https://bloomerang.co/resources/speaking/ Fundraisers spend a lot of time acquiring new donors, and with good cause. However, in order to create a long-lasting relationship, the most critical gift isn’t the first; it’s the second. In this session, nonprofit technology veteran Jay Love will make the case for why development professionals should concentrate on acquiring a donor’s second gift in order to achieve sustainable funding, high donor retention rates and high donor lifetime values. You’ll see examples that can be implemented by any organization, whether you are a one-person shop or a large development department. The results can be astounding when put into daily use! Learning Outcomes: Explore current research on donor loyalty and retention Understand the importance of donor lifetime value Learn new donor communications techniques that get the second gift

1. Secrets of the 2nd Gift –
the Key to Donor Retention

2. About Steven »
@StevenShattuck
Chief Engagement Officer, Bloomerang
Contributor: Fundraising Principles and
Practice: Second Edition
Member: Fundraising Effectiveness Project
(FEP) Project Work Group, AFP Center for
Fundraising Innovation (CFI), Study
Fundraising Steering Group at the Hartsook
Centre for Sustainable Philanthropy at
Plymouth University
Fun facts:
• 1st job: producing fundraising videos
• prefers tea to coffee
• allergic to rhubarb
• won the David Letterman scholarship

3. @StevenShattuck

4. Why focus on the second gift?
@StevenShattuck

5. @StevenShattuck
http://afpfep.org
The current state of donor retention »

6. Donor retention »
Source: Fundraising Effectiveness Project http://afpfep.org
@StevenShattuck

7. Donor retention »
Source: Fundraising Effectiveness Project http://afpfep.org
@StevenShattuck

8. 8
New donor retention over the years »
@StevenShattuck
Source: Fundraising Effectiveness Project http://afpfep.org

9. Lost ROI »
@StevenShattuck
• Cost to acquire: $29
• Donation: $25
• Net: -$4
• Renewal marketing spend: $?

10. Donor retention math »
@StevenShattuck
https://bloomerang.co/resources/guides/donor-retention-math-made-simple/

11. Best bequest prospects »
@StevenShattuck
• Length of giving to your organization
(5+ years of regular giving)
• Giving to you over a long period of time (Giving
may not be year after year - but gifts have been
made over a long, extended period of time)
• Frequency of Giving (monthly credit card
donors, multiple gifts within a year)
• Is an active volunteer (at one time or now a
board member, or a volunteer in some manner)
• The Family has been involved in some way in
the organization (best if there is a long-time
association)

12. Acquiring donors is harder »
Source: Adrian Sargeant - Lilly School of Philanthropy
@StevenShattuck
• Cost per acquisition = 5x cost per renewal
• Cost per acquisition = 2-3x initial donation amount
• Renewal response rates = 20x30 higher than
acquisition response rates

13. Why do donors leave?
@StevenShattuck

14. • 2001 study by
Adrian Sargeant
• Survey to lapsed donors of
10 major U.S.-based
nonprofits
• Respondents were asked to
check each reason for
stopping their contributions
Why nonprofit donors leave »
http://www.campbellrinker.com/Managing_donor_defection.pdf
@StevenShattuck

15. • 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
Why nonprofit donors leave »
http://www.campbellrinker.com/Managing_donor_defection.pdf
@StevenShattuck

16. Why do donors stay?
@StevenShattuck

17. • 2011 study
• Survey of 1,200 recent (last 12 months), frequent (more
than 2 gifts to cause based charities) donors from over
250 nonprofit organizations
• Donors were given a list of 32 reasons why they might
continue giving
• Asked to rank them by order of importance
Key drivers of donor commitment »
http://www.thedonorvoice.com/national-donor-commitment-study-and-proof-of-link-between-donor-attitudes-and-behavior/
@StevenShattuck

18. 1. Donor perceives organization produces outcomes
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
Key drivers of donor commitment »
@StevenShattuck
http://www.thedonorvoice.com/national-donor-commitment-study-and-proof-of-link-between-donor-attitudes-and-behavior/

19. • A fast thank you
• Impact stories
• Preview of future communications
• A feedback mechanism
• …all in a donor-centric way?
How can we give first-time donors… »
@StevenShattuck

20. Data Segmentation
for stories that retain donors
1. Segment Your Data

21. Communications segmenting »
@StevenShattuck
Above average gift amount
At or below average gift amount

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27. Data Segmentation
for stories that retain donors
2. Humanize Your Automation

28. @StevenShattuck
http://www.huffingtonpost.com/entry/3-truths-and-1-lie-about-online-donors_us_595cf48de4b0326c0a8d13fb?
Donor retention by age/channel »

29. 1. Confirmation / “Thank You” page
2. Automatic Email Confirmation
Online Giving Automation »
https://bloomerang.co/blog/3-things-your-nonprofit-must-do-well-after-an-online-donation
@StevenShattuck

30. Confirmation page »
@StevenShattuck

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38. 3. Tell Great Stories

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The personal touch »
• first-time donors who get a personal thank you
within 48 hours are 4x more likely to give a
second gift
(McConkey-Johnston International UK)
• a thank-you call from a board member to a newly
acquired donor within 24 hours of receiving the
gifts will increase their next gift by 39%.
(Penelope Burk)

46. @StevenShattuck
https://share.vidyard.com/watch/rh6mDE1mrwLKqZChs2bPfS

47. 4. Be Curious

48. 1. Donor perceives organization produces outcomes
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
Key drivers of donor commitment »
@StevenShattuck
http://www.thedonorvoice.com/national-donor-commitment-study-and-proof-of-link-between-donor-attitudes-and-behavior/

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54. • “Why did you first give?”
• “What’s your connection to the cause?”
• “What would you like to hear from us?”
• “How would you rate your experience?”
• Let them tell their story!
Survey Question Ideas »
https://bloomerang.co/blog/23-questions-to-ask-donors-and-prospects/
@StevenShattuck

55. Homework?

56. @StevenShattuck

57. • Treat your first-time donors like royalty
• they have lowest retention rates!
• Tell them the impact they will have
• Tell them the impact they have had
• Be unique!
• Survey early
• let them tell their story!
Final thoughts »
@StevenShattuck

58. https://bloomerang.co/resources
•Weekly Newsletter
•Templates
•Case Studies
•Daily blog post
•Weekly webinars
•eBooks
@StevenShattuck

59. 3
@StevenShattuck
https://bloomerang.co/demo/video

60. Questions?
steven.shattuck@bloomerang.co
@StevenShattuck
Free eBooks »
https://bloomerang.co/resources/guides/
@StevenShattuck