Donor Retention Survey Results
Nothing fancy about last week’s Agitator survey. We asked one question: “What percentage of your nonprofit’s 1st time donors make a second gift?” [Folks at agencies and consultants were asked to indicate an average over the clients they’ve typically served.]
Here are the results …
31% — Less than 30%
31% — 30% to 39%
24% — 40% to 49%
15% — 50% or more
So 62% — almost two-thirds — of groups represented by our responders don’t manage to excite a second gift out of even four-in-ten new donors.
I don’t know about you, but I find that pretty disappointing. To me, a reasonable goal might be 40% … what do you think?
Kudos to the 15% securing a second gift from half or more of their first-time donors.
A number of these respondents provided comments on how they approached their new donors. The most robust of these comments — from Stephen Best at Animal Alliance Environment Voters — The Agitator published last week. His organization is seriously into relationship-building, but it also has a somewhat unique approach to donor acquisition. I’ll come back to the donor acquisition side of the equation later this week.
As for new donor cultivation, none of the best — the 50% or more class — had any particular ‘silver bullet’ to which they attributed success. Instead, I heard three very basic ingredients in their survey comments …
1. Huge stress on a quality acknowledgment/Thank You program — fast, personal, authentic, relevant. In small, local organizations, this reaches right up to face-to-face contact. But the key is ‘not canned’. Many respond with handwritten notes and phone calls.
2. Willingness to invest in some non-fundraising communication with the donor (which means going beyond the mandatory one-size-fits-all organizational newsletter) specifically aimed at engaging the donor (e.g., a survey on priorities, a brief report on whatever specific project/program brought that donor in and how their gift made a difference).
3. And a corollary to #2. Targeting the second ‘ask’ with reference to the initial gift’s focus … that is, if possible, avoid sweeping the new donor into some broad appeal in which they might not have any particular interest. Get the second gift for the same purpose as the first one.
Hopefully, if your organization embraces these three practices, you can move your second-gift needle into the 40%+ zone.
Bottomline … if you want a second gift, show the donor you know him or her.
Tom
Recent benchmarking Pareto Fundraising ran across 41 Australian and New Zealand charities showed an average 38% second gift rate from new cash donors within 12 months with the best in class reaching in 50%. Agree a goal of 40% should be in place. Most interesting was the impact that regular giving / monthly giving is having – in some cases it is helping charities to increase the second gift rate another 5% (which considering the ongoing value of these committed givers will be generating even greater returns than their cash counterparts.
Couldn’t agree more with Tom’s recommendations – the benchmark setters all employ these.
Asking within 6 to 8 weeks is all a key factor – the longer you leave it the more likely is they will have forgotten you and/or the great feeling they had after giving (of course the greta feeling was amplified by your brilliant thank you and efforts at engagement/feedback (knowing their donation made an impact is key).
A Canadian fundraising agency published a pretty good article on how to secure the second gift:
http://www.goodworksco.ca/research-library/tip-sheets/the-gift-that-really-counts-its-not-what-you-think/
I hit myself over the head when I read some of that stuff. We’re just a small charity, and we started calling 1st time donors when we received their checks. Already we’ve seen those same donors make second gifts. It really does make a difference, especially when you’re on a small budget like us!
That’s pretty disappointing. But I guess, there should be a push to make past donors feel more involved and engaged about the projects that they participated in, to revel on how they have helped. Perhaps, that can motivate them to do it long term.
Thanks for mentioning our article, Sean. Glad you found it useful.