How to not suck at keeping your donors

It’s not just you - it’s the nonprofit sector. 

As an industry, we are historically VERY bad at keeping our donors. In fact, according to the recent report by The Fundraising Effectiveness Project, donor retention now sits at just 43.6%. That’s 4.1% down from 2019. 

Not good. 

You might be asking why? Who cares if the retention rates go down? Who cares if MY retention rates are no good?

Let’s look at 2020, for example, 

2020 saw record breaking growth in donations - up nearly 11% compared to 2019 - and mostly driven by low level gifts (donations $250 and below). Does that sound like your organization? If so, you should expect a ton of those donors to NEVER COME BACK. Statistically, only 43.6% of one-time donors will actually make a second gift. 

Ouch, bummer, eee-gads. 

But there is good news (finally!) - your nonprofit organization doesn’t have to be a part of the 43%. 

Here are three ways you can welcome your donors in, make them feel loved, and that they are making a difference when they give to your organization. 

#1: Thank your donors well and thank them often. 

In a recent poll to all of the past Raise More Together attendees - over 65% of respondents said they take too long (some not at all) to thank their donors. The research shows us that when nonprofit organizations thank their donors in a timely manner - they have seen retention rates increase by double digits. 

Grab this video to watch a sample of how to leave a quick phone message OR put a quick Loom thank you video together. 

#2: Wrap your donors into your organization, your work, and your impact.

Does your organization have a welcome sequence? A welcome sequence is a set of 3-5 emails that get triggered when someone joins your email list OR makes a first time gift. It can introduce your organization, it can set the tone, as well as set the expectations up for what your donors can expect in the coming months as they get more familiar with your organization. In general, I like to see at least 3 emails go out within 14 days of a first time gift. 

Need an example? Grab my free Donor Welcome Series Templates that are 100% customizable to your organization’s voice. 

#3: Lead with impact

Donors want to know what impact they are making on your organization. So tell them - what did the $50 they gave DO for your organization? Scott Harrison, CEO & Founder of charity:water explains, “It doesn’t matter if they paid for a copy machine. Write thank you on a piece of paper, make a copy of it on the new copy machine and then send that to the donor to say, “Thank you for helping us get this killer machine that makes our admin work easier,” - I promise, the donor will appreciate it.” 

One of the organizations that I think does this so well is Ruby’s Rainbow. Each year, they put a simple, homemade video compilation together of their scholarship winners receiving their awards. It’s heartwarming and effective - it allows you to see the joy the recipients have and as a donor - it’s all you could ask for. 

There is no right or wrong way to thank, wrap, and communicate impact to your donors - you just need to do it and do it well. You want them to have several stewardship touch points with your organization BEFORE you ask them for money again. 

How do you work to retain your donors? On a scale of 1-10 - how would you rate your nonprofit?