In my email box today, Target shares that I can get $5 off when I spend $25 on Legos, also I get an extra 10% off clearance clothing. This weekend in the mail, Ford sends me a brochure with a look at this year’s family friendly vehicles. Why!? They want to keep me as a customer.
Target expects nearly 8 out of 10 consumers to grace their doors again within 30 days. Ford plans its production line around nearly 60% of its owners purchasing another Ford within 3 years. Amazon is in a whole other league when it comes to retention. For charitable organizations, donor retention is more than a buzzword; it needs to be a necessary part of your strategy for your non-profit. Target and Ford are proactive in their approach, reaching out before they hit their goal time, not waiting until after the time has passed to engage me.
Nationally, charities loose nearly 60% of their donors year over year. If lucky they keep 1 in 5 of their first time donors and 3 out of 5 of their multi-year donors. This article is all about one action step you can put into your strategy to aid in retaining some of your most valuable donors.
Most donor software systems have part of their standard reporting a LYBUNTY or SYBUNTY list. A selection of people who gave in the previous 12 month (or just gave previously), but have not made a donation in the most recent 12 months. If you have done a good job building your database, these lists typically have a few hundred people on it. Remember, you lose nearly 60% of your donors annually. To review that list is a little daunting and forces you to be impersonal. These list are great for direct mail, where it truly is a numbers game.
Here it is
This one trick will help you retain donors and get to know them. Instead of looking at donors you lost over the year, look at the donors you have by the month. This is the important step, you should be pulling list on donors who gave to you 9 months ago, not 12 months ago. Be proactive rather than reactive when it comes to donor retention.
| Current Month | Month to Review |
| July 19 | Oct 18 |
| Aug 19 | Nov 18 |
| Sept 19 | Dec 18 |
Make it manageable
You don’t need to reach out to every person on the list. Use the filters in your system to remove monthly donors (they should have a solid stewardship plan), remove donations under a certain amount (like $100). If you end up with 20-60 people that is 3 people or less you need to reach out to each working day.
See if they respond
Now do a little research. If they are not monthly donors, have they given more than once (figure out which category to move them into if they have)? If they are now on your email list, and you have sent out emails, have they opened them? Take an hour and do some quick research on the donors on this list and see if you can prepare a strategy.
Have some goals and celebrate some WINS!
Hopefully your research created some questions to proceed with your contact with the donors on the list. Recognize that all donors will not want to meet with you, but take the time to talk if you get them on the phone. Make a goal to get an extra piece of information (email, 2nd phone number, employer). Make a goal to set appointments with 20% of the people on the list. Make a goal to secure a new donation with at least 50% of the people on the list. Make a goal to have a larger contribution from a few of those on the list. Make a goal to get so many to another activity.
Invite them to engage
The ultimate goal is to get them to engage in other ways with your organization and get to understand why they supported your organization in the first place. Make a goal to learn one thing new about this donor.
If you take the time to start looking at donors 9 months after their last contribution, you will be proactive and taking that LYBUNTY list one piece at a time. Chances are high you will increase your contributions over the previous because you will help with retention, but also organically increasing your contributions by engaging donors directly.
Our supporters really want to help. Give them the opportunity by asking them to be a part and assist in your efforts. Ask them to host a lunch and learn, or to invite people to your next event. Encourage them to become ambassadors for your organization.
PB&J marComm encourages the non-profit leaders to add this one action step and observe the changes in your retention and revenue. Please feel free to contact us for more ideas to develop a solid stewardship plan.
