Why Bother Getting First Gift?
A couple of days ago I wrote about My Favorite Fundraising Metrics. Number 3 on my list was first year retention rates.
A slightly different — and very practical — way of putting that is … how many initial donors did you succeed in getting a second gift from?
Indeed, I’m razor close to saying that the single most important metric — and fundraising challenge — revolves around this one … getting the second gift. If you’re not willing to work as hard and as creatively to win the second gift, it’s almost like … why bother to get the first one?! You might as well be flushing your nonprofit’s prospecting budget down the toilet.
Yet so many nonprofits accept abysmally low second-gift conversion rates. Many can’t even get the super-critical “thank you” process and message right.
In The Gift That Really Counts, fundraiser Leah Eustace at Canadian fundraising agency Good Works offers some smart advice about the Thank You process.
Move this metric and you’ll be a fundraising hero. The Agitator will even give you a raise!
Tom
4 responses to “Why Bother Getting First Gift?”
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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Thank you for the mention Tom. I’m looking forward to seeing any comments or questions people might have. Let’s start a conversation folks!
Yes! Yes! Yes!
Why spend all that money acquiring a new donor/supporter/customer for just a one time event. Acquisition should be viewed as “break-even” or even at a loss in some cases with the “profit” coming over some amount of time.
Average donor retention is 30% – don’t get fired 7 out of 10 times!
Thank you for this post! Too too true!
Thanks for so consistently addressing the issue of donor retention.
Leah certainly gives great advice… And, apparently, we were on the same wavelength!!
I make very similar recommendations in my latest e-news (released yesterday) geared towards surviving in a small shop.
You can find it at: http://conta.cc/hEQkPO
Obviously, Leah’s advice (and mine) applies to nonprofits of all size. But small shops are trying to do even more with less so it’s even more critical for them to strategically prioritize their time for maximum results.