Nonprofit Marketing: How to Use Multi-Channel Campaigns to Convert First-Time Donors

1. NonprofitMarketing:
Howtousemulti-channel
campaignstoconvert
first-timedonors
The Brief
Nonprofits of all sizes face donor retention problems, and
it looks like it’s only going to get worse. To tackle retention
before it hits a catastrophic low, organizations must embrace
a multi-channel approach to their marketing campaigns. It
might be a little costly up front, but it will pay in lifelong
donor relationships in the end.
In this white paper, you’ll learn:
1. Why donor retention has become so difficult for nonprofits
2. Tips for engaging and retaining first-time donors
3. The critical channel you may be neglecting
4. Why metrics matter
®

2. 909 Third Avenue, 18th
floor, New York, NY 10022 sales@relsci.com 888 800 7951 relsci.com
NonprofitMarketing:Howtousemulti-channeldonorcampaigns
®
Introduction
For nonprofits, donor retention is more critical than ever. It’s also more difficult. According to a
2014 report by the Association of Fundraising Professionals (AFP), every $100 gained by nonprofits
in 2013 was offset by $92 dollars lost from gift attrition. But if your first-time donors aren’t coming
back, don’t just assume it’s because they’re tightening their belts. In fact, charitable contributions
are increasing year over year.
So what gives?
In short: competition. The number of public nonprofits increased by more than 30 percent between
2003 and 2013, so it’s a safe bet that if a donor is no longer giving to your organization, he’s giving
elsewhere. How, then, do you keep donors engaged and actively giving in a sector that’s more
crowded than ever before?
Start by targeting more than one channel. Organizations like the New York Philharmonic and charity:
water leverage multi-channel marketing to earn new donors and retain the ones who are already
giving. These are large, well-established organizations with robust donor bases, but smaller nonprofits
can be just as successful by maximizing their multi-channel approach. New York Cares is an organization
that’s doing just that. To find out how they do it, I caught up with Anne Corry, New York Cares’ deputy
executive director-external affairs. Here are the four key takeaways.
1. Why donor retention has become so difficult for nonprofits
Corry stressed that reaching out to first-time donors as soon as possible should be a top priority—and
with good reason. According to the AFP study, the median retention rate for first-time donors is just 23
percent, compared with 43 percent for all donors.
“That first year is critical,” Corry said. “Use every channel possible to reach [first-time donors]. Deter-
mine what their motivation was to give. Was it in response to a specific program or campaign? Once
you know that, mold your approach based around it and stay in touch with them. That way, when
they’re ready to write their next check, your organization is top of mind.”
2
“ The media rentention rate for first-
time donors is 23%, compared with
43% for all donors.”

3. 909 Third Avenue, 18th
floor, New York, NY 10022 sales@relsci.com 888 800 7951 relsci.com
®
NonprofitMarketing:Howtousemulti-channeldonorcampaigns
However, if your first-time donors can’t see what their gifts are accomplishing, you’re likely to lose
them. That lack of transparency, Corry noted, is one of the primary reasons that donors don’t return.
That’s where the power of storytelling comes in: whether it’s via social, direct mail or even an event,
each channel you leverage should lead with a story that humanizes your organization’s cause.
“All you need is one good story,” Corry said. She stressed that presenting your organization’s impact
in the context of a single human story is far more effective than pummeling donors with facts and
statistics. “Lead with your best story, and be sure to humanize the issue.”
2. How to engage and retain first-time donors
Of course, it’s not just your story that matters. Many nonprofits fail to realize social’s potential for
listening. In fact, a recent study by the Case Foundation and Social Media for Nonprofits found that
74 percent of organizations simply use social as a megaphone to promote events and activities, and
not to listen to what their donors are saying.
“You’ve got to do more than just broadcast on social,” Corry said. “Listen to your donor’s feedback,
and make sure they know that you’re listening. Thank them for their insight, and get into a conversa-
tion with them whenever possible.”
And don’t be afraid to be controversial in order to get your donor’s attention. When Nonprofit Hub
recapped 2013’s best social campaigns, the common denominator was a willingness to take a risk
and deliver a bold message that got people talking. If you’re passionate and engaged, your donors
will be, too.
3. The critical channel you may be neglecting
Offering access to events is one of the most tried-and-true methods of adding value to donor
relationships. Smaller, less event-focused nonprofits may struggle to capitalize on this channel.
Corry encourages nonprofits of all sizes to take stock of what they can offer and find opportunities
to bring your donors together.
“You’ve got to do more than
broadcast on social...And don’t be
afraid to be controversial. Whenever
possible, start a conversation.”
3

4. 909 Third Avenue, 18th
floor, New York, NY 10022 sales@relsci.com 888 800 7951 relsci.com
NonprofitMarketing:Howtousemulti-channeldonorcampaigns
®
“The real value in offering events is about making your donors—especially first-time givers—feel like
insiders,” Corry said. “It’s about giving them access to something special and making them feel like
they’re part of something larger than themselves.” One of the most effective ways New York Cares
accomplishes this is by inviting donors to on-site visits.
“If you can get first-time donors involved in a volunteer event where they can see the good you’re
doing, they’re almost always going to give again,” Corry said. “Let them see the work and do the
work. When we can show them what their money is accomplishing across the city, they’re much
more likely to stay engaged.”
4. Why metrics matter
Converting first-time donors into lifelong supporters doesn’t happen by accident. To know what’s
working and what’s not, invest in resources that will help you track donor lifecycles and retention
rates.
“A database that tracks everything—who’s giving for the first time, who’s no longer giving, why they
came, why they left, who’s increasing their donations and which channels they responded to—is
absolutely worth the resources,” Corry said. “It might seem expensive up front, but this is a multi-
year opportunity cost. Do your due diligence to find or build a database that can run reports on
who’s coming back and who’s leaving. If it can track touch points and generate reminders about
who you should be reaching out to next, that’s ideal.”
Drilling down on a subset of existing constituents that account for the largest chunk of donations
can help you more easily read extant data on past giving practices, event attendance and
demographic makeup to target the most likely new donors. Armed with such information,
communications teams can complete more efficient outreach. In most cases, chances are good
all this can be done with existing resources.
“Events give donors access to
something special and make them
feel like they’re part of something
larger than themselves.”
4

5. 909 Third Avenue, 18th
floor, New York, NY 10022 sales@relsci.com 888 800 7951 relsci.com
®
NonprofitMarketing:Howtousemulti-channeldonorcampaigns
About the author
Josh Mait is chief marketing officer at Relationship
Science LLC (RelSci). His passion is building creatively-
inspired, strategically-driven, successful organizations. He
is a frequent contributor to the Guidestar blog as a non-
profit data and marketing expert. Josh lives in Brooklyn
with his wife, Kira, and their two daughters.
RelSci helps create competitive advantage for leading
organizations through a crucial yet vastly underutilized
asset: relationship capital with influential decision makers.
RelSci’s nonprofit clients use the platform’s dossiers and
relationship mapping technology to transform fundraising
and donor acquisition strategy.
The takeaway
An effective multi-channel marketing campaign is a must for retaining first-time donors. Make sure
you keep them engaged, solicit their feedback, show them where their money’s going and give
them every opportunity to get involved. Once that’s in place, make sure you know what’s working
and who’s sticking around. You’ll never be able to hold on to every donor, but if you’re smart about
your marketing, you’ll hold on to many more than you were before.
5