RE-ENGAGING LAPSED DONORS
January is a great time to start thinking about lapsed donors. We often talk about LYBUNTs—those donors who made a gift Last Year But Unfortunately Not This—and they are a serious problem for most nonprofits. As a new year starts, you are actually looking at PYBUNL, which isn’t quite as easy to say. What are PYBUNLs? Those who gave in the previous year, but not the year that just ended. And before they become former donors, now is the time to think about how to get them back on track.
As I’ve noted in other articles in this newsletter and other ones, donor retention is at about 40% for most smaller nonprofits. That means that each year, 6 out of every 10 donors you had last year you won’t have again. You can shrug and think, “That’s just the way it is.” Or you can do something to increase retention and lower your losses. Here are 8 things you can do:
Start by running a list of those who made a gift in the year before last (so, as you do this at the start of 2020, you are looking those who gave in 2018) but not last year (2019). You may also want to run a list of SYBUNTs (Some Year....) going back 3 to 5 years.
Sort by gift size
Those under a certain amount (say those who gave under $1,000) will get a personalized letter; those over that amount will get a more personal touch.
Send to donors whose gift are under your amount a letter that speaks to the importance of the gift (or gifts) they have made in the past . Tell them of plans for the upcoming year and how important a gift from them this year would be. Ask, “What can we do to bring you back to our family?”
To those who made gifts of over $1,000 reach out personally—via phone or email (or a letter if you only have a postal address). Again, tell them how important their support is and ask how you can get them to reconsider their support.
Understand that money will NOT come pouring in. You will have to work it. Continue reaching out—but don’t always ask for a gift. Tell them about the work you are doing. Connect them with others in or affected by your organization.
When a lapsed donor comes back, make a big deal of it. And don’t stop there.
Continue thanking your donors, showing their impact, and giving them opportunities to do more.