https://bloomerang.co/resources/speaking/ This session explores the Fundraising Effectiveness Project report commissioned by AFP and the Urban Institute. The dismal news in this report can and should be an eye opener for every nonprofit engaged in fundraising. We will focus on the root causes of poor retention rates, and offer tips for improvement based on the principles of Dr. Adrian Sargeant and Tom Ahern: two world-renowned authorities on building donor loyalty. Sargeant and Ahern’s principles are based upon years of research conducted in the sector and can be used by any organization, whether you are a one-person shop or a large department. We will show examples of their principles in action. The results can be astounding when put into daily use! Learning Outcomes: Be familiar with current research on donor retention and how an increase or decrease can impact your bottom line Understand how to calculate your donor retention rate Learn new donor communications techniques in order to improve donor loyalty and retention

1. Donor Retention
Through Improved
Communications
Tom Ahern’s 9 Secrets to Success:

2. Your Presenter
Jay B. Love
• 34 Years of Technology Leadership
• Over 20,000 Database Installations
• Former Founder & CEO of eTapestry
• Former CEO of Master Software/Fund-Master
• Conner Prarie Museum Board Member
• AFP Ethics Committee Chairman
• Center on Philanthropy at IU Board Member
• Innovation Fund at Butler University
• Gleaners Food Bank Board Member
• Co-Chair of Indianapolis YMCA Capital Campaign
3

3. Do you know your retention rate?

4. In our surveys, less than
15% of fundraisers
knew their current donor
retention rate.
Do you know your retention rate?

5. http://afpfep.org
Growth in Giving Initiative / FEP »

6. The 2015 results are in »
Nearly 6 out of every 10 donors do not give again!

7. New donor retention is even worse »

8. Engagement Begins With The Thank You!

9. 5 Acknowledgment Principles
(Drastically Improve First Year Donor Retention)
• 48 Hour Rule
• Be Different Than the Rest
• Handwritten Rule Written Communications
• State Exactly What the Monies will Fund
• Call or See in Person as Often as Possible

10. Who to focus on »

11. # of Donors in Current 12 Months
(from the previous years pool)
Divided by
# of Donors in Previous 12 Months
https://bloomerang.co/retention
Calculating donor retention »

12. “The total net contribution that a
customer/donor generates during
his/her lifetime in your database”
Defining Lifetime Value »

13. 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!

14. Key Reasons For Donors Leaving »
BAD COMMUNICATION

15. What Happens When Donors Leave »

16. CUE THE EXPERTS:
Dr. Adrian Sargeant
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.
Top 10 Most Influential People in Fundraising
Renowned expert on Donor Retention and Donor Loyalty
Mr. Tom Ahern
Donor Communications
Head Coach
One of the world’s top authorities on donor
communications
Author of 4 books on Donor Communications
Winner of 3 prestigious international IABC Gold Quill
awards

17. You send a message...
Goal of donor communications »
...and you want action!

18. 1. What do I know about the target audience?
2. What does that knowledge suggest I do?
3. What are the obstacles?
First, ask yourself »

19. Ignore Pay
attention
You send a message »

20. Ignore Pay
attention
You send a message »

21. • How did you grab my attention?
• How did you stir my emotion?
• How did you make your case so I cared?
• How did you talk to me personally?
• How were you relevant to the reader?
Why were you successful? »

22. You’re trying for “mental nods.”
Secret to Success #1 »

23. Pay
attention
Ignore
Skim & engage Skim & discard
You send a message »

24. Pay
attention
Ignore
Skim & engage Skim & discard
You send a message »

25. Pay attention
Skim & engage
Not satisfied Satisfied
Action No action
© 2013 Tom Ahern
Ignore
Skim & discard
You send a message »

26. © 2013 Tom Ahern
An Example »

27. Why am I in
your home?
Ask #1.
Do I have
relevant news?
Ask #2.
Do we have a
connection?
Ask #3.
Brief opening
Personalization

28. Reinforce the
connection
Are donors
important?
Far more than
you might
realize.

29. Disqualify
other sources
of income
Demonstrate
importance of
donors’ work
Ask #4
Shift responsibility for the success of the mission onto
donors’ shoulders

30. Remind what’s
at stake
Ask #5
News value.
Urgency.
And Ask #6.
Flesch reading ease: 58, Flesch-Kincaid grade level: 8

31. Ahern Audit »

32. Your appeal is NOT about how
wonderful your organization is.
Your appeal IS about how
wonderful the donor is.
Secret to Success #2 »

33. Beginning
of mail
End of mail
Elapsed time:
1-3 seconds

34. It’s not about you.
It’s about the donor.

35. Not you.
The donor.

36. Not you.

37. The donor.

38. Types of Donor Communications »
• Letters
• Emails
• Acknowledgements
• Newsletters
• Social Media
• Videos
• Blog Posts

39. 1. Acquisition
(no gift yet, reader is a stranger)
2. Renewal
(made a prior gift, reader is a friend)
Two Distinct Types of Appeals »

40. ½ of 1%
Acquisition Response Rate »

41. 40-70%
Renewal Response Rate »

42. 1. Who are you (your promise)?
2. What do you want?
3. Why should I trust you?
4. Why do you matter?
5. How do you relate to me?
6. What’s the rush?
Ask Yourself (Acquisitions) »

43. 1. What did you do with my prior gift?
2. Are you grateful?
3. What do you want now?
4. Do you have proof?
5. Again: Who are you?
6. What’s the rush?
Ask Yourself (Renewals) »

44. • Use the person’s name
• Use the pronouns “you” and “I”
• Include an audience attribute:
“As a parent, you know....”
• Geography: “As a resident of...”
• Hand-written touches
Personalize! »

46. Make your donors the solution
to some local problem.
Secret to Success #3 »

47. “…the purpose is to get the
reader involved long enough and
interested enough to make a
positive decision. Nothing else.”
-- Jerry Huntsinger

48. 1st
paragraph: 10 words or less.
Secret to Success #4 »

50. Multiple asks
Secret to Success #5 »

51. Multiple Asks
Logo
[ Optional important message ]
Dear Ms. Smith,
If you’re like me, the sight of
kids running around on stage in
silly costumes makes you giggle
with delight.
Sincerely,
Ms. Sincerity Champion, ED
PS: ytuytggygkigkygkygigikgy
Ask!
Ask!
Ask!
Ask!

52. The purpose of donor communications:
To get inside a person’s home or office ...
... and carry on a brief,
persuasive “conversation in
print,” hoping it will earn your
cause a gift.

53. Don’t bore me.
Secret to Success #6 »

54. Neuroscience says…
“Coming across new information
triggers a chemical reaction that makes
us feel good, which in turns causes us to
seek out even more of it.”
Source: Wall Street Journal article by Lee Gomes, on USC neuroscientist, Dr.
Irving Biederman; published March 12, 2008

55. Dear Jane Sample,
Our doctors call it "Day Zero.”
It’s the day you come back from the dead.

56. New
Anything
Will Grab My Attention
(including the word “new”)

57. Also “new-ish”
Words like secret, hidden, hints, tips,
update, private, confidential, mystery,
discover, unveil, expose, reveal,
divulge. Phrases like "Did you know?",
"Myths and Facts," "Frequently Asked
Questions," "Heard on the Blog."

58. Know your SMIT.
Single Most Important Thing.
Secret to Success #7 »

59. “Focus on the SMIT (single most important
thing) you want to tell someone, right now.
Ideally focused on a story about an individual.”
-- Jonathon Grapsas

61. Get them into a fight.
Secret to Success #8 »

64. Make a promise.
Secret to Success #9 »

65. Memphis Child Advocacy Center
Helping Victims
Become Children Again
They are not giving to this, at least not initially
They are giving to this

66. Donors don’t give to your
organization.
They give through your
organization to:
• fix a problem they worry about
• sustain or expand a solution they believe in
• get more of what they’re interested in
• feel like they’ve made a difference

67. 1. Mental nods
2. Not about you, it’s about the donor
3. Make your donor the solution to a problem
4. 1st
paragraph: 10 words or less
5. Multiple asks
6. Don’t bore me
7. Know your SMIT
8. Get them in a fight
9. Make a promise
9 Secrets to Success »

68. Appeal segmenting »

69. Appeal principles »
• Design a “style” for each segment
• Consider calling and mailing segments 2, 4 and 6
• Handwritten notes and/or P.S. are powerful
• Test, test, test!
• Personalize as much as possible (database fields)
• More than once a year
• Always aim for monthly donors!

70. Tom Ahern’s
free
how-to
e-newsletter:
www.aherncomm.com

71. Free educational resources »
https://bloomerang.co/resources
• Daily blog post
• Weekly webinar
• Downloadables
• Nonprofit Wrap-Up
• Bloomerang TV

72. Questions?
Jay B. Love
jay.love@bloomerang.co
@JayBarclayLove