Welcome back to Ask a Responsive Fundraiser! Itโs been a big week for us at Virtuousโwe launched our first benchmark report on October 1. Carly Berna, director of product marketing at Virtuous, helmed the project, and now sheโs back to answer your questions!
Download the Virtuous Nonprofit Benchmark Report for more insights that drive results.
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!
Dear Responsive Fundraiser: Our fundraising stats have stagnated for the last few years. We have loyal donors, but weโre not seeing an increase in donations. What are some simple ways to increase our gift size?
โIn Need of an Increase
Dear In Need: First off, youโre not alone! Many nonprofits have been facing stagnant fundraising stats but I respect your diligence in continuing to want to drive to increase your donations. Increasing average gift size is a great place to start, here are a few ideas:
- Personalize Your Ask: Use your donor data to suggest donation amounts based on what each person has given before. A personalized ask can make donors feel more connected and might encourage them to say “yes” or even “heck yes” to giving a little more.
- Show the Impact: When asking for a larger gift, explain exactly what the extra money will accomplish. For example, if youโre asking someone to go from $1,000 to $2,000, be specific about how that additional $1,000 will make a difference. Stories and real-life examples work wonders here!
- Try Special Asks: Consider making special, one-time asks during slower times of the year. If you can tie these to unique opportunities or urgent needs, donors may be more willing to give a little extra.
- Adjust Donation Options: On your donation form, set the starting option at the median gift amount. This can nudge donors toward a higher amount, especially if they see it as the โnormalโ gift size. You can also play around with different suggested amounts on different channels to see what works best.
- Launch a Monthly Giving Campaign: A great way to boost giving is to start a monthly giving program with an amount just above your median gift. This helps donors commit to regular giving while slightly increasing their overall contributions throughout the year.
Even small increases in average gift size can have a big impact on your revenue over time. For example, just a 10% increase in the first couple of years could lead to some serious growth down the road!
Dear Responsive Fundraiser: Our nonprofit has a few major donors that make up a large portion of our donations. We are grateful for them, but itโs also very stressful to rely so heavily on a few donors. What are your suggestions for diversifying our donor portfolio?
โPortfolio Problems
Dear Portfolio: Itโs great that you have strong support from major donors, but I totally understand how stressful it can be to rely on just a few big gifts. To reduce that stress and diversify your donor base, here are some suggestions:
- Build Up Your Mid-Level Donors: Look at your existing donor base and use wealth screening tools to identify who has the capacity to give more. You could also create a special mid-level giving program to encourage donors to move up from smaller gifts. Offering exclusive updates or events for mid-level donors can help them feel more connected to your cause.
- Expand Your Small Donor Base: To balance out your portfolio, you can also focus on increasing the number of smaller, everyday donors. Direct mail, phone campaigns, and even peer-to-peer fundraising or community events (like run/walks) are great ways to bring in new donors. Also, consider partnering with influencers or using social media campaigns to reach younger or more diverse demographics.
- Leverage Your Board: Donโt forget to tap into your boardโs network. They can be instrumental in introducing new major donors who align with your mission.
By diversifying with more mid-level and small donors, you’ll reduce the risk of relying too heavily on just a few major contributors and create a more stable, predictable revenue stream for your nonprofit.
Dear Responsive Fundraiser: How can we get a first-time donor to give another gift? It feels too long to wait a year from their first donation, but we donโt want to ask too soon. What steps can we take?
โFostering first-time donor feelings
Dear Fostering: Itโs great that youโre thinking about how to turn first-time donors into long-term supporters! Moving a donor from their first gift to their second is one of the most important steps in building that lasting relationship, and it can make a huge difference in your retention rates.
Here are some strategies to help you encourage that second gift, without waiting too long or coming off too strong:
- Start with a Warm Welcome: Implement a new donor welcome series that mirrors the way they first gave (email, mail, etc.). This creates a seamless experience and helps build a connection. Within the first 20 days, send another ask on their preferred channel, but also consider sending a letter or postcard to reinforce the message.
- Show Fast Gratitude: Donโt underestimate the power of a heartfelt thank you. Make sure you thank your first-time donors as quickly as possible, and donโt be afraid to say thank you more than once! Genuine appreciation can often inspire donors to give again.
- Invite Them to Give Recurring: One way to turn that second gift into an ongoing relationship is to ask for a recurring gift. A monthly giving program is a great way to engage donors, and it helps them feel like theyโre consistently making a difference.
- Donโt Wait Too Long: Waiting a full year for that second ask can cause donors to lose interest. By re-engaging them sooner, but thoughtfully, you’re more likely to inspire that second gift before they lose the initial passion for your cause.
The key to moving a first-time donor to their second gift is consistent, personalized communication and fast, meaningful gratitude. These small touches can make a big difference in securing that all-important second gift!
