Donor Loyalty — the Holy Grail
Face it. Nothing sends more shivers up the line from Membership Director to CEO to Renewal mailing #1 isn't performing as well as last year!” Prospecting returns ebb and flow. We sigh. But nobody can tolerate an underperforming renewal series. We panic. Wouldn't we all enjoy donor retention rates marred only by death! Wouldn't we like to see the hard-earned, expensive new members and donors we recruit each year actually top-off the barrel of our house file, instead of barely plugging the leak at the bottom?
What happens during that exodus of first year donors who never renew their giving? They can't all have suddenly suffered amnesia or financial misfortune, can they? Small gift fundraising works economically for one reason only an appreciable proportion of initial donors give again, and again, and again. They renew gifts and memberships. Is it too much to suggest that donors indeed become loyal, like sports fans, Harley bikers and bourbon drinkers? Here is a DonorTrends white paper, based upon proprietary survey research, examining some of the issues surrounding the Holy Grail of donor loyality.
Behavioral Science Q & A
Integrating an individual giving appeal with other communications from a charity can have both positive and negative effects, and the outcome largely depends on how it’s executed. Advantages of Integration Brand Consistency: Maintaining a consistent appearance and messaging across all communications can reinforce the org’s brand identity and strengthen brand recognition and trust among your […]
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I’m not aware of any in-market tests specifically comparing recurring vs. gift frequency language. I suspect the answer might not be the same with all gift frequencies, nor with all people. It sounds like a great opportunity for you to test and find out what works for your audience. Based on the literature, here’s a couple […]
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Based on what we know from existing data, those renewal notices can actually be pretty effective in getting people to donate. They tap into our psychology – creating a sense of urgency, reminding us of past support, and using personalization to make the message hit home. They’re playing on our natural tendencies to feel obligated […]
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Interesting question. I had a quick look at the testing done on this topic. On the positive side, in all cases, over half of donors decide to cover the fee. In some cases, it goes as high as 65%. Not a negligible percentage at all. Here’s another test from iRaiser showing consistent results (see point […]
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There’s just one thing to consider when designing a supporter journey: the supporter. More specifically, you need to take into account: Who the supporter is i.e. their identity, which is the reason they support this cause, and their personality, which describes the way they “see” and process the world. These will determine the kind of […]
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I’m not an expert in this but a quick search surfaced this article on the effect of tax reforms on 2019’s charitable giving. The researchers didn’t find a reduction. Actually, they observed an “increase in charitable contributions in 2019, even with the lower tax rates and the dramatically smaller number of taxpayers who itemize their […]
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