How Not To Lose Donors

Every year, when the Fundraising Effectiveness Project (http://afpfep.org) are released I sigh.  Not a happy sigh.  Every year, the report shows that donor attrition rates exceed donor retention ones—both in the number of donors and dollars.   You’d think, then, that nonprofit fundraisers would focus on this issue.

You would be wrong.

There is a lot of talk surrounding donor retention.  There just doesn’t seem to be a whole lot of action.  Clients and workshop participants—even if the workshop title is clearly about stewardship-- want to talk about getting new donors.  

And, yes.  Getting new donors is important.  You cannot grow by staying stagnant.  But you also cannot grow if you are losing those who have said yes at least once.  

Around 60% of all first-time donors to an organization never give another gift.  Around 35% more drop off every single year.  Alas, many nonprofits use these facts to focus on acquisition.  But getting new donors is expensive.  And new donors rarely give you their best gift.

If instead of losing 60% of new donors, you were able to keep 60%, think how much fuller your coffers would be.  And if each year instead of losing another 35% of your donors, your attrition rate was under 10%.  Not only would you be keeping loyal donors, but loyal donors are more likely to increase their giving.  And to consider leaving a legacy to your organization.

Donor retention doesn’t, of course, just happen.  It takes a plan and then implementation of that plan.  It starts with saying thank you, but it cannot just end there.

Too many organizations send a thank you to a donor for a gift.  Then they send another appeal—support us for this or that.

As a donor, I immediately think:  “Wait a minute.  Didn’t I just make a gift?” This follow up ask—before letting me know how valued my support is and how it made a difference—makes me feel as if the organization doesn’t think I gave enough.  And that does not make me feel warm and cuddly.

Instead, try reaching out and telling donors how important their support has been.  Your first thank you letter—whoever it comes from and yes, that matters a lot—should let the donor know what their support will mean.  Follow up thank you letters, notes, calls, should focus on what is happening or has happened because of the support from your donors.  Tell them that they are a member of a really important group—a community of people who care about what you do and who, in turn, you care passionately about.

Beyond a thank you, remind donors why your work is important.  Not why you think it is, but how it changes lives.  

Remember that changing lives can be a multiple of things.  My life can be changed because of an amazing production (music, dance, theatre) I just saw.  Or changed because a child who otherwise would never have such a moment was able to experience this.  Or because my son or daughter, or a neighbor’s, or perhaps even a complete stranger’s child was able to overcome fears, disabilities, adversities and shine up there on stage. 

Or the world could be changed because someone learned a skill they didn’t have before; was able to fall asleep on a full stomach, in a safe place, or cuddling a dog or cat they adopted from your shelter.

Whatever you do, remind your donors why they care—and the more personal you can make it, the better. 

Getting personal means getting to know your donors.  Sometimes you can do that because you know them, see them at the drop off for your daycare or took them on a tour of your facility.  Sometimes you only know that they give for every end of the year appeal—and that the appeal that had a picture of a laughing child got a larger gift than normal.  Look for those clues.  Tell that person about the joyfulness your program brings.  

Think carefully about who is reaching out.  If you are the development director and you personally cultivated and solicited the donor then yes, you might be the right person.  But then again, think how much more compelling a note from a board member, a client if that is appropriate, or a member of your program staff might be. 

Connecting your donors more closely with your organization happens when they feel that they are part of something bigger than themselves.  That happens when they know more people who work at, volunteer for, are served by your organization.  

Think about the very best thank you that you ever received.  What made it special?  And consider how that glow you felt was or could have continued.  

As a child, I used to go Trick or Treating for UNICEF.  And when I received letters from UNICEF, thanking me and showing me via pictures what my generosity—their word not mine—meant I did not miss the Halloween candy (not even chocolate, which I have always been addicted to) one bit.  I didn’t feel that I had given something up.  Rather, I felt quite strongly that I got something precious in return.

Give your donors that precious something, and your retention rates will grow.