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Keep the Change...  a monthly shot in the arm for your fundraisingMarch 2011
Greetings!
 

And, we're back...with more on how to survive as a small shop.   

 

Did you miss the first part?  Last month, I talked about rallying all the human resources you have at your disposal.  It's on my website if you want a refresher... 

 

Now, in this issue, I'm going to tell you where to focus your own precious time.      

 

Thanks for being such a loyal reader, 

  Tina  



Tina Cincotti
Founder & Principal Consultant

P.S.  There's still time to register for the webinar I'm doing tomorrow for GIFT, the Grassroots Institute for Fundraising Training.  Nonprofit Newsletter Reality Check: The Good, the Bad & the Ugly will be this Thursday, March 24th at 1pm Eastern Time and costs $50-$150 per organization, depending on your budget size.  Hope to see you there! 


 

How to survive as a small shop -- Part 2 

 

Faced with doing it all, you've got to make choices -- every day, every hour... sometimes it feels like every minute.   

 

What to do?  Here's my best advice: focus on donor retention above all else.

 

Keeping your donors is far easier and more profitable than finding new ones. 

 

Do what I say and you'll raise more money.  I guarantee it. 

 

So does 20 years of research by Adrian Sargeant.  

 

He found that a 10% increase in donor retention will increase the lifetime value of your donor base by an average of 50%.    

 

How?  The effect builds over time.  If 10% more of your donors are still giving at the end of this year, you'll have 10% more people giving next year.  And next year, you'll lose 10% less of those and so on.  The cumulative effect is huge.

 

To increase donor retention, devote your constant attention to...

 

Sending prompt, personal thank you notes   

 

(HEY! Don't skip over this one because you think you've heard it all before.  Most of you are still not doing it!  And it's the single most important change you can make.  Why?  Because donors judge your organization based on the service and communication you have with them.  How well you do on your "thank you" translates directly to how well they think you do your program work.)  

 

Schedule non-negotiable time in your schedule 2-3 times/week (minimum) to process, sign, and send "thank you" notes.  

 

Have different templates ready to go for these scenarios: 1st time donations, renewals, giving more than once in a year, and increased gifts.    

 

Don't bore your donors.  Ditch that standard opener, "On behalf of the board and staff, thank you for your generous donation of...blah, blah..."  Nothing could be more generic or less genuine.  Create a unique "thank you" letter using these tips (PDF).  

 

Write handwritten notes at the top of each letter.  Some examples of what you could say are...

    • "Thank you for committed support over the past five years."
    • "I hope you can make it to our event next week.  It would be great to see you!"
    • "Your support really makes a difference to a small nonprofit like ours -- thank you!"

Update your letters regularly -- at least three times a year.  You don't want anyone getting the same letter twice!

 

 

Calling your donors to say "thank you"

 

Ideally, everyone who gives would get a "thank you" call from a member of your board within 48 hours of receiving their donation.  But, as I'm sure you've figured out, the world is not ideal. 

 

If your board isn't making the calls, you have to do it. 

 

And, if you can't call everyone, prioritize them in this order:

    • First-time donors all get a call as soon as humanly possible after they give.  They are your top priority.
    • Anyone who increases their support is next on the list.
    • Then come people who are giving their second (or third, or fourth) gift of the year (unless they're a monthly sustainer; you don't need to call them every month!)
    • Anyone who's given 5+ years in a row, even if they give $25 a year with no intention to give more.  And, yes, call them every year that they continue to give.
    • And, of course, most of you will have some dollar amount above which everyone gets a call.  This is typically whatever is considered a "major gift" for you.

 

Treating all first-time donors as potential major donors  

 

You have no idea what someone's capacity is from their first gift.  I don't care if they only gave $15.  They could be a potential major donor.  That's why the "thank you" call and special "thank you" letter are so important.

 

On top of that, send a "welcome kit" (either with your thank you note or 1-2 weeks later) that tells them more about your organization.  You can include things like your latest newsletter, a copy of your brochure or annual report, a recent press clip, a donor communications survey, etc. 

 

Asking your donors how satisfied they are with your organization  

 

Satisfaction is the number one factor affecting donor loyalty.  And how do you know if your donors are happy?  You ask!  

 

Most communications you have with your supporters are one-sided -- you talking to them.  Send a survey asking your donors what they think of how you treat them, the contact they have with your organization, etc.  

 

Even those who don't complete it will appreciate and remember being asked.

 

What should one of these surveys look like, you ask?  Well, I happen to have a sample (PDF) for you.   

 

 

Much of this might be advice you've heard before.  But are you putting it into practice?  Most aren't.  That's why 50-80% of donors give once and never give again.   

 

That's also why the return is so high if you do.  Because you'll stand out from the rest.   

 

 

Bonus: Don't know how to calculate your donor retention rate but embarrassed to ask? Problem solved!   

 

You can calculate your retention rate by counting the total number of donors who gave a gift in the prior 12-month period and then counting the number from that same pool of donors who gave again in the next 12-month period.  

  • For example, if 10,000 donors gave you a gift in 2009, and 5,000 of those same donors gave a gift in 2010, your retention rate for 2010 is 50%. 

 

 


Need help making the case for board involvement in fundraising?  

 

 
Then this article is for you!


 

Attention Massachusetts Nonprofits: 

 

Has a young volunteer or philanthropist, age 12-18, made a major difference at your organization?  

 

Nominate him or her for Women in Development's annual award.



 

16 past issues of this newsletter are online
  Read all about -- if your design is killing your message, if your website is costing you donations, how to get your board more involved in fundraising... and more!

It's all available in our online archive.  



The next time you want to feel better about yourself, check out these

stupid nonprofit ads.  

 

 
Compiled by the fabulous Jeff Brooks of Future Fundraising Now 



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A little something about me...

A fund development expert with a passion for social change, Funding Change founder Tina Cincotti gives grassroots groups the skills, tools, training, and confidence they need to raise more money from their supporters.

 

She specializes in building individual donor programs, improving donor relations and donor communications, writing newsletters and solicitations, coaching staff new to development, and motivating boards to be more engaged in fundraising.  

 

  
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