Discover the Best DR Receipt Format for Nonprofit Organizations

Dr receipt format for Nonprofit

foreign [Music] podcast powered by donor bucks if you're focused only on acquiring new donors don't I mean it wait what when it comes to non-profit fundraising there's a common misconception that acquiring new donors should be the ultimate goal and this isn't without reason of course the more donors you have in your portfolio the larger your fundraising Revenue will likely be however that's not the full story welcome to the non-profit podcast I'm Kara fundraising coach at donor box we're here each week with practical actions you can use today to increase donations and take your non-profit to the next level tomorrow earlier on the non-profit podcast we introduced the five A's of awesome fundraising do you remember them so first you attract supporters to your organization then you ask them to come alongside you by giving then you promptly acknowledge their contributions of any size then you account for the money they've entrusted to you and you repeat it again and again attracting new donors should be a priority for your non-profit but it should be far from the top one in fact retaining the same donors yields significantly more benefits than continuously trying to acquire new ones today we have Jenna Lynch non-profit Advocate at donor box here welcome Jenna hey Cara thanks for having me okay so you're gonna have to break this down for me how on Earth can it not be a good thing to acquire more donors to support our cause I mean logically speaking shouldn't more donors always be better you really have to acquire donors at some point but I'm just saying it shouldn't be the biggest priority and so I understand this perspective Jenna and it's a common belief however let's take a closer look at the bigger picture and consider the realities of donor acquisition what do you think all right I'm all yours enlighten me okay well for one thing it costs more money to acquire new donors so if you're spending all your time trying to find new people to give to your organization you could be missing out on opportunities to build relationships with existing donors it's sometimes 10 times more expensive to acquire new donors than to invest a little time and effort into creating relationships with those existing donors so you're saying that by focusing solely on acquiring new donors we might be neglecting our current supporters exactly so I've been in many board meetings where we talked to no end about how to get new donors and the most commonly asked question to our team at donor bags Jenna you get this as much as I do is how do I get new donors there are so many articles and so much advice on how to find donors and while there are definitely things you can do and you should be doing to attract new donors to your organization and make your organization attractive to all supporters if your only focus is on getting new donors don't so you're suggesting we shift our Focus to something else what would that be so yeah exactly so instead focus on earning the second gift so Focus Less on just acquiring the first gift but making sure you have practices in place so your donors continue to stay with your organization it's a support you so earn that second gift and I promise if you spend the same amount of energy on creating meaningful touches with existing donors it will have a very very high rate of return for you I see a lot of value in that approach and I hope our listeners will too so building strong relationships with our current donors is always a smart move I absolutely agree there so what are you seeing in the sector right now regarding donor acquisition and retention two really big things are standing out to me right now so first for the first time in a few years both dollars and donors are down for many non-profits that means non-profits are raising less money and donors are leaving so the competition for support is becoming even more intense it is and the second Trend I'm seeing is that donors are supporting fewer organizations a few years ago a typical donor supported three to five organizations you you wanted to be in the top five that they supported now we're seeing that they're supporting about two and a half to three organizations and so now you're vying to be in the top two that they support that's a really significant shift so that really puts even more pressure on nonprofits to stand out and really maintain a strong relationship with their donors right yeah and I feel like I'm usually really enthusiastic and positive but I think this donor retention problem needs a lot of attention right now it's dire it's kind of really bad news for the sector all together but it's really not impossible to fix so every year you're losing donors there's some natural attrition so some lose interest some have fewer resources some may pass away or move away and so how does your organization's donor retention or loyalty rates compare to the field so what's considered good is something that you'll have to evaluate and I think that's a really really important question Cara non-profits need to know where they stand compared to the industry standard so do you have any insights on what's considered a good donor retention rate I do so let's start first with where to look for a good Benchmark for your non-profit and I'd recommend following the quarterly reports from the fundraising Effectiveness project or fep right now they report that the average donor retention for non-profit organizations across the sector is right around 42.6 so that's gone down over time and new donor retention that's at 19 right now so that means over 80 percent of your new donors won't come back so for every 100 donors that you might have come through the door through a giving Tuesday campaign or something that you're doing on social media only 20 of them 19 or 20 of them are going to actually stay around till next year and so I I know I just said that those are considered good so benchmarks you know industry standards measuring yourself against those but they're really not great keeping that 42.6 percent of your donors might not sound really bad on the surface but for every two steps forward you're taking three steps backward and if you flip the picture you have more than half almost 60 percent actually of your donors walking away from your non-profit into the waiting arms of another non-profit every single year those other organizations might be showing your supporters a little more love if that keeps up there might not be anyone left to support you or you're going to have to work extra hard to find new donors or bring your past donors back into the mix and that is a lot of work I've been in board meetings and attended seminars and we as a non-profit sector seem to be okay with this 40-ish percent of donor retention to compare it to the business world or the retail industry those customer retention members might mean you need to close your doors in in the business sector so I did a little research and retailers strive for a 65 retention Banks start firing management for less than 75 retention and media and Professional Services are even higher they're keeping about 85 percent of their customers year over year and that's just really incredible but kind of dire when you compare it to the nonprofit sector yeah wow those stats are super eye-opening and it's kind of alarming to think that the nonprofit sector seems to be accepting this 40-ish percent of donor retention as normal but when you compare this rate to the customer retention numbers in the business world it's really clear that there's a lot of room for improvement for us you mentioned earlier that it's not impossible to fix so there's a deep breath here so what can we actually do about it we love practical actions here on the nonprofit podcast so what practical steps can nonprofits take to to improve their donor retention rates and ensure that long-term support it is not impossible at all in fact it's more simple than it might seem and now summer season is a terrific time to put some quick fixes in place especially when you aren't actively running a fundraising campaign or promoting an event you might have time to do it and it's important to keep communicating with your donors that year-round consistency is really key to retaining their support after all you don't want anybody to forget you so I'll ask you this Dennis do you know why donors stop giving to non-profits there's been some research done on this what do you think yes donors often stop giving because they aren't sure that their gifts were truly needed or sadly even appreciated absolutely yeah this research by Dr Adrian Sargent also said that donors stopped giving because they didn't get thanked or they received poor service or they didn't even remember making the gift and that just seems really incredible to me you know I can totally believe that and it's so important to stay in front of your donors and maintain that presence especially after hearing that and especially during a summer fundraising slow down reminding donors about your mission and the impact of their contributions can really significantly boost those donations and then keep your donors coming back that's the important part absolutely and I have three things you can do right now to stay on top of things this summer it's a little blend of actions you can take right now to shore up your processes and your operations and then a little something thing you can do to Delight your donors so they remember you when it's time to give that sounds great I love this digestible and practical approach you're taking because this could be intimidating to some but it really doesn't have to be so let's go ahead and dive in okay first know your numbers and stay on top of them do you know how to calculate your donor retention rate your donor retention rate is the percentage of all donors who gave in two consecutive years so you divide the number of repeat donors this year by those that donated last year or if it's easier I created a calculator you can find at donorbox.org to help you with the calculation and I'll put that in the show notes but basically you want to know that number because strong donor retention rates can help predict revenue for your organization and improve some meaningful engagement it can help you earn larger donations and it can help you budget better because you know that you can expect those Eur year after year and while organizations with a high retention rate keep or renew many donors from year to year those with a low rate you have to spend more to acquire new donors to keep your bottom line above water and then build the program to keep them warm and engaged year after year so know your number and then stay on top of that rate so monitor it monthly and watch it grow throughout the year I would recommend including it in a monthly report to your board of directors so they are aware too they can help reach out to donors who haven't given yet this year so that's my first my first tip and then next number two take 20 minutes to update your online giving receipt they may seem like a simple administrative task but they're actually really valuable opportunity to express gratitude and reinforce the impact you're making in this world you'll have your gift details on there for sure but you can also include a story from a beneficiary or you can add a link to a special thank you video it's really easy to customize your automatic donation receipts their email formats in donor box you can make a test donation to your organization and then see what shows up in your inbox and work from there to make it better you know I love that tip Kara I actually had the opportunity to help some of our donor box orgs with their donation receipts earlier this week and I have a great donation receipt template that will include in today's show notes if anyone would like to take a look for some inspiration to see what those should really look like a really well designed donation receipt not only like you said helps express your gratitude but also helps donors who might forget about their gift it's like that little reminder of their generosity all right so what's next what else can nonprofits do to keep their donors engaged and happy okay last but certainly not least say thank you well you have a little extra time on your hands maybe it's during a summer fundraising slump or another time you can use that time to show gratitude to your supporters for their General generosity throughout the year it means so much more when you say thank you out of the blue without an Ask attached and donors will remember how grateful you were the next time you do ask them for a gift and you can do that a couple ways you know a handwritten thank you note is always awesome you can take a stack of personal stationery or some branded note cards outside and write some notes in the Sun and then make some personal phone calls don't ask them for a gift of any kind simply share your gratitude and a quick anecdote about what their gift accomplished get to know your donors better by asking them questions such as why they support your mission or ways they'd like to be contacted in the future so really easy but very impactful right there I love that this person-to-person approach these don't seem too difficult so why do these things get overlooked do you think I think a lot of times these common courtesies just fall off our to-do list because we've got a lot going on and when it's slower this summer you can make time to do it commit an hour or a block of time to do these and maybe a good question to ask too is why why should we do them and the answer is because it's the right thing to do it's morally and ethically the right thing to do so treat your donors well because you should you know and Delight them with some common courtesy and then why else it's because it's a smart thing to do from a business perspective for your organization you want to keep delivering programs that change lives you want to keep the lights on so that means you need to treat your donors well because that's how you raise money to do these things so remember again the focus as is on earning that second gift being intentional and putting your best foot forward you care so much about your mission and the people or the animals you serve your supporters make that work happen in your work to create and sustain a relationship with those supporters might deserve just as much of your focus and attention as delivering on your mission the basic idea here is that donors are people who are willing to give money or resources to help your organization achieve its goals and when someone gives your organization something valuable like money or time or even their ideas you have this deep responsibility to show how those things have made an impact and how much you appreciate them by using those things well and responsibly and that way your donors know that their gift was actually worth it and maybe they'll be more likely to give a good next time and I think it's more than a maybe and then it grows your organization by increasing those donations that engagement and that all important retention it can seem overwhelming but it really doesn't have to be and I have an idea that you can do today as soon as you finish this podcast surprise your donors or a group of your most loyal donors right out of the blue send a thank you note or make a phone call not in response to a gift they made nope just because you know I've come across some really creative approaches that organizations you used to Delight their donors as you say Cara and one idea that stands out is printing postcards featuring a captivating image of their non-profit in action and they include a heartfelt message of thanks on the back and then take the extra step of handwriting a personalized note so going into your CRM looking at your past Communications seeing what you've talked about and really personalizing that note and imagine the joy it brings to find such a thoughtful surprise in your mailbox I love snail mail so I know many people do as well but this personalization is it's a small gesture that can make a really big impact don't you think absolutely and that's a terrific idea it's so easy it's affordable remember you need to continue attracting new donors to your organization you can't stop that entirely but don't sacrifice for attention for the sake of acquisition it's easier to retain them and it gives you a higher return on your investment and that post art is a really great way to say we see you well we've certainly covered a lot of ground today yes I think we've learned that it's absolutely crucial to recognize that donor stewardship should be a top priority or the top priority and that taking the time to genuinely connect with your donors and express that gratitude can create a really lasting impact treat your donors like their valued Partners on your mission show them genuine appreciation keep them engaged year-round and make those personal connections that go beyond that transactional relationship and by doing so you can really create a community of passionate supporters who are more likely to stick around for the Long Haul oh and uh before we wrap up don't forget to check out the show notes for a downloadable donor stewardship checklist it's a handy resource packed with actionable tips to help you nurture your donor relationships and boost that retention so go ahead and grab that checklist and start transforming your donor engagement strategies thank you Jenna you know I really do think that this is important because retention matters loyalty is the key to success of any business including fundraising and if we continue to treat our supporters as valued Partners like you just said we will be at the top of their list of giving priorities this year if we do not they may give elsewhere so if you do just one thing Let It Be this delight your donors during the season do something unexpected and genuine that time and energy spent on creating meaningful touches with existing donors right now will pay off when you ask for support in the months ahead so thank you Jenna thank you so much for sharing those insights and your time today as always it's really great to talk to you thanks for having me Cara and thank you for choosing to spend time with the non-profit podcast I hope you've left with confidence to take a small step today that will make a big difference tomorrow be sure to click the download button on your podcast player then leave the non-profit podcast a review or give it a thumbs up if you're listening to the nonprofit podcast on YouTube your review is a really great way to help others find us you're here to help others and we're here to help you so until next time stay inspired that warm feeling when you help someone it's not just happiness it's fulfillment and we believe it should be available to everyone from 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