https://bloomerang.co/resources/speaking/ This workshop will focus on how to effectively communicate with your donors in order to increase your retention rates. We will also focus on what can be done about retaining donors and building donor loyalty. Presented by Steve Shattuck, Bloomerang. Sponsored by the Indiana Nonprofit Resource

1. Donor Communications
That Engage and Retain Donors

2. Chief Engagement Officer, Bloomerang
Co-founder/ED, Launch Cause
Contributor: Fundraising Principles and
Practice: Second Edition
Member: Fundraising Effectiveness Project
(FEP) Project Work Group, AFP Center for
Fundraising Innovation (CFI)
Fun facts:
• 1st job: producing fundraising videos
• prefers tea to coffee
• allergic to rhubarb
• recipient of David Letterman scholarship
About Steven »
@StevenShattuck

3. @StevenShattuck

4. • The current state of donor retention
• Communications segmentation
• Online donor stewardship
Agenda »
@StevenShattuck

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

6. The 2016 results are in »
@StevenShattuck

7. First-time donor retention »
@StevenShattuck

8. Repeat donor retention »
@StevenShattuck

9. Retention by gift size »
@StevenShattuck

10. @StevenShattuck

11. Donor retention over a decade »
@StevenShattuck

12. 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
So what?
https://bloomerang.co/resources/downloadables/donor-retention-math-made-simple
@StevenShattuck

13. Donor retention math »
@StevenShattuck

14. The cost of poor retention »
Source: Adrian Sargeant - Lilly School of Philanthropy
@StevenShattuck
• Cost per acquisition = 5x cost per renewal
• Cost per acquisition = 2-3x initial donation amount
• break-even after 12-18 months
• Renewal response rates = 20x30 higher than
acquisition response rates

15. Importance of being a chosen charity »
The number of charities supported annually:
• Income 50K – 2-3
• Income 100K – 3-4
• Income >100K – 4-5
• One is usually their church
• Second is most likely their school
Source: Philanthropy Panel Study - Lilly School of Philanthropy
@StevenShattuck

16. Source: Philanthropy Panel Study - Lilly School of Philanthropy
@StevenShattuck

17. @StevenShattuck
Why do donors leave?

18. @StevenShattuck
• 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

19. @StevenShattuck
• 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

20. @StevenShattuck
Why do donors stay?

21. @StevenShattuck
• 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/

22. @StevenShattuck
1. Donor perceives your organization to be effective in
trying to achieve its mission.
2. Donor knows what to expect from your organization with
each interaction.
3. Donor receives a timely thank you.
4. Donor receives opportunities to make his or her views
known.
5. Donor is given the feeling that he or she is part of an
important cause.
6. Donor feels his or her involvement is appreciated.
7. Donor receives information showing who is being helped.
Key drivers of donor commitment »

23. @StevenShattuck
How to increase retention »
• Focus on first-time and above-average donors
• Thank quickly + personally
• Go overboard with appreciation
• Donor-centric tone (more “you” than “we”)
• Tell how gifts are used / will be used
• Tell them what comes next
• Solicit feedback
• Keep lines of communication open

24. @StevenShattuck
Stewardship essentials »
• Fast, personal gift acknowledgement
• Segmented communications
• Documented communications plan that
includes non-appeals

25. @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 (Tom Ahern)
• a three-minute thank-you call will boost first-year retention
by 30%. (Roger Craver / The Agitator)
• 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)
http://www.nonprofithub.org/fundraising/excuses-need-call-every-new-donor
http://www.guidestar.org/rxa/news/articles/2010/how-to-increase-donations-by-39-percent.aspx

26. Data Segmentation
for stories that retain donors
Data Segmentation
Powers Stewardship

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

28. Differentiate the acknowledgement »
@StevenShattuck
Above average gift amount
At or below average gift amount
Letter # 1
Phone call
(tour invite)
Letter #2
Handwritten note
Email/Letter #4
(Volunteer request)
Email/Letter #3
(survey)
(monthly upgrade)

29. Differentiate the appeal »
@StevenShattuck
Above average gift amount
At or below average gift amount
Ask #1
Ask #2
Ask #3
Ask #4

30. Segments per channel »
@StevenShattuck
Website Direct Mail/Ad Event

31. 1. First-time donors
• </> $100
2. Monthly recurring donors
• monthly gift x12 < average annual gift amount
3. Lapsed donors (+2 years)
4. Volunteers who have not yet donated
5. Donors who share feedback / criticism
6. Donors who have interacted via social media
6 powerful buckets segments »
@StevenShattuck

32. Data Segmentation
for stories that retain donors
First-Time Donors

33. @StevenShattuck
Why $100? »
Source: http://afpfep.org

34. • Arrive within 48 hours
• Utilize their communication preference!
• Thank profusely
• Acknowledge the campaign / channel
• Tell how gift will be used / how others have been
• Preview future communications
• Invite for a tour
• Ask for feedback / send a survey
• Convert into monthly donors (based on gift size) and/or
volunteers
Gift acknowledgement principles »
@StevenShattuck

35. @StevenShattuck

36. @StevenShattuck
Communicate their impact later »

37. @StevenShattuck

38. @StevenShattuck

39. @StevenShattuck

40. • Send a donor survey to 1st-time donors
• Boosts retention even if they don’t respond
• Respondents signify high-engagement
• Email receipt is a great place to include
• Google Forms / SurveyMonkey / Formstack
Survey »
@StevenShattuck
https://bloomerang.co/blog/23-questions-to-ask-donors-and-prospects/

41. • Why did you first give to our organization?
• What interests you most about organization? Why? What is less
interesting to you? Why?
• Why do you give to our organization? How would you describe our
mission? What does it mean to you?
• What are the most critical results you expect our organization to
produce?
• What do you tell others about us? How do you describe this
organization to others?
• Why does this cause matter to you? Why now in particular?
@StevenShattuck
https://bloomerang.co/blog/23-questions-to-ask-donors-and-prospects/
Survey question ideas »

42. Data Segmentation
for stories that retain donors
Monthly Donors

43. Monthly giving »
Source: Target Analytics, 2015 DonorCentrics US Recurring Giving Benchmarking Analysis
@StevenShattuck

44. @StevenShattuck
Monthly giving welcome »

45. @StevenShattuck
Don’t send the same 12 receipts »

46. @StevenShattuck
Don’t send the same 12 receipts »

47. • Always address them as monthly donors.
• Modest upgrade appeal depending on other
engagement signals
• “Your gift of $x does this. A gift of $x would do
this.”
• Don’t hesitate to make stand-alone gift asks.
• A unique appeal just for them.
@StevenShattuck
Monthly donors: upgrade »
https://bloomerang.co/blog/why-segmenting-your-sustaining-donors-is-crucial-for-growth/

48. Data Segmentation
for stories that retain donors
Lapsed Donors (+2 years)

49. • Isolate donors who haven’t given in 2+ years
• Remove from direct mail sends
• Send a lapsed donor survey
• Invest in data services:
• NCOA (they moved)
• Deceased Suppression Processing
(they died)
Lapsed donors »
@StevenShattuck

50. 2 common “one and dones” »
@StevenShattuck

51. • 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
@StevenShattuck
https://bloomerang.co/blog/3-tips-for-improving-p2p-donor-retention/
2 common “one and dones” »

52. Data Segmentation
for stories that retain donors
Volunteers Who Have Not Yet Donated

53. Lowest of low-hanging fruit »
@StevenShattuck
http://www.fidelitycharitable.org/docs/Volunteerism-Charitable-Giving-2009-Executive-Summary.pdf
• Volunteers are 10x more likely to donate than
non-volunteers.
• Get to know their goals for volunteering, then
translate it into donation impact.
• Ask for an appropriate amount (can be a
monthly commitment).
• Convert into fundraisers!

54. @StevenShattuck
http://www.slideshare.net/socialogilvy/why-do-people-share-on-social-media-global-survey-results
Use social media to say thank you »

55. Use social media to say thank you »
@StevenShattuck

56. @StevenShattuck
Use social media to say thank you »

57. @StevenShattuck
Convert into fundraisers »

58. Data Segmentation
for stories that retain donors
Donors Who Have Shared
Feedback / Criticism

59. • Send a survey to new donors
• Boosts retention even if they don’t respond
• Respondents signify high-engagement
• Email confirmation is a great place to include
• Google Forms or SurveyMonkey
Survey »
@StevenShattuck
http://t.co/XMUTnvjThP
https://bloomerang.co/blog/23-questions-to-ask-donors-and-prospects/

60. • “Why do you give?”
• “What’s your connection to the cause?”
• Group similar answers together into
segments
• Tailor communication accordingly
Secret sub-segment »
@StevenShattuck

61. Keep donors happy »
@StevenShattuck
Source: Target Analytics, 2009 DonorCentrics US Recurring Giving Benchmarking Analysis

62. @StevenShattuck

63. @StevenShattuck

64. @StevenShattuck

65. @StevenShattuck

66. @StevenShattuck

67. Data Segmentation
for stories that retain donors
Social Media Engagers

68. Proactively collect social contact info »
@StevenShattuck
missed opportunity?

69. Encourage bragging »
@StevenShattuck

70. Respond to their bragging »
@StevenShattuck

71. Ask for likes in confirmation »
@StevenShattuck

72. Save social info in database »
@StevenShattuck

73. Leverage them later »
http://socialmediatoday.com/sashattuck/2431046/how-college-used-social-media-raise-465k-one-day
@StevenShattuck

74. http://socialmediatoday.com/sashattuck/2053261/how-nonprofit-raised-41k-twitter-24-hours-without-trying
@StevenShattuck
Leverage them later »

75. Other engagement signals »
@StevenShattuck
• Upgrade /
Downgrade + -
• Event attendance +
• Opens email +
• Clicks emails +
• Unsubscribes
from email -
• Changes
communication
preferences +
• Changes contact info
• Has inbound
interactions +
• Has soft credits +

76. • Treat your constituents differently!
• Multiple versions/variations:
• thank you letters (outcomes)
• appeals (uses)
• newsletters (interests)
• stewardship pieces (stories)
• Survey early and often
• Data is king
Final thoughts »
@StevenShattuck

77. • It’s not about you. It’s about the donor.
• Segment your donors.
• Create a written comms plan for each segment.
• Concentrate on first-time donors.
• Get that second gift.
• Personalize!
• Steward, then solicit.
Final thoughts »
@StevenShattuck

78. The Future of Fundraisingbreak

79. The Future of Fundraisingdigital stewardship

80. How can we make
online donors
feel truly special?
@StevenShattuck

81. Do these 3 things well »
https://bloomerang.co/blog/3-things-your-nonprofit-must-do-well-after-an-online-donation
@StevenShattuck

82. 1. “Thank You” page
2. Email confirmation
3. Formal acknowledgment
Do these 3 things well »
https://bloomerang.co/blog/3-things-your-nonprofit-must-do-well-after-an-online-donation
@StevenShattuck

83. • Communicate that donation was processed
• Thank the donor
• Communicate impact (text/photo/video)
• Preview future communications
• Give donor something to do next
• Keep them on website to convert again!
Confirmation page »
@StevenShattuck
https://bloomerang.co/blog/21-ideas-for-your-nonprofits-donation-confirmation-page

84. Confirmation page »
@StevenShattuck

85. Confirmation page »
@StevenShattuck

86. Confirmation page »
@StevenShattuck

87. Confirmation page »
@StevenShattuck

88. Confirmation page »
@StevenShattuck

89. @StevenShattuck

90. • Should arrive immediately
• Eye-catching subject line
• Avoid role-based sender email address
• Personal greeting
• Thank the donor
• Communicate impact (text/photo/video)
• Give donor something to do next
• Social sharing
• Employer matching
• Survey
• Preview future communications
• Include tax information
Email confirmation »
@StevenShattuck
https://bloomerang.co/blog/19-point-donation-acknowledgement-email-checklist

91. @StevenShattuck

92. @StevenShattuck

93. @StevenShattuck

94. @StevenShattuck

95. @StevenShattuck

96. @StevenShattuck

97. @StevenShattuck

98. @StevenShattuck

99. @StevenShattuck

100. Email receipt »
@StevenShattuck

101. https://bloomerang.co/blog/this-biz-has-a-better-email-thank-you-than-most-nonprofits
@StevenShattuck

102. https://bloomerang.co/blog/this-biz-has-a-better-email-thank-you-than-most-nonprofits
@StevenShattuck

103. • Thank you for your donation!
• Donation Confirmation from (ORGANIZATION)
• Donation Receipt from (ORGANIZATION)
• Confirmation – Donation Received
• Donation Receipt
• Thank you for your gift
Boring email subject lines »
@StevenShattuck
https://bloomerang.co/blog/46-real-nonprofit-email-receipt-subject-lines-made-better/

104. • You just changed a life
• You just fed a family of four
• You have given the gift of hope
• You are a hero!
Impactful email subject lines »
@StevenShattuck
https://bloomerang.co/blog/46-real-nonprofit-email-receipt-subject-lines-made-better/

105. • info@nonprofit.org
• development@nonprofit.org
• no-reply@nonprofit.org
• finance@nonprofit.org
Destroy all role-based emails »
@StevenShattuck
https://bloomerang.co/blog/this-overlooked-detail-is-undermining-your-nonprofits-emails/

106. • Arrive within 48 hours
• Preview future communications
• Utilize their communication preference!
• Email
• differentiate from receipt
• Snail mail
• handwritten note / signature
• Phone call
• voicemails are just as good
Formal acknowledgement »
@StevenShattuck

107. @StevenShattuck

108. @StevenShattuck

109. @StevenShattuck

110. @StevenShattuck
Can acquisition trump retention?

111. @StevenShattuck

112. https://bloomerang.co/resources
•Nonprofit Wrap-Up
•Bloomerang TV
•Bloomies
•Daily blog post
•Weekly webinars
•Downloadables

113. @StevenShattuck
Donation Thank
You Email
Template »
https://bloomerang.co/resources/
downloadables/sample-donation-
thank-you-email-template/

114. @StevenShattuck
https://bloomerang.co/resources/downloadables/basic-thank-you-letter-template/
Snail mail letter template »
1. Personal intro
2. Thank you
3. Impact statement
4. Future communications
5. Another thank you
6. Personal signature
7. PS w/ additional action

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