In today’s Connection Economy, how does a membership program survive and thrive when there is so much competition for time and attention? The answer lies in the caring, generous humans who join causes and organizations that say something about themselves.

In this discussion, we’ll look a how membership programs can create a loyal community, give people a sense of belonging, provide predictable revenue, and foster deeper engagement with your supporters. Learn from real-world examples and expert insights on structuring membership tiers, offering exclusive benefits, and utilizing technology for seamless management of your membership program.

Learning Objectives:

• List the key elements of a membership program and how they foster engagement and community with supporters
• Develop a basic plan tailored to their organization’s needs and experiences that maximize membership engagement
• Analyze the effectiveness of their program and apply key performance indicators of success and involvement

Check out the slides from this webinar here

The post Identity, Affinity, and Access: The Makings of Membership appeared first on Bloomerang.

Maybe you’re afraid you’ll offend them by sending too many emails. Perhaps you’re worried about the response to a photo or language you used in your appeals.

The important thing is to be prepared to respond to your donors’ feelings. That’s what I’ll address in this blog post.

What do you do if you upset a donor?

Let’s say you had a mail merge snafu that messed up your donors’ names and addresses. This just happened to one of my favorite fundraising professionals. Initially, she was so embarrassed that she was physically ill. However, she didn’t let that stop her from rectifying the situation immediately.

First, she quickly acknowledged the mistake in a personal follow-up email and postcard. She apologized, explained that this was a simple error, and reassured donors that their data was safe.

She also wisely tied in a note of gratitude. She reminded them that their donations are keeping the nonprofit’s constituents safe too.

Because she was open about the mistake, donors responded with empathy and understanding. Many promptly mailed in their checks using the reply device, while others gave online. Several called her just to commiserate. She formed new friendships and deepened existing ones.

In some ways, you’re right to worry—because we all make mistakes. The good news is that you can address some of those mistakes quickly without suffering lasting consequences.

So, what happens when you do offend a donor? Here are some basic steps to follow:

1. Apologize for the mistake as soon as you notice it.
2. Take responsibility, explain why it happened, and explain how you’ll work to make sure it doesn’t happen again.
3. Be vulnerable. People will empathize with you.
4. Include a note of gratitude.

Now, what do you do if you have a donor who is upset about something that isn’t a mistake or one who is having a disproportionate reaction to what happened?

One of the hallmarks of being a good steward to your donors is caring about what they care about. If it’s important to them, you can choose to make it important to you and by doing so you can hopefully diffuse any further upset.

Fundraising research by world-renowned author and philanthropic academic Adrian Sargeant shows that just listening to a complaint from a donor—even if the organization is powerless to do anything to resolve it—will result in the donor becoming more loyal than if you hadn’t listened to the complaint in the first place.

What if you have a disgruntled donor who is upset about something that you aren’t willing to change?

I once found myself in this situation. A donor who refused to allocate their funds to help any child who wasn’t suffering financial hardship. Our mission was to empower girls in math, science, engineering, and technology. We knew that all girls—regardless of their family’s income—were at risk for losing interest in these subjects. We also felt strongly that having girls from diverse backgrounds, including economic ones, was a positive experience.

What did we do? We respectfully thanked the donor for their kindness and generosity, explained our perspective, and declined the gift. Almost immediately the donor decided to remove their restriction and make the gift to us.

In life, we have to pick our battles. While some hills are not worth dying on, most relationships are worth saving. Everything you need to know about comforting a disgruntled donor you likely already know from being a good friend or coworker.

If you’re one of those fundraisers who was worried about this, I hope this blog post eased your mind a bit!

The post How To Handle A Disgruntled Donor appeared first on Bloomerang.

Demonstrating your commitment to fundraising compliance should be a cornerstone of your message. It demonstrates your transparency, accountability, and good governance. The question then is, how can you demonstrate your commitment to compliance and build trust with your donors? Check out these five ways you can boost donor trust with compliance.

1. Follow Proper Charitable Registration Procedures

Before you can begin to ask for donations, you must ensure that your organization is properly registered wherever you wish to raise funds. It’s important to note, regulation on solicitation doesn’t begin when you receive a donation, it begins when you ask for it, regardless of the method used to solicit donations. Fundraising is not regulated the same way across all 50 states. Currently, 41 states regulate fundraising by requiring registration. Properly registering can attract the attention of donors, earn their approval, and eventually secure their donations. If you want sophisticated donors, proper compliance is a must.

But where must you register? Understanding how states define solicitation is essential to understanding where fundraising registration is required. Solicitation is defined as asking for funds for charitable purposes, regardless of the solicitation method, and without regard to whether a donation is received in response. Solicitation occurs where the request for a donation is received. For example, if your nonprofit is in New York and you’re soliciting a donor in New Mexico, you must comply with the fundraising regulations of both states. In some states, like New Mexico, you will also have to appoint a registered agent. In this modern age of online fundraising, solicitation can happen anywhere. If you are not certain where your solicitations are being received, you may need to register nationwide.

States maintain online databases that, with the click of a button, permit your donors to see whether your charity is registered and in good standing. Donors are encouraged to check their state’s database before giving. Help prove just how trustworthy your nonprofit is by making sure you are compliant and listed that way on state databases. Your donors are generous people with busy lives, navigating a complicated world. Respect their time. Make their decision to give as easy as you can.

2. Train Your Team to Message Fundraising Compliance

Creating a stronger bond of trust between your organization and your donors requires clear and concise messaging on your fundraising compliance practices. Be sure you are messaging consistently across channels and across the donor spectrum. Prospective donors, lapsed donors, monthly donors, and event sponsors all need to hear about your nonprofit’s mission and the impact their gift will make.

Train your staff, board members, and volunteer solicitors to broadcast your message. Having a strong, consistent message and informed ambassadors to spread that message is a great way to put your nonprofit on the path to success.

3. Message Compliance on Your Website and in Fundraising Materials

In the modern age, your website can be a primary source of information for potential donors and corporate partners. Donors are cautioned to do their due diligence before giving and will be looking for information on your site. Prospective nonprofit supporters are frequently researching before they donate. Potential foundation funders, corporate sponsors, and other community partners are reviewing nonprofit’s compliance as well. In many states, a few clicks will reveal a nonprofit’s compliance status. Help spread the message of your compliance and add your organization’s nonprofit status and fundraising disclosures to your website.

It’s also important that you reference compliance in fundraising materials like planned giving and capital campaign brochures. Be sure to include state-mandated disclosure statements in all solicitations as required. Half of all states require nonprofits to include fundraising disclosures on donor correspondence, including solicitations and donor receipts. Do not forget to add a statement of your compliance at the point of donation. This means including it on your online donation page and your appeal reply cards. Wise nonprofits view compliance as an opportunity, not an obligation.

Do not hide an affirmation that your nonprofit’s financial statements are a matter of public record and that you have met your legal obligations for fundraising. Use disclosures to broadcast your nonprofit’s legitimacy, accountability, and transparency to current and potential supporters. Harness the power of disclosures to gain the trust of prospective supporters, boost their giving, and improve your donor retention rates.

4. Include Fundraising Compliance in Your Grant Applications

Demonstrating fundraising compliance does not just boost trust with donors but with foundation funders. Grant applications are also considered fundraising solicitations in many states. When applying for grant applications or making scholarship requests, it’s important to be able to show that your fundraising registrations and disclosure statements are in order. Include compliance messaging so your nonprofit will stand out amongst others, helping increase your chances of success.

5. Make Compliance Messaging Part of Your Community Reports

Make fundraising compliance part of your donor recognition and donor stewardship practices. Include disclosure statements in donor acknowledgments and compliance messages in capital campaign updates and annual community reports.

Look at including compliance messaging as a chance to show that fundraising compliance isn’t a one and done exercise for your organization. Your commitment to ongoing best practices will prove your commitment to honesty and transparency. This will serve you well in your efforts to grow your relationship with donors who have already given and are inclined to give again. Retaining and developing those donor relationships is key to funding your organization’s mission-driven work.

Boost Donor Trust Today

Don’t wait to start building a strong relationship based on trust with your donors. Embrace fundraising compliance as a badge of honor to strengthen your nonprofit’s credibility and help you distinguish yourself. Utilizing best practices and fundraising compliance is your way of honoring their support of your shared mission and maintaining a long-lasting relationship built on trust.

Harbor Compliance does not provide tax, financial or legal advice. Use of our services does not create an attorney-client relationship. Harbor Compliance is not acting as your attorney and does not review information you provide to us for legal accuracy or sufficiency.

The post 5 Ways to Boost Donor Trust with Compliance appeared first on Bloomerang.

“I’m all ears…” in other words, “You have my undivided attention.” Listening is one of the most important skills we have for building effective relationships, especially when we’re trying to attract supporters and donors. Relationships are also the key to achieving the mission of your organization. Bottom line — “all ears” listening is well worth the time it takes to learn.

Recently a woman from a small faith-based nonprofit called me about their capital campaign. This gave me the opportunity to practice active listening. Her organization is struggling with a stalled campaign and is only one third of the way towards their goal. Lead donors are coming in with only modest donations, not the expected amount from the projected “give range chart.” I really wanted to help, but after listening I knew this was not a good fit for our expertise. I felt they did not need coaching or advice from a consultant. Instead they needed a capital campaign manager who could work hands-on in their office. I gave her suggestions for listing the job opportunity with online resources such as AFP (Association of Fundraising Professionals). This prospective client felt heard and understood.

“All ears” listening helps me know when our mission is—and is not—a good fit with a prospective client’s philanthropic goals. Kerry Robinson writes in her book, Imagining Abundance, about meeting with a prospective donor and realizing his philanthropic goals were different from her fundraising initiative. While Robinson was raising money to build a Catholic student university center, this man was passionate about educating poor children. Kerry changed course and connected him to like minded philanthropists she knew. “Listening carefully and attentively to our prospective donor, seeing him as a subject, not an object, ministering to him, having an open pastoral heart, and encouraging him in his primary philanthropic passion was the right thing to do.” Kerry reflected. She built trust with this donor that could open other doors in the future.

Stephen Covey, author of The 7 Habits of Highly Effective People, writes, “If you want to interact effectively with people and influence them, you must first understand them. It may be common sense, but it stands in direct contrast to most people’s modus operandi, which is to be first concerned with being understood.” Too often we listen halfway—just enough to figure out our response—instead of hearing what the other person is trying to tell us. We jump in with advice or opinions based on our own experiences that may or may not be helpful.

One of my favorite prayers is the peace prayer of St. Francis. It begins, “Lord, make me an instrument of your peace” and offers a list of life improvement suggestions including, “let me not seek as much to be consoled as to console, to be understood as to understand…”

Here are five ways to cultivate “all ears” listening skills both inside your organization with staff, program and volunteers, and on the outside with supporters and donors.

1. Be present in the moment. Stop doing everything else and focus. Multitasking makes it easy to overlook or misunderstand the real message someone offers. People respond differently when they know they have your full attention.
2. Stay open-minded and nonjudgmental. We never know what is really going on in the rest of another person’s world. Listen with an open mind.
3. Watch for non-verbal signals. A person’s body language, eyes, voice, gestures and facial expressions reveal much about their message. And our non-verbal signals reveal just as much about us.
4. Listen twice as much as you talk. Ask genuine questions to clarify and probe. Stop talking. Listen and then build on what you hear.
5. Don’t jump to conclusions. “All ears” listening means you can’t begin a conversation with the end result already determined. Let go of the outcome you think is best and welcome the ideas and insights you discover together.

Whether you are meeting with a new donor lead, planning an event with team members, collaborating with co-workers on a newsletter or calling to thank longtime supporters, pull out your best “all ears” listening skills. Everyone wins when we seek first to understand, and then to be understood.

As part of Bloomerang’s Content Donation Program, $100 was donated to Village2Village Project.

The post The Virtue of Being an “All Ears” Fundraiser appeared first on Bloomerang.

You know who is not expecting to hear from you on Valentine’s Day? Your donors!

Why not surprise them with some donor love? I’ve outlined 21 ways to show you care including a spotlight on a couple of digital tools that can help make it easy and convenient to wow with a personal touch. But first I want you to know how much of an impact these seemingly small gestures can make:

• first-time donors who get a personal thank you within 48 hours are 4x more likely to give a second gift. (McConkey-Johnston International UK)
• a thank-you call from a board member to a newly acquired donor within 24 hours of receiving the gifts will increase their next gift by 39%. (Penelope Burk)
• in a database where the average number of gifts made by donors is three, a thank-you letter reaffirming the difference that their donations made increased average gifts by 60% without reducing response rate in comparison to a control group of donors who did not receive this thank-you communication. (Jen Shang)

Why does this matter so much?  

I love this explanation from Brock Warner, Manager of Development at War Child:

“One thing humans never tire of is being the recipient of honest, heartfelt gratitude. Like a timeless piece of music, gratitude has an incredibly long half-life. The opportunity to surprise and delight donors simply by saying thank you is present more often than you might think.”  

Here are 21 easy ways to shower your donors with unexpected love on Valentine’s Day or any day:

1. Send them a personal thank you email: “This Valentine’s Day we wanted to take a moment to reach out to someone special. You. Thanks to you…”

2. Send your donor a video email of you, your clients, your staff and/or your beneficiaries thanking them. This does NOT have to be complicated (or cost money)! Case in point. 

3. Send them a letter that is written by someone whose life they’ve changed.
4. Plan a donor and volunteer appreciation party.
5. Call them to ask their opinion.   
6. Host a thank-a-thon where staff & board members call to simply thank donors. Serve sweet treats and celebrate with a champagne toast. (If you can’t recruit them do it solo!)
7. If you have their mobile number or twitter handle text or DM them a meaningful thanks.
8. Give them shout-outs on social media. It can be directed at all donors, i.e. “How do we love #donors? Let us count the ways!” or spotlight specific donors by publicly thanking them. If permitted, share their picture with a story of what they mean to your organization or give them the chance to share why your organization is important to them. A personal giving story is a powerful way to capture an audience of potential donors, while building a lasting relationship with current donors. *Disclaimer: Make sure donors are comfortable with being addressed publicly. Get their permission before using their name or picture in any form of communication.
9. Craft a donor stewardship plan if you don’t already have one. Download this sample template as a starting point. Hint: to maximize retention of first-time donors structure your stewardship around longevity of the donors (new donor etc) versus gift amount.  
10. Invite them to hear a guest speaker, online or in-person.
11. Allow virtual access to whatever form of annual meeting you have, be it a conference, lobby day, or jamboree. 
12. Call out first-time donors as such in your thank you letter, i.e. “Dear John, I’m overjoyed to receive such a generous first-time gift from you and I’m thrilled to welcome into our donor family.”  
13. Start celebrating your donor’s “Donor-versary,” the anniversary of when they made their first gift to you with a letter honoring the longevity of their giving, i.e. “Dear John, 5 years ago you made your first gift to us. Since then you…[insert amazing accomplishment the donor made happen]”
14. Add a recurring weekly Stewardship Power Hour to your calendar where you call to thank and update donors.
15. Host a donor cultivation event. For a fresh spin on an intimate event to dramatically deepen relationships with donors explore a Jeffersonian dinner.
16. Make it easy for your donors them to tell others about their support by enabling social sharing icons on your donation thank you pages.    
17. Ask them to share their love of your mission in an engagement campaign inviting them to tell you why they support you via a social media campaign or survey. Want to see a great example of this in action? Check out Girlstart’s #WhyILoveSTEM campaign.
18. Download a time-saving digital tool like the Felt app, to help you craft meaningful handwritten cards using your iPhone or iPad. This handy tool plugs into your photo library on your mobile device so you can send a donor a personal handwritten thank you card with a photo you took of them without ever licking a stamp! You can even upgrade to have stationary branded with your logo.
19. Add an optional comment box on your thank you landing page to ask what inspired their gift or why they give and then personalize your thanks to what has meaning to them.
20. Record video emails to your donors using digital tools like Bomb Bomb that make it easy and simple to send highly personalized and completely irresistible video communications to your audience from your desktop or mobile phone. See an example of my friend Shannon Coker, from Care and Share Food Bank in Colorado Springs, CO, thank her donors here.  
21. Depending on their identity and your closeness to them, make a plan to reach out to them on their birthday, Mother’s Day, Father’s Day, and/or Grandparent’s Day.

There’s no bad day of the year to show appreciation to your donors, so why not start today?

How many of my suggestions have you done in the past? How did it go for you? Let me know in the comments below!

The post 21 Ways to Shower Your Donors with Love appeared first on Bloomerang.

1. Steward donors and encourage them to become loyal to your organization.

“Take good care of Dani, Max. You’ll never know how precious she is until you lose her.”

One of the early and persistent themes of “Hocus Pocus” is loyalty. Thackary Binx won’t leave his sister, Emily, at the Sanderson sisters’ house. Later, Max drinks the witches’ brew so they will have to take him instead of his sister, Dani. 

How does that relate to fundraising? Well, donor loyalty is the biggest factor in determining and stewarding potential major donors. The donors who are most active and engaged with your organization are your best major donor prospects. 

With that in mind, ask yourself these questions:

• Do you have board members who are giving consistently? 
• Do you have volunteers who are volunteering multiple times each month? 
• Do you have supporters who show up to every event? 

These people are demonstrating that they believe in your mission and programming through their consistent support and loyalty to your organization. 

So how do you keep track of them? In Bloomerang’s CRM, you can quantify exactly who your loyal and most engaged donors are. The Engagement Meter looks at giving history (recency, years given, upgraded gifts), interactions (event attendance, volunteering, communication preferences, website visits), and e-mail (subscribes, opens, clicks) to give you a temperature reading on each donor in your database. 

You can then pull a report on all donors with “Hot” or “On Fire” engagement levels—and there’s your loyal donor list! It’s easier than finding a dead man’s toe! Be sure to thank and steward these donors regularly.

2. Use storytelling to encourage donors to give.

“I put a spell on you, and now you’re mine.”

If only it were as easy as putting a spell on a room of supporters to get them to give! 

Donors give because it makes them feel good about the good they’re doing. Giving to your organization can be their purpose, if only you help them find it. 

With so many worthy nonprofit causes to choose from, how will someone decide to give to yours? Do you have a mission statement that is easy for anyone to understand? Are your appeals emotional and compelling? Most importantly, are you sharing with your donors how their support is helping to advance your mission? 

When preparing a major gift proposal, focus on the short-term and long-term impact their gifts would make on the trajectory of the organization. Communicate the reasons why you exist and why you’re the best equipped to address this need before, during, and after an ask.

With that in mind, use storytelling techniques to draw them in, show them how they can be part of the solution, and ask them to donate. 

3. Use prospect research to identify potential major donors.

“Woah, check out the cross trainers!” 

In “Hocus Pocus,” you can tell the approximate wealth of your neighbor by their new shoes, the size of their house, or what their parents do for a living. When it comes to assessing potential major donors, however, wealth is only one indicator of giving. 

Remember: A big piece of the equation is how interested a donor is in your mission. With DonorSearch’s partnership with Bloomerang, you can see which of your most engaged donors are capable of giving larger gifts. You’ll also be able to see if new donors make larger gifts to other organizations with similar missions.

If you’re short on time, this tool can be very helpful in narrowing down a list of major donor prospects who are both interested in and capable of making large gifts.

4. Make the ask.

“In case Jimi Hendrix shows up, here’s my number.”

People told Max that Allison was out of his league, but he still had the guts to give her his number anyway. Max probably could have chosen a better time to ask Allison out than right after telling her he didn’t believe in her favorite holiday, but it still worked out for him in the end (going through several near-death experiences together can really bond two people). 

Likewise, donors want to be asked to help you in a thoughtful way. This is very much like planning a date. 

So ask yourself: Is the right person making the ask and are they asking at the right time? Are you asking them to contribute to something specific that they have already indicated interest in, like the Sanderson Sisters Museum? Are you able to articulate the impact their gift will have on your mission. If so, you’re ready to make the ask! 

5. Remember to genuinely thank your donors.

“Thank you, Max, for that marvelous introduction.”

Okay, so Winifred wasn’t genuinely thanking Max for his introduction, but you should genuinely thank your donors, especially major gift donors.

I was once told to treat each donation as the start of a beautiful friendship. (That’s “Casablanca,” not “Hocus Pocus.”) As you would send a note to a friend, do something to make it sound personal and specific, not scripted. If it’s a new friend, take it slow and maybe invite them to an event or ask if they would like to come for a tour before asking for a second donation. 

First-time donors who receive a personal thank you within 48 hours are four times more likely to give a second gift. If it’s a relationship that’s already been developing, ask if you can set a time to thank them in person or virtually over a platform like Zoom. Keep in mind this isn’t the time to go on about stats and successes of your programs—save that for another time. Keep the thank yous genuine, personal, and memorable. 

And don’t forget to track all of your interactions with donors, even thank yous, in your database! This will help you determine when the time is right to make that next ask.

Don’t wait 300 years for a virgin to light a black flame candle. You can begin making small changes today to focus on major gifts! Visit Bloomerang Academy for more tips on growing your Major Gifts Program. One of my favorites is How to Build a High-Performing Major Gifts Program with Gail Perry, MBA, CFRE. 

Farewell, mortal bus boys (and girls)!

The post What “Hocus Pocus” Can Teach You About Major Gift Fundraising appeared first on Bloomerang.

I’d bet not.

According to the Association of Fundraising Professionals’ 2020 Fundraising Effectiveness Project (FEP), only 43.6% of the donors who made a gift in 2019 made another gift in 2020. That means more than half of donors who made a gift in 2019 didn’t make another one in the following year! And 2020 is no exception.

A chorus of voices has been beating the drum about the importance of donor retention through their research, in blogs, and in webinars—with stagnant results.

As important as it is to pay attention to donor retention, it’s equally important to know how to “move the needle”—and we do. But clearly, not enough of us do it.

It’s time to make keeping your donors a board-level priority, right up there with Finance, Governance, and Development itself.

The Donor Retention Crisis — and Why It Matters

In 2019, Dr. Adrian Sargent bemoaned the fact that first-time donor retention rates were below thirty percent: “The USA still holds the record for the most shockingly poor pattern of results. When did it become acceptable to lose 70% of newly acquired donors?”

That’s right, 70% of first-time donors never gave again. And then what happened? In 2020, in the context of increased overall giving, first-time donor retention fell by another 10% such that 80% of first-time donors did not make that key second gift.

Why are first-time donors such a big deal? Because according to the FEP, the 2020 repeat donor retention rate was 59.6%—whereas the new donor retention rate was 19.3%. Get that second gift and you’re well on your way to the third gift and the fourth one.

From Dr. Sargent’s research, we know that increasing the donor retention rate by 10% increases the value of the donor base by at least 50%. Other studies cite increases as high as 200%. This is due to the effect of compounding and the fact that some donors will go on to become major donors, loyal monthly donors, and/or include the organization in their estate plan.

We Know What to Do, But We Are Not Doing It

We know what donors want in order to be inspired to keep giving. We know specifically what to do to encourage that important second gift. You don’t have to look further than Penelope Burk’s research-based book Donor Centered Fundraising: How to hold on to your donors and raise much more money, which was published back in 2003.

Per Burk’s research, donors want to know what you did with their previous gift before you ask for another one. Donors also want to be thanked personally and promptly. Common sense, right?

But common sense is so simple to execute. It requires commitment and resources.

Specifically, you should commit to an action like having a board member call a first-time donor within 48 hours of them making a gift. This is the research standard—do your best. Why? Here are two reasons:

• Increases donation amounts by 40%—even if you leave a voicemail!
• Increases the likelihood of a second gift by 33%

We know from Dr. Sargent’s work that customer service is an important influencer of donor loyalty. In a nonprofit context, the donor thank you process is typically what donors see as customer service.

The Call to Action: A Board Committee Whose Sole Function Is Thanking Donors

I recommend creating a committee whose sole function is to thank donors.

It’s not a “Donor Relations Committee.” It’s not a “Donor Retention Committee.” It’s the “Thank You Committee” or the “Donor Thank You Committee.”

Serving on this donor thank you committee should have the same standing as sitting on Finance, Governance, Development—or any other Board Committee. Even if it’s a sub-committee of the Development Committee, it should have its own Chair, members, and staff support. The committee should be authorized to have non-voting, non-board members.

Annually, the committee should request and review both the overall donor retention rate and the first-time donor retention rate and report those numbers to the full board. When looking at these numbers, compete against yourself by looking at data from previous years as opposed to looking at the awful national averages.

The committee has one mission: to understand and execute researched ways to inspire donors to keep giving. These include personally—by phone, handwritten note, or personal video—thanking as many donors as they can as promptly as possible.

Here are a few things to keep in mind:

1. Its members might include:
   1. Current board members, one of whom is the Chair
   2. Previous board members. Bonus: Keep them engaged.
   3. Staff. Some staff members volunteer to make thank you calls to take a break from their other work—just 15 minutes per day makes a difference.
   4. Non-board volunteers
2. During busy seasons, additional members might be recruited for a six-week commitment.
3. There should be an easy way for members to report back notes from donor conversations.
4. This committee might meet periodically for research updates, training opportunities, to share stories, and build community. But there should be a minimum attendance requirement compared to the time spent by committee members thanking donors.

What if We’re Really Small and Can’t Do All of the Researched Practices?

Doing something is better than doing nothing. For example, Burk found that calling donors up to sixty days post-gift was beneficial. A staff member or volunteer might spend 15 minutes three days per week writing notes or making calls.

If you’re raising money from individual donors:

• Use a spreadsheet or nonprofit CRM to track donor information. Data entry and management takes time, but without it you’re spinning your fundraising wheels.
• Consider capturing phone numbers if you’re otherwise focusing on online tactics. Asking for a phone number creates additional “friction” as it is called, meaning you might reduce your donation rate. But if 80% of your new donors are going to say goodbye after one gift, the trade-off may be worth it. Test it out.
• Create and manage a small donor thank you committee made up of volunteers. The return-on-time investment will pay you back. Try it and see.

As a bonus

The members of a Donor Thank You Committee may become your most fulfilled and inspired ambassadors!

As your donor retention rate inches up, this translates the committee’s impact into dollars. For example, a 1% increase in donor retention can produce a 5%-20% increase in the value of your donor base. Compute the dollar range and share it to celebrate those wins.

Where else can you spend 30 seconds saying thank you to a voicemail and know that you are making a difference?

And when you do happen to reach a donor who wants to chat, it is often a wonderfully joyful experience—for the caller as much as the donor.

In conclusion

It’s time to do something different to improve donor retention rates—and that something is research-based action delivered through a board-level Donor Thank You Committee.

The post Solving The Donor Retention Rate Issue: The Case For Creating A Board-level Donor Thank You Committee appeared first on Bloomerang.

This is part four in a six-part series. Read part one, part two, and part three. 

In part one of this series, I outlined my top six fundraising strategies for 2021: 

1. Investing in digital-first fundraising and marketing communications
2. Mastering online user experience and messaging
3. Mastering relevant content marketing
4. Mastering personalized, customer-centered philanthropy facilitation, especially mid-level and major donors, to increase your donor lifetime value
5. Mastering an analytic approach to strategy and planning
6. Internalizing and externalizing an organization-wide culture of philanthropy

In this post, I’ll explore the fourth strategy. 

Master personalized, customer-centered philanthropy facilitation, especially mid-level and major donors, to increase your donor lifetime value. 

Make this the year you truly master personalized, customer-centered mid-level and major donor philanthropy facilitation. While donor acquisition is essential, donors are valuable to you based on their lifetime value. Sadly, on average, one-time gifts have no monetary value at all. They actually cost you money! You need to prioritize how you can increase your donor lifetime value by using a variety of strategies that increase donor retention and upgrades.

It’s going to be easier to increase your donor lifetime value if you begin with those who make a higher-than-average gift. That’s not to say you don’t value smaller donations; of course you do! Yet as you consider your allocation of resources to facilitate philanthropy, pay greatest attention to the types of strategies that will turn first-time and habitual donors at above-average giving levels into thoughtful and passionate donors at ever higher giving levels.

To move donors to the next level, you’re going to get the biggest bang for your buck working from a Pareto Rule perspective. Your nonprofit may be different, but I can’t think of any organizations I’ve worked with who didn’t receive the lion’s share of giving from a small group of generous, devoted supporters. The ratio may not be exactly 80/20 (i.e. – 80% of the giving comes from 20% of the donors), but it’s definitely going to be top-heavy.

Here are useful strategies to consider when engaging with folks who’ve already demonstrated a high level of commitment and loyalty with their above average gift amount or by giving more than once.

• Move more mid-level givers to higher levels of giving. 
• Encourage donors to give monthly in order to upgrade them. 
• Use peer-to-peer fundraising to upgrade the donor’s value. 
• Promote bequests.

Move more mid-level givers to higher levels of giving. 

Between new donor acquisition and major donor cultivation, solicitation, and stewardship, what happens? Usually not enough. Perhaps you put in place a series of mailed and emailed “touches” for non-major donors, lumping $25 donors together with $500 donors. Perhaps you don’t do anything more personal with these folks until they rise, of their own accord, to your major gift level.

This is a BIG missed opportunity. You’ve likely got great major donor prospects hiding inside your own donor base, and you’re essentially treating them like they don’t matter. As a result, a significant amount of mid-level donors never rise to their greatest potential. 

What if you were to begin to look at your mid-level donors as the transformational fundraising opportunity they are?

A good place to begin is to set aside your assumptions about why donors give at the level they’re currently giving, as well as your expectations around what they’ll give in the future. Many of these donors are giving out of habit. You may unconsciously be reinforcing this habit by the way you treat them—or, shall I say, the way you don’t treat them.

Sure, making a habitual $500 gift seems like a good thing. In theory, yes! But consider if the donor is capable, interested in, and willing to be persuaded to give more. If you put in place strategies to guide the donor toward a level of giving that feels truly joyful, you’ll also increase your donor lifetime value for this supporter. 

Tip: Be as personal as possible. It’s the one thing that can set you apart and help you build a donor relationship that lasts. 

Consider that mid-level donors have given at an above-average level without much cultivation. They’ve shown an interest in what you do, capacity to give at a level above your average gift, and have essentially “qualified” themselves to be treated with some extra attention.

Your job now is to build a bridge between mid-level gifts that come in via direct response (mail, email, or website) and future larger mid-level or major gifts that will be made once you’ve lavished some personal attention on your donor via personal email or text, a phone call, or a face-to-face visit (in person or via Zoom). Put a dedicated customer-centric staff person on the case and start reaching out to these donors ASAP. 

Encourage donors to give monthly in order to upgrade them. 

There’s no better donor retention or upgrade strategy than a monthly giving program. In fact, on average, monthly donors retain at 80–90% vs. well under 50% for one-time donors. The other good thing about monthly giving is it’s very customer-centric. It’s convenient for donors and makes it easy for them to give more than they otherwise might have felt possible. After all, for most people $25/month sounds much more approachable than making a $300 gift.

Besides being more loyal than the average donor, monthly donors are six times more likely to leave you in their will. That’s because they’re typically engaged over a long period, so your cause stays top of mind for them.

Tip: Growing your revenue from a monthly donor program isn’t hard; it just takes commitment. Entire books are written on this subject (two of the best are Monthly Giving Made Easy by Erica Waasdorp and Hidden Gold by Harvey McKinnon, ), so this article won’t cover the “how to” landscape. Just know you’re missing a huge money boat if you don’t prioritize monthly giving as one of your core fundraising strategies. You can grab some other quick tips here.

Consider securing a matching gift from your board to inspire folks to join your monthly giving program. This might be a dollar-for-dollar match or you could simply set a goal for the number of new and upgraded monthly donors you wish to secure then suggest to your constituents that if you reach that goal the additional board match will be applied.

• Use peer-to-peer fundraising to upgrade the donor’s value. 

Use peer-to-peer fundraising to increase donor lifetime value. 

Along with a monthly giving program, a peer-to-peer strategy is my second favorite tool to add to your fundraising toolbox. This is the quickest, most direct way to create awareness, generate involvement, acquire new donors, upgrade existing donors, and capture donor research. Why? It leverages the power of current donors in two amazing ways by:

• Having them reach out to their networks—opening doors to potential supporters you’d otherwise never have met
• Transforming their single $100 gift to the equivalent of a $1,000 gift when ten of their friends join them in giving at that level

One of the greatest benefits of the digital revolution is how it’s opened up access to networks you’d never previously have hoped to reach. Today, tapping into current supporters’ personal networks scales relationship building.

People don’t care so much what you have to say. They care more about what their peers have to say—about your organization, about the cause, and about the community they are creating. This holds especially true for younger generations. You must begin thinking about strategies that engage your supporters as active promoters and advocates.

How does this work? You set up a user-friendly system ahead of your campaign, one that is so easy to use they can simply push a button, more or less, whenever they want to fundraise on your behalf. There are numerous companies who will build online, customizable peer-to-peer fundraising pages for you (e.g., see here and here). They’ll even integrate these pages with your social media accounts so folks can instantly spread the word about your campaign.

Promote bequests.

These are generally the most transformational gifts your cause can receive because, for most people, they’re the largest gifts they’ll ever make. In fact, a well-run legacy program can raise far more money than a typical major gifts program. I once heard fundraising guru Tom Ahern say, “If you’re not doing this, you don’t have a fully-fledged fundraising program.”

Bequests are transformational for the donor too because they’re personal. After all, The gift represents the donor’s wealth earned over a lifetime and the way they want their values to live on after they pass.

If you’ve put developing a legacy giving program on the back burner because you’ve thought it’s too complicated, today is the day to bring your pot front and center. 

Legacy giving is not complicated. Most such gifts come from bequests, and these are something everyone understands. If your organization has been around for 10+ years, you should have a bequest program; you’ve earned it by virtue of the fact you’ve been in business this long and folks are relying on you to continue. Bequests and other types of legacy giving are a way to future proof your mission. 

Just like any other kind of philanthropy, the biggest reason folks don’t make legacy gifts is because they aren’t persuaded they’re necessary and they aren’t asked. This is why you need to consciously prioritize bequest giving as one of your front burner strategies. 

One study reported by fundraiser Stephen Pidgeon asked a sample of typical middle-class donors, “Would you consider putting a gift for charity in your will?” More than 90% said yes! However, when asked if they’d already put a gift for charity in their will, fewer than 10% had done so. 

Persuade those who want to keep legacy giving on the back burner by sharing research from several studies revealing:

• Donors who received a letter directly asking them for a bequest were 17 times more likely to give a bequest than donors who were not asked.
• Donors surveyed by The Partnership for Philanthropic Planning found 70% of donors who made planned gifts did so because they were asked.

One way to have a meaningful, personal conversation with a donor is to ask them what legacy they would like to leave the world. People love to talk about themselves, and this gets them talking about their values. Since all fundraising is a value-for-value exchange, this can be a meaningful way to guide folks toward a discussion of their philanthropic priorities. 

TIP: Donors don’t have to be super wealthy to make a bequest; reach out to all your mid-level and major donors. You can also go beyond these folks to anyone who’s been especially loyal as a donor, volunteer, or user of services. Just commit to putting the word out there that you value legacy gifts. Tell folks what a bequest can accomplish, and how much you’d be honored to partner with them to make a lasting difference in your community and the world.

Want to learn more about taking donors to the next level? Rather than winging it, it helps to be taught by the best in the business. And that’s where the Veritus Group Certification Course for Major Gift Fundraisers and/or the Certification Course for Mid-Level Donors may be just what the doctor ordered.

Check these out if you’re losing donors, the long-term, lifetime value of your donors is nothing to write home about, your donor file overall is shrinking, or your major donor program is stagnant. 

The post Top 2021 Fundraising Strategies: Increase Your Donor Lifetime Value appeared first on Bloomerang.

Next to its small pool is a cherry red phone. When you pick it up, the person on the other line answers, “Hello, popsicle hotline.” Moments later, a waiter wearing white gloves delivers your orange, cherry, or grape popsicle to you on a silver tray. For free.

There are much nicer hotels to stay at in Hollywood, but Magic Castle has rapturous reviews and is ranked near the top of some recommendation lists.

Why? Most experiences that customers have at hotels are forgettable. Few are remarkable. But a popsicle hotline at a hotel? That’s a pretty memorable moment on a vacation.

Some other “wow” moments at the Magic Castle include unlimited snacks, fountain drinks, magic shows in the lobby, laundry service (with a lavender sprig!), and a Dole pineapple whip soft serve ice cream machine—just like at Disneyworld! And the cost? Completely free.

I’m speaking from experience. I took my teenager there last weekend to test the magic, and it was pure delight.

So, what does a three-star hotel in Hollywood Hills have to do with fundraising? A lot! It tells us that the opportunity to surprise and delight your donors is closer than you think.

Be honest: What kind of memorable and meaningful experiences are you creating for your donors right now? How can you construct unexpected and unforgettable moments like the Magic Castle does?

Here are 3 surefire ways to create memorable moments to wow your donors.

1.   Send them a heartfelt thanks that they aren’t expecting. 

Send them a video email of you thanking them or a message of thanks from your clients, staff, and/or beneficiaries just for being a part of your donor family. Do this out of the blue, not just after they make a donation.

Yes, you can use your phone! No, this doesn’t have to be complicated (or cost money)!

I love emailing a video to stand out in a donor’s inbox, and it can be a very creative way to thank donors, as seen in this thank you video shot by an independent school in Oregon. They made a video to show their donors the excitement on the student’s faces when the kids found out how much was raised at their fundraiser that weekend.

Don’t overthink this: Just be warm, personable, and conversational. It could be a video of a person you have helped or just a staff member sharing their heartfelt thanks. Don’t forget—emotions move donors to take action so make sure it’s clear how much you appreciate their support.

2.   Give them the gift of being known by you. 

Do you know what doesn’t make a donor feel known by you?

1. Addressing letters or emails to “Dear friend.” If you know their name, use it!
2. Sending emails that say “If you have given already thanks! If you haven’t there’s still time…” Ouch! Thank the people who give and send a separate email to people who didn’t give with a clear fundraising ask.
3. Sending blanket thank you emails to people who didn’t give. Wouldn’t that strike you /as odd if you received one?
4. Inviting out-of-state donors to local events. Unless this is a hybrid event, you can probably leave these donors off the invite list. 
5. Giving a bereaved donor who just made a memorial gift the same upbeat cheery thank you message other donors get. Just imagine how much this could potentially upset someone!

Steven Shattuck refers to this practice as “Seglumping” in his book, Robots Make Bad Fundraisers. Seglumping, he explains, is the act of referencing multiple audiences in one unsegmented communications piece. 

One of the greatest gifts you can give your donors is the gift of being known by you. One way to do that is to segment them into lists.

One of many unforgettable ways to do that is to call out first-time donors as such in your thank you letter. This is also one of the best ways to boost your odds that a new donor will make another gift, since, according to the Fundraising Effectiveness Report, only 19% of new donors will make a second gift.

How should you call out first-time donors in your thank you letter? Try an opening sentence like this: “Dear John, I’m overjoyed to receive such a generous first-time gift from you, and I’m thrilled to welcome you into our donor family.”

3.   Remind them of their loyalty by celebrating their donorversary. 

Another great way to make your donor feel known by you and subtly remind them to continue supporting your organization is to celebrate their “donorversary.”

What’s a donorversary? This is the anniversary of when they made their first gift to you. It doesn’t matter if that was a month ago, a year ago, or five years ago. If it’s only been a short time, they’ll feel great for already accomplishing something meaningful with their gift. If it’s been years, they’ll be reminded that their support matters to your mission and continues to make a difference.

You can celebrate with a card, a call, or even an email. This is one holiday they’re not expecting you to celebrate, so your odds of surprising and delighting them are at an all-time high!

Here’s a sample opening line to make it easy: “Dear John, five years ago you made your first gift to us. Since then, you…[insert amazing accomplishment the donor made happen].”

Think about how many forgettable experiences you’ve had as a donor. If few come to mind, here’s some good news: It won’t be hard for you to stand out!

Want more stewardship ideas? Download Rachel’s guide “23 ways to shower your donors with love” and her virtual donor cultivation guide. 

If you have a delightful donor experience to share or a story about how you’ve delighted a donor drop it in the comments! 

The post 3 Tips To Create Unforgettable Moments For Donors appeared first on Bloomerang.

The sorry state of donor retention has been a topic of discussion for at least the past decade, since the Fundraising Effectiveness Project Report began collecting data. Yet too many nonprofits still don’t prioritize donor retention strategies.

Do you?

Whatever you’ve done in the past or whatever you’ve learned before today, I’d like to take another tack. You may know I love applying lessons from other disciplines to nonprofit fundraising and marketing; recently an article from Merkleinspired me to consider how the social benefit sector might use commercial business insights to increase donor loyalty. After all, an average customer retention rate for for-profit businesses range from 54% to 84%, which is well above the nonprofit average of 43%.

The same things that keep “customers” steadfast and true can keep donors loyal too. Specifically, nonprofits need to build a relationship and offer delightful surprises, convenience, rewards, and appreciation.

Over the period of the pandemic, the Merkle “2021 Loyalty Barometer Report<” showed four trends in consumer thoughts on rewards and benefits.

I’d like to dive into them, applying a nonprofit spin to increase donor loyalty.

1. Consumers want a relationship with a brand.

Per the Loyalty Barometer, 81% of consumers want a relationship with a brand. Yes, your nonprofit is a brand. And, yes, your donors are consumers. They “consume” or “buy” who you are, what you do, the values you stand for, and how you approach your work and treat the people you work with. This is who donors want to relate to and get to know better. They want to bask in your aura, be embraced as part of your community, and consider themselves members of your family.

For this to happen, you have to treat them accordingly. A “one and done” transactional approach won’t build a relationship. Think about how you build relationships with your personal network; build a written plan to do the same with your donors. And by written plan, I mean make a that integrates appreciative gestures (such as weaving in well-planned and well-executed surprises or simply saying “thank you”) into fortifying a consumer-brand relationship that feels genuine and human.

Note that the relationship extends to every interaction between the consumer (aka donor) and your brand. Your loyalty program (aka “donor communications” or “donor relations” or “donor stewardship” program) is just one of many touchpoints that must be considered within the entirety of the consumer’s brand experience. Donors know only one organization. They don’t care if the touch comes from marketing, fundraising, or programs. Anyone in your organization can make a values match—whether as ambassador, advocate, or asker.

Train all staff to be enthusiastic communicators. Make sure they know how to recognize and handle potential donors. Ensure all public-facing interactions are customer-service focused. No one should ever say “that’s not my job.”

2. Surprises and convenience drive emotional connections.

Per the Loyalty Barometer, 58% of consumers feel the most important way a brand can interact with them is through surprise offers and gifts. I’ve long advocated for adding “wows” to your donor relationship-building strategy, so this finding particularly struck me. Not surprisingly, the pandemic caused many consumers to change the way they shop, including shifting to ecommerce channels. Surprise offers and gifts helped alleviate some of the financial strain many felt during a pandemic and recession, while convenient shopping experiences reduced stress and anxiety. Providing consistent convenience fostered trust and resulted in the brand becoming a staple in the consumer’s way of life.

If you want to become a staple in your donor’s life, you must provide consistent value and surprises too. You may not think of it this way yet, but you’re in the happiness delivery business. Isn’t that a nice business to be in? Seriously, when you reframe your work this way everyone wins. It’s not about pandering to people with money. It’s about lifting people up—because a rising tide raises all boats.

And don’t forget about offering convenience. I can’t tell you how many gifts I’ve failed to follow through on because of one or more impediments in my way. Donors are well-intentioned, but busy. Help them out:

• • Make donate buttons stand out using bold, contrasting colors.
  • Put donate buttons in multiple places so folks don’t have to hit the “back” button.
  • Make branded donation landing forms that match whatever campaign appeal the donor received; they need reassurance they’re in the right place.
  • Make landing pages compelling and easy to navigate.
  • Shorten donation forms by removing any unnecessary fields; you can always ask for additional information later on (e.g. on your thank you landing page or in a thank you letter or email).

Make everything on your website and emails mobile responsive. Did you know

• Include multiple ways to give (e.g., credit card; check; donor advised fund; stock) and provide all necessary information (e.g. mailing address; phone number; tax identification number).

3. Discounts and free products remain top rewards.

Per the Loyalty Barometer, 70% of consumers prefer discounts and offers. What consumers want most from a brand relationship is appreciation for being loyal and supporting the brand by making a purchase. Rewarding consumers through a loyalty program is a foundational way to show appreciation.

I see three easy ways to apply this finding to nonprofit fundraising:

1. The first is to create loyalty programs such as annual or legacy giving societies or monthly giving clubs. Then offer rewards for being a member. They don’t have to be tangible gifts; offering opportunities to get together with other like-minded folks who share their values is plenty and can be greatly enjoyed and appreciated. Right now, virtual meetings, events, town halls, or fireside chats are swell. Soon you can offer in-person get-togethers too. Even if folks don’t attend, just the opportunity to attend is a reward.
2. The second is to offer chances to win prizes for completing a survey, signing a petition, calling a congressperson, sharing an email or social media post, pinning something to your social media account, or anything else you can creatively dream up. People like to engage, and when you enter them into a raffle for a prize (preferably one that is donated), they’re more likely to join the fun. When you add some fun to a donor’s life, they think of you positively.
3. The third is to offer donors opportunities to leverage their giving. People love to stretch their dollars, so try to offer opportunities for challenge grants, gifts made possible through economies of scale or ripple effect giving.

4. Loyalty can sustain brands through disruption.

Per the Loyalty Barometer, 57% of consumers indicated that they did not change brands due to the events of 2020. This speaks volumes for the importance of prioritizing the development of close emotional bonds with your donors. And that’s really the whole point of placing a premium on donor retention strategies. If donors identify with you, they’ll stick with you. In fact, ongoing donor retention is 61% vs. just 19% for one-time donors. So anything you can do to get that 2nd, 3rd, and 4th gift is a valuable down payment on your nonprofit’s future.

Ready to adopt a more human donor loyalty philosophy and wrap it into a written strategic plan that holds people accountable for seeing it through and measuring success? Here are some action steps you can take to get started.

Action Steps to Increase Donor Loyalty

1. Proactively engage customers (aka donors).

Weave in well-planned and well-executed “customer experiences” that keep you in active relationships with your donors. These can range from saying a simple “thank you” to giving them delightful “wow” surprises to telling stories to offering useful information.

Everything is about the donor (what they need, want, and will likely appreciate) rather than about you (your needs, your ego, what you think donors should appreciate). Powerful, lasting relationships are built on being a giver, not a taker. A lover, not a lecturer. A helper, not a hinderer.

It’s helpful to:

• Inform donors how their gift was used.
• Share details about upcoming events and volunteer opportunities.
• Inform donors of breaking news and/or problems as soon as possible.
• Remind donors when it’s time to renew or fulfill a pledge.

When you keep donors in the loop, they find you reliable. They don’t have to worry, because they’ll know you have their back. This builds trust—the foundation of all lasting relationships.

Consider adding creative strategies using artificial intelligence (AI) for a personalized approach. The simplest tactic is to set up auto-responder email messages after a donor makes a gift. These can be tailored to particular campaigns. First comes the thank you; then comes the follow up with a story of impact, a heartwarming thank you from a client, a list of other (non-monetary) ways to become involved, and so forth.

Each time, let your donor know when they can expect to hear from you next. When you follow through, this builds more trust.

2. Set realistic expectations.

Don’t say “I’ll call you” unless you mean it and have built a system to make sure you don’t fail. Earning trust is work. One report by Salesforce found 61% of customers said it’s difficult for a company to earn their trust. Delivering on your promises is the bare minimum. Over-delivering will make you stand out. Under-delivering will kill the budding relationship.

Make it your plan to always over-deliver on the promises you make to donors. Begin by being clear about what they can expect from you and your organization. Be as realistic as possible; then work to go above and beyond. It could be as simple as “you’ll soon receive a list of upcoming free events,” and then you also include a free ticket to a paid event as a thank you for joining your family.

EXPECTATION-SETTING EXAMPLE #1: Rather than sending your standard direct mail package to major donor prospects, you send custom personalized “advance” letters letting them know how important they are to you and that they’ll hear from a board member within the next two weeks to talk about getting together to discuss their philanthropic interests for the coming year.

You assign donors to board members and get them to commit to a two-week timeframe that works with their schedule.

FAIL: At the end of the two-week period, you call to check in with board members who’ve not reported back to you. You learn, alas, quite a few haven’t yet made their calls. Some say they’ll make them within the next two weeks. Some tell you they’ve decided they don’t feel comfortable doing so; could you make the calls for them or assign them to someone else? Whatever happens at this point, you’ve failed to deliver on the promise made to the major donor prospect to whom these folks were assigned.

SUCCESS: When making assignments, you ask each board member to give you one or two specific dates on which they expect to make their calls, and then you ask them to get back to you immediately with results.

The day before they’re supposed to call, you send a reminder text, voicemail, or email (depending on the board member’s communication preferences) and ask them to confirm. You remind them the donor expects to hear from them, and if for some reason they can no longer make the call on this date, you ask them to please let you know right away so you don’t risk burning bridges with this donor.

If they can no longer make the call, reassign quickly, make the call yourself, or find a VIP on your team to make the “wow” surprise call (imagine how the donor might feel getting a call from a museum curator, doctor in charge of research, playwright, celebrity chef volunteer, lead attorney on a civil rights case, etc.). Of course, you’ll need to prepare the caller for how to handle the conversation; sometimes it may mean closing the talk with this request: “May I have our executive director give you a call to continue this dialogue?”

Once you’ve established clear expectations, align your teams (staff and volunteers) to meet these objectives. Is everyone doing what they can to provide a better donor experience? Do you have a written plan that holds them accountable? Someone to hold their feet to the fire? Don’t run the risk of falling short—it can do a lot of harm since people tend to recall negatives before positives. Even one mistake could be enough for a donor to leave.

3. Establish clear success metrics.

Setting key performance indicators (KPIs) around customer service lets employees know you’re evaluating performance objectively.

Ensure everyone is up to speed on customer service best practices. For example, at one organization where I worked, customer service was a full chapter in the employee handbook and people, with great pride, really took it to heart.

You should also wrap donor service into job descriptions for all staff, not just development staff. At another organization where I worked, volunteer coordinators knew they were expected to convert a certain percentage of volunteers to donors. They understood donations made the mission possible and even found their volunteer-donors became more dependable volunteers as well.

Why? They had more skin in the game and truly identified as being a supporter of the organization. To ensure you’re meeting your objectives, measure customer satisfaction. Gather donor feedback through simple surveys, online interactions, or communications via email, text, or social media. Listen to what donors are saying and watch what donors are doing. Wrap what you learn into new strategies as you move forward and reward employees who deliver the best customer experiences.

Success begins—and ends—with how you treat your donors in between the times when they make donations.

As a fundraiser, it’s your job to really think, long and hard, about what you can do to make people feel good. Transparency. Honesty. Integrity. Graciousness. Gratitude. Rewards. Convenience. Belonging. Give these to your donors.

Want More Action Tips to Increase Donor Loyalty?

Get the Attitude of Gratitude Donor Guide. I’ve taken everything I’ve learned about sustaining donor relationships over the years and tucked it into one handy no-nonsense guide on the practice of gratitude. It also includes sample templates, worksheets, and my Creative Ways to Thank Your Donors guide with 72 ideas you can use!

The post 4 Strategies to Increase Donor Loyalty appeared first on Bloomerang.

• Donors talk more than the nonprofit leader
• Nonprofit leaders ask more than tell
• The nonprofit leader talks about gift-giving opportunities only after they have uncovered what the donor wants to accomplish

The discovery step comes through a series of donor meetings. For these meetings to be successful, you must ensure that you cover all the bases with potential donors.

It is important to plan a strategy for each meeting interaction.

The goal of the first meeting is to open the relationship. This step enables you to build rapport and establishes expectations for a positive outcome. It is often begun in public or nonprofit visits where the donor feels less vulnerable. Learning about and relating to their interests will open the door to discovery.

The next meeting should move from a public visit to a nonprofit visit to a personal visit. Visits with a donor in their home indicate a level of closeness to the nonprofit and often take months to achieve. It is okay if you never make it to their home. Office visits are just as personal. In an office visit, you can pick up a lot of clues about donors such as where they attended college, some of their hobbies, family dynamics, etc.

Location is less important. The focus is getting to know the donor through a series of discovery questions that you’ll ask with the donor’s permission, of course.

With the right set of donor discovery questions, you will be able to determine the donor’s needs. Your goal is to find out what’s important to them, including:

• Their reasons and emotions for supporting your nonprofit
• Their gift-giving potential or financial position
• How decisions about their gifts are made
• Concerns or reservations they have about making a gift to your nonprofit

It is critical that you capture the information gained from discovery…whatever that may be.

Remember people do things for their own reasons.

To solve the donor’s problems and achieve their goals, you use your knowledge of the donor’s emotional needs and their requirements, combined with the information you have about your nonprofit and the solutions available.

Emotional Need = Desire, Pain, Gain, Want, and Pleasure.

Do not present any solutions or programs until you have an idea of what the donor wants.

1. Clear understanding of emotional needs

• Do their interests match your mission?
• Do they want to make a difference?
• Do they feel a connection with your nonprofit?

2. Understand financial issues

• Amount, assets?
• The size of emotional need determines the size of the gift.
• The level of trust is directly related to the size of the gift.

3. Understand their decision-making process

• Who? What? How? and When?
• Are there any gatekeepers, influencers, etc. to complete the gift?

As Steven R. Covey said, “Seek first to understand, then to be understood.”

The questioning techniques should include:

Open Questions — they lead the way to new territory and keep the conversation going:

Examples:

• What do you hope to achieve with your philanthropy?
• How can we get you more involved?
• Why does our cause matter to you?
• Tell me about your life.
• Describe the legacy do you want to have? Can you finish it alone?
• Explain more.
• Please go on.
• Give me more information about that.

One-Word Questions — or short phrases are amazingly effective ways to get a deeper understanding.

Examples:

• Uh. Huh.
• Hmm.
• Interesting.
• Oh?
• Why?

Closed Questions — ask for very specific information. They restrict the possible answers. They are questions that can be answered with just a few words, usually yes or no. Questions that imply multiple-choice answers are also classified as closed. These should be used sparingly during donor meetings.

Counterintuitive Questions — this is a special type of question used to change the direction of the discussion. It can be used in situations where there is pressure, and you are encountering a barrier to move forwards.

Examples:

• I don’t think I can change your mind on that, can I?
• Sounds like you’ve made up your mind, haven’t you?
• Is that good or bad?
• It doesn’t sound like there is a fit here, is there?
• Why do I get the feeling that this isn’t working for you?
• I get the feeling that you are telling me no; is that right?

With a donor-centered approach, it takes time to build relationships and get to know your donors. Don’t forget to share the information with your team and ensure that have access. A best practice is to record the details of your conversation in your donor database or nonprofit CRM.

If we want donors to understand us, we have to start by understanding them. This eBook will review some great donor discovery steps, best practices, and questions you should ask to build rapport with and understand your donors with a donor-centered approach.

The post How To Facilitate The Discovery Step Of The Donor-Centered Approach appeared first on Bloomerang.