everything you need to know about creating and maintaining donor relationships
DESCRIPTION
Join Sandy Rees and our own Jay Love for a discussion on donor relationships. This free, 60-minute webinar will focus on attracting and creating donor relationships, as well as best practices for nurturing and retaining those donors. You will finish the hour with at least five ideas to put into immediate action! About Sandy Rees: Sandy Rees is a fundraising coach and consultant with a passion for showing small nonprofit organizations how to raise more money, strengthen their Boards, and build relationships with donors. She's also a mentor and coach to other nonprofit consultants who want to learn to build a business using passive and leveraged income. You can learn more about her at http://www.sandyrees.com.TRANSCRIPT
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?
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• Majority of NPO’s Use Less Than 20% of Their Database’s Functionality
• Large Amounts of Features = Complexity• Database Complexity Keeps Fundraisers Out
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1. Game Changing Ideas
2. Strong & Respected Leaders
3. Relentless Execution
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Revolutionary Change Comes From?
Game Changing Idea:
• No training required• Anyone can use
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Game Changing Idea:
• No training required• Anyone can use• Bring BEST practices to life
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Game Changing Idea:
• No training required• Anyone can use• Bring BEST practices to life• Focus on core functions only
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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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