The Unicorn We Need To Retire

November 19, 2025      Roger Craver

I’ve been meaning to tell you something for a long time, and it’s time I finally say it out loud. It’s time to retire Renewal-as-We-Know-It—and the two donor behaviors that should replace the way most folks do renewals.

It’s a confession of sorts—one part memory, one part reckoning, and a larger part responsibility. You see, I’ve been in this trade long enough that certain origin stories start to feel like folklore. But this one matters. Because it’s how we ended up where we are—still grinding along in a model that should have been ceremonially retired sometime around the Carter administration.

So let’s begin there.

The Original Sin: How Magazine Circulation Gave Birth to Modern Nonprofit Renewals

Nearly sixty years ago, when the first wave of modern progressive membership organizations began taking shape, we were all feeling our way in the dark. There were no playbooks, no case studies, no donor journeys—just raw instinct and a handful of industries we could study from the sidelines.

One of those industries was magazine circulation.  They had the biggest lists, the most experience, and the best copywriters.  They understood issues, ideas, and content-driven communities.  And, most important, they had decades of learned behavior about how people renew.

So we borrowed their model.  Line for line.  Shot for shot.

We launched renewal notices 90 days before the person’s “expiration date”—an idea borrowed straight from Time, Sports Illustrated and the field generals of Time, Inc. We stacked six, seven, sometimes eight notices in a renewal series. And when a donor finally renewed, we didn’t consider the matter settled; we dumped them directly into the appeals track “just to keep them warm.”

If ever there was a sin of mail more to make more, I was both the priest and the altar boy.

And here’s the surprising—and damning—part:  That model still dominates the industry today.  Despite everything we’ve learned.  Despite all the research of the last 50 years—and especially that of DonorVoice over the last 10 years.  Despite donor irritation, rising attrition, wasted budget, and mountains of data showing it simply doesn’t match donor behavior.

In short, we are clinging to an aging unicorn and pretending it’s still a workhorse.

The Recency Switch: How a Useful Model Became a Blunt Instrument

The circulation model eventually fused with another fundraising holy relic: RFM—Recency, Frequency, Monetary. But as time went on, and as shortcuts became career habits, RFM devolved into its crudest form:  Recency—and nothing else.

A binary “recency switch” that said:

  • If a donor gave recently, they get everything—full volume, full cadence, full ask stream.
  • At day 365 they were “in.”
  • At day 366 they were “out”—dropped off the cliff into the silent valley of the lapsed.

No nuance.  No behavior analysis.  No segmentation of giving patterns.  No recognition that donors are not one species but multiple.

This “switch” gives us two predictable outcomes—both bad:

  1. Over-solicitation of the loyal
    We irritate the donors most likely to stay.
  2. Under-solicitation of the rest
    We eject donors who still have value but don’t live inside a 365-day box.

As DonorVoice’s decade of data makes painfully clear—painful because I helped build the old edifice—we’ve been using a blunt hammer where we needed a violin bow.

What the Data Actually Shows (and Why It Should Reshape Everything)

Across every donor file examined since 2016, the pattern is as steady as winter returning to my home in New England:

  • Upwards of 60% of donors make one gift and never give again
  • The next largest group gives one gift per year—every year
  • A small, consistent fraction gives two or more gifts per year

These patterns have appeared across cause sectors, geographies, list types, acquisition channels, and organizational budgets.  Not once, not twice, but in every file.  These aren’t theories.
They’re behavioral facts.  And they tell us that donors fall into two foundational behavioral segments:

Segment 1: The Mode of 1 Donors

This is the label created by the researchers at DonorVoice for the once-per-year givers.
They’re habitual and predictable.  Their generosity is seasonal, rhythmic—an “anniversary month” they gravitate toward like a bird to its nesting ground.

Segment 2: The Responsive Multiples

These are the  donors who give two or more times per year.  They’re more reactive and more flexible.   They respond to multiple moments, prompts, or urgencies.  They are fewer in number—but they are incredibly important.

These two groups behave differently and they require different cadences, different strategies, different expectations.  But for decades we treated them as the same animal.

The Fatal Myth of the “Second Gift”

Before I go into more detail on how to identify and best handle Mode of 1 and Responsive Multiples let’s first tackle a sacred cow—or sacred unicorn—head on:

The belief that the second gift must come fast on the heels of the first.

For Mode of 1 donors, this is not merely wrong—it’s delusional.  The period immediately after their first gift is the worst possible time to ask for another.  Their readiness is near zero.
It doesn’t begin to rise again until they approach their anniversary month—the time of year they have always preferred to give.

And remember, after the never give again crowd, the mostly likely outcome for a new donor is that person settling into their strongly preferred habit of once annually.  This means your best bet is helping that new donor settle into an annual giving pattern instead of a never giving again one.  And that bet is ill placed if your tactic is early and often soliciting.

Conversely, Responsive Multiples do sometimes give again soon after their first gift. But here’s the nuance:  It’s not because you asked.  It’s because they behave like responsive donors.

Asking all donors for a fast second gift has always been a fundamental misunderstanding of human behavior.  Truth is we built an industrywide strategy on an anecdote—and it never matched reality.

Introducing the Anniversary Halo:

This is the strategy/cadence—the folks at DonorVoice call “Personalized Pulsing”  that actually fits or matches donor behavior

The Mode of 1 donors—the largest retained audience—need a strategy and cadence in harmony with their nature.

It’s called the Anniversary Halo:

  1. One appeal the month before their anniversary month
  2. One during their anniversary month
  3. One the month after

And for the other nine months?

No asking.  Only stewardship, warmth, impact stories, and brand reinforcement.

This strategy  reduces irritation,  increases response, raises ROI, lowers cost, improves long-term retention, and it aligns with who these donors actually are—not who we wish they were. These are the quiet workhorses whose behavior we’ve ignored.

The Responsive Multiples: these are the donors who give two or more times per year.

They react to multiple appeals, engage with rapid-response digital efforts, read, click, and share more, give in alignment with events and need, not calendar anniversaries.

For Responsive Multiples, the ideal cadence is not three touches per year—it’s a dynamic set of well-timed appeals tied to: breaking news, program milestones, emergencies, opportunities, political or social inflection points.

Yet for decades, our RFM-derived renewal model has treated them as Mode 1 donors with a caffeine problem. We have flattened them into sameness, ignored their responsiveness, and bluntly overwritten their natural pattern with a schedule that wasn’t built for them.

The Responsive Multiples need their own oxygen, their own rhythm, their own strategy.

The Endgame for Both Groups: Annual Auto-Renewals

There is a moment of elegance in all of this—one clear place where the orchestra resolves and the dissonance settles.

It is the power of annual auto-renewals (or monthly/quarterly auto-renewals for Responsive Multiples).

For Mode of 1 donors, auto-renewal aligns perfectly with their once-a-year pattern: one habit, one moment, one friction point removed

WOW!  Retention in these programs is 75–80%.  That is not a small improvement.  That is a structural transformation.

For Responsive Multiples, recurring monthly auto-renewal gives them stability, predictability, a natural continuation of their multi-touch behavior. This is not like forcing a monthly donor into a Mode of 1 cadence;  you are formalizing the rhythm they already show you.

The Unicorn at the Gate

So here we stand—sixty years after magazine circulation gave us our first renewal model—watching a unicorn that once carried us proudly now stand with stiff legs under a burden it no longer fits.

The truth is this:  We don’t need more volume.  We need more listening.  Donors are not mysteries.  They are patterns of rhythms and seasons.  If we watch how they behave—not how we wish they behaved, not how our models said they “should” behave,  but how they actually behave,  we will see everything we need to see.

  • Mode of 1 donors always return in season.
  • Responsive Multiples return in moments.
  • The second gift is not a finish line.
  • And auto-renewals are simply the cleanest expression of donor preference.

It’s time to unhitch the unicorn.Thank it for its service.  Walk it gently to the pasture.  And then build the fundraising models that match the world as it is—not as we once imagined it to be.

Roger

P.S.  You can view  a detailed explication –and valuable questions and answers –about how this process works for the clients of DonorVoice in this recorded YouTube webinar

12 responses to “The Unicorn We Need To Retire”

  1. Daniel Christy says:

    Been dealing with the donor relations fallout of the problem you’re confronting for years.

    Question on the solution:

    How do you make your best guess at establishing whether a donor is Mode of 1 vs Responsive Multiple immediately after their FIRST gift? (Before a pattern can be established).

    The next communications need to get to the print shop asap…will it be an ask or a cultivation?

    • Kevin Schulman says:

      Hi Daniel, hope all is well with you, always appreciate your thoughtful questions and willingness to be open and think differently. We’ve not be able to pre-identify these two groups among new donors, which is why we have a completely separate strategy for new donor. But your comment about making best guess guides our thinking, at least in part.

      If I were to make a bet in Vegas on most likely outcome for any new donor it’s that they don’t give again. This is less guess, more playing the clear odds. Second most likely outcome is they become mode of 1. That set of two outcomes is from current state, and the current state for mid and large orgs is ask early and often on the false belief that minimizing speed to 2nd gift is a good goal.

      If we believe how we treat people in year one matters then we have a requirement to change the current state journey. Our planning for this adopts a do no harm adage, avoid the bad outcome (never give again). We are further guided by the pyschological need to make sure the new donor feels a sense of competence (i.e. made a good choice with 1st gift), autonomy (i.e. have agency over what they do with charity) and relatedness (feel sense of connection to brand, cause, beneficiary).

      To your question, the next communication is not an ask.

  2. Daniel Christy says:

    Appreciate the timely reply! Thank you. Without ability to get insight to potentially pre-identify, default toward operating in accordance with the more likely future *positive* outcome.

    All is in fact well with me, and busier than ever this year end, actually with a lot of effort at reactivating 1x donors from 24-25, for one client.

    I will be interested to see if the results show we end reactivating more from December 2024 than from the last couple months in accordance with your pattern!

    • Roger Craver says:

      Hi Daniel,

      In addition to Kevin’s advice I’d add a simple but widely neglected practice: thank the new donor in a prompt and heartfelt manner. Failure to thank or recognize donors accounts for a significant percentage of new donors hitting the exits after that first gift.

      All good wishes for a successful year end.

      • Daniel Christy says:

        Oh yes! Thank you for reminding me of this. We must treat donors like…people. People rightfully expect to be thanked for gifts. It’s easy to overthink situations where we have limited information instead of acting on the information we have. Speaking to myself there. Appreciate your words!

  3. Jay Love says:

    Roger and Kevin, such wonderful insights and advice! I am still amazed, even when I make a gift to a well established National Nonprofit, how so many of your best practices are violated right out of the gate. It is such a joy when it is executed properly with a beautiful thank you and stewardship before the next ask.
    Thanks for allowing me to nod my head in approval multiple times as I read early this morning.

    • Roger Craver says:

      Thanks Jay. What you’re reading is certainly familiar to you given your long history of preaching donor care and dealing with issues of retention. Keep readin’. Keep preachin.

  4. This is SO useful — Thank You! I often find a lot of effective fundraising is common sense. But, somehow, we often throw common sense out the window in favor of adopting “magic formulas.” In practice, I’ve never found using recency works. But, I’ve often told people “research shows the most likely to give our those who’ve given most recently.” Thanks for meaningfully debunking this!!! I will never say this again. 😉

    One question: Would you leave Mode of 1 Donors out of true emergency appeals? Because those, I find, often yield additional one-time gifts from those who otherwise make only one “annual gift.” In other words, are there exceptions?

    • Kevin Schulman says:

      Hi Claire, thanks as always for the readership, the commentary and the questioning. The idea that a “good” donor (forever defined by their giving behavior) gives more, on average, than a less good donor is obvious and circular. The idea that the good donor is always better to include than less good is where circular logic starts to swirl down the drain.

      We’re very careful to greatly limit the exceptions on Mode of 1, not least of which because we tell them we’ll stop the solicitation train. Having said that, you’ve identified the one and only exception – true emergencies and the true word should be capitalized and bolded and repeated 3 times. Our ride along rule is that the mainstream media has to be talking about it to qualify as true emergency. This is crude but useful proxy to signal it’s emergency in real world, not just our internal labeling.

  5. Melissa Garonzik says:

    What about for donors who become lapsed or fall out of the Anniversary Halo? What cadence should they get?

  6. Melissa Garonzik says:

    What about donors who lapse or fall out of the Anniversary Halo? What is the strategy for this group?

    • Roger Craver says:

      Hi Melissa,

      Thank you. You’re describing a donor segment that has moved from the predictable “Mode of 1” (MOT one) behavior to lapsed status, as they have missed their annual giving cycle for two years.

      Mode of 1 donors are those who consistently make just one gift a year, regardless of how often they are asked. Although some Mode of 1 donors may skip a year and still qualify as active, having missed two annual gifts places them firmly in the lapsed category.

      The core strategy for dealing with these formerly consistent annual givers is reactivation, while respecting their known behavioral rhythm.

      Tailor the Solicitation Strategy for Reinstatement

      When attempting to reactivate lapsed donors, the goal is securing the gift—reinstatement—rather than maximizing the gift amount.
      • Determine the Ask Amount Anchor: For donors in the Acquisition and Reinstatement (Lapsed Donors) categories, you should use the Most Recent Contribution (MRC) as the psychological anchor for the suggested donation amounts. Anchoring to an older, higher amount (Highest Previous Contribution or HPC) risks placing the ask outside the donor’s consideration set, which suppresses the response rate, defeating the primary goal of reactivation.
      • Use the Anniversary Halo: Since these donors previously exhibited a strong habit of giving around the same time each year (their “anniversary month”), their reinstatement effort should align with this known rhythm.

      Once a Mode of 1 donor is reactivated, the most valuable strategy is to encourage them to convert to an annually recurring (auto-renew) gift. This is considered a “chess move” or a “structural transformation” because annual recurring gifts typically lock in high retention rates, generally between 75% and 80%.
      This conversion aligns perfectly with their preferred annual giving rhythm by removing friction and ensuring continuity. The process involves making it simple for them to opt for annual auto-renewal online or through EFT (Electronic Funds Transfer) in direct mail.
      3. Key Considerations and What to Avoid
      When attempting to solicit these lapsed Mode of 1 donors, avoid tactics that suppress response:
      • Avoid Matching Gifts: Research indicates that matching gift offers only work for active donors, and they have no impact or a negative impact on lapsed donors.
      • Avoid Social Proof: Be cautious when using social proof (e.g., statements like “Most supporters give at this level”) on lapsed donors, as evidence suggests this tactic can significantly lower the response rate, which is detrimental when the goal is reinstatement.
      • Respect the Rhythm: The previous strategy of “mail more, ask more,” which many organizations follow, creates irritation and attrition. The best thing you can do for Mode of 1 donors is accept and acknowledge their preference for annual giving and make it easier for them.

      In short, for Mode of 1 donors who have lapsed after two years, you should target them using their predictable annual timing (Anniversary Halo) and customized ask strings based on their Most Recent Contribution. Your ultimate goal is to reactivate them and lock them into an annual auto-renew program to secure long-term value.

      Here’s wishing you success.