Major donors sometimes want simple stewardship and don’t want recognition. Think creatively about how these donor segments may want to be recognized and try separate approaches to steward these different groups.