Revenue generation is critical for most nonprofits. Not only does it help pay operational costs like rent, utility bills, and salaries, but it helps nonprofits promote and support their objectives. As donors reduce payments in a shrinking economy, nonprofits must focus on key donor relationships to maintain income. Of course, this includes both old and new donors.
This is easier said than done. Experts say that donor retention rates are pretty low. In fact, the average nonprofit only retains twenty percent of its first-time donors. In other words, all the time, effort, and resources your organization put into wooing a donor usually only leads to one donation. But what if there were ways to enhance donor relationships in order to retain them for repeat donations? Here are some tips that may help:
#1 Convince Them That Repeat Donations Are Important
Many donors walk away after a single donation because they don’t realize how important repeat donations are. Not only should you show them how impactful their first gift was, but you should also stress the importance of continued support. When first-time donors give a second gift, the retention rate can go up by 60%. So make that effort.
#2 Make it Easy to Donate
Your donors should find it easy to give money to your organization. You should present them with an array of options by accepting checks, credit cards, and electronic payments. Please ensure that your online donors feel safe and secure when giving money. The more comfortable they felt making the first donation, the more likely they are to repeat the experience. On the other hand, if they felt uneasy donating the first time due to a glitch on the website, payment system, etc., they’ll be less likely to return.
#3 Use Top Donor Management Tools
The best software for donor management can help you engage with donors, grow your donor base, raise more money, and enhance your donor relationships. Try Silent Partner Software for donations to seamlessly incorporate donor tracking, online fundraising, email marketing, and campaigns in one place and reach your fundraising objectives.
#4 Acknowledge Donations
As any top charity will tell you, you have to nurture your relationship with your donors. Don’t treat them like checkbooks. After the first donation, immediately acknowledge the contribution with a sincere heartfelt thank you note. If the donor has provided their phone number, call them to thank them personally. In addition, let them know how your nonprofit is using their money.
#5 Send Updates
Maintain relationships with your donors by sending them updates. You can use links on social media, YouTube, or a newsletter to develop a compelling narrative.
#6 Get the Timing Right
Timing is critical for donor retention. The best time to ask for a second donation is within three months of the first donation while your organization is still fresh in their memory. When you ask for a second contribution within 90 days, you send the right message. You let them know that they’re not just donors, but they’re stakeholders in your nonprofit.
Take the time to nurture your relationships with your donors, and your organization will be rewarded with consistent revenue generation.