How to reduce donor attrition in three minutes

By: Katya Andresen

Here’s the bad news.

As if we needed more bad news about our ability to retain donors…  The Chronicle of Philanthropy shares that donors aren’t just annoyed by our lack of follow-up—they are really, really annoyed. (Read here.)

More than 20 percent of donors say they were never even thanked!

So the obvious remedy is to thank donors, tell them what their gift accomplished and report on your progress in your mission.

What’s the best way to do that?  Here’s the three-minute trick.

Pell & Bales sent me this hot tip - which reinforces what Chuck Longfield told me last week.

Read their step-by-step, three minute solution here, but the headline is:
-Pick up phone
-Call donor
-Talk about donor and what donor did that was amazing for real people:
-Don’t ask them for more money - just say thanks again

Pell & Bales say that three-minute call drastically reduces attrition (see below).  And their findings are in line with those of Chuck, who says taking the time to phone supporters and thank them for their gift lifts their giving by 40 percent.

Want to have amazing results this holiday?  Pick up the phone and say thanks.  Do a couple of calls a day.  It feels good, and it does good.*

*Thanks to Charlie Hulme of Pell & Bales for the tip!

How Are You Saying Thank You?

Article by: Ted Fickes

"Thank You" in Turkish. 

Photo by Michael Silberman.

A simple thank you can go a long way towards making your day better, but that nicety can also translate into positive results in fundraising and mobilisation work.

Maybe we send a form letter. Or maybe we figure “they gave us time or money so they care and will stick around (or give again, make calls, come to the next action, etc.).”

Admit it, you’ve done this (or had it done to you). And you knew it didn’t feel right. But can you prove that a heartfelt thank you helps?

International Rescue Committee tests personal thank you calls and letters

We recently caught up with Alia McKee of Sea Change Strategies who shared with us a story about saying thanks in simple but powerful ways that (this is the good part) was tested and had a positive impact on fundraising and engagement.

The International Rescue Committee (IRC) works, in part, to resettle refugees around the world. In the second half of 2010, the IRC tested thank you calls to donors that gave $100 to $149. They divided donors into three groups:

• The first, the control group, received no call.
• The second was called and thanked by a staff member.
• The third group was called by a refugee with whom the IRC worked to resettle.

By mid-2011, thank you calls made within six weeks of the donation had the greatest impact on increased giving. Those receiving calls from refugees increased donations 16%. Staff calls increased donations 5%.

A letter from an International Rescue Committee donor 

sent after being thanked by a refugee helped by the IRC.

A letter from an International Rescue Committee donor sent after being thanked by a refugee helped by the IRC.

Simply put, a personal thanks made the donor feel appreciated and more likely to give again and give more when they did give. In some cases, refugees have sent handwritten notes to donors when they couldn’t reach them by phone. Many donors have written back to refugees to let them know they appreciated hearing from them.

But we can’t write notes to everyone, can we?

It’s not likely that you’ll send handwritten notes to every donor. The IRC focused on those giving $100 to $149, a segment that typically gets little personal attention from organizations and can be hard to upgrade or keep at that level.

But there are ways to improve your thank you process. You can, for example, get creative with personalized fields in email thank you notes — and be sure to make them relevant to current events and the source of the donation.

We also heard a story from Rachel Weidinger at Upwell about giving thanks. Rachel told us about how Upwell wanted to acknowledge people that shared their content on social networks. Interns tracked down business contact information for these people and they were sent notes of thanks. This personal touch has been powerful as Upwell works to build a powerful group of advocates for oceans.

Fundraising is about relationships — as are mobilisation and organizing. Trust created through a relationship gives one confidence to act out, speak out, and take on leadership or other roles in a campaign. It may all start with a simple thank you.

We want to know: Maybe you’re at Greenpeace working with volunteers or at another organization running a social media campaign. Or maybe something totally different. How are you saying thanks? What would you like to test? Who needs more acknowledgment, and how can we get it done? Let us know in the comments area.

When Stewardship Becomes Collections

I recently had an interesting – and thought-provoking, and ultimately disappointing – set of interactions with a large nonprofit. The name of the specific institution is not important for the story, but suffice it to say that it has played an important role in my life and I’ve always felt proud to support it.

Several years ago, after a lot of conversation and reflection, my wife and I decided to commit to what was, at least for us, a fairly major gift to the group. The gift would require a bit of sacrifice and planning, and reflected our commitment to the organization for the long-term. Note that when I call the gift “major,” I use “major” in the sense that I think it should be, but is seldom, used in the nonprofit space – that is, the gift was major to us as the donors. Alas, it soon became apparent that the gift wasn’t really all that important to the institution.

We made the pledge online. A few days later, we got a call from the group. “Oh,” I thought to myself, “that’s nice – they must be calling to thank us.” I was pretty surprised when the voice on the phone said, “I need to get you to sign your gift commitment paper.” A ha. (Message: We’re a big institution. We don’t trust you.)

The thank-you call never came, although we did get a form letter a month or two later. I noticed that our credit card, however, was charged right away. (Message: Your money means a lot. Your support is secondary.)

About six months later, we got the requisite annual report in the mail. Wow, was it big and thick and glossy! I read the letter from the President, thumbed through the first few pages, and then looked for our name. And looked. And looked. There we were, way in the back of the book. At least I think it was there – the type was pretty small. (Message: You were right! That gift didn’t matter much to us at all.)

The last straw came when I got a solicitation email several weeks ago. The solicitation email didn’t ask us to renew to meet a mission goal, or offer examples of what they did with the first gift, or enumerate their need, or outline aspirations for the year ahead. The solicitation email said, “Our fiscal year is about to end.” (Message: You’re right, your donations are just revenue to us.)  I was pretty floored. I can’t remember seeing a donor communication that was less donor-centric.

So we made a difficult decision and decided not to renew our pledge. Not because we needed more recognition or thanks -- that’s not why we donated in the first place. But because, it is clear to us that, at least in our community, there are a large number of smaller organizations who need and will appreciate our donation a lot more than this one does. I wrote to the institution to explain our decision, and invited them to contact us, but predictably we never heard from anyone. (Message: You made the right decision.)

What’s the lesson? Maybe the lesson is that my wife and I are selfish and need a lot of care and feeding. Could be. But I’d venture to guess that your nonprofit’s donor base is full of people just like us. We don’t want to be at the center of your world -- but we do want to know that you’re trying to change the world, and that our part plays a role.

In terms of specific advice, you probably already know this, but I’ll say it anyway: Thank your donors; speak to them in their language instead of yours; communicate in segments so that messages are as tailored as possible; and most of all, talk about impact instead of need. It really does matter, and I’m writing that not as a fundraiser, but more importantly, as a donor.

Article by: Jeff Shuck, Event360

Thank You Email

Within days of attending a March of Dimes Walk in Des Moines, Iowa, I got the following thank you email.  The organizers kept it very simple and still answered every question I had and thanked their sponsors.  It is so nice getting an email with the overall amount raised - sometimes it takes organizations so long to pull this information together and the participants forget to go back to the website to check out the results.  I loved how they advertised their facebook page and gave us a place to go for photos.  Good job, March of Dimes!

Hello!

THANK YOU for walking with us at Des Moines March for Babies! We are happy to announce that because of your efforts, the campaign raised $297,000! Great job, everyone!!

Your generosity and dedication amazes us and we are grateful to have your support.

• If you have any donations or matching gift forms that need to be turned in, please send them to March of Dimes, 2910 Westown Pkwy., Ste. 301 and attach a note with the walker and/or team name so that we can make sure you get credit.
• The website is still active for any of your donors who wanted to make a credit card/PayPal donation but didn’t get to before the walk. Also, the iPad giveaway will continue until June 1.
• Don’t forget to like us on facebook, we’ll be posting pictures to our page (and we’ll probably need help tagging everyone! J)

Finally, a big thank you to our major sponsors: Aviva USA, Citi, Farmers Insurance, Iowa Health-Des Moines, Mercy Medical Center, American Republic Insurance, MetaBank and Sammons Financial Group; our ambassador family, The Sklenar Family; and our in-kind sponsors Iowa Pork Producers, Atlantic Bottling Company, Dahl’s, Pepsi Americas and The Wittern Group!

Thank you so much for bringing us closer to the day when all babies are born healthy. Have a fantastic day!

Heather & Lora 

The Classics Work

Guest Blogger: Kathryn Hall. The classics never go out of style: More from Chicago’s P2P Roundtable Somethings never go out of style like the LBD “little black dress,” pearls, and a fab pair of sunglasses.  For the gents a suit is the ultimate classic look. No matter the decade or the current wacky trend; one things for sure  you can’t go wrong with the LBD or a suit. Like fashion, fundraising has a few classics of it’s own that never go out of style.  Guest Blogger Kathryn Hall has a few thoughts on this subject.  Take it away Kathryn! A few weeks ago Guest blogger Nancy Palo shared her take away from the Run Walk Ride Event Fundraising Roundtable in Chicago. The consensus of the group was that “the next big thing” is independent fundraising events. I’d like to share a quirky subplot that David Hessekiel, President of the Run Walk Ride Fundraising Council, introduced to the roundtable discussion:  What if “the next big thing” is really not new at all? What if it’s “what has always worked” and remembering the basics? In the last few years much of our focus in the peer to peer fundraising space has been on securing effective means of electronic mass communications, providing the best high volume online fundraising systems to participants and pioneering the latest social media capabilities. This new fundraising landscape has given rise to challenges: Low retention rates, increasing competition from a growing number of P2P fundraising events and the need to differentiate / stand out. What if in our excitement to take things online and do more with electronic communications, we’re getting away from “old fashioned” fundraising fundamentals? Talking to people and making personal connections has always worked. There’s a good chance revisiting the value of the human element can help your program. A few suggestions from the group: Send hand written notes. Highly “personalized” communication via segmented email can only go so far. A hand written thank you note has big impact in this day when most personal communication happens by email and text message. Encourage your fundraisers and team captains to use snail mail creatively as well. Ask for support in person. As the volume of electronic asks from kids, relatives, friends and coworkers goes up, they get easier to ignore. When you or your fundraiser make a personal (in person/on the phone) ask, it stands out. Encourage participants to ask for gifts in person, not rely completely on technological gimmicks. Church World Service shared their homespun series of Crop Hunger Walk “Crop Vids” that, among other things, address people’s fear of asking for money with a light, humorous tone.    Talk to your team captains; cultivate the relationship. If your research shows that returning teams raise 50% more than new ones, go after the team captains personally. Ask them to come back in person rather than relying on electronic communications about the new season’s event. Have staffers go to the events and meet people. This lets supporters know there’s a human person behind the email address and name. Laurel Rosenthal, Manager of Online Fundraising at theALS Association shared that while this approach is expensive, the investment paid valuable dividends in terms of increased retention rates. Shake things up a bit. The reliable kick-off meeting is indispensable, but is the format getting a bit stale? Lindsay Avner, Founder and CEO of Bright Pink likes to keep meetings interesting. Her groups hold sampler events, trying out new locations and themes: wine and cheese, martinis, cupcakes, and similar. Collect feedback through participant surveys. Jeff Shuck of Event 360 spoke of the importance of surveying not just those who attend, but those who do not return to the event, “Find out who didn’t come back. Many, many will say they had a conflict in their calendar. This means you didn’t communicate your mission powerfully enough to get them to prioritize your event over something else.” – Amy’s guest blogger Jennifer Ashbaugh offered more suggestions for post event surveys in a recent post.

A Perfect Thank You

By: Katya Andresen, Katya's Non-profit Marketing Blog

My favorite nonprofit, A Wider Circle, set me a thank-you letter this weekend.  It started with the following quote.

“I truly appreciate everything you have given my family.  The household items aside, it’s the hope, the faith, the trust, and the reassurance that kind, caring and loving people still do exist.  I used to be the one that donated the clothes, the canned goods, and volunteered my time.  But here I was having to rely on the same from others.  It’s going to be a struggle for a while but we’re keeping our faith and staying strong.”  It was from Raeleen, mother of two, whose home was fully furnished by A Wider Circle.

This has all the hallmarks of a wonderful acknowledgement:
It’s heartfelt, it’s original, it’s emotional and it’s tangible.  And better, yet, it’s got the right messenger.

The inclusion of the words of someone helped by my donation is powerful, authentic and moving.  Not to mention relatable.  How many of us have had moments where we are reluctant to ask for help and understand the vulnerability that accepting it entails?  I not only understand the difference I made, I think I understand something of the person I helped.

I hope this inspires you, because there is no greater gift to a donor than a story of how they helped.

And if you’re stuck, here’s my template for a great thank-you.

Dear _________________   (use donor’s name, spelled correctly)

First: Don’t start with the typical “thank you for your donation!” Start with a vivid image or mini story of what the donor made possible, like the example in this post!

Second: Say thank you and give the donor credit for the impact of the donation and/or the specific program(s) supported.

Third: Express gratitude for the specific gift amount, noting the date and including any language on tax deductibility.

Fourth: Tell the donor when and how you’ll be in touch to let them know more about what their gift is accomplishing.  Include contact information – your email, phone and website – so they can stay in touch or reach out if they wish.

Closing: Thank them again and sign a real person’s name. If this is a mailed letter, include a PS with a nice added detail about a resource where they can find out more about the difference you are making because of their gift.

Fundraising Incentives - What works?

Fundraising Incentive Programs – The Carrot and its Many Forms Throughout the years, I’ve watched organizations struggle repeatedly with the question of what incentives to offer their participants in order to get them to fundraise (or fundraise more). At this point, I feel like I’ve seen it all, from water bottles to jewelry to salad spinners to flat-screen TVs. And I’ve observed how participants respond (good and bad) to what was offered to them — through surveys, focus groups, and simply watching their reactions as they pick up their “rewards.” If the hats and toasters you’ve been offering to participants haven’t quite moved the fundraising needle as far as you would have liked, or if you haven’t offered incentives but know that it’s a good next step in your fundraising strategy, this is the blog post for you!  So, without further ado, here are three insights to help you determine which “carrot” is best to dangle in front of your participants: 1. Don’t underestimate the power of recognition.  The military uses a very effective incentive model that features the awarding of medals. And similarly, the Girl Scouts use patches. It’s not that the medals or patches have anymonetary value — but the recognition that comes along with it is perceived to be priceless. In the world of fundraising, we’ve seen this kind of incentive system work better than any other — hands down. For one client, we developed a recognition program that awards tiny 1” buttons to participants who reach certain fundraising milestones. We found participants were thrilled when they received their $3K button and were even more excited if they were able to claim a $5K or $10K pin (which have identical actualvalue as the $3K pins, but have an even higher perceived value). This recognition approach is attractive for a number of reasons. Compare it to giving away a high actual-value flat-screen TV (which we see offered a lot). The pin costs you close to nothing, it can be easily topped as further goals are achieved ($3K becomes $5K becomes $10K) and, most important, it’s a badge of honor that gives fundraisers a way to brag about their commitment to your mission. It is for this last reason that we’ve seen people literally wait in lines to get such a reward. So, before you jump into an expensive prize program know that recognition program methods work and are usually more cost-effective. 2. The more unique, the more desirable. If you’re already implementing a recognition program and/or your participants tend to be more motivated by “stuff,” there are several things you can do to pack the mostperceived value into the stuff you are offering. The following will increase the uniqueness of your incentive, thus making it more valuable and desirable: Brand it. Adding your logo to an item makes it unique. Just make sure it can’t be purchased at your event or online store. (If a participant has to fundraise $200 to get it, but they can buy it for $20, guess what they’ll do?) Make it commemorative. Making anything in limited quantities or for a limited time only increases the value. Adding the event year to the item instantly makes it a commemorative item and sends a message that says, “come back again and collect them all.” Offer special access/opportunity. Leverage your relationships with sponsors and board members to offer unique experiences that only you can offer! Does one of your board members own a restaurant where you could host a top fundraiser dinner? Could your media sponsor offer a behind-the-scenes tour of the studio? 3. Be sensitive to relevancy. This concept of relevancy is pretty straightforward. I think it’s fair to guess that iPods and flat-screen TVs, while cool, are most likely unrelated to your event activity, let alone your mission. Instead, think water bottles for endurance athletes, branded picture frames for team events, and fine-dining gift certificates for gala goers. It’s really up to your own creativity (and perhaps your relationships with prize donors and third-party incentive companies like Turnkey and Summit) to decide what might make the most sense. It’s important to keep in mind that while products can’t embody your mission, they can do damage by reflecting poorly upon your organization. For example, consider that giving away unhealthy food to runners raising money for a health-related issue might make you seem out of out touch. A fully-paid trip to an ultra-luxury resort when you’re raising money to combat poverty might be perceived as insensitive to the people your organization is trying to help. Giving away electronics that aren’t donated by a sponsor may upset participants when they realize that the organization is covering the cost. In the end, a little awareness and sensitivity goes a long way. Keep in mind that you can’t please, or motivate, everyone with incentives — no matter how big or flavorful the carrot. So, that said, be sure to always give participants the ability to opt-out of receiving an incentive. And, to help you deal with those participants who do want their incentive, tune in for part three of this series where we’ll discuss efficient reward distribution. (Part one examined what you should consider before implementing fundraising incentive programs.) Jill Stewart is a Fundraising Consultant at Event 360. With 12 years of event fundraising experience, she has developed, executed, and managed robust, award-winning fundraising and communications programs for major non-profit organizations across the country. Jill holds a Bachelor of Science in Management from Purdue University and a Certificate in Fundraising Management from The Center on Philanthropy at Indiana University.

Thanking Online Donors with Better Emails

Article by Joanne Fritz

I missed Lisa Sargent's webinar for Network for Good last month. Luckily, Lisa sent the link to her slide deck in her recent newsletter.

The webinar was all about how to thank donors by email when they give online. And Lisa's presentation is the most thorough dissection of the email thanking process that I've seen.

Some charities have just flipped off their email thank yous as though they really aren't that important. And some charities have been at sea, wanting to do the right thing but just not sure what that might be.

If your organization is in either of those categories, then make sure you look at Lisa's slides. They are self-explanatory and well worth your time.

Lisa boils the fundamentals down to these simple actions:

• Your "From" line should state clearly who you are. Nothing cryptic here. State your org's name.
• Your "Subject" line should tell the donor what this email is about, in 45 characters or less.
• Personalize the salutation, as in "Dear Ms Fritz." Always attentive to detail, Lisa points out that a comma after the salutation is better than a colon...friendlier, less business like.
• Make the opening lines as engaging as possible...maybe a story or exactly what the donation will accomplish.
• Give contact information so the donor can find out more or contact a real person.
• Tell the donor when he or she will hear from your organization next. A newsletter perhaps?
• Have someone important sign the email...to show how valuable and appreciated the donor is to your charity. Including a photo of that person is a great touch.
• Link to something that the donor can interact with right now -- a video, your website, your Facebook page.
• Include a P.S.--postscripts have been drilled into fundraisers for direct mail appeals, so don't leave it out now. People do and will read it. Provide more thanks, an invitation to do something more, or link to a useful resource.

It's all simple and doable. Thanks to Lisa for developing a framework that any charity can build on.

Go look at How to Write Thank-You Emails That Inspire for more ideas, examples, and a perfect homework assignment.

A Receipt is Not a Thank You

By Joanne Fritz, About.com Guide
Last week, Blackbaud released a report about online giving for 2011. It continues to grow...up 13%.

Frank Barry, in a follow-up to the report, pointed out new donor acquisition through online channels is hotter than any other for charities; that online donors give more, on average, than off line donors; and that they represent higher household income than other donors.

So, why do nonprofits not worry about their online thank yous as much as their mailed thank yous? Why do thank you letters seem to warrant time and attention while the attitude toward online thank yous seems so nonchalant? This seems especially odd given that we also know that attrition for first time donors, especially online, is extremely high. Those donors are worth a lot, but only if we keep them.

Why do I even think that there is less concern about thanking online donors? Well, when I look at the stats for my content, I find that my articles about writing thank you letters (as in mailed ones) are some of the most popular content on my site. My material about online thanking barely registers on the meter. I also accumulate a lot of online thank yous because that is my preferred way of donating. They are not very good.

I'm going to guess the reasons:

• Many people in nonprofits don't think getting a thank you after making an online donation is all that important. Possibly they never learned the art of writing thank you notes. I hang out with a lot of folks who have grown children and grandchildren. A big complaint among this set is that their children and grand kids don't write, call, or even send a thank you for a birthday or holiday gift. Sure, the little kids are usually enthusiastic, getting on the phone or Skype and gushing their enthusiasm, but after about 13 or so....nothing.
• Many young people at nonprofits think that an online donor doesn't care much about a thank you. The donors are probably young, like them, and it just doesn't matter that much. After all, we don't expect IKEA to gush over us every time we buy a DIY bookshelf, do we? So...sending a brief, receipt-like online thank you is just fine. Who has time to read a thank you anyway when your email box is so crammed?
• But, many fundraisers do assume that a check in the mail means that the donor is probably from an earlier generation and is going to get mad if a thank you letter doesn't arrive in the mailbox. How do we write those again? God, will we be glad when everyone is online.
  Actually, it's a multichannel world for all generations. Older donors might respond with an online donation even when they got a mailed appeal; and online donors may switch to sending a check in response to direct mail after that first online gift.

That's why I was so happy to see Simon Norris and Juliet Richardson's article, Why thanking donors online is powerful, which is part of a white paper from the very smart consulting firm,Nomensa.

Simon and Juliet, I think, get to the heart of the matter: we confuse an online donation with a commercial online transaction when they are nothing alike. Simon and Juliet point out:

"The psychology of online giving is definitely not the same as online shopping and should be treated very differently. Thanking the donor appropriately is a key part of the donation process--donors need and expect more than a 'receipt' for their consideration and their money. In fact, there is a rule of thumb that donors should be thanked seven times before you ask for their next donation."

Simon and Juliet go on to cite powerful psychological research that shows just how motivating a good thank you is: donors who are thanked well are more than twice as likely to give again.

I'm pretty darn sure that these psychological effects happen to anyone at any age. Young people...the ones who might be sitting at the social media controls in your nonprofit...might THINK they don't care if they are thanked, but, in fact, they do. They just might not know it yet.

Thanking is a reward and a validation of a genorous act, as Simon and Juliet point out in their article. Donating is so different from buying that it is only that the two seem so alike online that the two transactions confuse people. Donating is altruistic, emotional, personal and expectant of engagement; while buying is calculated, narcissistic, and a one-off exchange. Really, the only resemblance between an online donation and an online purchase is the exchange of information and provision of a credit card number.

I love looking at a thank you letter as a 'reward.' When you buy a hot pink teddy from Victoria's Secret, the teddy in your hand is the reward. But, when donating online, the reward is the knowledge that you're helping, the thank you that lets you know you've done a good thing and are thus valued, and the promise of future engagement with this cause. Your post-donation actions are not an after thought...they are a bridge to the future.

Simon and Juliet connect thanking with the psychology of reward and point out that it involves three factors:

• Reciprocity. Donors are giving a gift, so telling them how valued that gift is completes the reciprocity loop.
• Expectation (and prediction). Donors have expectations about how they want to be treated; they will predict how they will be treated; and when expectation, prediction, and reward (the thank you) match, they feel valued.
• Reinforcement. A social relationship is set up when a donor is asked to give, he or she makes the gift, and when the gift is acknowledged. A good thank you reinforces this particular giving choice and motivates future giving.

Simon and Juliet have some very specific ways to make your thank you landing page and your thank you email reward your donors in a way that will engage, motivate, and fulfill their expectations.

Post donation landing pages can be designed to make an immediate impact, followed up by a thank you email that looks as little like a commercial transaction as possible. Follow Simon and Juliet's instructions, and you'll be a long way toward seeing and creating the differences that make saying thank you for a donation something special and that will get donors to come back for more.

Are You Thanking Your Donors?

Are You Treating Your Donors Right?  The Quiz.
By: Katya Andresen, Network for Good

With the Network for Good team, I just created a mini-course on thanking donors.  It’s a self-guided tour to writing great thank-yous and treating donors well all year - so they will give again!  (It’s not free, but I immodestly think this guide to stewardship is worth every penny.  Learn more here.)

So do you treat your donors well?  To figure it out, take this quiz.  (It’s free.)

And remember the rock bottom, bare minimums when it comes to donor stewardship!

1. ALWAYS THANK YOUR DONORS: Always.  No exceptions.

2. THANK THEM EARLY: You should thank your donors within a few days of their gift.

3. THANK THEM OFTEN:  Thank your donors several times, over time, and keep reporting back on the difference they have made.

4. THANK THEM ACCURATELY: Make sure you have correctly spelled the donor’s name, stated the amount and date of the donation, included appropriate language for taxes and carefully noted if the gift was made in honor of someone else.

If I had a dollar for every charity that didn’t do these four things when I gave…