lapsed donors Archives -

Rekindling Relationships: Strategies for Engaging Inactive Donors

Posted on September 27, 2023October 10, 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 letters, 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.

How To Reach Out To Inactive Donors

Posted on July 7, 2021October 13, 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.