The document discusses improving donor retention rates, which can increase lifetime donations from donors by 150-200% if retention rates increase by 10%. Current donor retention rates are quite low, with 59% of donors from the previous year not donating again. Relationship fundraising that focuses on donor satisfaction, commitment, and trust through communication and impact reporting can help improve retention.

1. Sponsored by:A Service
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Building Donor Loyalty:
What It Takes and How Your Database Can Help
Tina Cincotti & Jay Love
June 18, 2013
Twitter Hashtag - #npweb
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2. Sponsored by:
Protecting and Preserving the
Institutional Memories of
Nonprofits Since 1993
www.cjwconsulting.com
(866) 598-0430
info@cjwconsulting.com
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Coming this June

4. Sponsored by:A Service
Of:
Today’s Speakers
Tina Cincotti
Owner & Principal Consultant,
Funding Change Training & Consulting
Hosting:
Cheri J Weissman, CJW Consulting & Services, Inc.
Assisting with chat questions:
Jamie Maloney, Nonprofit Webinars
Jay B. Love
CEO & Co-Founder
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5. How much more money will you raise over
the lifetime of your donors if you increase
your donor retention rate by just 10%?
• 50%
• 100%
• 150-200%
First Attendee Poll
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6. Improving donor retention rates by 10% can
improve LIFETIME dollars raised by?
• 150-200%!
(Do we have your attention yet?)
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7. Fundraising Effectiveness Project (FEP)
A project to help nonprofit organizations measure and
compare
The 2012 Fundraising Effectiveness Survey Report is based on 3,184
responses for 2010-2011, from nonprofit organizations in the United States.
The 2010-2011 responses reflected a total amount raised of $2,049,794,709.
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8. 2012 Fundraising Effectiveness Survey Report “FEP”
Participating Donor Software Firms:
• Donor2/Campus Management Corporation
• PhilanthrAppeal (FundTrack Software)
• DonorPerfect Fundraising Software
• The Raiser’s Edge ® (Blackbaud)
• eTapestry
• ROI Solutions
• GiftWorks (Mission Research)
• Sage Software
• MatchMaker FundRaising Software
• Telosa Software (Exceed!)
• Metafile
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9. Donor Retention Rate
was 41%
Donor Attrition
was 59%!
2011 FEP Data on Donor Retention Rate »
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10. Yes, your eyes read correctly:
Nearly SIX out of every TEN Donors
from the previous year did NOT
donate at all the next year!
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11. What is the average retention rate for
first year donors?
• 21%
• 27%
• 32%
Second Attendee Poll
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12. 15

13. This is not
good…not good
at all….
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14. Let’s cue the Expert on Donor Retention
This scares most NPO Board Members »
Donor Attrition Over Five Years
# of Donors Attrition
Rate
Donors
Remaining
After 1 Year
Donors
Remaining
After 2
Years
Donors
Remaining
After 3
Years
Donors
Remaining
After 4
Years
Donors
Remaining
After 5
Years
1,000 20% 800 640 512 410 328
1,000 40% 600 360 216 130 78
1,000 60% 400 160 64 26 10
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15. CUE THE EXPERT:
Dr. Adrian Sargeant
Bloomerang Chief Scientist
Professor of Fundraising at the Center on Philanthropy at Indiana University
holding what is presently the world’s only endowed chair in that discipline.
Professor of Nonprofit Marketing and Fundraising at Bristol Business School
(U.K) and an Adjunct Professor of Fundraising at the Australian Centre for
Philanthropy and Nonprofit Studies.
Top 10 Most Influential People in Fundraising
“A 10% improvement in retention can double
the LIFETIME value of your donor database!”
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16. Why Do Customers Leave?
(can this apply to donors . . .)
• Death 1%
• Relocation 3%
• Won by Competitor 5%
• Bad Complaint Handling 14%
• Lack of Interest from Us 77%
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17. Key Reasons For Donors Leaving
• No longer able to afford support
• No memory of ever supporting!
• Organization asked for inappropriate sums
• Feeling that other causes are more deserving
• Not reminded to give again
• Organization did not inform how monies were
used
• Did not feel connected!
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19. Transaction
Fundraising
Relationship
Fundraising
Focus Soliciting donations Retaining donors
Key measures Immediate response,
return on
investment,
amount of gift
Lifetime value
Orientation Urgency of cause Donor relationship
Time scale Short Long
Customer service Little emphasis Major emphasis
Comparison of Two Approaches
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20. Transaction
Fundraising
Relationship
Fundraising
Focus Soliciting donations Retaining donors
Key measures Immediate response,
return on
investment,
amount of gift
Lifetime value
Orientation Urgency of cause Donor relationship
Time scale Short Long
Customer service Little emphasis Major emphasis
Comparison of Two Approaches
23

21. Isn’t there any
good news?
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27. “On behalf of the
board and staff, I
want to thank you…
blah, blah…”
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28. “Thank you for your
generous gift of…”
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29. Opera has a home in
Boston and it’s all because
of you.
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30. A warm place to sleep.
A steady job. The keys
to their own apartment.
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31. Did Chris Jahnke
knock your socks off or
what?
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33. 36

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35. 38

36. What is the single most important piece
of information donors want to know?
• The level they reach in your gift club
• The people at their table at the gala
• The impact their gift specifically made
• Your Charity Navigator Score
Third Attendee Poll
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47. We sent 220 volunteers to
Joplin to help them rebuild.
Ten families are now living
in their homes again.
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48. You helped send 220
volunteers to Joplin. Ten
homes were rebuilt and
families are living there
again.
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50. 53

51. 54

52. More ways to
improve donor
loyalty…
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53. THE BIG
THREE
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54. 1. Satisfaction
2. Commitment
3. Trust
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55. Satisfaction is #1
Cue the Rolling Stones...
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56. Encourage feedback from donors
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57. How are we doing?
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59. 62

60. Build trust…
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63. 66

64. 67

65. Track
Engagement
in your
Database 68

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67. Automatic Engagement Factors
• Recency and pattern of
giving
• Cash donors vs.
sustaining donors
• # of years giving +
• Upgrade /
Downgrade + -
• Lapsed -
• Event attendance +
• Opens email +
• Click links in emails +
• Unsubscribes
from email -
• Has stated
communication
preferences +
• Has inbound
interactions +
• Has soft credits +
• Volunteers +
• Social Media
(coming soon)
• …and a whole lot more!
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68. How will I
know if this
is working?
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69. What’s your retention rate?
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70. What’s your conversion rate?
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78. Thank you for spending your valuable time with me
today!
Please stay in touch. -- Tina & Jay
tina@fundingchangeconsulting.com
TinaFCC on Twitter
jay.love@bloomerang.co
@jaybarclaylove on Twitter
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