Donor retention is a perennial problem for nonprofit organizations. Many organizations spend all this time and energy on acquiring donors, concentrating more on volume and don't seem to be concerned that they're churning through different donors year after year. Just like the flowers and plants in your garden, you need to give them care and attention.
You should be keeping track of your retention rate. If you're losing donors, it could be because you're either not communicating enough or communicating poorly. Fortunately, this is something you can fix, but donors don't magically donate, or more important, keep donating to your organization.
You need more than luck to keep your donors
Building relationships with your donors is one of the most important components of fundraising.
Donor relations should be easier than raising money and it can be fun, too. Make it a priority, as well as something you do throughout the year.
But it will take more than leprechauns granting wishes. If you want to keep reaching for that pot of gold at the end of the rainbow, you'll need to work at it. If you ignore your donors or communicate poorly, they're unlikely to donate again.
One-and-done fundraising is just March Madness
In NCCA men's college basketball, players are eligible for the NBA draft after playing one season. This is known as one-and-done. If you watch the men's tournament, it's likely many of the players won't be around next year. Both the men's and women's tournaments are also referred to as March Madness, although the one-and-done policy doesn't apply to women's basketball.
Another place you'll find one-and-done is in nonprofit fundraising. The donor retention rate for first-time donors is around 25%. Obviously, we can do better.
If you can get your first-time donors to give again, it's much more likely they'll keep giving. That second donation is known as the golden donation (that pot of gold?). This is why it's important to engage with your new donors and send them a welcome package right after their first gift. But don't neglect your longer-term donors. You also want to make them feel special.
A time for new beginnings
Spring is just around the corner (hopefully) and it's a time for new beginnings. Maybe you can share a new initiative that you were able to launch with your donors' help.
Speaking of new beginnings, how are you engaging with your first-time donors? That welcome package, which I hope you sent, is just the first step. Keep letting them know how much you appreciate this new relationship. If you don't, it's likely to be a short relationship.
A consistent stream of donor communication is crucial
Here in the Boston area where I live, we have the most inconsistent weather. Not that long ago it was almost 60 one day and it struggled to stay in the 30's the next, although we've had very little snow this winter.
Inconsistent levels of donor communication should have no place in the nonprofit world. You don't want to barrage donors with appeals and then go silent for a while.
Ideally, you want to reach out somewhere between once a week and once a month. And not just with appeals. You need to thank donors and share updates. Follow the ask, thank, report, repeat formula. This is essential for good donor retention.
A communications calendar will help. So will sending shorter, more frequent updates.
Spring forward to reach out to your donors
March may be a slower time for you. Maybe you have a fundraising campaign or event planned this spring. If so, you definitely want to engage with your donors first. If you don't have anything scheduled for a while, these in-between times are just important.
As you'll notice, I've made references to a bunch of March themes – St. Patrick's Day, daylight saving time (going back on daylight saving time is one of my favorite times of the year), March Madness, and spring. But you don't need a holiday, special occasion, or a theme as a reason to reach out to your donors. Do it just because they're great and you can't do your work without them.
Keep focusing on better donor retention. You should be more successful if you do.
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