PART II Welcoming and retaining our donors

© Richard M Pordes LLCMaster Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 1

PART II Welcoming and retaining our donors

Too few donors retain loyalty to one or more charities. What are we doing wrong?

What can we do right?

WORKSHOP ON DONOR ACQUISITION AND RETENTION


Issues for Today’s Presentation

1. Why are our donors leaving us? 2. “The fault is in ourselves, not in the stars”3. What donors want and expect4. Not all donors are the same5. Welcoming our new donors6. Keeping them with us7. Re-activating them


What Donors are really wondering

Can I trust you with my money?If I give, what can you do?What did you do?Do you appreciate me?


Reasons why donors say they leftStudy conducted by Adrian Sargeant, Indiana University in 2001

Reason % in USACannot afford to continue 54%Other causes are more deserving 36%Poor quality of service to donors 18% *Death or relocation 16%Did not acknowledge my support 13% *Don’t remember supporting them 11%Did not tell me how they used my support

8% *

No longer need my support 6%Continuing support in other ways 3%* Factors we can do something about


Factors reducing Donor Loyalty

Recognition. Inappropriate or insufficient.Personal benefit vs. altruism. Donors looking for some benefit in return for their gifts.Peer pressure. Donors who made a gift under pressure from their peers.Service. Donors who felt service was poor.


What Donors Want

To be recognized and valued for the gifts they makeTo feel good about their givingTo understand how their money is being used and what difference it makesTo be inspiredTo feel involved – a part of somethingTo be impressed by the charityTo be asked their opinionTo know they are really listened to


What is Relationship Fundraising?

Textbook Definition:

“An approach to the process of donor exchange based on the long-term value that can accrue to both parties.”


Relationship Fundraising

If you use a Relationship Approach it affects:

How you will find a donor (Telefacing and F2F)How you get to know the donorHow you keep in touch with the donorHow you ensure they get what they wantEnsures that you keep checking that they are getting what was promised


Why care about Relationship Fundraising?

Long-term, it costs far less than transaction-based fundraisingIt costs ten times as much to acquire a new donor than to keep one.It leads to “donor churn and burn”It poisons the fundraising market for everyone.The uneducated donor is the donor who never returns.


Transaction-based vs. Relationship Fundraising

DifferencesTransaction-based

(India Today)Relationship-based (India Tomorrow)

Timescale Short LongFocus Many Single donations Building Loyalty

Key indicatorsused

Response rate, Donation amount,

Immediate ROI

Long-Term Value

Orientation Stress urgency of the cause

Build relationship

Customer Service

Ignored Accentuated


NOT ALL DONORS ARE THE SAME!

11

So don’t treat them all the same way


New DonorSomeone who has just given, but only for the first time.We know very little about his/her future giving patterns.We do know there are Four groups….

Namaste!


1. Responders

People who have responded to an appeal, but have no intention of developing a relationship with the organization.These people have just been caught at the right moment, with the right appeal message.There is little we can do to persuade these people to donate again.This group represents about 60 per cent of all people who made a first donation.


2. Potential donors

Have a general interest in the causeCan be motivated to give againNeed to be renewed in the same way as they were recruited Can only be considered confirmed donors once they have given two or more timesRepresent about 40% of acquired donors


3. Passive donors

Satisfied to just give to the organization, without getting more actively involved.Can be very loyal but do not expect a lot of involvement or feedback.Do care passionately about the organization.Are also candidates for monthly giving.Represent about 25% of the total names acquired


4. Motivated donors

Want a deep commitment to the causeAre loyal donors, but have to receive excellent donor careWilling to advocate for the cause and maybe participate in other activities, e.g. volunteering, events, and even fundraisingRepresent about 15% of the total acquired donors


There are All kinds of donors!(Chart adapted From A. Sarjeant and E. Jay “Building Donor Loyalty”)

POTENTIAL DONORS(40%)

MOTIVATEDDONORS

(15%)

RESPONDERS(60%)

PASSIVE DONORS

(25%)

Strength of relationship

Inve

stm

ent

pot

enti

alAcquired Donors

Confirmed Donors


Donor communication

Make donor communication part of your appeal cycle. Build the relationship between donor and CEO.Design and package newsletters as appeals.Send at least 3-4 newsletter appeals per year.Send an annual report.Focus newsletters on themes that have been mentioned in appeals.Send occasional “special report letters”.


Types of Communications• Welcome package• Newsletters, mailed and emailed• Renewal solicitations• Campaign updates• Annual reports• Greetings for holidays and birthdays• Invitations (think annual meeting, even a virtual

one)• Website (think video)• Special, exclusive offers and appeals• Social media (Facebook, Twitter...)


The New Donor WELCOME Process

Thanking and welcomingSending out the welcome pack and questionnaireFollow-up telephone callsFollow up with special welcome appealsIntegration of new donors into the House Renewal cycle


First Impressions Make All the Difference

Receiving DonationsThank first: Enter data second: Deposit money third (TED)Find out what each donor wantsDevelop the best possible welcome programme

Speed of responseContents and format of packageTelephone follow-up, when appropriate


The Welcome Pack

Thank you letter and tax receiptQuestionnaireSend a follow-up email and/or phone callDevelop a database to “flag” donors’ preferences


The Welcome LetterThank you letter from CEO

Thank and thank againIntroduce the CEODescribe the types of relationship being offeredMention occasional phone contact for updates and emergencies.Feedback on acquisition themeGive the letter a personal look.Include tax receipt


The QuestionnaireExplain its purpose: “To understand you, the donor, better and to be able to provide you with the best information available on: How your money was spent What is happening in our world (children,

animals, human rights) What you have empowered our organization

to do How we can help you do more in the future Your privacy preferences Your preferences on how we communicate

Introduce each question with an explanation.


Questionnaire topics 1Personal statistics (assure privacy)

Date of birth (both for age as well as to know the birthday)Telephone numbers (home and mobile) Email addressProfessionEducational levelMarital Status and number of childrenIncome range (Optional)


Questionnaire topics 2Programme Interests, scoring 1-5, e.g.

ImmunizationHungerEducationEmergency ProgrammesHealth IssuesProviding clean waterBetter nutritionHIV/AIDS prevention


Questionnaire topics 3Contact Preferences

Interest in sustained giving (Automatic monthly) Email preferences. Email newsletter? (multiple, occasional or no email contact)Emails in emergencies?Willing to accept occasional telephone calls?


Questionnaire Topics 4

ReportingAnnual reports, Occasional publications.Field reportsNewsletters



Other Giving OpportunitiesLegaciesFriends get friendsInterest in committed giving (monthly)?



Giving BehaviourWhat other charities they support?What causes they are interested in supporting: children, health, animals, environment, religion, etcWhy they support us?


Follow-up telephone calls

Allow two weeks for receipt of questionnairesPlan telephone campaign to non-respondents eliminating those who have opted outTry to reach all new donors within 6 weeks of initial giftBased on Q. results, place each donor in a category for further contactsDevelop house renewal cycle


Donor communication

Make donor communication part of your appeal cycle. Build relationship between donor and CEO.Design and package newsletters as appeals.Send 3-4 newsletter appeals per year.Send an annual report.Focus newsletters on themes that have been mentioned in appeals.Send occasional “special report letters”.


Monthly Donor Cultivation Cycle

Welcome

Ask

Report

Ask

Report


Exercise

Imagine you are planning a Donor Contact Cycle (DM or other media)How often do you want to contact your donors?When do you want to contact them?When do you want to send them a newsletter? Before or after an appeal?Complete the forms in groups of two


Typical Mail/F2F cycle2012

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

AcquisitionRep Day

ACQSpringACQ

SummerACQ

Diwali ACQ

Welcome W W W W

House Appeals MP NL REN NL REN NLDiwali REN NL

2013

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

AcquisitionRep Day

ACQSpringACQ

SummerACQ

Diwali ACQ

Welcome W W W W

House Appeals MP NL REN NL REN NL REN NL


Richard M Pordes, LLC99 Dolphin Cove Quay

Stamford CT 06902

A-34, Hauz KhasNew Delhi 100 016

Richard@ PordesLLC.com +91 88 605 332 88+1-203-570-2223

THANK YOU!

Documents

PART II Welcoming and retaining our donors