Everything You Need To Know About Creating and Maintaining Donor Relationships
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The document discusses the importance of building strong relationships with individual donors, emphasizing that 73% of contributions come from individuals and that authentic relationships improve donor retention and attract more resources. It outlines actionable steps for nurturing these relationships over time, such as networking, communication, and understanding donor preferences, while also addressing technology's role in enhancing fundraising practices. The authors advocate for shifting mindset from viewing donors as sources of money to seeing them as partners in the organization's mission.
Everything You Need To Know About Creating and Maintaining Donor Relationships
- 1. Building Great Donor Relationships May 2, 2013 Jay Love and Sandy Rees
- 2. Why focus on individual donors? 2011 Contributions: $290.89 Billion According to 2011 Giving USA Report Corporations 5% Foundations 14% Bequests 8% Indviduals 73%
- 3. Why focus on individual donors? Statistical Annual Retention Stay 65% Go away 35%
- 4. Why do some leave? • Move away • Pass away • ??? *Ultimately they leave because they don’t have a relationship
- 5. It’s ALL about the relationship Relationships lead to • Volunteers • Money • Other Resources • Other potential donors
- 6. But “authentic” relationships can’t be presumptuous • Don’t rush the ask • You’ve got to value the relationship over the gift
- 7. It’s ALL about the relationship Shared Passion Intentional Investment Loyal Donors
- 8. It’s ALL about the relationship Donors that you have a relationship with and who love what your organization does, are the foundation of sustainability.
- 10. Do you want Donors or Friends? Donors Friends Give you money Give you money and love and support, and cares about your success May or may not give again Will always be there for you May or may not support you in other ways Look for other resources (including people) to bring to you May or may not speak well of you in the community Are ambassadors for you, spreading the word about your mission Don’t necessarily feel engaged or connected See themselves as partners in your work
- 11. So why does it feel icky? The wrong mindset will leave you feeling yucky about building relationships with donors. “They’ll think I’m just after their money.” “I’m being manipulative.” “I’m taking advantage of them.”
- 12. Change the mindset! “I’m making friends for my organization.” “The more friends we have, the more people we can help.” “I’m giving these folks the chance to partner in our work.”
- 13. How does a relationship grow? • It ALWAYS starts with an introduction • In small steps • Intentionally and over time • Give and take • Lots of interest • Lots of attention • Lots of communication
- 14. Steps to Building a Relationship on Purpose 1. Network, consistently look for introductions 2. Get interested. Learn all you can about them. Look for shared passions, common interests, etc. 3. Get to know them. What are their likes and dislikes? 4. Ask questions. 5. Listen. 6. Communicate regularly but appropriately. 7. Keep the focus on THEM not YOU.
- 15. Retaining Donor Relationships What Technology Can Do to Reverse the Trend of Falling Donor Retention and Improve Relationships 15
- 16. Your Presenter Jay B. Love CEO and Co-Founder of Bloomerang • 29 Years of Technology Leadership • Over 20,000 Database Installations • Former Founder & CEO of eTapestry • Former CEO of Master Software/Fund-Master • AFP Board Member • AFP Ethics Committee Member • Center on Philanthropy at IU Board Member • Innovation Fund at Butler University Board Member • Gleaners Food Bank Board Member • Co-Chair of Indianapolis YMCA Capital Campaign 3
- 17. Donor Retention Rate was 41% Donor Attrition was 59%! 17 2011 FEP Data on Donor Retention Rate »
- 18. 18 This scares most NPO Board Members » Donor Attrition Over Five Years # of Donors Attrition Rate Donors Remaining After 1 Year Donors Remaining After 2 Years Donors Remaining After 3 Years Donors Remaining After 4 Years Donors Remaining After 5 Years 1,000 20% 800 640 512 410 328 1,000 40% 600 360 216 130 78 1,000 60% 400 160 64 26 10
- 19. Addressing the Retention Problem! Is it a Donor Relationship Problem? 19
- 20. The Problem How many of you use a donor database? What percent of the product do you use? @bloomerangtech | 20
- 21. The Problem How many of you use a donor database? What percent of the product do you use? @bloomerangtech | 21 • Majority of NPO’s Use Less Than 20% of Their Database’s Functionality • Large Amounts of Features = Complexity • Database Complexity Keeps Fundraisers Out
- 23. 1. Game Changing Ideas 2. Strong & Respected Leaders 3. Relentless Execution @bloomerangtech | 23 Revolutionary Change Comes From?
- 24. Game Changing Idea: • No training required • Anyone can use @bloomerangtech | 24
- 25. Game Changing Idea: • No training required • Anyone can use • Bring BEST practices to life @bloomerangtech | 25
- 26. Game Changing Idea: • No training required • Anyone can use • Bring BEST practices to life • Focus on core functions only @bloomerangtech | 26
- 27. Net Result: • All fundraisers use the database @bloomerangtech | 27
- 28. Net Result: • All fundraisers use the database • Everyone using a database equals… @bloomerangtech | 28
- 29. Net Result: • All fundraisers use the database • Everyone using a database equals… Relationship Building & FUNDRAISING SUCCESS! @bloomerangtech | 29
- 30. Next Gen Database/CRM Enables Fundraising Best Practices Donor Retention/Donor Communications Extreme Ease of Use Relentless Focus on Results, not Features Leading a “Revolution of Change”
- 31. Pedigree . . . ”Finally Got It Right!” FUND-MASTER
- 32. CUE THE EXPERTS: Dr. Adrian Sargeant Bloomerang Chief Scientist Professor of Fundraising at the Center on Philanthropy at Indiana University holding what is presently the world’s only endowed chair in that discipline. Top 10 Most Influential People in Fundraising Renowned expert on Donor Retention and Donor Loyalty 32 Mr. Tom Ahern Bloomerang Donor Communications Head Coach One of the world’s top authorities on donor communications Author of 4 books on Donor Communications Winner of 3 prestigious international IABC Gold Quill awards
- 33. DONOR RETENTION BEST PRACTICES Dr. Adrian Sargeant Bloomerang Chief Scientist 33 “A 10% improvement in retention can double the LIFETIME value of your donor database!”
- 36. Automatic Engagement Factors @bloomerangtech | 36 • Recency and pattern of giving • Cash donors vs. sustaining donors • # of years giving + • Upgrade / Downgrade + - • Lapsed - • Event attendance + • Opens email + • Click links in emails + • Unsubscribes from email - • Has stated communication preferences + • Has inbound interactions + • Has soft credits + • Volunteers + • Social Media (coming soon) • …and a whole lot more!
- 37. What is the donor’s engagement over time! Highlight vital “retention” information ---
- 38. DONOR COMMUNICATION BEST PRACTICES Mr. Tom Ahern Bloomerang Donor Communications Head Coach 38 "Successful direct mail appeals are quite simple. At heart, they are love letters to donors & prospects, woven through with clear cries for help."
- 40. Conclusion: So Strive For: • Donor Satisfaction • Donor Commitment/Engagement (which . . .) • Donor Trust • Donor Loyalty (close your eyes) Doubling Your Lifetime Value = ? 40
- 41. Questions? Creating and Retaining Donor Relationships Sandy Rees & Jay B. Love [email protected] [email protected] 41
Editor's Notes
- #5: Ultimately they leave because they don’t have a relationship
- #8: Relationships built around a shared passion with an intentional investment leads to loyal donorsMaybe use the Simon Sinek – Golden Circle Video
- #14: Fire sepearte
- #15: Fire indiviudally
- #23: Revolutionary change is needed!
- #36: Donor Engagement