I’ve always liked to understand how things work.
Engines, supply & demand, how plywood is made, you name it.
Early in my fundraising career, when looking at detailed fundraising results, I noticed the following three things that go a long way to explaining how mass donor fundraising works:
- Appeals raise more than stewardship pieces. OK, great. An appeal is the best thing an organization can do increase revenue. And if an organization wants to raise more money, its annual plan should prioritize sending appeals. Appeals are also great at getting donors to give again, which is the definition of “retaining” a donor.
- Stewardship pieces increase donor retention. Great. We need to make sure that every annual plan has some stewardship pieces – but need to remember that they raise less than appeals.
The immediate next question is, “What’s the right mix of appeals to stewardship pieces?” Back to the fundraising results I went. I looked at the nonprofits who were out-raising similar organizations while also retaining a high percentage of their donors. And that’s when I noticed:
- The organizations that had the healthiest mix of Revenue and Donor Retention sent roughly 2 appeals for every 1 stewardship piece. The 2:1 ratio maximized their revenue & impact today, while also retaining donors so that next year went great.
I’ve used that rough ratio successfully for hundreds, probably over a thousand nonprofits since then. It keeps on working.
(It is, of course, a little different in a major donor context where you are in relationship with the donor. The 2:1 ratio does not apply.)
Here’s one of the things all this makes you realize: you can over-steward your mass donors, and there are real negative consequences to doing so. If a nonprofit over-stewards its mass donors, it raises less money in the short term and retains fewer donors in the long-term.
Think of stewardship as “planting seeds” and appeals as “picking the fruit.” If you plant a lot of seeds, but don’t pick the fruit very often, you have less of a harvest than you earned. Fruit doesn’t pick itself.
Interestingly, the biggest hurdle to smaller nonprofits sending out more appeals is emotional resistance. People cannot believe the 2:1 ratio is correct. They don’t enjoy sending appeals. They can’t believe that donors enjoy giving in response to appeals.
That’s why much of Better Fundraising’s work is sitting with nonprofit leadership, talking to stakeholders, sharing examples & stories, and helping them be comfortable trying one or two steps of a different approach.
If you’d like to have that conversation, let’s chat. It’s what we do. You do the dreaming about the impact you could have if you raised a great deal more in 2026, and we’ll help you have the conversation and start raising more money and retaining more donors!