First-time donors aren't really donors.
Someone who gives to your organization for the first time is just a fresh, hot prospect.
To consider them a donor overlooks the fact that most of these folks feel little, if any, commitment to your organization.
This is part of the reason why retention rates for first-time donors are so much lower than retention rates for repeat donors (donors who have given two or more gifts).
Another part of the reason is how poorly we treat these donors but that's another topic for another day...
The median retention rate for first-time donors is a horrible, pathetic, embarrassing 19%.
If you were in sales at a for-profit company and you lost 8 out of 10 of your new customers, you'd be fired. No question.
But somehow the nonprofit world has grown to accept this as normal.
I can't live with that.
Attrition of more than 80% is unacceptable. Especially given how much time, effort, and MONEY it takes to get someone to make that first gift.
Donor acquisition is rarely profitable. And that's okay. It's an investment in the future.
Like any successful investment, the "payoff" comes later. With deeper engagement, higher commitment, and larger gifts.
But there is no "later" for more than 80% of these first-time donors!
Here's what happens when you get someone to give a second gift -- the median retention rate goes from 19% up to 63%.
Let me put that another way -- when a first-time donor becomes a repeat donor, their retention rate more than triples!
Your supporters are much more likely to stick with you after you get that second donation.
So here's my question -- what are you doing to inspire your new donors to make a second gift?
With the reward being a retention rate of more than 60% (hopefully a LOT more, if you can beat the median), what is your special follow-up plan to satisfy these supporters and motivate future gifts?
Yes, this obviously requires extra care, extra attention, and extra time for your first time donors.
But, the increased revenue you'll see from this group over time will more than cover that expense.
I would also argue that not making this additional investment is a complete waste of everything you invested to get the donor in the door in the first place.
It's far more expensive to find new donors than it is to keep your current donors - up to 10X more expensive.
So do yourself a favor and follow through on what you started.
What should this follow through look like?
Here are three recommendations to get you started...
- Send a personal "thank you" customized for them as first-time donors. This letter should follow the best practices described here (pdf) and be sent 24-72 hours after gift receipt. Welcome them as a new supporter and provide a sense of what they can expect from your organization.
- Call to say "thank you" and welcome them as a donor. Ask what inspired them to give. If they came in through an event, get feedback on their experience. More on these calls can be found here and here (pdf).
- Send a "welcome packet" 7-10 days after you send the "thank you" letter. Use a 9x12 envelope and write "Welcome to [ORG NAME]" on the front. Don't send too much stuff and don't send big, heavy things that cost a lot to produce or mail. You want items that will make them feel good about being a new supporter. Think newsletters, press clips, welcome surveys, photos, your business card, etc. I helped Habitat for Humanity Greater Boston create their welcome packet and they graciously agreed to let me share it as a sample. Download the full packet here (pdf).
What you do from here can take many forms depending on your organization, your fundraising program, where you are in the year, and more. But start with these three steps and you'll be well on your way to that second gift.
Good luck!
