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TY Thursday: Launching a Donor Recognition Program, 4 Key Tips

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A guest post by Gerard Tonti

The main reasons donors stop giving are a lack of acknowledgement, recognition, and appreciation for their gifts. Every lapsed donor represents another donor your organization will have to acquire, which is a costly pursuit. In fact, acquiring a new donor can cost your nonprofit 50-100% more than the amount that donor will give to your nonprofit.

A donor recognition program, when effectively implemented, not only helps you retain your existing donors, but can also encourage them to become even more engaged. In the long run, this effort can provide a significant amount of additional funds for your organization.

Properly thanking your donors is at the center of every nonprofit’s donor recognition program. We’ll recommend you follow these tips when you launch your donor recognition program:

  1. Set a SMART goal.
  2. Make a detailed plan.
  3. Prioritize personalization.
  4. Offer tiers of recognition.

1. Set a SMART goal.

What does your nonprofit want or need to accomplish with your program? Depending on your specific needs, you may aim to:

  • Convert mid-level donors into major donors
  • Boost your donor retention rate for next year
  • Increase annual revenue

Donor recognition efforts can go a long way to support all of these goals, but choosing one will help your nonprofit stay focused.

Regardless of what your organization wants out of your donor recognition program, make sure your defined goal follows the SMART template. Your goal should be:

  • Specific
  • Measurable
  • Attainable
  • Realistic (or relevant)
  • Time-based

For example, a SMART goal for your donor recognition program might be:

Improve the next calendar year’s mid-level donor retention rate by 10% through the implementation of a mid-level donor society and personal donation appreciation phone calls for mid-level donations.  

Setting your nonprofit’s goal will ensure it’s always clear whether or not your nonprofit has achieved the goal, and it will help you choose your specific donor recognition strategy.

If you need some assistance setting a specific goal, DonorSearch’s guide to nonprofit fundraising metrics contains a full list of Key Performance Indicators around which you can design your goal. Choose just one or two to guide your donor recognition program so your efforts remain targeted.

2. Make a detailed plan.

Once you’ve established a goal, it’s time to get your team together to make a plan for how to achieve it.

There are several things to consider when implementing a donor recognition program, like:

  • Who will be recognized? If your primary goal is to move mid-level donors up to major donors and improve your major donor fundraising numbers, you may choose not to prioritize lower-level donors. Be sure that “mid-level” is clearly defined with a donation range, so you can easily identify which donors will be included in your recognition program.
  • How will they be recognized? What recognition efforts can be automated by your organization’s constituent relationship management system, or CRM? (Donation receipts should make it on that list, but other, more personal communications like phone calls aren’t so easily automated.) Will you use a multi-channel approach? If so, which channels will you use? Will you further acknowledge your donors at events or in public?
  • When will they be recognized? The pace of donor recognition is also worth some thought and discussion with your team. An average thank-you communication schedule might go something like this:
    • Donation receipt: immediate
    • Donation thank-you email: within 24 hours
    • Donation appreciation call: within 72 hours
    • Donation thank-you letter: within 1 week
    • Thank-you gifts: within 1-2 weeks

Of course, this schedule doesn’t include special donor recognition events, which may be a part of your strategy as well.

3. Prioritize personalization.

The key to making your donor recognition efforts effective is to personalize your nonprofit’s communications. A generic “Dear supporter” salutation doesn’t make a strong impact, as donors don’t feel personally acknowledged. Donors need to hear that they matter, which means personalizing every touchpoint.

For nonprofits past a certain size, it’s necessary to rely on donor database software to assist with personalizing your recognition efforts. As we outline in our Salsa Fundraising CRM guide, you should use your CRM to:

  • Segment your donor list. Dividing your donors into separate lists based on specific commonalities allows you to easily target those groups for personal communications. For example, you may identify donors who have volunteered in the past so you can mention their past volunteer efforts in your thank-you letters. Doing so shows the donor your organization is paying attention to their support.

 

  • Automate communications. Once you’ve established the relevant donor segments, your CRM can automate certain communications so your recognition touchpoints won’t fall through the cracks.


  • Develop donor personas. In your donor profiles on your CRM, you can generate “donor personas,” or fictionalized representations of your nonprofit’s typical donors or supporters. Donor personas can help guide personalized communication strategies that you employ in your recognition program.

4. Offer tiers of recognition.

One of the most profitable yet easily overlooked fundraising strategies for nonprofits is showing gratitude for support. It’s important to offer tiers of recognition depending on the giving level of the donor. For example, a T-shirt and a thank-you letter would suffice for a one-time, average donor, but the same recognition wouldn’t fit one of your major donors.

Stepping up your recognition efforts as the donation amount increases ensures all of your donors feel adequately appreciated.

Plus, offering increasing levels of recognition can help incentivize donors to become more and more engaged with your mission. For example, recognizing your mid-level or sustaining donors with an invitation to a giving society can build exclusivity and encourage your lower-level donors to donate more to gain entrance into the society.

Similarly, public recognition of major donors on a donor recognition wall like one of these can help encourage your mid-level donors to give more and eventually become major contributors.

Your organization might establish the following tiered recognition plan:

  • Basic donor: thank-you email, letter, and branded gift (i.e. key chain, water bottle)
  • Sustaining donor: basic donor perks + entrance into donor society, special newsletter, annual appreciation event
  • Mid-level donor: sustaining donor perks + special access at events, annual behind-the-scenes tour, public recognition at events
  • Major donor: mid-level donor perks + inclusion on a donor wall or plaque, conversations with board members and directors, phone call, handwritten note, VIP access at events

This is just one example of a tiered recognition program—your nonprofit should decide what fits best for your organization and its goals. A smaller nonprofit may be able to implement personal phone calls for all of its mid-level donors and meet personally with all of its major donors, while a larger organization would lack the time and resources to call every mid-level donor. Tailor the program to fit your donors, your staff, and your existing donor stewardship strategies.

A strong donor recognition program is an invaluable fundraising asset. Despite the time and effort donor recognition takes, it’s an investment for your nonprofit’s future, strengthening your relationships with donors and encouraging them to become more involved with your mission over time.

Best of luck!

Salsa - Gerard TontiGerard Tonti is the Senior Creative Developer at Salsa Labs, the premier fundraising software company for growth-focused nonprofits.

Gerard’s marketing focus on content creation, conversion optimization and modern marketing technology helps him coach nonprofit development teams on digital fundraising best practices.

Fundraising Tuesday: Should Direct Mail Be A Part of Your Fundraising Campaign?

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A guest post by Grant Cobb of GivingMail

As you look forward to 2021 and beyond, consider new trends that begin to emerge and the long-standing efforts that persevere when crafting your fundraising campaigns. One of our favorites that continues to stand the test of time is direct mail.

Our GivingMail guide on direct mail for nonprofits shares that direct mail continues to be the leading source of individual donations in the U.S. So, yes, direct mail should be a part of your fundraising campaign.

Through our 70+ years of experience, we know a thing or two about hosting a successful direct mail fundraising campaign—and we’ve put together this quick guide so that you can too. Specifically, we’ll discuss the following key points:

  • Integrating direct mail and digital strategies
  • Building relationships with supporters
  • Thanking donors for their contributions
  • Direct mail best practices

Integrating direct mail and digital strategies

Direct mail is an important channel for grabbing your audience’s attention and encouraging them to give. But is it enough?

According to 360MatchPro’s fundraising statistics list, 16% of donors prefer to give via direct mail. That’s a good portion of your audience that will be happy to mail a check for your fundraising campaign. However, there’s still a large number of supporters who might prefer to give digitally. The solution? Integrating your direct mail and virtual fundraising strategies.

Here are three simple ways to do so:

  • Include an easy-to-type URL in your direct mailing.
  • Generate and display a QR code leading to your donation page.
  • Incorporate your text-to-give number and keyword.

Integrating your direct mail and digital strategies allows you and your supporters to get the best of both worlds. You can grab your audiences’ attention with one of the most powerful marketing and communication channels available while still allowing them to give in the most convenient way.

Building relationships with supporters

Even beyond the actual donation ask, direct mailings can greatly impact your donor relationships and how recipients view their connection to your organization.

Essentially, sending campaign updates, informational newsletters, and other types of non-fundraising asks via direct mail can be a fantastic way to communicate to donors that they matter on a level that’s deeper than their wallets. This is referred to as donor stewardship or cultivation efforts, and it’s a critical component of bringing supporters into the mix as partners.

Direct mail is also one of the most powerful communication channels for this type of relationship-building due to its ability to break through the digital clutter. Studies show that written words can keep your organization at the top of the recipient’s mind for longer than if they were to read about your work on a screen.

Thanking donors for their contributions

Even once you’ve received your donation, it doesn’t mean your job as a fundraising professional is over. Instead, it’s time to continue deepening your relationships with donors—starting with a specific, detailed thank-you.

So how should you communicate your appreciation to your supporters? There’s a bit of controversy in the fundraising space about whether an email can suffice as a thank-you message or whether a direct mailing should be required. In our opinion, a thank-you email can be an excellent first step, but it definitely shouldn’t be the last. Instead, a physical thank-you note sent to a donor’s mailbox can make a significant impact on their connection to your organization.

Luckily, free templates like these can help you craft your messages with ease. Simply start with a sample thank-you letter, and be sure to add important details like addressing the recipient by their preferred name and acknowledging their specific gift. Let’s compare these two potential messages:

  • Dear Donor, thank you for your generous gift to our organization.
  • Dear Brenda, thank you for your gift of $100 to help provide impoverished students in our community with the school supplies they need to succeed.

The first example seems like it was mass-sent to anyone who had donated recently. The latter is a specific message crafted carefully with the intended recipient in mind. The added effort that goes into sending a thank-you letter via direct mail rather than email can also show your increased dedication to appreciating donors effectively.

Direct mail best practices

Now that you understand the purpose of direct mail in fundraising, it’s essential to get your message out in the most effective way possible. Let’s discuss a few key strategies and tips:

1. Include specific donation requests

In any direct mail appeals you send, it’s important to include a specific call to action. In a typical fundraising letter, the intended action is to complete a donation.

However, making a broad request for donations can be too vague to drive results. That’s why you should be sure to include specific numbers to help guide the donor on their giving path.

Take a look at these examples:

  • A donation of $25 can feed a hungry child for one week.
  • A donation of $100 can feed a hungry child for one month.
  • A donation of $500 can feed a family of four for one month.

All of these requests are more effective and actionable than “Please donate to our organization.”

By incorporating specific dollar amounts, along with the tangible impacts of each donation size, you encourage recipients to support your organization and its mission by giving more. Plus, you can leverage the power of social proof by showing potential donors what a typical gift size is, which removes the uncertainty around what they’re “supposed to” give.

2. Invest in high-quality materials

Even the most well-written fundraising letter won’t ensure results (or donations) if you neglect the appeal’s physical aspects. If it comes across as looking unenticing or otherwise spammy, it might even go straight from the mailbox to the trash can! One way to avoid this phenomenon is by investing in high-quality materials (like paper, ink, and envelopes) for your mailings.

  • Print your direct mailings on high-grade paper (at least 60#).
  • Use a decent printer and ink so that your text/imagery is legible and visually appealing.
  • Include a pre-paid, pre-addressed return envelope with any direct mail appeals.

Putting thought into optimizing your direct mailings’ physical elements is a great way to increase your envelope open rate. At this point, your content’s quality will take over in coaxing a donation from the reader. After all, making a good first impression matters.

3. Outsource your direct mail efforts

A well-planned-out direct mail fundraising campaign could take a lot of work to pull off. However, it’s possible to outsource the bulk of the effort to a dedicated direct mail fundraising company and save time and money for your mission.

Just like working with an experienced fundraising consultant can help your team make the most of your efforts (and your fundraising dollars), a direct mail platform can help you send your appeals effectively while seeing the most outstanding results.

Not only can this type of partner provide you with free and effective donation request letters and templates, but they can also assist you in sending your letters in the most time- and cost-efficient manner possible.

Direct mail companies can even help send your mailings for less than it would cost to purchase paper, ink, envelopes, and stamps on your own—thanks to bulk discounts made available by bundling your appeals with other organizations.’ It’s a win-win!

Just remember—it’s not good enough to scribble a note and drop it off at the post office. Make sure to craft your appeals carefully to increase the likelihood of your letter being opened, read, and responded to. Good luck!

 

Grant Cobb is a fundraising specialist with over 6 years of experience in the nonprofit space. Currently the head of marketing and analytics at GivingMail, he is a huge proponent of data-driven decision making and the push to bring high-level analytics and fundraising to all.

Use Content You Didn’t Write, and Add Value

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gift

You can share a lot more content with your donors and supporters if you don't have to write it all. Click To Tweet

Giving your donors content that matters to them is a generous gift. It’s also a way to make them value their relationship with your nonprofit even more.

When you share information that make them feel better, or smarter, or more well informed, you are priming your donors to read the next thing you send them–even if the next thing is an appeal for their support! And you are making them more likely to be generous in their turn.

But how do you come up with that content? Day after day, week after week, in your blog, your social media, and your newsletter?

Partly, you adopt an environmental philosophy: “reuse and recycle.” The same idea can turn into a blog post, a newsletter article, a video, and multiple posts or tweets on social media.

But partly, you realize that you can make good use of content that other people have created.

Working with Guest Authors

You might have noticed that I’ve had the pleasure of hosting a bunch of guest posts in the last few months:

And you will see more guest posts mixed in among my own inimitable prose in the months ahead! That’s not just to make my life easier (although it certainly helps). I host guest authors because they have something valuable to share with you, the readers of this blog.

How can your nonprofit work with guest authors to inform, entertain, and delight your donors? Here’s my advice:

  1. Have a strong sense of your audience, and make sure your guest authors are speaking to that audience. (If they aren’t yet, show them how you do it!)
  2. Promote their guest posts on your social media, and ask them to do the same, on theirs.
  3. Develop a working relationship with the guest author, so they are interested in sending you more good content in the future.

Collecting Content from the Web

Besides the people who write guest posts for you, where else can you get news, advice, perspectives, and information that your donors and supporters will love?

Answer: online.

You can approach the task of collecting content for your audience from the internet in two complementary ways. You can search for keywords you know will interest them, and you can monitor other sites that routinely post the right stuff.

For keyword search, please don’t spend your time manually checking for your keywords over and over. Automate it!

I recommend you set up a Google Alert  for a few keywords related to your donor’s interests. Have Google send you a daily digest by email. Then, you can look at the articles when you have the time and choose the ones that really hit the spot. Schedule them using something like Hootsuite or Buffer, or the tool of your choice.

For monitoring sites you like, the best tool I have found is Feedspot. I add blogs and websites I know produce valuable content for my audience. Then, from time to time, Feedspot suggests other, similar sites.

Again, if you use a tool like this, it’s convenient (because you can look through a list of posts all in the same email), efficient (because it takes much less time than visiting all those sites), and encouraging. Yes, you will be more likely to communicate regularly with your donors if you know it will be easy!

Adding Value and Making It Your Own

Now the work of communicating with your donors consistently has become much simpler. Congratulations! But please make sure that when you curate other people’s work, you a) give credit where credit is due, and b) put your own twist on what you share.

You can give credit by naming the original source and linking back to their site.

You can make it your own by adding something to what they wrote–ideally, something that your organization is in a special position to say. Let me give an example here.

One of my clients is an organization dedicated to helping Black women find the resources that they need to heal, advance, and organize. They work on a variety of issues, because their focus is not the issue but the person affected. Because of that:

  • When they share an article about navigating the medical establishment, they add an intro about the particular barriers Black women face, and strategies to surmount those barriers.
  • When they post items related to Mother’s Day, they relate them to Black women raising children.
  • When they direct their constituents to information about harm reduction, or environmental racism, or policy initiatives, they choose sources that take the experience of Black women into account–and they add thoughts based on their own expertise.

If you get into the routine of choosing content with your audience in mind, and putting it in the context that matters most to them, your readers…

…then those readers (including your donors!) will welcome every email, every blog or social media post, every video,  every newsletter you send their way. Each bit of content will be a gift you send them. And they will reciprocate with their own generosity.

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