“Nonprofits could raise a lot more money if they paid closer attention to retaining their best givers over the long term, “ Todd Cohen writes.
Paying attention to your best givers involves many different actions. Adrian Sargeant, a professor at the Center of Philanthropy, says that “the single-most-important factor in determining whether givers continue to give to a particular charity is how the charity’s fundraising staff treats them.”
The organizations that stand out are the ones that go above and beyond the call to treat their donors well. There is an intrinsic need within people to be cared for, and when organizations fill this need, it creates loyalty.
This concept is critical because even by retaining “10 percent [of donors] can increase the lifetime value of a nonprofit’s fundraising data base by up to 200 percent,” Sargeant says. If such a small percentage can make such a large difference, it is worth your investment.
Many organizations often become discouraged in their retaining efforts though because such a large portion of first-time givers do not give large amounts or give a second time. Organizations still seem to pursue these donors though, trying to talk about the impact giving makes. However, this is not the first step of what donors are searching for.
Instead, Sargeant suggests that “charities could generate a much better return on their investment by focusing instead on higher-end givers, understanding those givers values and needs, and engaging them in the organization.” It is about caring for people, not just their dollar amounts.
In order to be effective in engaging those donors, it is important to develop fundraising strategies. Rather than cutting your fundraising budget, this should be maintained.
Cohen writes, “Fundraising is a critical part of a nonprofit-s business, and charities need to move beyond business as usual, stop treating givers as automated teller machines, and recognize that a worthy mission and success in addressing social problems are not enough to attract and retain givers.”
In any area, good customer service is valuable to gain positive responses. Investing in people is absolutely critical to success.
Additional information taken from Philanthropy Journal's blog.
-- Jessica High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is a subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online