The document discusses strategies for improving donor retention rates, with a focus on retaining donors for their second gift. It notes that retaining first-time donors is particularly challenging, as they have the lowest retention rates. Some key strategies discussed include thanking and surveying donors early to understand their motivations, treating first-time donors like royalty, telling donors the impact they have had, and using stories to engage donors and encourage repeat giving.

1. Secrets of the 2nd Gift –
the Key to Donor Retention

2. Your presenter »
@StevenShattuck
Jay Love
@JayBarclayLove
Chief Relationship Officer,
Bloomerang
• 33 Years of Technology Leadership
• Over 20,000 Database Installations
• Former Founder & CEO of eTapestry
• Former CEO of Master Software/Fund-Master
• Former Senior VP of Blackbaud
• Conner Prairie Museum Board Member
• AFP Ethics Committee
• Rogare Research Institute Board Member
• Innovation Fund at Butler University
• Co-Chair of Indianapolis YMCA Capital Campaign

3. @JayBarclayLove
Why focus on the second gift?

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

5. The 2018 results are in »
@JayBarclayLove
http://afpfep.org/reports/

6. First-time donor retention »
@JayBarclayLove
http://afpfep.org/reports/

7. Repeat donor retention »
@JayBarclayLove
http://afpfep.org/reports/

8. Recurring donor retention »
@JayBarclayLove
http://afpfep.org/reports/

9. Donor retention »
@JayBarclayLove
http://afpfep.org/reports/

10. Donor retention over the years »
@JayBarclayLove
http://afpfep.org/reports/

11. @JayBarclayLove
# 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. Gift amount matters »
@JayBarclayLove
http://afpfep.org/reports/

13. 13
Recapturing lapsed donors is tough »
@StevenShattuck
Source: Fundraising Effectiveness Project http://afpfep.org

14. # 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
Donor attrition over 5 years »
(1% increase in retention = $45,634 annually)
@JayBarclayLove

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

16. @JayBarclayLove
Who to focus on »

17. Why do donors leave?
@JayBarclayLove

18. • 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
@JayBarclayLove

19. • 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
@JayBarclayLove

20. Why do donors stay?
@JayBarclayLove

21. • 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/
@JayBarclayLove

22. 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 »
@JayBarclayLove

23. @JayBarclayLove
Thank you segments »

24. @JayBarclayLove
• Design a “style” and story for each segment
• Consider calling and mailing segments 1, 2 and 4
• Handwritten notes and/or P.S. are powerful
• Test, test, test!
• Personalize as much as possible (database fields)
• 3 “touches” in the first 90 days (survey)
• Always aim to convert to monthly donors!
Segmentation principles »

25. @JayBarclayLove
Donor communications »
“Successful donor
communications are quite
simple.
At heart, they are love
letters to donors &
prospects, woven through
with clear cries for help.”
- Tom Ahern,
Bloomerang Donor
Communications Head Coach
http://aherncomm.com

28. Stories get the second gift!
@JayBarclayLove

29. @JayBarclayLove

31. @JayBarclayLove

32. @JayBarclayLove

33. @JayBarclayLove

34. @JayBarclayLove

35. Email receipt »
@JayBarclayLove

36. @JayBarclayLove

37. @JayBarclayLove

38. @JayBarclayLove

39. @JayBarclayLove

40. @JayBarclayLove

41. • “Why did you first give?”
• “What’s your connection to the cause?”
• “What would you like to hear from us?”
• Let them tell their story!
Other Survey Question Ideas »
https://bloomerang.co/blog/23-questions-to-ask-donors-and-prospects/
@JayBarclayLove

42. The for-profit world understands »
@JayBarclayLove

43. @JayBarclayLove

44. @JayBarclayLove

45. @JayBarclayLove

46. Homework?

47. @JayBarclayLove

48. • 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 »
@JayBarclayLove

49. More examples »
@JayBarclayLove
5 Acknowledgment Principles
(Drastically Improve First Year
Donor Retention)
https://bloomerang.co/bloomies

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

51. Questions?
jay.love@bloomerang.co
@JayBarclayLove
Free eBook »
https://bloomerang.co/staytogether/
@JayBarclayLove