Why a Donor Retention Strategy is Key Right Now

Last month, we repeatedly highlighted the heavy lifting necessary for soliciting donors in the final months and weeks of the year. Now that end-of-year giving has passed, you may be wondering, what now? Now is a great time of year to begin laying the groundwork for your next big fundraising push. Your organization must now focus heavily on retention. It is always more costly to find new donors than to retain the ones you have. The ROI on existing donors will compound over the years. That said, retention takes effort. It requires attention and purposeful actions to properly retain donors. Think about the effort you put in to get those new donors. Do you want to throw away all of that effort by letting those donors slip away? 

So what is donor retention? Retention is the practice of engaging donors that have already given to your organization so that they choose to continue their financial support routinely (i.e. answering your end-of-year appeal annually). The best way to do this, broadly speaking, is to make donors feel appreciated and valued. This is most often achieved through remaining connected with donors, so they feel emotionally invested in your organization. 

How do you get that second donation? 

The second donation is what it is all about. When a first-time donor becomes a second-time donor, you know you have done something right. This blog is about knowing what to do so repeat donors are less of a surprise and more something that you have worked for and expect. 

Be personal 

Donors want to know they haven’t thrown their dollars into a black hole with hopes that they will affect change. You can solve this disconnect by reaching out to donors. Start with a thank you and plan follow-ups throughout the year. Pick up the phone and call donors to thank them, write a handwritten thank you note, or send an email from a real person (no “do not reply” addresses). Donors want to know that their gift has been received and is changing things fo the better. Let them know what their gift means to your organization. 

Welcome donors 

When new donors choose to give to your organization, give them the impression that they are joining a a community. While this ties in to being personal, welcoming donors can be achieved in various ways. Welcome donors into your community with welcome kits with personal touches. Include more information on what you do and how they can be involved in the coming weeks, month, and year. Welcome kits can immediately draw donors in and lead them to want to learn more about your orgnization. 

Show the ROI on gifts 

Donors love to see how their gift impacts your mission, so show it in the thank-you message, stories on social media, or wherever else you communicate with donors. Like we said before, donors want to know that they are making an impact. We also know that stories are the best way to engage donors or viewers. Tell the story of how donor support helps your organization drive its mission. When donors know what their dollars are doing, they are more likely to give again and in larger amounts. You can learn more about how to show donors the ROI and the impact it can have in our Boost Your Fundraising by Showing Donors the ROI blog. 

Roughly one-third of nonprofits get up to 3/4 of their annual donations in the time between Giving Tuesday through the end of the year. In order to maximize that time for giving, it is critical to lay the groundwork throughout the year, and also work to retain those new donors. This time of year, January and February, is an important time of year for your retention strategy. Many new donors likely gave to your organization for the first time in November or December and now is the time to ensure they keep coming back. Stay in touch with each donor, communicate with them personally through thank yous and updates, and keep them informed of your work and the impact of their support.  Don’t throw away all of your hard work and be sure to retain your year-end donors. 

NMBL Strategies has worked with nonprofits for years, helping in some of the greatest nonprofit developments of the previous 20+ years. In that time, we’ve raised more than $100 million, developed millions of dollars more in earned income, and most importantly, developed the strategies and insights behind these efforts. Let us bring that experience to your nonprofit today and ensure your financial future is in good hands.