The truth of the matter is, there isn’t one fundraising metric to hold high above the rest. The evaluation is holistic.
The challenge with tracking metrics is that our limited time and resources are being funnelled towards development, marketing, program services, and other important endeavours.
Additionally, no organization’s data is perfect. To ensure accuracy, your nonprofit is going to have to clean the data in your CRM prior to delving into performance analysis.
All that being said, metrics are still extremely important. To make the most of when you do study up, strategically map out which metrics make the most sense for your nonprofit with an eye for metrics that address numerous potential pain points at once.
Donor retention rate is one such metric.
From finding faults in your stewardship process to recognizing that your acquisition efforts carry too much of the workload, a poor donor retention rate says a lot.
Acquiring a first-time gift costs roughly five times more than it does to retain a donor. Couple that with the fact that The Fundraising Effectiveness Project found that increasing donor retention rate from 45% to 55% has the potential to double an organization’s donation revenue, and there’s no fiscal argument against solidifying your nonprofit’s retention strategies.
The strongest indicator of future giving is past giving. Leverage that opportunity!
So how do we do this? You surely have standard retention-related stewardship policies in place (drip email campaigns, acknowledgment techniques, etc.), but you’ll have to think creatively to kickstart your retention. Let’s close out by offering a few retention strategies to add to your pre-existing processes.
#1 — Promote matching gifts.
Almost two-thirds of Fortune 500 companies have matching gift programs. These programs match donations made by employees to a wide range of nonprofits. The matches often double the original donation size which is a huge boon for your nonprofit.
In terms of retention, donors who know that their gift size can grow through very little effort on their part are going to be inclined to give again and again.
Donation impact is critical; stress how impactful one gift can be!
#2 — Research your donors.
You can benefit from turning the prospect research microscope toward your donor pool.
A screening fills in gaps regarding both the financial situation and philanthropic interests of your donors. Take advantage of the opportunity to learn more so you can segment your donor pool for better, personalized stewardship practices.
#3 — Engage with donors without asking for more money.
Hopefully, this item is already on your list. But it warrants emphasizing that donors are cause advocates and not piggy banks.
Give donors opportunities to contribute in non-financial ways. Those are powerful, firsthand experiences that stick with supporters, influencing their decisions to donate more later.
Next time you study your data, ask yourself — what are we doing to make our donor retention dreams a reality?
Written by Blake Groves
With more than 20 years in technology solutions and consulting, Blake has knowledge of sales, consulting, product management and marketing. For the last 10 years, he has narrowed his focus to how Internet technologies can help nonprofit organizations, and prior to joining Salsa, he held positions at Convio and Charity Dynamics.
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