everything you need to know about creating and maintaining donor relationships

Building Great Donor Relationships

May 2, 2013

Jay Love and Sandy Rees

Why focus on individual donors?

2011 Contributions: $290.89 Billion

According to 2011 Giving USA Report

Corporations5%

Founda-tions14%

Bequests8%

Indviduals73%

Why focus on individual donors?

Statistical Annual Retention

Stay65%

Go away35%

Why do some leave?• Move away• Pass away• ???

*Ultimately they leave because they don’t have a relationship

It’s ALL about the relationship

Relationships lead to

• Volunteers• Money• Other Resources• Other potential donors

But “authentic” relationships can’t be presumptuous

• Don’t rush the ask • You’ve got to value the relationship over the gift

It’s ALL about the relationship

Shared Passio

n

Intentional

Investment

Loyal Donors

It’s ALL about the relationship

Donors that you have a relationship with and who love what your organization does,

are the foundation of sustainability.

Do you want Donors or Friends?

Donors Friends

Give you money Give you money and love and support, and cares about your success

May or may not give again Will always be there for you

May or may not support you in other ways

Look for other resources (including people) to bring to you

May or may not speak well of you in the community

Are ambassadors for you, spreading the word about your mission

Don’t necessarily feel engaged or connected

See themselves as partners in your work

So why does it feel icky?

The wrong mindset will leave you feeling yucky about building relationships with donors.

“They’ll think I’m just after their money.”“I’m being manipulative.”“I’m taking advantage of them.”

Change the mindset!

“I’m making friends for my organization.”“The more friends we have, the more people we can help.”“I’m giving these folks the chance to partner in our work.”

How does a relationship grow?

• It ALWAYS starts with an introduction• In small steps• Intentionally and over time• Give and take• Lots of interest• Lots of attention• Lots of communication

Steps to Building a Relationship on Purpose1. Network, consistently look for introductions2. Get interested. Learn all you can about them. Look for

shared passions, common interests, etc.3. Get to know them. What are their likes and dislikes?4. Ask questions.5. Listen.6. Communicate regularly but appropriately.7. Keep the focus on THEM not YOU.

Retaining Donor Relationships

What Technology Can Do to Reverse the Trend of Falling Donor Retention and Improve Relationships

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Your Presenter

Jay B. Love CEO and Co-Founder of Bloomerang

• 29 Years of Technology Leadership• Over 20,000 Database Installations• Former Founder & CEO of eTapestry• Former CEO of Master Software/Fund-Master• AFP Board Member• AFP Ethics Committee Member• Center on Philanthropy at IU Board Member• Innovation Fund at Butler University Board Member• Gleaners Food Bank Board Member• Co-Chair of Indianapolis YMCA Capital Campaign

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Donor Retention Rate was 41%

Donor Attrition was 59%!

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2011 FEP Data on Donor Retention Rate »

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This scares most NPO Board Members » Donor Attrition Over Five Years

# of Donors Attrition Rate

Donors Remaining After 1 Year

Donors Remaining

After 2 Years

Donors Remaining

After 3 Years

Donors Remaining

After 4 Years

Donors Remaining

After 5 Years

1,000 20% 800 640 512 410 328

1,000 40% 600 360 216 130 78

1,000 60% 400 160 64 26 10

Addressing the Retention Problem!Is it a Donor Relationship Problem?

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The Problem

How many of you use a donor database?

What percent of the product do you use?

@bloomerangtech | 20

The Problem

How many of you use a donor database?

What percent of the product do you use?

@bloomerangtech | 21

• Majority of NPO’s Use Less Than 20% of Their Database’s Functionality

• Large Amounts of Features = Complexity• Database Complexity Keeps Fundraisers Out

@bloomerangtech | 22

1. Game Changing Ideas

2. Strong & Respected Leaders

3. Relentless Execution

@bloomerangtech | 23

Revolutionary Change Comes From?

Game Changing Idea:

• No training required• Anyone can use

@bloomerangtech | 24

Game Changing Idea:

• No training required• Anyone can use• Bring BEST practices to life

@bloomerangtech | 25

Game Changing Idea:

• No training required• Anyone can use• Bring BEST practices to life• Focus on core functions only

@bloomerangtech | 26

Net Result:

• All fundraisers use the database

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Net Result:

• All fundraisers use the database• Everyone using a database equals…

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Net Result:

• All fundraisers use the database• Everyone using a database equals…

Relationship Building & FUNDRAISING SUCCESS!

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Next Gen Database/CRM

Enables Fundraising Best Practices

Donor Retention/Donor Communications

Extreme Ease of Use

Relentless Focus on Results, not Features

Leading a “Revolution of Change”

Pedigree . . .

”Finally Got It Right!”

FUND-MASTER

CUE THE EXPERTS:

Dr. Adrian SargeantBloomerang Chief Scientist Professor of Fundraising at the Center on Philanthropy at Indiana University holding what is presently the world’s only endowed chair in that discipline.Top 10 Most Influential People in FundraisingRenowned expert on Donor Retention and Donor Loyalty

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Mr. Tom AhernBloomerang Donor Communications Head Coach One of the world’s top authorities on donor communicationsAuthor of 4 books on Donor CommunicationsWinner of 3 prestigious international IABC Gold Quill awards

DONOR RETENTION BEST PRACTICES

Dr. Adrian SargeantBloomerang Chief Scientist

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“A 10% improvement in retention can double the LIFETIME value of your donor database!”

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Automatic Engagement Factors

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• Recency and pattern of giving

• Cash donors vs. sustaining donors

• # of years giving +• Upgrade /

Downgrade + -• Lapsed -• Event attendance +• Opens email +• Click links in emails +

• Unsubscribes from email -

• Has stated communication preferences +

• Has inbound interactions +

• Has soft credits +• Volunteers +• Social Media

(coming soon)• …and a whole lot more!

What is the donor’sengagement over time!

Highlight vital “retention” information---

DONOR COMMUNICATION BEST PRACTICES

Mr. Tom AhernBloomerang Donor Communications Head Coach

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"Successful direct mail appeals are quite simple. At heart, they are love letters to donors & prospects, woven through with clear cries for help."

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Conclusion:So Strive For:

• Donor Satisfaction• Donor Commitment/Engagement (which . . .)

• Donor Trust• Donor Loyalty (close your eyes)

Doubling Your Lifetime Value = ?

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Questions?

Creating and Retaining Donor Relationships

Sandy Rees & Jay B. Lovesandy@sandyrees.com

jay.love@bloomerang.co

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