Retention

Loyal donors are vital to keeping nonprofit organizations afloat, especially in tough economic times. They give repeatedly over time, give a greater share of wallet, make referrals and likely also engage in nonmonetary participation.

In a webinar in June, nonprofit consultants and Agitator bloggers Roger Craver and Tom Belford delved into the issue of donor loyalty, sharing some statistics from a recent Agitator donor study, thoughts on things that impact donor loyalty and recommendations for how to improve it.

In the DMA Nonprofit Federation workshop “45 Top Strategies to Survive and Thrive in Today’s Economy” held in May in New York, presenters Lynn Edmonds, president; Bryan Terpstra, vice president of fundraising; Amy Beaudoin, associate creative director; and Kevin Eagan, vice president of production services, all of LW Robbins Associates; and Jenny Floria, senior director of account management at ParadyszMatera, offered practical guidance on the best strategies to strengthen donor relationships and increase net revenue during the economic downturn.

Remember the story of the boy in Holland who noticed a hole in the dike? Fearing a leak could flood the entire town, he shoved his finger into the hole, potentially avoiding a major disaster.

Put simply, modeling means finding like characteristics about people that, when combined, enable you to predict future behavior. There are several inexpensive ways to model your data yourself (and some more expensive ways to use external data sources to help you) that can yield more revenue at lower cost from your direct-response program.

Saying thank you. Recession or no recession, it’s one of the most important things you can do to keep more donors. Of course, you might already know “the basics” — things like thanking your donors promptly, segmenting by giving level or personalizing your letters. But there’s lots more to effective, engaging thank-you letters. And with the help of nonprofits from Toronto to Tasmania, you’re about to find out how much more.

In a Forum for Fundraising webinar last month, Pat Rich, principal at EMD Consulting Group, outlined 29 recommendations for how organizations can gain donors and retain their donor bases, touching on everything from planning your program and acquisition and renewal strategies, to upgrading current members and creating member surveys.

Improving donor-attrition rates can increase the revenue an organization generates by anywhere from 50 percent to 200 percent, according to Adrian Sargeant, Robert Hartsook Chair in the School of Public and Environmental Affairs at Indiana University.

Do you need help developing long-term relationships with your mid-level donors? Do you want to launch some special mailings and tailored communications for these high-level donors but don’t know where to begin? Or is your current mid-level program in dire need of some fresh ideas?

Several organizations have made a big impact on the bottom line by attracting donors to the mid-level and by maintaining long-term, fruitful relationships with them, L.W. Robbins Associates President Lynn Edmonds said at Blackbaud’s 2008 Conference for Nonprofits held last month in South Carolina.

Bryan Terpstra, vice president of client services at Robbins, added that, “A big focus is on the creative approach used to attract the mid-level donors and how this differs from the approach used for other segments of the donor file.”

“Achieving passion-driven leadership in your community is the key to establishing personal relationships. It’s about making that emotional connection.”

So said Nancy Bocskor, president of campaign consultancy The Nancy Bocskor Company, in a session at Blackbaud’s 2008 Conference for Nonprofits held last month in South Carolina.

Bocskor explained that “passion-driven leadership is the ability to inspire action in others by harnessing the boundless enthusiasm and deep feelings of the human heart.”

According to Giving USA 2007, charitable bequests totaled an estimated $22.91 billion in 2006. As in recent years, these charitable bequests made up less than 8 percent of the estimated total giving that year. But research shows that one in three individuals would be willing to consider having a charity named in his or her will. These findings support the belief that organizations need to focus on upgrading donor consideration into donor action, especially for planned gifts. What does this mean for you? Whether you are beginning a new program or hoping to invigorate an existing planned-giving effort, you are far more likely to