Every non-profit is asking the question. We are all living in era of fundraising uncertainty. What will be the effect of Covid-19 on our fundraising.? Our advancement visits have come to a halt. Our offices continue to debate the best strategies as we move through troubled waters. With this as my backdrop, I spent the last few days reading articles and blogs from respected sources who know philanthropy the best. While not being discouraged by the latest trends identified, advancement offices and CEO’s should be taking notice and increasing their efforts to become outstanding communicators.
The Chronicle of Philanthropy lists a few trending patterns which should be noted:
15% of donors have paused their giving
5% of donors have decreased their giving
(Giving USA suggests that 47% of donors are giving less!)
Donor retention rates dropped again in the first quarter of 2020 (1)
If these statistics don’t cause the advancement office to take notice, perhaps the following will sear into your mindset the importance of donor retention:
“Over time, the impact of donor retention rates is devastating. Consider a non-profit with 1,000 donors. Even if the organization beats the national average and maintains an annual rate of retention at 60%, its donor base would fall to 600 in year two. After five years, the organization would have only 78 donors left!” (2)
So, what can the advancement office do right now to retain its donors? It seems we repeat this in every blog: COMMUNICATE, COMMUNICATE, COMMUNICATE
Digital communication carries no germs
In a June blog, Bloomerang lists five things the advancement office should be doing right now to address donor retention:
- INFORM We have written on transparency before. The advancement efforts must do everything possible to insure the donor identifies and continues to identify with the organization, its mission and the people who are laboring in the trenches every day.
- EMPATHIZE Remember, donors are not your personal ATM machine. They are flesh and blood, as confused and as quarantined and as frustrated as you are. You must think of them as your partners who also may be hurting.
- ONLY ASK IF YOU NEED IT NOW Some non-profits have expended all their resources and any reserves as they serve the dying or as they feed the hungry. Others have simply ceased the mission until we return to the new normal, whatever that may be. Craft your story well and only ask if it is critical.
- POSTPONE EVENTS AND DO NOT DO ONE ONLINE Virtual baby showers on ZOOM may be fun for a time, but now is not the time for celebrations and fun events as fundraisers. Do nothing to minimize the seriousness of the pandemic.
- ENGAGE DONORS AND VOLUNTEERS What, beyond providing timely information can you do to engage your donors and your volunteers? I received a letter from a CEO of an organization who suggested a book that had an impact on him and related to the mission of his organization. I received a list of prayer requests from an organization who simply asked that I include their ministry and the needs in my prayers. How can you engage donors?
Yes, all the clichés apply…we are in uncharted waters…change is inevitable… etc.etc.etc. It’s exciting, isn’t it?
- Special Report, philanthropy.com/specialreport/covid-19-coverage-fundraising/237
- Jessica Browning, The Winkler Group, “A Smarter Easier Way to Raise Money:Donor Retention, April 29, 2020
- Bloomerang, July 2020