Welcome back to another edition of Ask A Responsive Fundraiser! This week, we have our very own Erik Tomalis answering your questions about crowdfunding, direct mail campaigns, and donor acknowledgment. He offers actionable advice and clear steps to work through your biggest challenges.
Be sure to check out past editions of Ask a Responsive Fundraiser and leave us a comment on LinkedIn so we can answer your questions!
Letโs dive in and see how you can transform these common hurdles into opportunities for growth!
Dear Responsive Fundraiser: What are your recommendations for keeping track of donations from direct mail campaigns? Matching all the records in our CRM is time-consuming, and some get missed. We want to make sure everyone is acknowledged.
โDirect Mail Dilemmas
Dear Dilemmas: Great question! Tracking donations from direct mail campaigns can definitely be a headache, right? Itโs so easy for some records to fall through the cracks or have faith and trust in the data thatโs being shared, especially when youโre juggling so many at once with so many systems. But, with a few key systems in place, you can keep everything on track and make sure every single donor gets the acknowledgment they deserve.
Here are a few things you can do to make this whole process easier and more efficient:
1. Leverage CRM Automation for Direct Mail Tracking
Make sure your CRM is equipped with tools that allow you to automatically track donations from specific direct mail campaigns. Solutions like Virtuous offer automation features that can track donations as they come in, auto-match donor records, and assign them to the correct campaign.
Action Step: Set up campaign-specific codes (like source codes or appeal codes) within your direct mail pieces that can be easily tracked in your CRM. Every time a donation comes in, your system can automatically attribute it to the correct direct mail effort.
2. Batch Processing and Data Validation
Rather than manually entering donations one by one, group donations into batches, making it easier to manage and reconcile. Batch processing within your CRM can help flag discrepancies early, reducing errors and ensuring that no donor gets missed in the process.
Action Step: Try making it a two-step process: First, import donations in batches, allowing the system to identify potential duplicates and match records. Then, run data validation checks to make sure everything is accurate before finalizing the entries.
3. Integration with Donation Processing Tools
Try integrating donation processing tools with your CRM so you can efficiently handle the inflow of checks and cash donations. Donation data can be processed and synced automatically, reducing the risk of errors during manual entry.
Action Step: Work with your CRM provider to ensure your donation processing tools and bank feeds are integrated, allowing real-time synchronization of incoming gifts.
4. Use Acknowledgement Automation
Make sure you know how to run acknowledgment automations in your CRM. Once a donation is matched with a record, the system can automatically trigger personalized thank-you emails or printed acknowledgment letters so no one is overlooked.
Action Step: Set up acknowledgment workflows that send personalized, campaign-specific thank-yous. Use multi-channel follow-ups (email, direct mail, and phone) to deepen engagement with your direct mail donors.
5. Regularly Audit Your Data
Make sure donations arenโt slipping through the cracks by auditing your dataโand do it regularly! Run reports to cross-check donations received against what has been recorded in your CRM. This will also help you identify patterns, like frequent donor matches that are missed, which could be addressed through additional automation or matching rules.
Action Step: Schedule a weekly or bi-weekly audit where you review the reconciliation between bank deposits, batch entries, and CRM records to make sure itโs accurate.
Once you implement these practices, youโll reduce the time-consuming burden of manual entry and improve the accuracy of tracking your direct mail donations. Now, you can be sure every donor is getting recognized!
Dear Responsive Fundraiser: It seems that many donations these days go toward crowdfunding efforts. How can we incorporate crowdfunding into our fundraising efforts and keep those donors?
โCrowdfunding Conundrums
Dear Conundrums: Crowdfunding is booming these daysโitโs such an easy way for people to support causes they care about with just a few clicks. And for nonprofits, itโs an amazing tool to tap into new donors.
But hereโs the deal: Crowdfunding shouldnโt just be about raising quick money and calling it a day.
Turning those one-time donors into lifelong supporters is the key to making crowdfunding work long-term. Youโve got to think beyond the campaign itselfโbuilding meaningful relationships will keep these donors engaged for the long haul!
After the excitement of the campaign dies down, keeping in touch, showing the impact of their gifts, and making them feel like part of your community will keep them coming back.
The real magic happens when you turn those crowdfunders into long-term supporters. Itโs all about building real relationships that go beyond just one campaign.
Hereโs how to do it:
1. Leverage Peer-to-Peer Fundraising Platforms
Crowdfunding thrives on the concept of many people coming together to support a cause, and one of the best ways to do this in a nonprofit context is through peer-to-peer fundraising. Empower your supporters to raise money on your behalf by providing them with the tools and platforms they need to run successful crowdfunding campaigns.
Action Step: Use a platform like Fundraise Up or Classy to create personalized peer-to-peer fundraising pages where supporters can tell their own stories about why they are passionate about your cause. This helps increase the reach of your crowdfunding efforts through their networks.
2. Create Campaigns that Drive Urgency and Emotion
Crowdfunding is most effective when thereโs a sense of urgency and emotion. Whether itโs funding a specific project, supporting a particular community need, or meeting a time-sensitive goal, make sure your campaigns have a clear and compelling call-to-action that resonates with potential donors.
Action Step: Design short-term, high-impact crowdfunding campaigns with clear deadlines and goals. Use visuals, storytelling, and social media to keep momentum and inspire people to give.
3. Engage and Retain Crowdfunding Donors
One challenge with crowdfunding is that donors often make one-time gifts, so donor retention is key. Itโs important to transition crowdfunding donors into your long-term donor pool to keep them engaged. Personalized follow-up and meaningful engagement will help convert them from one-time supporters to ongoing contributors.
Action Step: After the crowdfunding campaign ends, follow up with donors using personalized thank-you messages, updates on how their gift made an impact, and invitations to get further involved.
4. Leverage Social Proof and Community Building
Crowdfunding thrives on social proofโwhen people see others contributing, they are more likely to give. To build this into your campaigns, highlight the power of community by showcasing testimonials from donors and beneficiaries and publicly celebrating milestones.
Action Step: Incorporate social sharing features into your crowdfunding pages and encourage donors to share their involvement on social media. Feature donor spotlights and share progress updates highlighting everyoneโs contributions.
5. Track, Measure, and Optimize
As with any fundraising initiative, data is key. Use your CRM to track the performance of your crowdfunding campaigns and the engagement of your donors over time. Look at patterns to identify who is most likely to convert to a regular donor.
Action Step: Monitor key metrics like donor acquisition, retention, and average gift size from crowdfunding efforts. This data will allow you to refine your future campaigns for maximum impact.
Crowdfunding can help you grow your donor base, but you have to take action and follow up. The key is in leveraging the power of community while maintaining personalized, responsive donor engagement.
Dear Responsive Fundraiser: What is the most effective type of thank you acknowledgment? Would you recommend a letter, email, phone call, or something else? Does it depend on the type of donor and the amount they give?
โGiving Gratitude
Dear Giving: Saying thank you to donors isnโt just politeโitโs one of the most important steps in building long-term relationships with them. A thoughtful, well-timed thank-you can turn a one-time donor into a recurring supporter, while a generic or delayed response could leave them feeling unappreciated.
The key is to tailor your approach based on the donor and the size of their gift. A heartfelt email or handwritten note can go a long way for smaller, first-time donors. Consider something more personal, like a phone call or even an in-person meeting, if possible for your major donors or recurring givers.
The most effective thank-you acknowledgment feels personal and timely, tailored to the donorโs preferences and the level of their support.
The goal is to make sure your gratitude feels genuine and personalized. A donor who feels appreciated is much more likely to stick around and continue supporting your cause.
Hereโs how to approach it:
The form of thank-you acknowledgment should vary depending on the donorโs preferences, the size of their gift, and their relationship with your organization. A personalized approach based on these factors shows you value the donorโs unique contribution and you listen to them.
For First-Time Donors: Send a personalized email or a physical letter within 24-48 hours of the donation. This immediate acknowledgment helps establish a strong connection from the start. A handwritten note adds a personal touch, especially if the gift is sizable.
For Major Donors or Long-Term Supporters: Consider a personal phone call from a key staff member, board member, or even the CEO. Major donors often appreciate hearing directly from leadership, as it shows their contribution is highly valued.
For Recurring Donors: A monthly email or update highlighting the ongoing impact of their gift helps remind them why they support your cause. Quarterly or yearly handwritten notes can also be a nice surprise for these supporters.
If you want your question answered, drop us a line on LinkedIn! Check back next Thursday to see what our Responsive Fundraisers have to say.
