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 »
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
@StevenShattuck

3. @StevenShattuck

4. Why focus on the second gift?
@StevenShattuck

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

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

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

8. Source: Fundraising Effectiveness Project http://afpfep.org
@StevenShattuck

9. Source: Fundraising Effectiveness Project http://afpfep.org
@StevenShattuck

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

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

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

13. Best bequest prospects »
• 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)
@StevenShattuck

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

15. Why do donors leave?
@StevenShattuck

16. • 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

17. • 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

18. Why do donors stay?
@StevenShattuck

19. • 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 »
@StevenShattuckhttp://www.thedonorvoice.com/national-donor-commitment-study-and-proof-of-link-between-donor-attitudes-and-behavior/

20. 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 »
http://www.thedonorvoice.com/national-donor-commitment-study-and-proof-of-link-between-donor-attitudes-and-behavior/ @StevenShattuck

21. • 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

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

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

24. @StevenShattuck
Communications segmenting »

25. @StevenShattuck
Communications segmenting »

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30. • Memorial donors
• Thank (if you can), then isolate
• Peer-to-peer donors
• Have first gift acknowledgement come from
fundraiser, not benefiting org
• (Re)introduce the charity
• Explain why fundraiser supports it
• Ask for donor to continue support
2 common “one and dones” »
@StevenShattuck

31. @StevenShattuck

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

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

34. 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

35. Confirmation page »
@StevenShattuck

36. @StevenShattuck

37. @StevenShattuck

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43. 3. Tell Great Stories

45. @StevenShattuck

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49. @StevenShattuck
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)

50. @StevenShattuck

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

52. 4. Be Curious

53. 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 »
http://www.thedonorvoice.com/national-donor-commitment-study-and-proof-of-link-between-donor-attitudes-and-behavior/
@StevenShattuck

54. @StevenShattuck

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59. • “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

60. 5. Ask for a second gift!

61. • Okay to ask within 90 days
• Use what you have learned about the donor
• Contextualize the ask
• Specific projects / uses
• Introduce monthly giving for certain gift amounts
• $20 1st gift, $5/month commitment
• Don’t go for a big upgrade
Ask for a second gift »
@StevenShattuck

62. Homework?

63. • 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

64. @StevenShattuck
Homework »
• Create 1st time donor comms plan
• Donate to yourself online
• Create a first-time donor survey

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

66. 3
https://bloomerang.co/demo/video
@StevenShattuck

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