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TY Thursday: 4 Do’s & Don’ts For Donor Acknowledgment

June 14, 2018 by Dennis Fischman Leave a Comment

A guest post by Laura Rhodes of Third Sector Consulting

Laura Rhodes

Laura Rhodes

Your nonprofit relies on donations from individual donors. And, chances are, you’re a donor to other nonprofits as well.

Do you pay attention to how different organizations thank you when you make a donation? I sure do. Recently, I made modest, but equal, gifts to a dozen nonprofits. What happened next inspired this post.

12 THANK YOU’S IN 24 HOURS

My adopted hometown of Bozeman, Montana hosts a community-wide Giving Day each spring. It’s a 24-hour blitz to raise money for local nonprofits. This year, they set a $1 million goal. (And they crushed it, by the way.)

Although it was one campaign, the nearly 200 participating nonprofits had their own ways of saying thank you – some better than others.

TIP: Remember, in fundraising, your best prospect for a gift is a current donor. So, think of the way you say “thank you” as the first step towards getting that next gift.

UNDERSTAND WHAT  DONORS WANT

Penelope Burk literally wrote the book on Donor Centered Fundraising. Her oft-quoted research found that donors really only want three things:

  • prompt, personalized acknowledgment of their gifts
  • confirmation that their gifts have been set to work as intended
  • measurable results on their gifts at work prior to being asked for another contribution

Keep in mind what donors want – and remember these Do’s and Don’ts – as you’re writing your next donor acknowledgment.

DO acknowledge your donors promptly. 

The Give Big campaign used an online giving platform. As such, I received an automatic email immediately after I made my gifts.

In fact, I received 12 automated emails that day – one from each charity that I supported. Each charity had customized their auto-acknowledgment message. It wasn’t a generic campaign message from the event organizer. Awesome!

TIP: Match the acknowledgment to the way the gift was made. Online gift? An email thank you is fine. If the donor mails you a check, then you should mail them a thank you. And it’s a best practice to get that written letter out the door within 48 hours of receiving the gift. 

DON’T “set it and forget it.” 

Unfortunately, half of the nonprofits that day only sent me an auto-responder thank you. It’s been more than a month now, and I’ve heard from just six of them, since the Give Big Day.

Four nonprofits sent me a second email within the next day or so. A fifth sent me a card in the mail with a handwritten note of thanks. And the sixth sent both a personal email and a handwritten note. Love that!

TIP: There’s a saying in fundraising: “Ask, Thank, Report, Repeat.” After you send the initial thank you, don’t forget to report back to the donor before asking for another gift. Remember, donors want to know how their money is being used and the difference it made. 

DON’T send a “Dear Donor” letter. Ever. 

Your donors want to know that YOU know who they are.

Here’s how one nonprofit acknowledged my donation:

Dear Donor

 

 

For me, this email acknowledgment fell short because of the impersonal greeting. (On the plus side, they did acknowledge what my donation will do and that they “couldn’t do this without you.”)

TIP: If you’re using an automated email system, there’s probably a way to use mail-merge to add the donor’s name to the auto-reply. If not, just leave the donor’s name out rather than use an impersonal salutation. 

DO personalize the thank you to fit the donor and/or campaign.

Most of the follow-up emails from Give Big Day included summaries of the money raised during the 24- hour period. Many shared their own organizational goal and how my gift helped them reach it.

One email included a picture of people from the program, with a message that had been customized just for me. That was a nice touch.

Thank You, Laura
My favorite thank you from the Give Big campaign was a very personal email that could only have been written for me. The Executive Director acknowledged my travel schedule and my upcoming training programs, then offered sincere thanks for my Give Big contribution.

I thought, “This person clearly knows me!” And that kind of acknowledgment made me feel special, appreciated, and valued as an individual as well as a donor to the cause.

TIP: Remember Maya Angelou’s saying, “People will forget what you said. People will forget what you did. But people will never forget how you made them feel.” 

WANT MORE THANK YOU IDEAS? 

Check out these posts from the Let’s Talk Nonprofit blog:

Anatomy of a Stellar Thank You Letter

Do You Have an Attitude of Gratitude? Ways to Make Your Donors Feel Special
What a 10-Year-Old Can Teach You About Thanking Your Donors

P.S. If you liked this article, you can receive posts like these each month in your email. Topics include fundraising, grant writing, board development, and best practices.

Sign up today, join the conversation, and Let’s Talk Nonprofit.


Laura Rhodes is a Certified Fund Raising Executive.  She is the principal at Third Sector Consulting, which helps nonprofits find more funders, win more grants, and raise more money.  She is also a Certified Grant Writer and has a Certificate in Nonprofit Board Education.  Laura is the author of LetsTalkNonprofit.blog.

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The Personally Paradox

June 4, 2018 by Dennis Fischman Leave a Comment

CRM personalIt’s a paradox: to treat people more personally, you need the right tools.

If you’re still keeping your donor records on paper or on a spreadsheet, there’s no way you can be as friendly with them as you’d like.

But if you have a good database (or CRM, for “constituent relationship management tool”), you can do amazing things!

See what a difference the right tools make by reading my guest post on John Haydon’s blog: https://www.johnhaydon.com/deeper-relationships-donor-communications.

Because a database is not just a cool tool. The important thing about a nonprofit database or CRM is how it helps you treat your donors personally, as real human beings.

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A Beginner’s Guide to Testing and Measuring Your Donor Campaigns

April 24, 2018 by Dennis Fischman Leave a Comment

A guest post by Lisa C. Dunn

 Lisa Dunn

Guest author Lisa Dunn

As a nonprofit leader, you probably already know that measuring your organization’s return on investment (ROI) is essential. However, it’s an undertaking that involves inherent challenges when compared to for-profit company leaders facing the same responsibility.

While nonprofits are adept at delivering value, they tend to be less prepared to demonstrate the value of their work, or report outcomes that make sense to donors.

Why are Testing and Measuring Such a Struggle?

Some organizations simply lack the resources to measure impact. Other nonprofits have the resources but don’t understand what factors they should be testing and measuring, or how to quantify their impact.

Despite these challenges, stakeholders hold nonprofits to the same level of standards when it comes to accountability, transparency and measurable results as their for-profit counterparts. So what can your nonprofit do to meet those expectations?

Tune In to These Success Metrics

It can be challenging to figure out exactly what metrics you need in order to identify where your nonprofit’s performance has room for improvement. Many organizations make use of core key performance indicators (KPIs), or analytical tools to help them raise more and more funds.

There are several indicators that nonprofit leadership teams should focus on when it comes to testing and measuring donor campaigns:

Cost Per Dollar Raised

This category is one of the most commonly referenced fundraising success metrics. It answers a very simple question: Did you raise money, break even, or lose money? To determine cost per dollar raised, divide expense by revenue for the specific fundraiser you are examining – such as an event, direct mail appeal, or annual campaign.

If the expense and revenue are equal, you broke even and do not need to carry out any calculations. If the expense is higher than revenue, you lost money.

Year-Over-Year Increase in Donors

Do you know how to track how many donors your nonprofit retains on a year-over-year basis? A sign of growth is the number of donors who renew their support. Pay attention to any loss of donors. Weak performance in this category can be a sign of problems that you need to deal with immediately.

Ideally, your acquisition and retention rates should be improving simultaneously. In general, some organizations place a stronger emphasis on acquisition , some on retention. Acquiring new donors is an expensive undertaking, and retention can be much more cost-effective.

Track your retention rate in a donor management system or a customer relationship management (CRM) software to understand how your nonprofit is doing and determine if your retention practices need enhancing. If you realize that you have a rate that needs improving, look to your stewardship practices and re-evaluate periodically.

Average Gift Size

Do you know your nonprofit’s typical gift size? How does it compare to average gifts from three years ago?

If newer donations remain steady but the value of each gift remains minimal, you have an opportunity to grow your annual fundraising numbers substantially. Look to your current donor pool for ideal candidates to upgrade, and never overlook slighter increases in gift size – they all add up.

Return On Investment

This metric is equally as popular and similar to cost per dollar raised. Instead of dividing expenses by revenue, you divide revenue by expenses. Once you have divided the two amounts, a number greater than one indicates that you have raised money.

You should always know if the strategy you are using is paying off with regards to how you spend time and resources. The ROI metric is comprehensive, so consider all of the factors, including the donation output of the sum total of your fundraising inputs.

For example, use this assessment to determine if your annual gala is more fun, more profitable, or even both. While unique fundraising activities are a great strategy to mix up annual campaigns, in the end, the overall funds you raise must be a top consideration.

The Proof of the Pudding

Today’s nonprofit donors require clear measures of performance and impact. They want real performance metrics as proof that you and your team are making smart decisions with their money. They also want to be shown clear results in meaningful, measurable ways, and that their donations are supporting positive impact regarding your mission.

The metrics we noted above can give you a good start as you pay closer attention to the specifics and become more familiar with your organization’s performance. The things you learn from your efforts can ultimately shape your strategies moving forward.


Lisa C. Dunn is a writer for TechnologyAdvice and a freelance writer, copywriter and ghostwriter who develops high-quality content for businesses and non-profit organizations. For over 20 years, she has worked with numerous PR and digital marketing agencies, and her work has been featured in well-known publications including Forbes, VentureBeat, Mashable, Huffington Post, Wired, B2C,  and USA Today, among others.

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