Category: Repeat

What to Do When Things are Uncertain and Donors Aren’t Giving as Much

Sarah Lundberg  |  Repeat
wait

My colleague Steven Screen said something profound recently:

“When times are good, donors give. When times are bad, donors give. When times are uncertain… donors wait.”

This spring your organization may have experienced donors waiting. Your fundraising results may have been lower than normal, and you may feel a little panicked.

You are NOT alone!

There are times when some donors wait to give, for reasons we can’t control.

This spring there was scary messaging in the US news around the debt ceiling.

We (mostly) suspected it would turn out okay, but if it didn’t, then… Catastrophic global economic consequences! Immediate recession! THINGS WILL BE TERRIBLE!

Those were the types of headlines we were seeing in the US. (Okay, I made up the last one, but that’s what it FELT like…)

I suspect there were donors waiting to see how the debt ceiling situation played out.

When your job is fundraising and donor giving dips, whether that’s major donor fundraising, direct response fundraising, event fundraising – any area, really – here are three things you should do:

  1. Glance at a few headlines. Do your best to understand what your donors might be thinking about, fearing, or uncertain about.

  2. Review your strategy. Are you asking donors to give in a clear, confident, emotional way that has worked in the past? Are you thanking your donors when they give and reporting back on what their gift did?

  3. If the answer to #2 is YES, you may be in a time where donors are waiting. Keep being faithful with the things you can control and don’t stop fundraising. We’ve seen time and time again that donors resume giving after periods of uncertainty. Make sure you are in front of your donors with strong fundraising offers so they resume their giving to YOUR organization.

By the way, if the answer to #2 is NO, the lack of giving may have more to do with your Asks than your donors. Review your communications with a more critical eye. Sometimes in the day-to-day shuffle – especially when times are weird – messages that are off-topic to donors creep in and cause fundraising to underperform.

Whether times are good or times are bad, donors want to help a cause they care about. Keep asking! Keep thanking! Keep reporting back so they see the good they’re doing!

By the way, once the uncertainty has passed you may have a gap in funding. Tell your donors about it and ask them to help!

Once upon a time… a (fun!) direct mail fundraising fable

Sarah Lundberg  |  Repeat
small

Once upon a time…

There was a small organization in a town near you.

The staff sat in a room one day and asked, “How can we show our donors that we know what we’re doing and that we should be taken seriously?  How can we make our fundraising more professional?”

So they hired a graphic designer, who made their next mailing look like a shiny brochure. They began to print out mailing labels instead of handwriting donor addresses on envelopes. And they stopped calling their donors because nobody uses the phone anymore.

The staff was excited because these improvements would also free up their time to get more done!

Meanwhile, in that same town… there was a large organization.

Their leadership team sat in their conference room and asked, “How can we let our donors know they matter and that we care about them? How can we be more personal with our donors?”

They decided to make their next mailing feel like a personal letter from the executive director to the donor. They decided to handwrite some of the addresses on the next mailing, and even put a real stamp on the envelope. And they started to call some of their donors three days a week.

They knew these efforts would add time to their work. But they also knew these personal touches would help their donors feel more connected to the organization.

***

Okay, I get it. This… little fable could only EVER be interesting to fundraisers.

But hear me on this. If you are a small organization you have a superpower that large organizations are trying their best to imitate. You are personal.

Please DON’T give up that superpower!

Your donors want to know there are living, breathing humans behind the letter they are reading.

So embrace the gift of being a small organization!

Be real. Be quirky. Be creative. Be… YOU!

Sarah

PS — Click here for Steven Screen’s amazing tips for HOW to provide the human touch to your direct mail fundraising – whether you are a small organization or a large organization.

Two Groups of Fundraisers

Steven  |  Repeat
Two groups.

Some people think all fundraising looks and sounds the same.

You’ve met and worked with these folks. They get kind of annoyed with fundraising materials because – to them – the letters and emails all seem to blend together. Ugh.

On the other hand…

There’s a second group of people who see and appreciate the differences in each piece of fundraising. They appreciate that no two pieces of fundraising are the same.

The people in the second group enjoy the details. The people in the second group have more fun.

By the way, it’s people in that second group who you want creating and evaluating your fundraising.

ABCD

Steven  |  Repeat
data

Always Be Collecting Data.

On your journey as a fundraiser, always be on the lookout for little bits of data to save.

Here are just a handful of data points I’ve collected over the years, all a result of head-to-head tests…

  • Thanking donors at the beginning of an e-appeal caused fewer of them to give.
  • Putting gift ask amounts in ascending order caused people to give more.
  • Removing distractions from a giving page caused increased conversion.
  • Adding a “faux reply card” to the back of a printed newsletter caused a 15% increase in net revenue.

Collect a bunch of little data points like these and you’ll develop what I’d call “fundraising intuition.” But it’s intuition trained with data, not personal opinions.

It helps you make decisions with high likelihood of success.

It makes you valuable because when people ask for your opinion they’ll receive evidence-based answers, not feelings.

Always Be Collecting Data.

Nobody

Steven  |  Repeat
first

I have a message for all the young Fundraisers and smaller organizations out there.

Nobody gets their fundraising right the first time.

I say that because it’s easy to get discouraged.

As you start – as an organization starts – there is SO MUCH that you’re having to figure out. Not to mention, nobody got into this business because they desperately wanted to send letters and emails to people. 🙂

So, please know three powerful things…

  1. You’ve begun! That’s a LOT farther than most people get. Maybe they look the other way. Maybe they refuse. Who knows. But you started. From my perspective 30 years in, that’s a bigger deal than you think it is.
  2. Becoming effective is an iterative process. You start. You pay attention. You add another skill. You get better. You notice something else. You get a little better every month. That too is a bigger deal than you think it is.
  3. The whole way, you’re helping your cause and you’re helping your donors. You’re helping the cause by raising awareness, and raising money, so that more good gets done. You’re helping donors because they care – but they don’t have programs like you do, so they can’t do much by themselves.

That’s a lot of good. You could be spending your time marketing bags of chips. Instead you’re helping make change.

It’s not easy. (If it were easy, we’d all be raising tens of millions of dollars and have six-pack abs.)

So keep going. Keep iterating. Keep practicing.

And thanks for being a Fundraiser!

Feedback Loops

Steven  |  Repeat
experiment

Every time you send out of piece of fundraising, you’ve sent out a little experiment into the world.

Is your organization reviewing the results of your experiments?

For instance, your organization has done a lot of experimenting with email subject lines (whether you’ve thought about it that way or not). Have you looked at your open rates to see what types of subject lines generate the highest open rates? After all, the more people who open your email, the more people who read your email, the more people who are likely to give to your email.

Bigger picture – every time your organization completes a year’s worth of fundraising, that’s like sending out a slightly larger experiment into the world.

Are you measuring your “overall donor retention rate”? How about your “major donor retention rate”? Or – I love this one – your “major donor revenue retention rate”? (That one tells you whether your major donor management system is keeping and lifting your current major donors, or if you’re reliant on new major donors to hit your goal each year. Big difference.)

So… you’ve done a lot of experiments.

Is your organization looking at the results of your experiments? Is your organization learning from them? Is your organization getting better with each email, each letter, and each year?

Your Organization’s Habits – Are They Good?

Steven  |  Repeat
habit

Every nonprofit’s fundraising plan is a bundle of habits.

  • Some organizations habitually send out 4 appeals, 1 per quarter.
  • Some organizations habitually call all new donors.
  • Some organizations habitually send out a Christmas card to all donors. 

Think for a second about your organization’s habits. 

The big question is whether an organization has data to tell them whether their habits are helpful… or not.

Quick example.  I once served an organization that habitually sent Christmas cards to all their donors.  They were certain the cards helped with their year-end fundraising, but they had no data to back that up.  And they’d done it for so many years that no one around the table remembered a time when they didn’t send the cards.

So we divided their donors into two random-but-equal groups.  One group received the Christmas cards and the year-end campaign.  The other group did not receive cards, and only received the year-end campaign. 

In January we looked at the results.  The response rate, average gift size, and net revenue from each group was essentially the same. 

They discovered that their habit of sending Christmas cards did not increase how much money they raised.  But it did increase expenses. 

So the following year they dropped the habit. 

Please take a quick look at your organization’s habits.  Make a list of habits that have been directed by data.  By that I mean you’ve tried at least one alternative and the alternative was measurably worse. 

Then make a list of the habits where your organization has little to no information about how an alternate approach might work.  These are the habits that are likely to be personal preferences, or passion projects of an important stakeholder, or traditions that have been handed down from the past. 

The longer the list of habits without information, the more fundraising opportunity you have.

Easy Money: Ask Your Monthly Donors to Give a Little More Each Month

Steven  |  Repeat
Ask for more.

Have you ever asked your monthly donors to upgrade, to give you a few more dollars each month?

You should. Here’s why…

Your monthly donors are usually 3 things:

  • Your true fans. They are the folks who are really bought-in to your organization or your cause. They cared enough to make the commitment to be a monthly donor.
  • Able to give more. Most (but of course not all) monthly donors have the capacity to give more. You already know that they respond great when you send them appeals, and often send in 13th and 14th gifts during each year.
  • Pleased to give more. They are true fans. They love getting to help your cause, and they love getting to help a bit more than they normally do.

Put all that together and you can see that it’s a no-brainer to ask monthly donors to “give a little more each month.”

Here’s a quick summary of how we do it:

  • Once a year, run a mini-campaign to monthly donors that asks them to increase their monthly gift by a few dollars.
  • A direct mail letter tends to be the anchor of the campaign. Include email if you can. The best-performing campaigns always include telemarketing, but you don’t need it to succeed.
  • The campaign’s messaging thanks the donor for the good they are faithfully doing every month, tells the donor how either/both costs and the need are increasing, and asks the donor if they, “could give an extra $4, $7 or even $11 more each month to help” (or something like that).

Oh, and we usually run the campaign in one of two general timeslots: January 15 through February 15, or September after Labor Day.

You’ll be thrilled at how many of your monthly donors say “yes” and start giving more each month. And I’ve never seen the increase in their monthly giving affect their response to other fundraising efforts throughout the year.

The things you might fear will happen, won’t happen. You won’t have mass cancellations. You won’t get complaints.

I helped an organization with a thriving monthly donor program do this for the first time several years ago. They began raising an additional $60,000 every single month. Now they run the “monthly donor upgrade” campaign once a year, and they send it to every returning monthly donor who didn’t upgrade the previous year.

Now, that’s a big organization. But right now, many of your monthly donors could be giving your organization a little more money each month and would be happy to do it.

My recommendation? Prepare a “monthly donor upgrade” campaign and run it this September or at the beginning of next year. You’ll be thrilled you did.

Fundraising “Disasters” Are Rarely Fatal

Steven  |  Repeat
Crisis ahead.

Last Thursday’s post about mistakes got me to thinking…

Mistakes and disasters in fundraising are rarely fatal.

I’ve been part of a lot of mistakes and bad breaks over the years. (Which I think is true of anybody who has been in fundraising for any length of time.)

Just look at this partial list:

  • The Anthrax Scare of 2001 – When poisonous anthrax was mailed to random people that October, everyone in America was afraid to open their mail, and donations through the mail just… completely… stopped.
  • The Great Reply Card Swap – An appeal letter was sent out with a reply card for a completely different nonprofit. And that other nonprofit? Their donors received the reply card for the first nonprofit. Good times!
  • Awkward Typos – When tens of thousands of donors were supposed to be asked to help “fill the pantry” at the rescue mission, and instead were asked to “fill the panty.” And as mentioned last week, when donors were supposed to be asked to “sign the enclosed placemat and return it with your gift“ were instead asked to “sign the enclosed placenta and return it with your gift.”
  • The Host Who Eternally Lapsed – When the famous person you’ve hired for $50,000 to host the donor acquisition TV show… unfortunately passes away a couple months after filming. So you have to pull the shows off the air, reschedule the media buys, and reshoot all their portions of the program.
  • The Poorly Timed Acquisition Campaign – When you launch a national donor acquisition campaign with TV spots, direct mail buys and print magazine ads… right as the 2007 great recession/subprime mortgage started.

All of these left a mark… but none were the massive blow that the organization initially feared.

I think the lessons are to control what you can control. Know that mistakes are going to happen. Send out more fundraising (having fewer fundraising pieces is risky because you’re more reliant on the performance of any one piece).

Donors are generous – they want to give. And it’s inspiring to see how nonprofits are resilient on behalf of their beneficiaries or cause.