By SJS Founder & CEO Scott Savage.
Recently, I was at a nonprofit board meeting, and the new Executive Director explained that she is focusing on increasing annual giving and building a large base of people who support the nonprofit’s mission every year. We started discussing the reasons why nonprofits don’t inspire consistent annual donations from the same donors, as well as potential strategies to increase donations. Little did she know that just the night before, I had an identical conversation with the leadership of another nonprofit client!
Predictable donations allow nonprofits to better plan operating budgets, create more reliable spending policies, and focus more on advancing their missions. The more that nonprofits have to worry about donations, the less time they may have to fulfill their missions; this also can make nonprofit donations less effective, creating a negative reinforcement cycle.
For nonprofits, less than 50% of donations come from the previous year’s donors.[1] If donors were motivated to give last year, why wouldn’t they want to give to the same nonprofit this year? We believe there are three primary reasons:[2][3]
They weren’t personally thanked in a meaningful way.
They weren’t personally asked to donate again.
They don’t know whether their donations made an actual difference.
So how can nonprofits inspire donors to give more frequently?
We as human beings make most decisions based on emotion. We choose with our hearts and justify with our minds. When we consider donating, we try to find the feeling that makes us pause and get a lump in our throats because the nonprofit’s mission and story resonate so closely with us. When a story emotionally affects us in a way that’s hard to put to words, yet we want to help, then the nonprofit has an opportunity to really connect with potential donors. If the nonprofit has good processes in place to collaborate with these donors, then this can increase the chances of more consistent donations. It tends to be easier to motivate existing donors to keep donating than to inspire new donors.
Here are 7 ways to potentially inspire more giving to your favorite nonprofit:
Tell More Stories
Tell stories that resonate emotionally with donors first, then back up these stories with critical and relevant statistics. Heart first, then head.
Use Visuals To Evidence Impact
So many of us skim words, but we love pictures (hence the adage that they are worth 1000 words!). Illustrate mission impact visually for a lasting impression.
Express Gratitude - Often
Personally thank donors - and not via email or text. In-person (or virtual) conversations or phone calls are the most effective ways. Handwritten notes are also highly effective (given that they are so rare). If you must email, be sure it’s custom and individualized.
Provide More Opportunities For Engagement
Did you know that a volunteer donates up to 10x more than a non-volunteer?[4] It makes sense of course - the more engaged we are in a nonprofit’s mission, the more loyal we are to it.
Public Recognition
If you ask donors if they want recognition for their gifts, most will decline; it’s human nature. But we know that donors are motivated to give when they see their friends, peers, or others doing great things. Leverage newsletters, luncheons, and social media as much as you can.
Don’t Forget To ASK!
It’s amazing how often nonprofits “leave money on the table” by not cultivating and soliciting gifts. It should be part of the daily routine for leadership, no matter how big or small the organization.
And On That Note… Ask For Automatic Donations!
Invest in the technology that ensures recurring gifts. Instead of asking for $120, you could ask for $10 per month which will renew year-after-year - and will also give 11 more occasions to say thank you and illustrate impact!
All of the above is easy to say, hard to do. In my experience, seeking the expertise of an experienced nonprofit consultant is worth its weight in gold. They can make sure your organization has the right people doing the right things at the right time to build the critical mass of annual donors who are your key to the future and to further cement your legacy.
We at SJS try to help nonprofits accomplish their missions, helping with strategy, spending, and investment policies. If you want to talk about your favorite nonprofit, we would love to serve you as well.
Important Disclosure Information and Sources:
[1] “4 Surprising Donor Retention Statistics.“ Simone O’Connor, 31-Jan-2020, causevox.com.
[2] “Why Donors Don’t Give Second Gifts (And How You Can Improve Your Chances).“ Tina Jepson, causevox.com.
[3] “Fundraising Solutions.“ Aly Sterling, alysterling.com.
[4] “How to Measure Volunteer Impact.“ George Weiner, wholewhale.com.
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