Keeping and Growing Donors for Life

Keeping and Growing Donors for Life Philip Tomé, Account Director Heather Rocheleau, Account Supervisor February 4, 2011

Our time together…
The donor lifecycle
New donor conversion
Donor cultivation & retention
Upgrading donors
Reactivation

The donor lifecycle

Understanding the donor lifecycle

New donor conversion

New donors
60% of new donors give a second gift
Of the donors that give a second gift, the majority will do so within the first six months of the relationship – while your Mission is still top of mind

Start the relationship off on the right foot…
Make a great first impression
Timely receipting: 48-72 hours from initial gift
Donors want to know their gift was received by the Mission; don ’t make them guess
Give thanks: consider a postcard – in addition to gift receipt – to simply express gratitude

Send a thank you note worth saving
Acknowledge the amount, date of gift and tie back to acquisition piece (meal offer, holiday campaign, etc.)
Want the donor to feel valued no matter the size of gift
Mention impact of gift – how it is helping to feed and care for the hungry and hurting
Handwritten note for major gifts – phone call as well
Ask for the second gift ASAP

Get to know your donors
Use the thank you letter to get to know your donors
Ask donors how they want to be involved
Specific programs they would like to support
Capture responses in database
Have processes in place to act on their interests
Be careful about asking up front, how much mail they want to receive

Use the mail
Welcome package
Initial newsletter
Cover letter with new donor copy
Mission updates, client testimonials, drive to website, call to action
Volunteer opportunities
Early cultivation – December or January appeals

Reach out by phone
Thank you call – brief, no ask
Made by staff, volunteer, program member, graduate or teleservices company
Voice messaging – with simple messages of thanks voiced by President or Executive Director

Keep in mind that donors are real people who have voluntarily given to your Mission and will give again if someone listens to them and they feel they have been heard

Heart of the Donor™ survey says…
When asked what some organizations have done after the donor gave the first time that encourages them to support the organization again, three factors rose to the top:
Explained the specific mission of the organization to me (78%)
Gave me information about exactly what my gift helped accomplish (75%)
Made me feel that my gift really made a difference (72%)

Donor cultivation & retention

How your mission can keep donors engaged
Show gratitude… Often!
Cultivate relationships based on mutual benefit
Get to know your donors needs and interests
Provide opportunities to volunteer – to go beyond monetary contributions

Cultivation (0-12 months since last donation) To solidify relationship with supporter within the first year – convert acquaintances into advocates

Retention (13-24 months since last donation) Intentional efforts to secure gift and bring donor to current status thereby continually refreshing the 0-12 segment of file

Cultivation & retention best practices

Direct mail
Full cultivation efforts according to prescribed audience segmentation
Custom copy to reflect Mission brand and messaging
Themed marketing periods
Relevant and timely thank you receipts – use warm and personal tone
Receipt copy – relevant to appeal and Mission specifics

Direct mail
Newsletters – use to update donors and raise additional funds
Year end appeal – tax incentive, specific fundraising goal
Special retention letter for 13+ month donors
Postcard targeted to near-lapsing donors: Inexpensive touch-point, affirmation, mission update, drive to website to renew support
Include low end, single gift donors in Fall Acquisition as well as the new Micro Donors audience (US only)

Phone
On-going thank you calls
Voice messaging – with simple messages of thanks voiced by President or Executive Director
Phone outreach to those donors who are beginning to lapse
Year end calls to middle and major donors – affirm support and request holiday gift (gift conversion works in conjunction with direct mail)

Events
Executive Director dinners or luncheons
Radio events
Open House, Missions tours, graduations
Volunteer/Community involvement
Food/GIK drives (Hope Tote)
Banquets/Galas

Digital
Refresh website content regularly (virtual tour, video and photo gallery, client testimonials, Mission updates)
E-communications
E-mail
E-Newsletters
Strong drive to website from direct mail appeals
Social media – Facebook, Twitter

A good retention program looks at the entire relationship the donor has with the non-profit and acknowledges all the ways the individual interacts with the organization

Upgrading donors

Moving donors up the value chain
Tactical dollar handle strategy to upgrade existing donors
RFM Segmentation – Recency, Frequency, Monetary value
A holistic approach to managing your donor file to maximize net income
Cultivate donors in to monthly givers , major donors, planned gift donors, GIK donors etc.

The Donor Pyramid: Delivering value over time Planned Gift 20% of Donors 80% of Funds 80% of Donors 20% of Funds Major/Capital Gift $1,000+ Renewed/Upgraded Gift $100 - $999.99 First Time Gift $0.01 - $99.99

Reactivation

Reactivation (25+ months since last donation) Intentional efforts and strategies to re-engage lapsed and inactive donors

Hey! Remember me?
22% of lapsed donors are reactivated each year
40% of reactivated donors give a subsequent gift during the same year they reactivate

Reactivation best practices

Direct Mail (25+ months)
Direct mail acquisition – all drop dates
Pre-mail
Thanksgiving (main drop)
Late Thanksgiving
Christmas
Late Christmas (new in 2010)
Lapsed donor copy treatment

Reach out by phone
Donor receives call if no gift in 13+ months
Audience – depends on overall strategy and budget
13-24 months – retention (pre-lapsing)
25-36 months – reactivation
37+ – win-back – highly targeted!

Reach out by phone
Call affirms donor for past support and urges them to renew
Calls placed by staff or specialized teleservices vendor

Forget me not…
Remembering that you are in a relationship with your donors
Understanding what your donors want from you
Using that information to begin an active dialogue
Applying principles of great customer service

A final note…
Second gift conversion begins with building a relationship
Keep your donors engaged through cultivation and retention efforts
Upgrade your donors through intentional dollar handle, segmentation and personal communication strategies
When donors lapse, use a multi-channel approach including direct mail and phone outreach to reactivate their giving

Thank You Philip Tomé Heather Rocheleau Account Director Account Supervisor [email_address] [email_address] (626) 463-9354 (626) 463-9306

Keeping and Growing Donors for Life

by Philip Tomé on Feb 20, 2011

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Keeping and Growing Donors for Life — Presentation Transcript