Day: December 1, 2016

Help! My Donors are Leaving! What Do I Do?

Through our work as fundraising consultants, we tend to hear some common themes. Lately one of those recurring themes is fear. This anxiety comes from wondering what the organization will do when some of their long-term sustaining supporters pass away.

Donor Retention is a Big Concern

Simply stated, based on the latest research in philanthropy, that fear is not unfounded. According to a November, 2016 Non Profit Times article, more than half (54 percent) of fundraising organizations have not been able to increase the overall percentage of fundraising revenue during the past three years. Yet demand for services at most nonprofits has continued to rise. At the same time, donor retention rates have averaged only about 41%.

That means that each year in a typical non-profit organization, nearly 60% of the donors leave and have to be replaced. It’s not surprising that the majority of non-profits have seen no increase in fundraising revenue. They are too busy finding donors to replace the ones who have left.

Further, about 63% of those organizations believe that their donations will decline as “baby boomers” retire, and there are not enough younger donors to replace them. This does not bode well for nonprofit organizations, since a 2013 Blackbaud study also revealed that 69% of all donations came from “baby boomers.”

Strategy for Sustained Success

So how do forward looking, avant-garde organizations deal with this? What strategies can counter this trend?

One strategy in particular has found great success in increasing donations. It’s called sustained giving, which is also referred to as “monthly” or “recurring” giving. Essentially the non-profit organization is asking donors to make a fixed monthly gift that recurs without a predetermined end date.

Instead of a one-time gift that may or may not be repeated during the course of a year, sustained giving comes in every month and often continues well beyond a year. People usually make this type of gift either by credit card or EFT (electronic funds transfer), so they are not writing a check every month.

One study found that over the life of their giving, sustained gifts are worth up to four times more than the amounts received from traditional donors. That makes sense, since sustained givers, give more often and give for a longer period of time. In addition, sustained giving also helps improve both donor retention and lifetime giving. When donors commit to give in this manner, they also tend to become more involved in the organization.

Work at Keeping Donors Engaged

Of course, whether or not donors stay involved in the organization depends on how well the non-profit works to keep them involved. That happens as we provide recognition, involve them in special events, and engage in two-way communication and not simply information sharing. Sure that takes time and effort. However, sustainer givers also give more frequently and for more years than traditional donors, so the effort to keep them engaged is well worth it!

by Len Moisan

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- Sue Finke, Director of Institutional Advancement - Covington Catholic High School

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- Ron Poisel, Pastor - Christ Lutheran Church