The Power of Thank You | The Basics & More!Week One: “On behalf of the board...” Lose the Jargon! How to Create Perfect Thank You’s

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Copyright © 2013 by Pamela Grow & Claire Axelrad, J.D., CFRE

.................................................................................Introduction 3

......................................................................................................Getting Started 4

.......................Why Great Thank-You’s Will Make or Break You 4

.......................Top 10 Things to Avoid When Thanking Donors 7

Sweet 16 Elements of an Effective Donor Thank You Letter + ........................................................................Sample Templates 9

..........................................................................................16 KEY ELEMENTS 9

......................................................................................LETTER SAMPLE #1 13

......................................................................................LETTER SAMPLE #2 15

......................................................Post Donation Landing Page 17

...........................................................................................Post Donation Email 17

.......................................................................................E-THANKS SAMPLE 18

....................First-Time Donor Welcome Protocol and Package 20

.........................................................................Why Have a Welcome Package? 20

.........................................................................Purposes of a Welcome Package 21

..........................................................The New Donor Protocol 21

..................................................First-Time Donor Welcome Package Checklist 22

........................................................................General Welcome Package Rules 23

................................................................This Week’s BONUS: 24

.................................................................................Final words 24

.......................................................Thank You Resource Guide 25

.............................................................................................................BONUS: 27

Introduction

Why should I care?

Thank you is the beginning of the donor relationship; not the end. If you’ve read the 7 Clairification Keys to Unlock Your Nonprofit’s Fundraising Potential you know that Principle #6 revolves around donor engagement. And the point of engagement is loyalty. Loyalty = retention.

Most nonprofits are leaking donors like crazy. They acquire; they don’t retain.

If you tend to think about your interaction with donors as a transaction, rather than an ongoing, developing relationship, you’re not alone. Too many nonprofits do this, putting the lion’s share of their energy into acquiring gifts; then treating their donors as data to be warehoused in a database.

It’s time to get up close and personal with your supporters.

Stewarding your donors in order to retain and upgrade their support is equally, if not more important than acquiring their gift.

Cultivating an attitude of gratitude will help you. Big time. Without a great thank you program you’ll be like the typical charity and lose 50 - 75% of your annual donors between the first and second donation, and up to 30% annually thereafter. Is that acceptable to you? I didn’t think so!

How and when you thank your donors can make or break your entire fundraising program. The importance of a well-oiled, passionate donor acknowledgement program cannot be underestimated. Sadly, it is. All the time.

• Too few nonprofits have donor acknowledgment polices and procedures.

• Too few nonprofits draft acknowledgment letters at the same time they draft campaign appeals.

• Too often thanking donors becomes almost an afterthought; something delegated to the lowest level employees.

• Too often gifts start coming in while someone suddenly remembers (oh no!) they better write something that can be sent! Thank you letters are held up.

• Too often the same generic thank you letter is sent, year after year, regardless of the appeal specifics, level of gift or longevity of the donor.

This guide explores the importance of prompt, consistent, personal and meaningful donor acknowledgments. Great stewardship begins with a great thank you! Throughout the course we’ll offer creative suggestions for saying thanks early and often. You’ll also find tips to systematize the process. Let’s get started!

GETTING STARTED

Remember: it’s important to have everyone in your organization invested in creating a solid donor retention system. Before you get started:

• Email my assistant with the FIRST name and EMAIL address of every team member you’d like to add to the course registration

• Want feedback? Join us over on our private Facebook page.

Why Great Thank-You’s Will

Make or Break You

As noted above, if you don’t thank people properly you’re going to lose them by the boatload. However, if you do it right and increase donor retention by just 10% today, you can enhance the lifetime value of your donor base by 200%!

Now, that’s what I call a great return on investment.

But to get that return, you need an investment plan. Does your fundraising strategic plan include goals, measurable objectives and strategies for acknowledging donors in a timely, personal manner? If not, it’s time to right this wrong.

Do the time.

Thanking donors is the one thing most nonprofits do not spend enough time thinking about. Too often staff spends 95% of their time crafting the fundraising appeal and getting embroiled in project management – design; layout; printing, postage, etc. Finally, the letter (or e-appeal) is ready to launch. The mailing is dropped/the button is punched and… voila! Gifts start to arrive! But then what?

Do it now.

After you’ve sent out your appeal is too late to start thinking about what your thank you letter or email will say. Or who will sign it. Or whether someone who donates online will also receive an actual letter. Or thank you call. Or who will make the call. Everything must be well thought-out in advance. You must be ready to go, with different templates and strategies for different target audiences, well before you’ve asked for your first donation.

Would you believe… a study conducted by Charity Dynamics and NTEN shows 21% of donors say they were never thanked for their support at all! Sometimes you may have sent something, but it was so perfunctory and non-personal that the donor failed to notice. It made no impact.

Do it right.

Research reveals that the promptness and quality of your thank you can have a huge impact on whether your donor will give again. Donors deserve, and want, more than a pro forma receipt. They want to know how you value them and how their gift will add value to your mission. They want to feel that they made a great decision in giving to you!

Get everyone on board.

Your task is to persuade the ‘powers that be’ in your organization that ‘thank you’ is the beginning of the donor relationship; not the end. Your donor acknowledgement plan is, therefore, the KEY to building loyal, sustainable support for your organization’s cause. Yet most nonprofits give this plan very short shrift. Thank you’s become an after-thought, or something relegated to the lowest-level staff. This is a huge mistake.

Unless everyone – from top to bottom – understands the critical role of ‘thank you’ to the success of your overall development plan it will be difficult to avoid this mistake. Other departments are involved. Finance often gets the checks first. But wait! Finance doesn’t get them until they come from the mailroom. But wait! The mailroom doesn’t get them until they arrive from the post office. But wait! Is someone assigned to pick the mail up first thing in the morning, or do you wait for a 3:00 p.m. delivery? Development is not always in control of the journey a gift takes from the time the donor sends it off until the time you’re informed of it. So… what’s a development director to do?

Try ‘’on boarding.”

On boarding is a human resources term for acculturating new employees. A good on boarding program drips critical information over a period of time, allowing newbies to absorb facts without becoming overwhelmed. When it comes to donor acknowledgement programs, it turns out that many folks – your E.D., board members and finance, administrative and program staff -- are newbies. If you just spout a bunch of stuff at them, ranting and railing, you’re likely to overwhelm. But if you feed them some data over a period of time you should be able to shift your culture.

Let’s start with the basics (and there are some great books and papers in the Thank You Resource Guide at the end of this week’s course module). According to Penelope Burk’s research, outlined in Donor-Centered Fundraising, the three things donors most want from you have to do with thanking them. It’s not about having their name in lights, receiving a newsletter, annual report or hand-engraved plate or getting to go to a Gala event. Nope. It’s simply a thank you letter that’s (1) prompt, (2) personal and (3) tells them something about the impact of their gift. Plus, they’d like to hear from you at least once – without an ask – before you ask for another gift. That’s it.

If you do nothing else after reading this Guide, go get Donor-Centered Fundraising and read it. I quote the author frequently, and for good reason. You’ll find proof positive of the impact of a systematic donor acknowledgement program.

If you thank donors promptly, personally and regularly you will raise more money. It’s as simple as that!

Top 10 Things to Avoid When

Thanking Donors

1. Delaying. Your thank you should get out the door within 48 hours. Period. No arguments. People will try to tell you they don’t care if they don’t hear from charities for a week… a month… whatever. Don’t believe them. Penelope Burk , author of Donor-Centered Fundraising has proved otherwise. If you don’t thank donors promptly, you’re destroying all the rest of your hard work. The most important predictor of likelihood to give is recency. If it takes you over a month to process a donor’s gift, then you’re missing out on their most-likely-to-give period. A timely thank you gives the donor confidence you received their gift. It communicates a positive first impression that the gift will be used immediately. It lets the donor know they made a good decision. Timely follow up matters. A lot.

2. Misspelling. You absolutely must spell the donor’s name correctly. There is no excuse for getting this wrong. None. It’s just plain sloppy. And it borders on rude. How would your friend feel if you misspelled her name on a thank you card for your birthday gift? Your friend would feel like you didn’t know who they were. Enough said.

3. Failing to personalize the salutation. It’s so easy to do this these days with CRM and mail merge programs. Not doing it is lazy. Unless you absolutely know you have a constituent that prefers a formal salutation, use the familiar (i.e., first names). Except for judges and elected officials and military personnel, almost everyone else goes by their first name. And if they use a nickname (or have a pesky initial), then you’d better put this into the right field in your database. There’s nothing quite as awkward as “Dear Ms. R. Beatrice” when the donor goes by “Bitty.” Remember: You’re trying to build a relationship. Be friendly.

4. A tired, boring opener or anything that implies they’re not particularly special. “Thank you on behalf of ” is simply not exciting, enticing or creative in any way. It does not invite further reading. Spend some time on your opening line. Also, if you say something like,

“Thanks to people like you we’re able to make a difference,” you imply the donor is merely one of a group. You want them to feel personally, specially thanked. Similarly, “Because of donations like yours,” does not convey that their help is what make the difference. It implies that success was achieved due to donations “like” theirs. This may seem like a subtle difference but, heck; we humans are all about nuance.

5. Neglecting to mention something they asked you to do. If they asked for their gift to remain anonymous, the thank you letter should reflect this. If they earmarked the gift for a particular purpose, they want to be reassured that this is how you’ll use the money. If they asked for pledge reminders, they want to know you’ll stay on top of this. And so on. Donors want to know that you listen.

6. Forgetting to tell them the specific impact the gift will have. Even bar mitzvah kids know to tell folks that they really needed that fountain pen and they’ll be putting it to work immediately to write thank you notes! The donor wants to know (1) you really needed their gift, and (2) how wisely you will use their investment and for what purpose.

7. Overlooking the opportunity to provide something of value. Remember, philanthropy is all about the value-for-value exchange. Good donor stewardship requires a give and take; a back and forth. What gifts can you give? A way they can volunteer… a thank you from a supporter… a means to get involved as an advocate… a list of tips they can use? Give your donor something of value now to continue the circle.

8. Not including the name of a contact person. What if the donor has a question? What if you made a mistake in their letter? What if they want to do more for you? How are they going to reach the right person if you don’t give them a name, phone number and email? Again, this is about building personal relationships. They must be able to reach you easily.

9. Sounding like you’re asking for more. A thank you should be pure. Sometimes however, even when we don’t ask, we sound like we’re asking. Take a good look at your thank you letters. Do they sound a lot like a solicitation? Are you moaning about the need in the community; bragging about all the people you help, and adding that you couldn’t do it without the donor’s support? Too often our thank you letters sound exactly like our fundraising letters.

10. Not relating back to the appeal that generated the gift. It’s important to close the circle for donors and remind them why they made the gift. If the donor made a gift

specifically towards a campaign to restore a senior lunch program at your community center, then sending a generic thank you for their help in strengthening the lives of children, families and seniors will miss the mark.

Sweet 16 Elements of an

Effective Donor Thank You

Letter + Sample Templates

16 KEY ELEMENTS

There are certain elements every thank you letter must include. And there are things to avoid (See Top 10 Things to Avoid When Thanking Donors above). Think about the best ones you’ve received when you’ve given a birthday or wedding present. Chances are, the most memorable ones were heartfelt, emotional, tangible and original.  They made you feel glad you gave the perfect gift. Good thank you letters to donors are no different. I’ve heard them described as ‘a smile in an envelope.’

1. Date

This seems obvious, but don’t forget it. In other words, even if you have a pile of pre-fab letters sitting around (which I don’t advocate!) make sure you add in the date. I’m also hoping that the fact you’re including the date will make you embarrassed if you get the letter out too late.

2. Personal salutation

No ‘Dear Friend’ please. And no ‘Dear Mr. Donor’ either. Use the donor’s first name unless they (1) are clergy; (2) are a political figure, or (3) have made it clear they prefer a formal salutation. Again, don’t argue with me. It’s the way of the world in the 21st century. And use a comma after

the name rather than a colon. The latter is for formal business letters; not for warm thank you letters.

3. Catchy opening line

"On behalf of ___, thanks for your gift.” This makes me cringe! If you use this tired, boring opener chances are your donor will read no further. They’ll file or toss the letter. You’ve lost your chance to inspire and bond. The thanker thanks. Not on behalf of someone else. Here are some much better examples:

“You remembered, because they couldn’t.” (Alzheimer’s charity)

“Children will sleep safely tonight, because you care.” (Women and children’s shelter)

“Hunger shouldn’t be an option; thanks to you it won’t be.” (Food bank)

“This year’s lunch program is safe. Because of you. (Senior center)

“On Saturday 11 August, you made a decision to save someone’s life.” (Dignitas International; this just won an award for “best thank you” from Constant Changes. You can see the other honorable mentions here.)

4. Feedback on how donation will be used

Per research by Penelope Burk in Donor-Centered Fundraising, keeping donors informed about how their money was used is one of the most important ways to ensure future gifts. One of the most effective ways to communicate this information is to share a good success story. Stories are more memorable and more powerful than a recitation of a bunch of facts and figures (and when you do that the letter begins to be perceived as another solicitation). Human beings are naturally wired to pay attention to storytelling. Also, be sure to tell a story that relates to the purpose for which the gift was designated. Tip: Keep an inventory of stories about the good things your charity accomplishes and drop these into your thank you letters as appropriate. Make a note of which stories have been used so that you don’t repeat them to the same group of supporters.

5. Verification of amount of donation

You always want to let your donor know that you know how much they gave. If the donation represents a significant increase, it’s nice to mention this. If it’s enough to enroll them into one of your Gift Societies, welcome them to the club! Plus, folks want to save these letters and file them away for tax purposes. Generic “thanks for your donation” won’t cut it.

6. Acknowledgment of any special instructions

If they asked for the gift to remain anonymous, make sure you reassure them that it will be. If they earmarked their gift specifically, make sure to mention this. If they ask not to be solicited more than once a year, acknowledge this too. If they enclosed a matching gift form, thank them again for this additional gift.

7. Acknowledgment of any special connection with your organization

If they’re a board member or volunteer, thank them also for this service. If they’re an alumna, mention this connection. If they’ve increased their gift or made an additional gift, let them know you noticed.

8. Invitation to get involved

Your goal is to build a relationship with your donor. Everything shouldn’t be about their wallet. Encourage them to get involved in other ways. Let them know how they can volunteer, join a committee, help out in the office, participate in an advocacy campaign or attend an interesting lecture. And invite them to subscribe to your newsletter or blog and follow you on social networks to receive timely updates and useful information.

9. Contact information of a real person

Give the name, phone number and email of someone the donor can contact if they have any questions about the letter or how to get more involved.

10. The right messenger

Your letter must come from someone important or authentic. In other words, from your E.D or board president or Gala chair or program director. Or even from a client. What donors really don’t want is a letter from a development director. There, I’ve said it. (If you know the donor personally, however, it’s great to hand-write an additional thank you note on the face of the letter).

11.Number of signatories

One. This is a one-to-one endeavor. Keep it believable. No one believes that two or three people actually sat down and wrote a letter together.

12.P.S.

If you’re familiar with principles of direct mail you know that often the P.S. is the first or second thing read. So take advantage of this valuable real estate for something really compelling or useful (e.g., an invitation to tour your facility or join you for tea; contact information of a warm body they can reach, etc.).

13.Language on tax deductibility

This is the least personal part of the letter and is really a housekeeping detail. I like to put it at the very bottom, underneath the signature and P.S., in a somewhat smaller font size. But don’t forget it, as donor disclosure is required by law and is a true courtesy to the donor.

14.Tribute envelope

I do not advocate asking for another gift in your thank you. However, I do think it’s a good idea to include a tribute envelope for the donor to use at his or her convenience. I think of it as a ‘gift’ to the donor. Perhaps they’ll have a gift-giving opportunity soon, and it will be particularly convenient for them to be able to simply make a donation in their friend’s honor (this is why I suggest a tribute envelope rather than a generic remit that is used for your annual campaign). Having the envelope on hand makes it simple.

15.Thank you ‘insert’ testifying to impact of gift

I like to include one-page with excerpts from client thank you letters. These serve as testimonials that your organization is really, truly making a difference in people’s lives. If the gift was earmarked for a particular program, you can include one longer letter from a beneficiary of this program. This is not the place to include more data about your programs, additional stories about clients or information about numbers of people helped or in need. Why? Because it can begin to appear like you’re asking again for another gift. Too often, insert pieces read almost exactly like solicitation pieces. This is a thank you. Mostly, just include more thanks. You can also include involvement opportunity dates (e.g. for tours, lectures, coffee, office hours, etc.).

16. Some general rules

Keep the letter short – definitely just one page. Folks don’t want you to kill a lot of trees to thank them. In fact, I advocate that your insert piece be ‘virtual’ and copied onto the reverse side of your letter. This way you kill two birds with one stone – thank you plus testimonial wrapped into one.

Relate the thank you to the appeal or campaign that brought in the gift. A donor who gives to support your senior lunch program will be confused if they receive a generic letter thanking them for supporting the depth and breadth of what you do. Think of your appeal and thank you letters -- theme, look and feel -- as parts of one consistent campaign package. In fact, write the thank you at the same time you write the appeal.

Proof read, especially for spelling of your donor’s name. Nothing will destroy the personal feel of the letter faster than calling the donor by the wrong name. And this includes “Ms.” instead of “Mr.” and ‘Pat’ instead of ‘Patricia.’ So make sure you’ve got this right in your database, and that the reports you’re generating have all the right information in the right fields.

Read again to make sure you’ve used “you” much more than “I” or “we.” The donor is the hero of the thank you letter. Not you. Not your organization.

LETTER SAMPLE #1

Use an easy-to-read serif font, like Times New Roman, Garamond or Palatino).

Date

[ADDRESS BLOCK]

Dear _____________, (first name and use comma!)

(Indent paragraph; begin with a punchy first line)

You didn’t ignore our letter when you received it, thank goodness, and because of that no senior will go without lunch this year.

(Thank for specific amount and purpose of gift; show impact)

Your [Amount] gift to our [Name of program] will assure a warm, nutritious lunch for 86-year-old Max and 92-year-old Sophie six days a week, all year round. Because you care, dozens of other vulnerable seniors who would otherwise not eat will also get a hot daily meal.

(Embrace the donor as part of a larger community of like-minded givers) I can’t tell you how much it means to folks to know our community is here to support them, because there are people like you. It’s not just the food; it’s also knowing they are not alone. Thank you for being such a good neighbor and friend.

(Acknowledge special instructions or special connection)

As requested we will keep your gift anonymous. We will also take your husband’s name off of our list, and extend our sincerest condolences on your loss. If there is any way I or anyone here can be of help to you during this difficult time, please let us know.

(Mention if this is an upgrade, additional, milestone or otherwise special gift)

Again, thank you for you long-time support. I noticed this is your 10th consecutive year of giving –You’re a [name of organization] rock star!

(Invitation to get more involved)

I’m having a series of intimate brown bag lunches where I love to meet and chat with dedicated supporters like you. If you’re interested, please call [staff name] at [direct number] (Can also refer to dates/times on insert).

(Closing)

Your gift will be put to work immediately, making a real difference. Thank you!

Warm, personal regards,

(Hand-written signature)

(P.S.) The words of some of the people helped by your gift express more eloquently than can I how much your support means. Please see reverse.

Sign the letter by hand. Have you ever licked your finger; then rubbed it over a signature to see if it was real? Authentic goes a long way.

(Tax disclosure)

No goods or services were provided in exchange for this donation, which is tax-deductible as provided by law.

LETTER SAMPLE #2

Date

[ADDRESS BLOCK]

Dear _____________, (first name and use comma!)

(Indent paragraph; begin with a punchy first line)

Did you know you’re a hero to six-year-old Jesse? Seriously, you are!

(Thank for specific amount and purpose of gift; show impact)

Your [Amount] gift to our [Name of program] will make it possible for him to learn to read next year, and also to spend the day with warm and caring teachers. The difference from where Jesse comes from and where he’s going, because you care, is absolutely huge.

(Embrace the donor as part of a larger community of like-minded givers)

Children are our future, and it takes a community of people like you to assure they get a good start in life. Thank you for nurturing hope and health.

(Acknowledge special instructions or special connection)

Of course, as a volunteer you know better than most how much these children need you. But not everyone gives both time and money, and those who do truly mean the world. We simply couldn’t do this work without you.

(Mention if this is an upgrade, additional, milestone or otherwise special gift)

Thank you, also, for enclosing a matching gift form from your employer. My heart is overflowing with gratitude for all your support.

(Invitation to get more involved)

I hope to see you at our upcoming Volunteer Recognition Event. Please call [staff name] at [direct number] to reserve your space. I really hope you’ll attend!

(Closing)

Your gift will be put to work immediately, making a real difference. Thank you!

Warm, personal regards,

(Hand-written signature)

(P.S.) I’ve enclosed a snapshot showing how happy Jesse is with his teacher. Please see reverse to hear how much it means to his Mom to have him included in the program. There’s also a note from his teacher. It’s inspiring stuff – made possible by you!

(Tax disclosure)

No goods or services were provided in exchange for this donation, which is tax-deductible as provided by law.

Key Elements of an Effective Donor E-Thanks + Sample Template

To retain and create loyal lifetime donors, here are a few things to be sure not to forget -- plus some online opportunities you won’t want to overlook:

Post Donation Landing Page

After the donor makes a gift they should immediately be taken to a special landing page on your website that thanks them for their gift. This page should be tailored to the campaign to which they responded. One generic page for all purposes will end up looking like exactly that. It’s cold, impersonal and irrelevant. The donor needs to be reassured that their gift will be used for the purpose for which they intended. Here’s a great post-donation landing page example from Charity:Water.

Post Donation Email

1. "From" line should state clearly who you are. I personally like it coming from a person (such as the E.D. or Board President), but include your organization’s name too in case the donor is not yet familiar with your leadership.

2. "Subject" line should tell the donor what this email is about, in 45 characters or less. Using the donor’s first name here is a bonus (e.g., “Thanks for your gift, Claire”).

3. Salutation should be personalized, as in "Dear Claire," Just as in letters, commas are friendlier than colons.

4. Opening line should be catchy, just as in a letter (see above).

5. Link to something interactive the donor can engage with right now -- a video, your website, your blog – to take advantage of the fact this is an electronic medium.

6. Include a visual (photo or brief video)of how you’re helping. A picture is worth a thousand words.

7. Include contact information so the donor can ask questions or find out more. Offer the name, phone number and email of a real person who will respond.

8. Include a P.S. Just as with a letter, don’t ignore this valuable real estate. This can be a good place to link to a useful resource on your website or blog. Or you could link to volunteer opportunities or other ways to become involved (just not more ways to give – not now!).

Above all, do not fall into the trap of thinking that an online donation is more like a commercial transaction and therefore only requires a pro forma receipt. Not true! When someone buys a product online they get something tangible in return. When someone makes a charitable contribution they should get a thank you as their ‘gift.’ Remember, all fundraising is about a value-for-value exchange. All donors – online and offline -- should be welcomed and made to feel valued. And don’t abandon them! Let them know they’ll hear from you.

An automatically generated email response will be much shorter than a mailed letter, but should also include the basic elements of the thank you letter described above. Your software should allow you to send different emails tailored to different donor segments and to include personalized fields (e.g., salutation; purpose and amount of gift). Your best practice will be to follow this in the very near future with a letter. [ Here are some Examples of Email Thank You Letters collected by Joanne Fritz of Nonprofit About.com].

E-THANKS SAMPLE(Use a 12 point sans serif font like Ariel, Verdana or Tahoma. Choose a default already

installed on your computer so folks can read on mobile).

BadThanks for your [Amount] donation. Please keep this acknowledgment for your tax records.

Good

Subject header: Ding, ding, ding, ding, ding, ding!

Dear Claire,

Did you hear it? That’s how it sounded here when you clicked the “donate” button and made your $[amount} gift to help us meet our matching grant challenge. Seriously, it was awesome. Just like you.

If you click here you’ll see how much your gift means to some of the folks you’ll be helping.

Thank you so much, and please contact me any time at [phone/email of staff person signing letter] if you have any questions about your gift or would like to become more involved in other ways. We’re so pleased to include you as a [new/ongoing] member of the [name of your organization] family!

Very sincerely,

Consider a computer-generated hand-written signature. Note that for this email acknowledgment it is fine to have it come from a development staff member if you’ll be following up in the near future with a mailed letter from the ED, Board President, Event Chair or a program director. It is nice for the donor to be acknowledged by two different people as this re-enforces the fact that their gift is universally appreciated and noticed.

P.S. If you’d like to learn more about volunteer opportunities, please click here. Your gift subscribes you to our e-news with news about the impact of your gift and updates about events and volunteer opportunities. You can unsubscribe any time at the bottom of each e-news, and we’ll never rent or sell your name.

First-Time Donor Welcome

Protocol and Package

Renewal rates for first-time donors are abysmal. You spent all that time and effort to acquire them, but according to the most recent research you’re going to lose more than two out of three of them. That’s right. 70% will not give again. That’s why putting some effort into retaining first-time donors can pay off.

Why Have a Welcome Package?

• Donor’s first gift is often a ‘test’; they’re waiting to see how much you’ll value their support and whether you’ll deliver on your ‘promise’ to make effective use of their gift.

• Donor may not have much of a clue what you do. They may have given at an event because a colleague brought them, or a friend asked them, and not because they truly understood and/or believed in what your organization is doing today.

• Donor may remember you from years ago, but a lot has changed since then.

• Donor may only know about one of your programs and isn’t aware of areas of expansion or depth/breadth of what you do.

Purposes of a Welcome Package

• Thank again and inform (remember the new donor doesn’t usually have a broad understanding of the depth/breadth of what you do; this is an opportunity to quickly synopsize recent and historical accomplishments and tell a few stories of people helped. It’s not a place to talk about “our” facilities, awards, programs or rankings. People want to help people, or animals, or the environment. They don’t care about infrastructure).

• Demonstrate responsiveness (if you’re prompt, personal and thorough with your donors, a reasonable person would conclude you’re probably the same way with the people you serve).

• Begin building a lasting relationship by making friendly overtures (offer other ways to become involved; show that the relationship is a two-way street and that the donor is valued).

• Find out more about the donor (consider including a questionnaire about interests to encourage donor participation and interaction; then capture this information in your database so that later on you can show them you know them; people like to be listened to).

The New Donor Protocol

Pick up the phone immediately and say thanks. Take the time to schmooze a bit and ask a few friendly questions. “What inspired this gift?” “Have you been personally touched by our mission?” (This is also a great time to ask for their email if you don’t have it; let them know you’d like to be sure they receive timely updates -- and save trees)).Leave a message if you don’t reach them personally, with a call back number should they ever have any questions. Make them feel purely thanked and valued (see Sample Script for Donor Thank You Call below).

• Send out a thank you letter within 48 hours.

• Send or deliver a welcome package a week to three weeks later.

• Send or deliver an impact stewardship communication within four to six months.

• Research capacity and if the donor has the capacity to be a leadership annual fund or major gift donor ask if they’d like to get together for coffee or lunch – get out there! In-person visits are the best way to establish a long term, productive relationship.

First-Time Donor Welcome Package Checklist

• Thank you letter that reminds them they made a good decision. It should be personal, as if they were the only donor in the world for you. If you don’t make them feel like they matter here, they’ll leave. Give them some reasons to stick around

• Informational insert(s) There are various options for inclusion in the package, depending on the size of the donation and your judgment about the donor’s potential.

• For many, you’ll just want to include a one-sided insert with client testimonials on one side and Facts/FAQs on the reverse. Make the facts brief; this is not something they are going to be quizzed on afterwards! If you happen to have a recent newspaper feature, this can be included as well. New supporters like to know that other folks think you’re pretty hot stuff as well.

• Note: I recommend keeping this simple and enclosing it in a regular business envelope. If you get to something larger, or heavier, the perception may be that you’re not using the donor’s money wisely.

For major donors you may want to include:

• “The CD/DVD is only 2 minutes long. I think you will find it packed with important facts and compelling stories.”

• “The Annual Report provides a quick overview of who we benefit, how we manage our resources and who else in the community supports us.”

• “Our most recent newsletter provides updates on recent victories, news that is having an impact on people with whom we work, events of interest and ways you may want to become more involved.”

• “Please consider the two invitations I’ve included. One is an intimate gathering at the home of one of our Board members. I will be sharing our vision for the future and would be particularly grateful to get your perspective as a new donor. The second is for (a tour of ______; a networking breakfast; a _______[the idea is to offer a couple of options so they’ll choose one rather than just say yes/no]). I’ll call you in a few days to see if you received this package, which of these events you’ll be able to attend, and whether you have any questions. Thanks again, and I look forward to meeting you in person.”

• Donation envelope I always advise including a simple tribute envelope as a courtesy to a donor who may wish to make a donation in honor or in memory of someone at some point in the future. It’s a nice little ‘gift’ to have on hand. Many times simply including these envelopes will cover the cost of the acknowledgment program. It’s a “soft” ask, and I’ve never had anyone object. Just don’t refer to the envelope or do anything that makes it appear as if this is another solicitation. Keep the thank you pure.

General Welcome Package Rules

Offer a high-level look around – volunteer opportunities, calendar of events and ways they can dialogue with you through social networks, your blog, etc. You’re promoting future engagement now; this is not the time to ask them to join giving clubs).

Credential yourself. Point them to financial information, your 990, annual report and testimonials. The ‘Good Housekeeping Seal of Approval’ from others goes a long way towards cementing their decision to stay with you.

Encourage feedback.

Be brief. Remind donors they chose well. Begin to build the relationship.

In Week Three of the course Pamela Grow will teach you how to set up an email welcome message series. It’s not just your offline donors you need to welcome properly!

This Week’s BONUS: Clairification Thank You Calls E-Book and Script.

Just click on the link above and download your free copy! And be sure to share this with your entire team. Remember: The power of thank you is better when you spread it around.

Final words

As you develop a systematic practice of gratitude, you’ll find that saying thanks can even be good for you personally! If you’ve any doubts, check out The 31 Benefits of Gratitude You Didn’t Know About: How Gratitude Can Change Your Life. I’ll be writing more on this subject in the future, so check out my blog. The bottom line? Gratitude makes us happier – both being grateful and receiving thanks has this effect. How cool is that?

Questions?

Next week, Pamela will walk you through cultivating an organization-wide attitude of gratitude. She’ll discuss different strategies for getting your board and staff actively engaged. And she’ll have some great bonuses for you with practical tips to leverage support from your entire team in the important process of donor acknowledgment and stewardship.

In the meantime, below you’ll find a Resource Guide with additional reading on the subject of creating perfect donor thank you’s. If you have any questions about what you’ve learned this week please email me at claire@clairification.com. Pamela is also available at pamelagrow@simpledevelopmentsystems.com.

To your success!

Thank You Resource Guide

Clairification Article Selections:

Are You Treating Your Donors Like Gumballs?

What Would Miss Manners Say? Thank You.

How to Get Rid of Apathetic Donors to Your Nonprofit

12 Warning Signs that You’re Betraying Your Donors

THANKS(for)GIVING: 8 Mistakes Nonprofits Make When Thanking Donors

Other Blog Articles:

About.com Nonprofit Charitable Orgs, Joanne Fritz

Suggested articles:

Beyond Formulas: Thanking Donors and Volunteers

Donation Thank You Letter Examples

Examples of Email Thank You Letters

Claxon Marketing Blog, Erica Mills

Suggested article:

I Thank You

Constant Changes, Rickesh Lakhani

Suggested article:

Creative Gratitude

Pamela Grow

Suggested articles:

Anatomy of a Successful Thank You Letter

How hopeFound says ‘Thank You’ (And how they can help you say thank you too). A “before” and “after” example.

November Nonprofit Blog Carnival | How are you cultivating an attitude of gratitude?

A free thank you letter template you can swipe

The 10 essentials of an ideal thank you letter

Emily’s List says thank you

Download the Lifetime Donor Attraction System

Eight Simple Tips for Making Your Donors Feel Special

End-of-year appeals are out – it’s time to redo your thank you letters! Another “before” and “after” example -- this one from a reader.

BONUS: Recently Pamela co-created the phenomenal program, The Donor Retention Project. This product features recorded interviews with national and international donor retention experts such as Dr. Adrian Sargeant, Lisa Sargent, Simone Joyaux, Gail Perry, Jonathan Grapsas and more -- each one advising you on a different area of your organization’s stewardship system. You’ll learn about the power behind surveying, how to get your board members involved in the process and more. And, as a registrant of The Power of Thank You, you're entitled to a 10% discount on The Donor

Retention Project. Simply enter coupon code PamG10 at checkout for your discount.

Impact Communications Blog

Suggested article:

Thank Your Donors Like You Mean It

Happier Human Blog, Amit Amin

Suggested article:

The 31 Benefits of Gratitude You Didn’t Know About: How Gratitude Can Change Your Life, Amit Amin.

Harvard Gazette, Harvard Science

Suggested article:

The Power of Thanks, Chuck Leddy (outlines ripple effects of gratitude).

Inspiring Generosity, Razoo

Suggested article:

How to Thank Online Donors

Kivi’s Nonprofit Communications Blog , Kivi Leroux Miller

Suggested articles:

The Formula for Powerful Nonprofit Thank Yous

Barth Syndrome Foundation Thank You Letter: Before and After

Charity: Water Progress Email – Learn from It!

Turning Lame Letters into Donor Delight guest post by Erica Mills

Lisa Sargent Communications, Lisa Sargent

Suggested articles:

How To Write a Better Donation Thank You, Includes a Checklist

How to Write Thank You Emails That Inspire, Slideshare, Lisa Sargent

SOFII (fundraising innovation and inspiration galore)

Suggested article:

The Thank You Letter Clinic, Lisa Sargent.

and, finally, don’t miss

November 2011 Nonprofit Blog Carnival - The Quintessential Guide to Giving Thanks with links to other blog articles and resources

March 2013 Nonprofit Blog Carnival -16 experts tell you how to keep your donors wanting to come back

Papers:

2011 donorCentrics Internet and Multichannel Giving Benchmarking Report, Target Analytics, Blackbaud, by Helen Flannery and Rob Harris (particularly of interest is data about donor retention rates through different giving channels and characteristics of online donors).

Growing Philanthropy in the United States, Adrian Sargeant and Jen Shang

Study Fundraising/Donor Retention and Loyalty, Adrian Sargeant

Books:

Building Donor Loyalty: The Fundraiser's Guide to Increasing Lifetime Value, 2011 Adrienne Sargeant and Elaine Jay

Donor-Centered Fundraising, 2003, Penelope Burk

Keep Your Donors: The Guide to Better Communications & Stronger Relationships , 2007, Tom Ahern and Simone Joyaux (includes sample of a D-I-Y welcome kit you can create from existing materials).

Relationship Fundraising: A Donor Based Approach to the Business of Raising Money, 2002, Ken Burnett

Tiny Essentials of Donor Loyalty, 2010, Adrian Sargeant.

Attitudes of Gratitude, 2009 10th anniversary edition, M.J.Ryan