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Rekindling Relationships: Strategies for Engaging Inactive Donors

Posted on September 27, 2023February 2, 2024 by EmMa Matern

INTRODUCTION

Last year nonprofits saw a decline in donations for the first time in a decade according to the article by NonprofitPro.com, “Donations Decline for the First Time Since 2012, Fundraising Effectiveness Project Data Shows”. In 2022, there was a noticeable decline of 26% in the giving levels from first-time donors of 2021. This drop was primarily attributed to both new donors and those who had been retained from the previous year, collectively accounting for 81% of the decrease. This even included a 3.5% decrease in repeat donors. This challenge of donor retention extended across the board, leading to the lowest recorded donor retention rate at 42.6% in 2022.

Within the dynamic world of charitable organizations, sustaining financial stability and support from donors is a perpetual challenge. Donor engagement is a delicate dance, and even the most committed supporters can occasionally slip through the cracks. From understanding the motivations behind lapsed donors to mastering the art of data segmentation, effective communication, and a multi-channel approach, we will equip you with the strategies needed to rebuild trust and maintain long-term donor retention. Your nonprofit’s mission deserves unwavering support, and this guide is your roadmap to ensuring just that.

Key Topics
1. Why do Donors Lapse and What to do about Lapsed Donors?
2. What is Segmentation and how does it Focus Data Analysis?
3. What are Effective Communication Strategies for Nonprofits?
4. What is a Multi-Channel Approach?
5. How to Rebuild Trust and Retain Donors?

1. Why do Donors Lapse and What to do about Lapsed Donors?

Donors can become inactive for a multitude of reasons, including significant life changes that disrupt their ability or willingness to contribute, as well as a lack of effective communication from the organization. It’s essential for nonprofits to categorize their lapsed donors into different segments, such as recent lapsed and long-term lapsed, in order to tailor re-engagement strategies effectively. Seasonal factors can also play a role in donor lapses, as certain times of the year may bring about financial constraints or distractions that divert attention away from charitable giving. Additionally, life events like relocation, retirement, or major family changes can significantly impact a donor’s financial situation and capacity to contribute. Delving deeper into the importance of maintaining regular and meaningful communication with donors is critical, as poor or infrequent interactions with the organization can lead to donor attrition over time.

2. What is Segmentation and how does it Focus Data Analysis?

In the realm of re-engagement strategies, crafting personalized messages that genuinely acknowledge a donor’s history with your organization, stands as a pivotal step. These messages should not merely serve as reminders but should resonate with the individual, recognizing their past contributions and the difference they’ve made. By emphasizing the tangible impact of their support, organizations can reignite the donor’s sense of purpose and connection to the cause. These messages can be enhanced by highlighting new developments and achievements made since their last donation, showing donors that their continued involvement will contribute to ongoing progress.

To further bolster credibility and trust, organizations can incorporate testimonials or success stories from other donors who have had a meaningful experience with the cause. These stories act as powerful endorsements, reaffirming the organization’s commitment to its mission and showcasing the positive outcomes that result from donor support.

In today’s visually-oriented digital landscape, utilizing visuals such as infographics or videos can also significantly enhance the effectiveness of communication. Display materials provide a dynamic and engaging way to convey information, making the donor experience more immersive and impactful. Personalization, impact recognition, credibility building, and engaging visuals all play crucial roles in re-engagement efforts, rekindling the donor’s passion and strengthening their bond with the organization.

3. What are Effective Communication Strategies for Nonprofits?

Segmenting lapsed donors is essential when it comes to crafting effective re-engagement strategies. By harnessing the power of data analysis to scrutinize their past interactions and preferences, organizations can unlock the ability to create personalized messages that demonstrate a genuine appreciation for each donor’s individual history and contributions. This personalized approach, which can include thoughtful gestures like handwritten notes, not only showcases the organization’s commitment to its supporters but also significantly enhances the likelihood of rekindling their engagement and reigniting their passion for the cause. In essence, the art of segmentation and data-driven personalization becomes a powerful tool in the hands of nonprofits, fostering stronger connections and reinvigorating donor relationships.

4. What is a Multi-Channel Approach?

Leveraging a diverse array of communication channels, such as email, social media, and direct mail, is key in connecting with lapsed donors. This multifaceted approach allows organizations to reach donors through their preferred means of communication, maximizing the chances of reconnection. In particular, digital platforms have proven instrumental in reconnecting with younger lapsed donors who are more active on social media and responsive to online engagement. By implementing QR codes, or other interactive elements, nonprofits can seamlessly guide donors back to their mission, making it convenient for them to rekindle their support.

In an increasingly digital world, sending physical re-engagement materials can offer distinct advantages. It enables organizations to stand out from the clutter of digital communication, providing a tangible reminder of their mission. This personal touch not only captures the attention of lapsed donors but also conveys a sense of value and effort put into re-establishing the connection. Physical materials can evoke a sense of nostalgia and authenticity, resonating with donors on a deeper emotional level and potentially rekindling their commitment to the cause. Thus, a strategic blend of digital and physical communication channels ensures a comprehensive re-engagement approach that accommodates the preferences and sensibilities of diverse donor segments.

5. How to Rebuild Trust and Retain Donors?

To successfully re-engage lapsed donors, it’s crucial for organizations to address any issues or concerns that led to their lapse in the first place. This entails actively listening to donor feedback, addressing grievances, and implementing necessary improvements to ensure a more positive and satisfying donor experience. Demonstrating transparency regarding how their previous contributions were utilized is key, as it helps rebuild trust.

Beyond resolving past issues, organizations should also implement ongoing engagement plans aimed at preventing future lapses. By employing effective stewardship practices, nonprofits can continuously nurture their donor relationships, making supporters feel valued and engaged with the cause on a deeper level. Nonprofits can bolster this approach by regularly providing impact reports that showcase measurable results and illustrate precisely how funds were used in the past. These reports not only instill confidence but also serve as a powerful reminder of the meaningful difference donors can make, reigniting their passion for the organization’s mission and ensuring a more sustained commitment.

Wrap It Up

In the intricate realm of nonprofit organizations, this comprehensive exploration has shed light on the multifaceted challenge of donor retention and revival. We covered, understanding lapsed donors, data segmentation, robust communication strategies, applying omni-channel approaches to mailpieces, and rebuilding trust for retention. The crucial importance of rebuilding trust and maintaining donor retention has been underscored as the linchpin to a sustainable and thriving donor base.

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How to Follow up with Volunteers

Posted on June 30, 2022February 2, 2024 by EmMa Matern

INTRODUCTION

Acknowledging your volunteers is just as important as acknowledging your donors, and you can do that by sending out a follow up!

In this article we are going to be looking at why, how, and when to follow up with your volunteers. Volunteers are the powerhouse of the organization! Knowing how to send follow ups and how to make them effective is KEY. Sending out those follow ups as soon as you can will result in a good volunteer experience and increase the likelihood that volunteers will return for more work, and even become donors!

WHY FOLLOW UP?

Following up with your volunteers is important because volunteers are what keeps your nonprofit organization going. Volunteers donate their time and effort for a cause as long as it provides them with the personal satisfaction of doing good for others as well as a positive network of individuals who all care deeply about the cause. It is not only courteous, but necessary to follow up with them to gain valuable feedback about their experience with your nonprofit and give them more opportunities to donate. Follow-ups help volunteers feel in the loop and keep them involved in the work.

Apart from helping with your nonprofit’s mission, volunteers also seek charity work to gain experiences, network, learn new skills, add to their resume, and more. Sending out follow ups to gain feedback is beneficial to your organization and to volunteers. You can then use that feedback to improve your programs and it will increase the likelihood of volunteer’s returning, sending referrals to your organization, and building relationships.

Once you have established good relationships with your volunteers, it could result in them turning into donors down the line!

HOW?

Following up with your volunteers can be as easy as sending an email. The point is to maintain good communication. But it is a good idea to show effort in the way you follow up with them. The way to show effort can be evident in how you follow up and what you say in your follow up.

3 Points to Always Include in your Follow Up:
Acknowledgment of Gratitude: saying thank you in a personal way
Progress Made: letting them know how their efforts have helped the cause
Include a Survey: to gain insight of their experience

Make sure when you follow up with your volunteers, it reflects that you spent time and effort in contacting them. Volunteers put their time and effort into helping your organization, so you should do the same! Handwritten and personalized notes are an excellent way to show volunteers that their contribution is valuable and recognized. You should make it easy for them to respond back to you by including your email, phone number, or social media information.

WHEN?

A good time to send a follow up is as soon as possible! Try to aim to get those follow ups out within one week of their experience. This is especially important when you want to gain feedback from your volunteers. This is because their experience will still be fresh in their mind. It will also add to their experience to get that extra thank you soon after they spent time volunteering. When you maintain good communication, it builds relationships. Strong relationships with your volunteers will turn into strong donor relationships! It is all about the long game!

CONCLUSION

To wrap things up, we covered why, how, and when to follow up with your volunteers. It is important because volunteers are essential to keeping operations running. A follow up can be sending an email to writing a letter, but remember to put in effort so that volunteers feel their work is being reciprocated. The sweet spot of sending out follow ups is within one week or as soon as possible.

GET OUT THOSE FOLLOW UPS!

BONUS TIP

Want to know how to increase your average donation amount? Here are 9 easy steps that will tell you just that!

Want to level up your direct mail? Contact us.

Authentic Communication with your Donors

Posted on June 8, 2022February 14, 2024 by EmMa Matern

Key Topics
1. HOW TO BE TRUE AND CONSISTENT
2. HOW TO ATTEND TO YOUR DONORS
3. HOW TO CREATE PERSONAL EXPERIENCES

INTRODUCTION

The nonprofit sector has the fundamental goal of people-helping-people. Consider the powerful motivator that authentic connections bring to this noble cause.

The three key takeaways are simple yet profound: Stay true and consistent, prioritize your donors by showing genuine interest, and craft personal experiences. Enhance your communication methods with personalized and specific details, making a meaningful impact on your donor relationships.

1. HOW TO BE TRUE AND CONSISTENT

All nonprofit organizations have a cause that they are passionate about. Before you communicate with your donors, you need to establish a set of values and beliefs that your organization follows. Make sure when you set up those values, you are being true to yourself and to your cause. To have authentic communication, you need to BE AUTHENTIC.

Once you identify your core principles, you must represent them in every message and any form of communication. You may not be popular with everyone, but at least you will be showing community members that you are true and consistent. The main point is to stick to your set of values and beliefs, but there are more Principles for Authentic Donor Communications that Build Relationships.

2. HOW TO ATTEND TO YOUR DONORS

Make sure to put effort into focusing on your donors. Remember, without your donors you can’t support your cause! Maintain relationships with donors by consistently communicating and creating opportunities to connect with them.

There are various ways to stay connected with your donors and maintain authentic communication. You can schedule regular meetings in person or virtually to provide the opportunity to interact with them. This is the time to have discussions about your organization’s progress and get the opinion of the members. You can ask questions like: Why are you passionate about the cause? What is your preferred method of communication? How would you like to take action?

You can also connect with your donors by sending them information via digital and physical communication methods.

WAYS TO CONNECT WITH YOUR DONORS
Social Media
Community Events
Newsletters
Impact Reports
Thank You Notes
Website Blog
Google Forms Questionnaire

The main focus should always be on your donors, so you can build authentic relationships.

3. HOW TO CREATE PERSONAL EXPERIENCES

To keep up with authentic communication, you can create personal experiences! How do you do that? Well, make sure to keep donor profiles and use their names when sending emails, newsletters, donation cards, impact reports, and postcards. It is also important to consistently send messages to donors and volunteers to let them know your organization is working hard for the cause.

A little bit of effort goes a long way, especially when you want to create personalized experiences. Emails and text messages only go so far and are often overlooked, so it is important to seek other forms of communication. Sending handwritten note cards and direct-mail packages addressed to specific donors, tells your members that you value their support.

CONCLUSION

To summarize, figure out what your nonprofit is passionate about helping, stick to your values and beliefs, focus on including your donors, and organize personalized experiences that show your donors how much effort you put in.

BONUS TIP

Put the effort in and delight your donors with a handwritten note!

Want to level up your direct mail? Contact us.

How to Win Donation Dollars

Posted on July 22, 2021February 2, 2024 by Ilan Mann

Donations are the lifeblood for non-profits, charities and political parties. The relationships you build with your donors today make a world of difference for future donations. That’s why it is essential for you to focus on developing those essential relationships in order to keep funds flowing into your organization. In this post, we offer a few key steps you can take to build better, stronger relationships with donors so that they open their hearts and their wallets for your cause.

Show Supporters How You’re Using Their Donation Dollars

People like to see the results of their efforts, and this certainly applies to donations. By providing details on how donations are making a difference, you are highlighting the good work your organization is doing. At the same time, sharing this information lets your donors know their funds are being spent on legitimate purposes. It makes them feel better about giving and makes them more likely to give the next time you ask them for their help.

You can show them their dollars in action with photographs, videos, brochures, and more. You can even invite major donors to the location where you’re doing your work so they can see what is happening on the ground. Whether you’re gathering building supplies, food, clothing, toys for children, school supplies, etc. they can see you working to gather and distribute the gifts where they will do the most good.

Be Transparent with Spending Reports

This is an important add-on to the previous tip. Sadly, the actions of a few unscrupulous charities and non-profits have subjected all organizations to additional scrutiny. This is especially true among larger donors. And if you’re interested in winning bigger donation dollars to support your cause, you’re going to have to go after the big fish.

The best way to do that is through transparency in your financial disclosures. The easier you make it for people to see how and where the money is spent – not just on good work, but line items such as administrative costs and executive compensation – the more likely they are to donate to your cause. That is, as long as you are spending an appropriate amount of money on the cause at hand rather than oversight and administrative expenses. People want to know their money is going to support a cause and not to create a lifestyle for those at the top of the organization.

Ask for Monthly Gifts and Automate the Giving Process

As we noted in this post, most donors only give once, which can create a cashflow challenge. Automated giving is a great way to ensure a steady flow of money coming in to help you meet your organizational goals. It allows donors to identify an amount of money that works with their budgets and give that amount month after month. More importantly, it is effortless giving on their part.

The easier you make it for people to donate to your organization or cause, the more likely people are to actively donate. Especially if it is a cause they believe in or one that supports their own beliefs about the world.

Create Deadlines to Generate Sense of Urgency

This doesn’t mean creating false deadlines and making things up. What this does mean is to create specific goals for your charitable works.

For instance, if your non-profit is dedicated to building tiny homes for homeless vets, you might have a goal of 50 percent completion prior to the first day of fall and 100 percent completion by the first day of winter. This will help keep more vets off the street once bitter cold temperatures set in.

You need the funds to make this happen well in advance of the goal dates. Create a sense of urgency among your donors by citing statistics about the cold and its impact on the homeless, how veterans are disproportionately represented within the homeless community, and how you need $XXXXX by August 1 and an additional $XXXXX by October 1 to meet these goals for your organization.

Solicit Matching Donations

This is where building relationships, particularly relationships with big businesses, entrepreneurs, and “mega” donors in your community can help. It’s a great way to encourage small-dollar donors to give so that their smaller gifts to your cause can be matched to create even larger gifts.

As we advise here, never neglect to remind donors of all dollar amounts that their gifts are important. Without the smaller donations, bigger things cannot happen within your organization. The more you drive that point home to donors, the larger your pile of donation dollars has the potential to grow. Additionally, never neglect to thank your donors, no matter how larger or small the donation.

Tell One Person’s Story, Not A Group’s

Sometimes, a little psychology can help make a big impact. While your non-profit or charity is undoubtedly creating a positive impact for many, focusing on an individual can help increase donations. This is referred to as the identified victim effect, which is the tendency to provide more help to a specific individual rather than a broader, nameless or generic group of individuals. This effect implies that concentrating on individuals instead of bigger groups or statistics would drive more donations.

Researchers have confirmed that scenarios focused on a single person’s narrative produced more donations than those focusing on a greater number of unidentified individuals. In a study performed by University of Pennsylvania marketing professor Deborah Small and her colleagues argue that “spontaneous affective reactions” frequently inspire charitable donations. To put it another way, donors are more inclined to contribute based on their emotions rather than reasoning. And stories that centre on the misfortune of a single person appear to have a larger emotional impact.

It makes sense. Your supporters, like all people, are hardwired to emotionally connect with others. The most effective approach to motivate them is to introduce them to individuals they can relate to. So make use of this narrative potential in your messages: highlight individual stories that lend a face to your cause in all of your appeals.

Send Handwritten Thank-You Notes for Their Donations

Lastly, showing gratitude is an important first step toward securing future funds from those who have given to your cause. As you can guess, our viewpoint is pretty clear: the standard typed form letter is way too impersonal and formal. A handwritten note stands out from the crowd of junk mail littering your donors’ mailboxes.

As we outline here, handwritten thank-you notes are more likely to be read by the people they were intended for. Plus, they carry more meaning for the recipients. Your donors are far more likely to feel appreciated when receiving handwritten notes. Something they will remember the next time your organization reaches out for funds.

Appreciation and communication are essential, which is why handwritten notes work best. Consider sending out handwritten donation letters and thank-you notes to donors to see what a difference it can make to your entire organization.

Wrapping Up

Donations keep your non-profit or charity going. If you want to build a successful organization and keep funds flowing in, it’s essential that you focus on cultivating those relationships with your donors today so they can feel appreciated and motivated enough to open their hearts (and wallets) for your cause.

It may seem like an intimidating task at first, but by soliciting matching donations, highlighting individual stories (not just statistics), writing thank-you notes by hand, showing gratitude for every donation – no matter how large or small – and telling one person’s story instead of a group’s narrative, you are well positioned to steadily grow your donations. With these simple steps, you’ll be well on your way towards achieving, and even exceeding, your annual fundraising goals.

Want to level up your direct mail? Contact us.

How To Reach Out To Inactive Donors

Posted on July 7, 2021February 2, 2024 by Ilan Mann

Donors who are inactive or have lapsed may appear to be a lost cause. These contributors haven’t given to your nonprofit in a long time; why would you spend money attempting to entice them to do so again? The truth is that many inactive donors don’t see themselves as inactive or are even aware they are inactive. It is important not to assume that just because a donor hasn’t given in months or years, they are no longer interested or will never give again.

In this article, we are going to offer you actionable advice on understanding inactive donors and developing a plan to reactivate them. By following these steps, you can increase your donor retention rate, increase the revenue you receive from lapsed donors, and most importantly, save valuable time.

Why Make The Effort To Reactivate Donors?

If you’re having trouble fostering long-term giving, you’re not alone: more than 75% of donors will only donate to a single nonprofit once. This is the case regardless of how much you ask for and even when donors are aware that your organization needs their help.

The fact is that it is difficult to keep individuals giving, particularly if they have only given once. So, what makes them worthwhile?

To begin with, inactive donors may be easier to convert than prospective donors. They’ve already made a donation to your nonprofit, suggesting that they identified with your objective at one time. Just because they’ve dropped out doesn’t imply they’re no longer engaged in your cause.

Second, it is less expensive than recruiting new donors. You have their contact information and know how much they’ve previously given. This means you won’t have to spend money to buy lists or sending generic mass mailings with the expectation that your request will be received by someone receptive.

Define a lapsed donor and how you’ll approach them

It is critical to first grasp your universe. Who is considered a lapsed donor by your organization? Is it someone who hasn’t given in over a year? Once you’ve defined this subset, you’ll need to run the appropriate reports to generate a list of your inactive donors. This will allow you to communicate with them directly.

When you’re ready to mail your list, bear in mind that many inactive donors do not consider themselves to be inactive donors. In reality, they may still consider themselves to be significant contributors to achieving your organization’s stated mission.
If you approach them with a finger-wagging tone, they will most likely be turned off from contributing again. Remember that they are contributors, and approach them with the same respect as your most active donors.

Understand When and Why They Became Inactive

Examine the data from your CRM to identify patterns that may have resulted in donors becoming inactive. There isn’t much you can do if you observe that many contributors ceased giving amid a global downturn. However, if you have a segment that ceased giving as a result of a change you made (for example, to your communications programme, more or fewer direct mail pieces, a changing organizational focus, changes to your online donation page, etc.), that is useful information to have in the future.

You can also ask them directly, via a survey or other feedback tool. Take the time to listen to the responses and engage them in a two-way conversation. Let them tell you why they haven’t given lately, versus inferring via data or worse yet, going with your gut.

Reactivating Your Donors

So now that you have an understanding of who your inactive donors are and some idea of why they stopped giving, it’s time to begin the process of moving them from inactive to active.

Reaching out to someone who hasn’t given in a while with the same generic message you send to everyone else in your donor network isn’t going to be very effective. Some will reactivate, but many more will just move further away from your nonprofit.

Personalize Your Approach

Historically, the way NGOs have interacted with the bulk of their supporters has been far distant from the organization’s fundamental objective. The traditional fundraising strategy focuses on the organization’s needs (money, advocacy, volunteerism, etc.) and fails to recognize how the act of donating truly works.

This approach to everyday donors contrasts sharply with how NGOs interact with wealthy donors. Those who write large cheques are treated to highly tailored experiences designed to keep them linked to the *why* of their donation.

Individual contributors nowadays, on average, anticipate a high level of tailored attention, even if they give as little as $20 per month. This trend can be attributed to for-profit consumer marketing. Your donors have grown accustomed to highly tailored web experiences – or on the flipside, generic bulk mailers that usually end up unread and in the garbage.

So you need to meet those expectations by personalizing every touchpoint you send to inactive donors. By including specific, personalized information tailored to that individual donor in your direct mail piece(s), you are letting them know that they matter.

Get Them Up To Speed

Before you make an ask, it is important to let your inactive donors know about what your nonprofit has been up to since they last interacted with the organization. Inform them of what’s been happening in your organization and your long-term vision.

Remember to address them as if they are key team members in need of an update, rather than as if they are clueless. Include tales and positive effect data, as well as a clear description of your next plans and approach.

Not giving them a “what’s been happening” update and sending them regular updates on recent victories is like inviting someone over for dinner, then serving the same meal they had at your previous party. That may have been great for your guests back in 3 plus years ago, but they need current information to pique their interest.

You can summarize recent campaigns, news articles, accomplishments and more in a quick direct mail piece. If you have too much activity to summarize, you can break it up into multiple pieces sent out at regular intervals. Alternatively, a growing number of nonprofits are redirecting their inactive donors to an online portal where they can view recent news, meet the staff, see photos from past events and get updates on upcoming programs.

Tell your inactive donors how much you miss and appreciate them
Find a way to express your care for their well-being while also thanking them for prior donations. We recommend that you begin with appreciation. Thank your donors for their contributions to your team in a sincere and heartfelt manner. Only until you’ve properly acknowledged their contributions should you tell them you miss them. You liked having them on your team, so make sure that’s the message you’re sending rather than one of guilt.

Making them feel as though they were a part of something genuine and great is a guaranteed approach to re-engage lapsed supporters. Your letters and emails should show your gratitude to your supporters. It is vital that your approach is perceived as just that. Nobody wants to be treated like an ATM, therefore you don’t want people to think you’re only interested in their money.

You should also remind them of the last time you heard from them or when they were connected with your organization; they may have just forgotten to donate.

Invite Your Lapsed Donors To Give Again

Now that they’ve caught up, it’s time to make an actual ask. Sometimes you’ll ask for a donation, but it’s often best to entice them back into the organization by inviting them to an event or asking them to participate in an advocacy action first. Be open to fresh opportunities for them to contribute. They may no longer be able to donate, but they can still volunteer.

Whatever technique you apply, make sure you are positioning your inactive donors to eventually make a donation. By doing this you are giving them an opportunity to routinely connect with your organization again and eventually become a member of your active (better yet recurring) donor list.

Time To Reach Out To Your Inactive Donors

So now that you have a plan to reach out to your inactive donors, what are you waiting for? It’s important not only for the health of your organization and ability to execute its mission, but it’s also essential for establishing a sustainable revenue stream. Don’t wait any longer: begin the process of converting your inactive donors to active givers today.

Want to level up your direct mail? Contact us.