Imagine you just ran a successful fundraising campaign. You congratulate your staff, send donors a quick thank-you note, and move on to the next initiative.
When running your fundraising analytics a few months later, you realize that only 12% of donors from that campaign gave again. While the initial campaign was successful, you can’t build upon that success without properly retaining your donors.
If this situation sounds familiar, don’t worry. This guide will help you prioritize donor retention in your fundraising strategy, allowing you to simultaneously run high-achieving campaigns build a sustainable donor pipeline.
1. Deepen your understanding of your donor base.
Retaining donors starts with building relationships rather than just viewing them as monetary contributors. The more you understand your donors, the better you can personalize their experiences with your nonprofit and retain their support.
How to Implement This Retention Strategy
- Segment donors. Segmentation is the process of grouping donors based on similar characteristics. You can use these segments to offer personalized communications and opportunities. For example, using the data in your donor management system (like Charityproud!), you may create a group of donors who also volunteer and send them a newsletter highlighting both donation and volunteering opportunities.
- Track giving patterns. You can also use your donor management system to track metrics related to donation history, giving frequency, and average donation amount. This information can help you pinpoint donors at risk of lapse so you can work to re-engage them. Additionally, you may use this data to identify the characteristics of high-value, retained donors and predict future behavior. For instance, your top major donors may give eight times a year on average and attend three fundraising events yearly.
- Survey your supporters. Learn more about your donors by going straight to the source. Develop a new donor survey that helps you understand how to best engage with first-time donors and retain their support. You should also send surveys after different fundraising initiatives and events to collect feedback on specific efforts.
2. Personalize communications.
Show donors they’re not just another number with personalized outreach. By customizing your communications, your nonprofit will stand out to supporters and build stronger relationships with them.
How to Implement This Retention Strategy
- Address donors by name. Use your constituent relationship management platform (CRM) to automatically add donors’ names to email and text messages. While it may seem small, receiving an email that says, “Thanks for your support, Sarah!” or a text that reads, “Will you help us out, Michael?” is much more effective and memorable than a simple “Dear donor."
- Reference their specific involvement. Whether you’re thanking a donor for participating in your discount card fundraiser, donating $36 via your donation page, or attending your recent fundraising event, being specific shows you value each donor’s individual contributions. Track each donor’s involvement history so you know exactly how they’ve supported your mission and can tailor your messages accordingly.
- Respect their communication preferences. Ask donors whether they’d prefer you contact them via email, text, phone call, or direct mail. Store these preferences in your donor management system and segment donors based on their communication channels of choice to align with their needs.
3. Demonstrate impact.
Donors want to know that their contributions translate to real differences. After all, they’re giving their hard-earned funds to your nonprofit, so the least you can do in return is show how those funds have furthered your mission.
How to Implement This Retention Strategy
- Compile key campaign metrics. After a major campaign, analyze the results and identify a few standout fundraising metrics that summarize the initiative. Then, share these figures with donors to make their impact more tangible. For instance, you may explain that your peer-to-peer fundraising campaign’s average donation amount was $172, which is 37% higher than last year’s average.
- Leverage storytelling. Help donors understand the impact their contributions have on real people via storytelling. Let’s say you run a candle fundraiser to raise money for childhood cancer research. You may interview a local cancer patient named Caroline and illustrate how donors’ funds will help support better outcomes for children like her.
- Generate impact reports. By developing annual impact reports, you can remind donors of their extended impact over the past year and highlight the top initiatives they participated in. Include photos, beneficiary testimonials, and infographics to make your reports more engaging and digestible.
4. Focus on recurring giving.
Incentivize donors to give again by developing a robust recurring giving program. When donors commit to contributing regularly, you’ll retain them seamlessly and open up another flexible, sustainable funding source.
How to Implement This Retention Strategy
- Identify potential recurring givers. Just as you might pinpoint potential major donors, you can scour your donor base for recurring giving candidates. Ideal recurring donor prospects likely have an affinity for your cause and a previous engagement history with your organization.
- Promote the benefits. While recurring giving benefits your nonprofit by helping you retain donors and generate more consistent funding, it also offers advantages for participants, such as convenience and the ability to make a larger impact. Lead with these benefits to incentivize donors to join your program.
- Simplify the process. To make it as easy as possible for donors to participate, include an option for them to opt into recurring giving on your donation page. You may also illustrate what different monthly giving amounts allow your organization to achieve (like “$10 = 1 meal for someone in need”), making donors’ potential impact more tangible.
5. Show appreciation.
Imagine you contribute to a cause you’re passionate about. You’re excited about the impact you’ll make and the good deed you did to support a worthy organization. However, the nonprofit never acknowledges your gift. How would you feel?
One of the top reasons donors lapse is not feeling appreciated enough by the nonprofits they generously support. Constructing a strong donor recognition strategy allows you to show your gratitude for each and every donor, boosting their potential for retention.
How to Implement This Retention Strategy
- Send thank-you notes. Automate thank-you emails to send immediately after donors contribute. That way, you can quickly show appreciation in-depth thank-you notes later on that are tailored to individual donors and acknowledge their specific contributions.
- Publicly acknowledge donors. With their permission, publicly shout out your donors on social media, your newsletter, or your website. For example, you may spotlight a dedicated donor in a social media post, include a summary of your popcorn fundraiser with shoutouts for top donors in your newsletter, and create a virtual major donor wall on your website.
- Provide special perks for long-term donors. Reward loyalty with benefits like free merchandise, VIP access to events, and exclusive content. Let committed donors know you value their dedication and want to build lasting, mutually beneficial relationships with them.
While you may be tempted to focus on donor acquisition and expand your network as widely as possible, the best prospects are often already in your donor base. By prioritizing donor retention and building genuine relationships with your supporters, you can develop a thriving community surrounding your cause that fuels your mission for years to come.