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1017_Engaging Volunteers as Donors.pdf

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Engaging Your
Volunteers As
Donors
James Goalder, Bloomerang
Partnerships Manager
October 17, 2023
Free Clinics Webinar
Fundraiser Outlook
for 2023
Scan or visit
bloomerang.com/fundraisingreport
Download
We asked 1,000+ nonprofit professionals how
they were fundraising and how they felt about
it. Download report to see what they said.
Key
Takeaways
1. Donors are down, need replacements
2. Have existing pool of prospective donors
already - Volunteers!
3. Segmenting is key to success
4. Focus on Retention - both kinds!
2021 Donations
Held Steady, but
dropped in
2022
The Donor Universe
-5.7% YoY (2021)
-10% YoY (2022)
Donations
+2.7% YoY (2021)
Essentially flat (2022)
New Donors
-15.1% YoY (2021)
-18% YoY (2022)
Recaptured Donors
-14.2% YoY
Source: Fundraising Effectiveness Project
Even though 2020 was an outlier
year, donations still increased by
2.7% in 2021.
In 2022, donations were
essentially flat but this does not
account for inflation (6.5% raise)
FEP: 9,652 organizations, 18M donors, $10B
2021 Held Relatively Flat
Small Donors
(Under $101-$500)
-6.1% YoY
6.5% of total donors
Mid-Level Donors
($500-$5K)
0.4% YoY
17% of total donors
Major + Supersize Donors
($5k-$50K+)
-0.2% YoY
73.5% of total donors
Source: Fundraising Effectiveness Project
Thanks to mid and large donors. Small and micro donors raised less.
Micro Donors
(under $200)
-9.3% YoY
3% of total donors
Supersize is 47.4% of
total donors
QUESTION: What is your major
donor and major gift strategy?
Trends
Somewhat stable, a
continuation of 2020
generosity
(but some challenges exist)
Dollars maintain
Donor counts decreasing
Donors
2020 vs 2021
-5.7% YOY Change
Dollars
2020 vs 2021
2.7% YTD Change
Retention
2020 vs 2021
-4.0% YTD Change
2021 vs 2022
-10% YOY Change
2021 - 2022
Essentially Flat
(6.5% inflation)
Since 2016
-5.5% Change
Source: Fundraising Effectiveness Project

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1017_Engaging Volunteers as Donors.pdf

  • 1. Engaging Your Volunteers As Donors James Goalder, Bloomerang Partnerships Manager October 17, 2023 Free Clinics Webinar
  • 2. Fundraiser Outlook for 2023 Scan or visit bloomerang.com/fundraisingreport Download We asked 1,000+ nonprofit professionals how they were fundraising and how they felt about it. Download report to see what they said.
  • 3. Key Takeaways 1. Donors are down, need replacements 2. Have existing pool of prospective donors already - Volunteers! 3. Segmenting is key to success 4. Focus on Retention - both kinds!
  • 4. 2021 Donations Held Steady, but dropped in 2022 The Donor Universe -5.7% YoY (2021) -10% YoY (2022) Donations +2.7% YoY (2021) Essentially flat (2022) New Donors -15.1% YoY (2021) -18% YoY (2022) Recaptured Donors -14.2% YoY Source: Fundraising Effectiveness Project Even though 2020 was an outlier year, donations still increased by 2.7% in 2021. In 2022, donations were essentially flat but this does not account for inflation (6.5% raise) FEP: 9,652 organizations, 18M donors, $10B
  • 5. 2021 Held Relatively Flat Small Donors (Under $101-$500) -6.1% YoY 6.5% of total donors Mid-Level Donors ($500-$5K) 0.4% YoY 17% of total donors Major + Supersize Donors ($5k-$50K+) -0.2% YoY 73.5% of total donors Source: Fundraising Effectiveness Project Thanks to mid and large donors. Small and micro donors raised less. Micro Donors (under $200) -9.3% YoY 3% of total donors Supersize is 47.4% of total donors QUESTION: What is your major donor and major gift strategy?
  • 6. Trends Somewhat stable, a continuation of 2020 generosity (but some challenges exist) Dollars maintain Donor counts decreasing Donors 2020 vs 2021 -5.7% YOY Change Dollars 2020 vs 2021 2.7% YTD Change Retention 2020 vs 2021 -4.0% YTD Change 2021 vs 2022 -10% YOY Change 2021 - 2022 Essentially Flat (6.5% inflation) Since 2016 -5.5% Change Source: Fundraising Effectiveness Project
  • 7. Biggest Takeaways Fundraising Effectiveness Project (FEP) 2021 analysis 1. Large and sticky donors retained from 2020 helped keep dollar growth positive through 2021. 2. New and small donors were not being acquired or recaptured, driving down donor counts. 3. Large and highly committed donors stuck around—but small, infrequent, and new donors were left behind. Source: Fundraising Effectiveness Project ACTION: Review your fundraising mix. Diversification in fundraising may help weather economic uncertainty.
  • 8. How Many of You Already Engage Your Volunteers in Conversations About Giving?
  • 9. Why Do People Volunteer? From Western CT State U
  • 10. Volunteering provides physical and mental rewards. ● Reduces stress: Experts report that when you focus on someone other than yourself, it interrupts usual tension-producing patterns. ● Makes you healthier: Moods and emotions, like optimism, joy, and control over one’s fate, strengthen the immune system. It’s good for you From Western CT State U
  • 11. As a volunteer you help: ● Support families (daycare and eldercare) ● Improve schools (tutoring, literacy) ● Support youth (mentoring and after-school programs) ● Beautify the community (beach and park cleanups) Volunteering strengthens your community From Western CT State U
  • 12. People like to support community resources that they use themselves or that benefit people they care about. You get a chance to give back From Western CT State U
  • 13. Community service and volunteerism are an investment in our community and the people who live in it. Volunteering encourages civic responsibility
  • 14. Your volunteers are with you because they want to impact their community and see your organization as one of the best tools to do so. Just like your donors.
  • 15. Why do Volunteers STOP Volunteering? “72.2% of nonprofit leaders felt that volunteers improve the quality of services or programs provided to a great extent, but only 25.2% of funders agreed; and while 65.6% of nonprofit leaders report volunteers provide more detailed attention to people served to a great extent, only 29.3% of funders agreed.” - University of MD Study, 2022
  • 16. Why do Volunteers STOP Volunteering? “60% of charitable organizations and one-third of congregations with social-service programs said they had paid staff working on volunteer coordination. Among this pool, however, half reported spending less than 30% of their time on the management of volunteers. Based on the results, the report concludes that additional resources devoted to volunteer management would generate more productivity from volunteers, thereby justifying the investment of additional resources.” - Urban Institute Study, 2004
  • 17. Why do Volunteers STOP Volunteering? “This suggests that the common method of estimating the value of volunteer labor using a standardized value does not tell the true story of the benefits derived by organizations from volunteers.” - University of Florida Study, 2011 Newest estimate is about $29/hour - that is the amount the govt estimates one volunteer hour is worth, without considering impact or anything else.
  • 18. Funders don’t recognize the impact volunteers are having Volunteers feel poorly managed Volunteers don’t recognize the impact they’re having To Sum Up…
  • 19. That begs the question… Why do Donors stop giving?
  • 20. Why Donors Stop Giving 2001 study by Adrian Sargeant 5% - Thought charity did not need them 8% - No info on how monies were used 9% - No memory of supporting 13% - Never got thanked for donating 16% - Death 18% - Poor service or communication 36% - Others more deserving 54% - Could no longer afford INSIGHT: We can make a meaningful impact on the above reasons!
  • 21. So the flip side of that coin… Why do Donors keep giving?
  • 22. Why Donors Keep Giving 2011 study by DonorVoice 1. Donor perceives organization to be effective 2. Donor knows what to expect with each interaction 3. Donor receives a timely thank you 4. Donor receives opportunities to make views known 5. Donor feels like they’re part of an important cause 6. Donor feels his or her involvement is appreciated 7. Donor receives info showing who is being helped ACTION: What is your thank you turnaround time?
  • 23. How to Retain Volunteers and Convert them to Donors
  • 25. Volunteer Statistics 40% of donors were volunteers before making their first donation 10x Volunteers donate an average of 10x more money than non-volunteers1 67% of volunteers are also donors 77M Over 77 million people in the US volunteered in 2022 34% of women volunteer 26.5% of men volunteer Volunteers contribute nearly $200 billion2 and an average of 139 hours2 per person per year to their communities! 100% of nonprofits rely on volunteers, but 80% of nonprofits do not engage them properly.
  • 27. Our favorite 7 donor segments 1. First-time donors 2. Monthly donors 3. Lapsed donors 4. Volunteers who have never donated 5. Donors who have shared feedback, positive or negative 6. Social media followers who interact with you 7. Long-term donors While there is an almost infinite number of ways to segment or organize your donors into smaller groups, consider these 7 segments as an easyway to get started.
  • 28. Segment Your Volunteers If you can, separate volunteers with Major Gift capacity from those with Monthly Giving capacity and communicate separately to them, with different asks. Give them options!
  • 29. Bear in mind that Volunteers without Major Gift capacity can still be enormously valuable in helping your monthly giving campaigns! Either way, we need to move them through better storytelling. Make sure you are segmenting effectively!
  • 30. How to use empathy and emotions to connect to your audience and drive volunteers to make their first gift
  • 31. 4 key ingredients to a compelling story 1. Character: Who is the story about? 2. Conflict: What is your character struggling with? 3. Goal: What are they working toward and why? 4. Change Over Time: What is the result?
  • 34. Segment your communications Avoid a one-size-fits-all approach.
  • 35. In-person events are good, but… Impact reporting and storytelling works in many formats
  • 36. In-person events are good, but… Impact reporting and storytelling works in many formats
  • 37. In-person events are good, but… Impact reporting and storytelling works in many formats
  • 38. Diversify Your Communication Or volunteer activity!
  • 39. Scan or visit bloomerang.com/seedemo Learn More The donor database that thousands of nonprofits trust Donor management software that nonprofits actually love to use.