How to Avoid Fundraising’s Quiet Killer: Donor Attrition
- 1. Jay Wilkinson Julie Lawson With: Moderated by: TO USE YOUR COMPUTER'S AUDIO: When the webinar begins, you will be connected to audio using your computer's microphone and speakers (VoIP). A headset is recommended. Webinar will begin: 12:30 PM (PDT) TO USE YOUR TELEPHONE: If you prefer to use your phone, you must select "Use Telephone" after joining the webinar and call in using the numbers below. United States: ++1 (415) 930-5321 Access Code: 762-278-903 Audio PIN: Shown after joining the webinar --OR-- How to Avoid Fundraising’s Quiet Killer: Donor Attrition
- 2. About Jay Wilkinson Jay Wilkinson is the founder and CEO of Firespring—a Nebraska-based Certified B Corporation. In 2016, Firespring was featured in Inc. Magazine as one of America's Top 50 Workplaces and has been listed as one of the Inc. 5000 fastest growing companies 7 of the last 9 years. Jay’s TEDx talk on company culture has more than 1 million views. A graduate of MIT’s Entrepreneurial Masters Program, he has appeared on CNN and other national news outlets discussing the important role of nonprofits in the U.S. economy. About Julie Lawson Julie Lawson majored in English at Boston University. She worked at the college radio station, WTBU, where she developed a passion for producing shows with good music and good stories. She started her career at a small publishing house in Los Angeles and went on to become Webinar Coordinator at Aggregage, where she produces webinars and facilitates BTS webinar functions. In her spare time, she enjoys going to the beach, camping and reading great books.
- 3. Presented by Jay Wilkinson • July 22, 2020 Jay Wilkinson Donor Attrition How to Avoid Fundraising’s Quiet Killer:
- 5. provides marketing, printing, websites and strategic guidance to thousands of brands, businesses and nonprofits in all 50 states and in 14 countries. Firespring Jay Wilkinson
- 7. About Firespring POWER OF 3 1% of our Profits (top-line revenue donated to NPOs) 2% of our Products (in-kind products and services) 3% of our People (volunteer 1 day per month) Jay Wilkinson
- 8. How to Avoid Fundraising’s Quiet Killer: Donor Attrition ü Your website: the foundation of your online presence. ü The Fundraising Effectiveness Survey. ü Why donors leave. ü 6 key retention drivers that can double lifetime value. ü 8 donor retention best practices. ü 5 metrics every NPO should be using. ü Action Steps | Q&A Jay Wilkinson
- 9. How to Avoid Fundraising’s Quiet Killer: Donor Attrition Jay Wilkinson
- 10. “81% of nonprofit websites are designed for $1,000 or less.” Why do nonprofits struggle? We’re trying to do more with less ... Jay Wilkinson
- 11. DONATE BLOG VOLUNTEER PHOTO GALLERY EVENT REGISTRATION ANSWER OUR SURVEY YOUTUBE CHANNEL EMAIL OPT IN Most nonprofits send visitors away to engage instead of keeping them on the website. Jay Wilkinson
- 12. Your Website “82% of donors visit a nonprofit’s website before giving.” The Foundation of Your Online Presence 5 Elements of a Powerful & Engaging Web Presence Jay Wilkinson
- 13. 5 Elements of a Powerful & Engaging Web Presence Images & headlines that tell your story Deep, diverse content 1. Structure 2. Design 3. Content 4. Functionality 5. Vitality Functional tools that engage visitors Weekly updated news/events Navigation options Jay Wilkinson
- 14. Is your website cheap or effective? (why can’t it be both?) ROI > Cost Jay Wilkinson
- 15. The Secret Weapon YOUR WEBSITE SEARCH ENGINE APPEAL LETTER EMAIL MARKETING BLOG POST FACEBOOK DIRECTORY Jay Wilkinson
- 16. Landing Pages: The Secret Weapon Jay Wilkinson
- 18. 55% Donor attrition in 2019 45% RETENTION Jay Wilkinson Importance of Donor Retention
- 19. Nearly 6 out of every 10 donors from the previous year did not donate the next year. Jay Wilkinson Importance of Donor Retention
- 20. Donor Attrition Over 5 Years Jay Wilkinson Importance of Donor Retention
- 21. Commercial Customer Retention 94% Attrition: 6% Nonprofit Donor Retention 45% Attrition: 55% Jay Wilkinson Importance of Donor Retention
- 22. What does a 10% increase in donor retention rates mean in terms of LIFETIME dollars raised? a. 50% b. 100% c. 200%+Jay Wilkinson Importance of Donor Retention
- 23. Cue the Expert Dr. Adrian Sargeant Top 10 most influential people in fundraising. Renowned expert on donor retention and loyalty. “A 10% improvement in retention can double the LIFETIME value of your donor database.” Jay Wilkinson
- 24. Lifetime Value calculation: LTV = ∑Ci Where c = net contribution from each year’s fundraising activity i = expected duration of each relationship in years The total contributions from a donor during their lifetime in your database. Jay Wilkinson
- 25. The Math (based on 10% improved retention) Original Retention: 45% 10% Improvement: 55% Jay Wilkinson
- 26. Why donors leave. ü No longer able to afford support (smallest %). ü Did not feel connected. ü No memory of ever supporting. ü Asked for inappropriate amounts. ü Didn’t inform me how my donation was used. ü Not reminded to give again.Jay Wilkinson
- 27. Stop Digging for New Donors and focus more on the donors you have Jay Wilkinson
- 28. 6 Key Retention Drivers (that can double lifetime value) Jay Wilkinson
- 31. Be personal. (Segment your audience.) 3 Jay Wilkinson
- 32. Develop like a good personal friendship. 4 Jay Wilkinson
- 33. Find and use numerous human connectors. 5 Jay Wilkinson
- 34. Always communicate what monies are doing. 6 Research Education Advocacy Outreach Activities Mentoring Jay Wilkinson
- 36. Create a communication plan for new donors. 1 Jay Wilkinson 8 Donor Retention Best Practices
- 37. Respond to first donation within 48 hours In a test with board members calling to thank donors within 48 hours, those called gave an average of 39% more than those not called—and they gave 42% more even after 14 months. (Clairification) 2 Jay Wilkinson 8 Donor Retention Best Practices
- 38. Ask why they donated and begin building a relationship. 3 Jay Wilkinson 8 Donor Retention Best Practices
- 39. Instead of immediately making another ask, invite them to get involved. This could include: • A tour of your office. • An invitation to an event. 4 • Volunteering. • Sharing with their community. Jay Wilkinson 8 Donor Retention Best Practices
- 40. Offer a recurring gift option on your donation form. Over time, donors who agree to a recurring gift donate 42% more on average than those who make a one-time gift. (Network for Good) 5 Jay Wilkinson 8 Donor Retention Best Practices
- 41. Share donor impact stories and quantify support: • 5 meals for a family • 10 spay/neuter services • 1 home placement 6 Jay Wilkinson 8 Donor Retention Best Practices
- 42. Publicly recognize your donors. 7 Jay Wilkinson 8 Donor Retention Best Practices
- 43. Send a personalized thank you.8 Donor Retention Best Practices 8 Jay Wilkinson 1st Time Donor Above Average Gift Repeat Donor Above Average Gift 1st Time Donor Below Average Gift Repeat Donor Below Average Gift RepeatDonor 1stTimeDonor Above average gift amount Below average gift amount
- 44. 4 Principles of Acknowledgment that Drastically Improve Retention Jay Wilkinson
- 45. 4 Principles of Acknowledgment that Drastically Improve Retention 48-Hour Rule.1 Jay Wilkinson
- 46. 4 Principles of Acknowledgment that Drastically Improve Retention Think different.2 Jay Wilkinson
- 47. 4 Principles of Acknowledgment that Drastically Improve Retention Be specific.3 Jay Wilkinson
- 48. 4 Principles of Acknowledgment that Drastically Improve Retention Be human.4 Jay Wilkinson
- 49. 5 Metrics to Measure Fundraising Performance Jay Wilkinson
- 50. Peer Groups Nonprofit Best Practice The Power of Jay Wilkinson
- 51. Average Gift Size and # of Gifts Use for budgeting, forecasting and planning to calculate the fundraising potential of a campaign, event or budget year. 1 Total Raised ÷ # of Donations $100,000 ÷ 2,000 Donations = $50 avg. gift Jay Wilkinson 5 Metrics to Measure Fundraising Performance
- 52. Use to determine which activities, events or other fundraising efforts are most effective. Giving by Activity and Return Per Activity2Giving by Activity ÷ Cost per Activity $10,000 raised ÷ $2,000 cost = $5 return/$1 Jay Wilkinson 5 Metrics to Measure Fundraising Performance
- 53. Use to determine the effectiveness of your campaign, event or activity at encouraging donors to give, visit your site, reply to an email, etc. Conversion Rate 3 # Targeted ÷ # Converted 1,000 Targeted ÷ 100 Converted = 10% Conversion Jay Wilkinson 5 Metrics to Measure Fundraising Performance
- 54. Scary fact: 70% OF DONORS ABANDON ONLINE DONATION FORMS These are potential donors who go to your site, click Donate, but don’t follow through. Jay Wilkinson 5 Metrics to Measure Fundraising Performance
- 55. 4 Tips to Reduce Abandonment Use as few fields as possible.1 Jay Wilkinson 5 Metrics to Measure Fundraising Performance Include a short, compelling message. (the donation isn’t final until the payment is submitted). 2 Test on mobile devices.3 Don’t send your donors off to a 3rd party site.4
- 56. Cost per $1 Raised4 Total cost ÷ Total raised $250,000 cost ÷ $1 million = $0.25 cost/$1 Use to calculate how much money it takes to raise $1 for the organization. Jay Wilkinson 5 Metrics to Measure Fundraising Performance
- 57. Donor Retention5 Use to determine whether a donor who gave in a prior time period/activity gave in the present time period/activity. # of donors who gave in 2020 and 2019 ÷ # of donors who gave in 2019 800 1st & 2nd Year ÷ 1000 1st year = 80% retention Jay Wilkinson 5 Metrics to Measure Fundraising Performance
- 58. Action Steps ü Understand and apply the 5 ELEMENTS of a powerful and engaging nonprofit website. ü Focus on ROI instead of COST. ü Drip feed MISSION PERFORMANCE DATA. ü Always COMMUNICATE how donations are being used. ü Publicly RECOGNIZE your donors. ü Always send a THANK YOU note. ü We manage what we MEASURE, so measure the right things. ü Keep learning from ASSOCIATION UNIVERSE, FIRESPRING and NONPROFITHUB.ORG. Jay Wilkinson
- 59. How to Captivate & Engage Constituents with Your Website 5 Secrets of Email Marketing Geniuses Convert Supporters with Powerful Landing Pages The Power of Blogging & Thought Leadership How to Avoid Fundraising’s Quiet Killer: Donor Attrition Events in a Digital Age: How to Maximize Offline Events in an Online World Overcoming the Overhead Myth: Making a Website Within Your Budget Be Found: The Secrets of SEO for Nonprofits Online Fundraising Best Practices For Nonprofits Social Media 101 Mobile Marketing Tips for Each Generation Storytelling for Impact on Your Website How to Get the Most Out of Your Nonprofit Website Guest Webinars Featuring Consultants, Influencers, and Fundraising Coaches in the Nonprofit Field. Social Media 102 & An Inside Look at Firespring Nonprofit Websites It’s a New World: How to Cultivate Your Community Online Get Your Board to Help You Fundraise, Even if They Don’t Wanna! Online Tools Every Nonprofit Needs to Simplify Their Life Keep Learning Free webinar calendar • firespring.com/webinars Jay Wilkinson
- 60. Q&A Julie Lawson With: Moderated by: CEO & Founder, Firespring Linkedin: /in/jaywilkinson/ Twitter: @jaywilk Email: [email protected] Website: firespring.com Jay Wilkinson Webinar Coordinator, Aggregage Linkedin page: /in/julie-lawson-25a027154/ Email: [email protected] https://www.associationuniverse.com/frs/13911031/how-to-avoid-fundraising-s-quiet-killer--donor-attrition/email