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Fundraising Tuesday: Where to Find New Donors

October 10, 2017 by Dennis Fischman Leave a Comment

If you have to put your time and energy into finding new donors OR renewing the donors you have, choose donor retention.

donor retention

Don’t just take it from me. “The old growth model is acquiring more new donors than we lose,” says Josh Whichard, a partner at Washington, D.C.’s DonorVoice. The old model, said Whichard, is like a leaky bucket, but one with more water and fewer holes. The new model is to plug more of those holes and need less water. In other words, renew your donors.

Why is it better to renew than to acquire? Lynne Wester of Donor Relations Guru Consulting points out that it’s “7 times more expensive to obtain a new donor than it is to keep the one you have.” Renewing one donor is as good as finding seven new ones!

And Kivi Leroux Miller, one of the leaders in the nonprofit field, tells us that nonprofits have to focus on retention to thrive in the long term, and she adds, “I certainly hope we will see retention grow as a priority in coming years.”

When You DO Need New Donors

Sometimes, though, you just can’t do without new donors. Maybe you’re a new nonprofit, starting out with a small circle of friends. On the other hand, you could be an old organization whose loyal supporters are aging out.

And no matter how many leaks you fix, some donors will always be one-time donors (like the majority of the people who give in honor or in memory of a friend). You need to replace the dollars they give, either by getting your existing donors to give more, or by acquiring new donors.

How do you do find new donors when you need them?

Communication is Key

In the for-profit world, companies are facing an uncomfortable fact. “Experts everywhere proclaim that people are 60% or more of the way through their decision process before they contact you or your company,” says sales maven Jill Konrath.

Nonprofits are in the same boat. Donors today do their research. They look up their favorite causes online, and they check out what you have to say about your organization–and what others say about you–before you ever hear from them.

So, if you want to find new donors, mostly they have to find you first! And when they find you online, they have to like what they see, or they will choose some other organization before you ever send them an email or a newsletter, much less an “ask.”

So, you will need to:

  • Create marketing personas, or profiles of your hoped-for donors
  • Use your communications channels to answer a question or solve a problem that’s bothering them right now
  • Tell memorable stories that move them
  • Make them feel as if you read their mind and knew what they wanted to hear

Introducing You

donors introduce friendsBut the best way you can acquire new donors is by having your loyal year-after-year donors introduce you!

Yes, we’re back to the importance of donor retention. Even for getting new donors, it’s vital to renew  your support from the people who have given to you already.

Think of it this way: Before they will give to you, people have to know you, like what you do, and trust you with their money.  What helps a person get to know, like, and trust your organization more than the word of a mutual friend?

Ways Your Donors Can Introduce You

  1. In person. Ask a thoroughly committed donor to set up a lunch date with one of their friends, to introduce the organization.
  2. Forward an email. Your donor can pass along your message with one of their own, “Kathy, I thought you’d want to read this because…”
  3. Share a post on social media. Again, it helps if they personalize it.
  4. Direct people to your website for timely, topical information.
  5. Just talk about you! “John, did you know that I’m involved with [your organization’s name here]? And I’m excited about it!”

If you don’t think your most loyal supporters will be happy and proud to introduce you to their friends, then your organization is a leaky bucket–and you may need to spend more time renewing your donor support instead!

But you may be underestimating the loyalty of your existing donors. Ask them. You have nothing to lose, and you may have a whole world of new supporters to win. Who are you going to ask for an introduction, today?

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Fundraising Tuesday: Make the Donor the Hero

May 2, 2017 by Dennis Fischman Leave a Comment

Let’s try an experiment. You’ll need your latest fundraising letter, a blue pen, and a yellow highlighter. Put them all on your desk. Ready?

highlighter

Highlight your donor, not your organization

Pick up the pen and circle every mention of your organization. It could be the agency’s name. It could be the word “we,” used to refer to your organization. How many blue circles do you see? A lot, I’ll bet.

Now, pick up the highlighter and underline every mention of your donor. Yes, you can count the salutation if you called them by name. You can also highlight the word “you”–if that means the donor who’s reading the letter.

Is there more yellow on the page than blue? If not, you’re losing donors with every letter you send.

To Renew Their Support, Focus on Donors

A lot of us in the nonprofit world are under a misconception. We think that the reason donors give to us is because we do good work.

No, that’s the reason we’re proud of our organizations. It’s not the reason people give!

If doing good work were enough, you wouldn’t have to worry about getting donors to renew. They’d get to know, like, and trust your organization, and then they’d keep on giving into the indefinite future. But about 70% of the people who gave to you for the first time in 2015 didn’t renew their gift in 2016.

Don’t focus on what you do. Focus on how the donor feels.

Make the Donor the Hero of the Story

Seth Godin writes:

Why on earth would a rational person give money to charity–particularly a charity that supports strangers? What do they get?

A story.

It might be the story of doing the right thing, or fitting in, or pleasing a friend or honoring a memory, but the story has value. It might be the story that you, and you alone are able to make this difference, or perhaps it’s the story of using leverage to change the world. For many, it’s the story of what it means to be part of a community.

For your donor to renew, she or he has to feel like the hero of the story. You are the one who is going to make donors feel like heroes. And the fundraising appeal letter is just one of the many times during the year you have an opportunity to do that–but it’s a crucial time.

Spiderman emblemUse your fundraising powers for good.

Write fundraising appeals that tell the donor, “Because of you, this happened. You are my hero. And you are needed, now.”

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Fundraising Tuesday: 7 Reasons You Don’t Get Enough Donations

January 10, 2017 by Dennis Fischman Leave a Comment

Donations by mailFrom November through December 2016, I received fundraising appeals through the mail from more than 100 nonprofit organizations. About half the organizations sent more than one e letter to my wife and me asking for donations. I spent a morning looking through each and every one of them.

Friends, we have to do better. And we can.

If you didn’t get as many donations as you wanted to this year, here’s how to do better in 2017.

7 Reasons You’re Not Getting Enough Donations (and what you can do about it)

1) You’re starting your letter “Dear Friend.”  A third of the letters I received called me Friend or Supporter–or didn’t call me anything at all.  Wrong!

As fundraising expert Gail Perry says, “Your donor expects that you know her name and who she is, since she’s been sending you money for a while!”  Fix this by using a good database and adding a First Name mail merge field to your appeal letter.

2) You’re mainly talking about your organization. Three-quarters of the letters were in French: they said “we, we, we.” But that’s making your organization the hero of the story!

As Seth Godin has pointed out, in a good appeal letter, the donor is the hero of the story.  That’s why they give. Fix this by talking about how the donors are helping to right wrongs, save lives, or help people.

3) You’re not telling an “impact story.”  There are six types of stories that nonprofits should tell. In your appeal letter, you should tell an impact story, showing how the donors’ contribution makes a difference.  42 out of the  letters I received told just the facts, ma’am. Another 32 included a brief quotation from a client, or a general anecdote about a client, and how the agency helped them.

These letters blur on me. They all sound alike. Fix this by telling a compelling story about one person whose life is better because the donor helped.

4) You’re not including a photo. People are becoming more visually oriented, and a photo helps your appeal stand out. Yet 44 of 106 letters I received were text only! Another 27 included blurry black-and-white photos, or nice color photos that added nothing to the message.

Fix this by taking striking photos of people in action throughout the year. Then you won’t have to scramble for a picture in December.

5) You’re not letting me know you appreciate what I already gave.  This, I find really shocking: nine out of ten appeal letters used exactly the same language to me that they would use to someone who had never given them a penny! And this has gotten worse since last year–even though the software for tracking your donors has improved.

Fix this by segmenting your list, writing different letters to prospects, lapsed donors, and renewing donors, and acknowledging the date and amount of the previous gift.

6) You’re not personalizing your letters. It used to be a no-brainer for Executive Directors, Development Directors, or Board members who knew the donor to write a personal note on appeal letters. People, we are going in the wrong direction on this! 90 out of 106 letters arrived in my mailbox with no personal touches whatever–even when my wife and I have known the person sending the letter for many years.

Fix this by composing your appeals long enough in advance to add those personal notes…and doing so. (Kudos to the Davis-Putter Scholarship Fund, whose Director wrote by hand, “So grateful for your wonderful, longtime support!” You can count on a renewed gift from the Fischmans. Ditto to the Highlander Center, Community Cooks, the Jewish Labor Committee, and the Somerville Homeless Coalition.)

7) You’re neglecting the power of the postscript. When people read letters, they look at the banner, the salutation, and the first line…and then their eyes jump to the bottom of the page. I’m happy to say that 66 of the letter-writers realized that (even if their P.S. was a bit perfunctory).

As for the 40 of you who didn’t add a postscript, you skipped doing the simplest thing you can do to increase donations! Fix this. Add a postscript unless there’s a really good reason not to.

Want More Donations? Look for Tips on Tuesday

You may be wondering now, “What did our appeal letters look like?” Go back and check your letter. If you made even one of those seven mistakes, you probably left donation money on the table.

How do you write better fundraising letters? I can help.

Between now and Tax Day 2016, read this blog every Tuesday. You will get a no-nonsense, how-to, “do it today” tip on every aspect of your appeal letter, from the salutation to the P.S.

Some of them will be so easy you’ll kick yourself for not doing them before! Some will take a little work–but I will show you how to do them, step by step, with video when necessary.

Look for Tips on Tuesday beginning next week, January 17! (And if you want professional advice uniquely suited to your organizations and its donors, email [email protected].)

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