Among most nonprofits, there is a lot of pressure on CEO's and development officers to acquire a large number of new donors each year. After all, it's all about big data and metrics, right? Not necessarily. In fact, much literature suggests that "metric fixation" can lead to a variety of more subtle and unintended negative consequences and away from what's most important, your organization's overall mission.
Don't get me wrong, acquisition of new donors is critical, and the numbers do play an important role. However, more often than not, your return on investment will prove greater when your focus is on keeping the donors you have over finding new donors. This is especially true where major donors are concerned. After all, these folks have already contributed to your organization in a meaningful way, they align with your mission, and they are more likely to give again - and at a greater level - than your untapped donor prospect pool.
So, now that you know how important donor retention is, how do you do it effectively?
First, communicate with your donors regularly. All too often, the only contact a donor has after making a gift is the obligatory acknowledgement letter they receive for tax purposes. Are they on your email list? Invited to lunch or annual events? Do they receive a phone call thank you from a board member or scholarship recipient? These are just a few of the many ways you can communicate with your stakeholders.
Second, donors want to be informed, and they prefer full transparency. Are they aware of staff changes? Do they receive an annual report or a report on the specific program to which they directed their gift? Do they receive updated annual financials? Donors are becoming more and more savvy, and nonprofit development staff need to be prepared to answer questions and provide timely updates.
Last, engage your donors! Ask them to speak at an event, perhaps to share why they give to your organization. Find out if they would like to volunteer at an event or a program where your organization's beneficiaries will be present. There is no better way to share the impact of a donor's giving than to expose them to your mission in action.
There are abundant ways in which you can acquire, engage and retain donors to support your cause. GMLS can help by reviewing your most loyal supporters, evaluating your donor recognition strategies, creating an annual stewardship and communications plan for donors at all levels, and by creating tailored individual engagement plans that will inspire your individual, corporate and foundation partners to remain and grow alongside you.
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