Four Simple Steps to Building Better Relationships with your Donors
Individual donations are the building blocks of nonprofit philanthropy. Corporate marketing dollars and foundation grants are enticing and relevant to nonprofit fundraising, but they represent a shockingly small percentage of charitable giving. Charity Navigator reports that 80% of all donations to the nonprofit sector comes from individuals.
Organizations cannot neglect individual donors if they want to reach their most significant impact.
Today’s donors have many choices when deciding which organization to fund. Relationships with donors are critical because the cost to acquire a new donor is significantly higher than the price to retain a donor. Improving relations with your donors is possible with these four simple steps:
1. Invest in Quality Donor Management Software (CRM)
If your organization is using an Excel sheet and a paper filing system to keep track of donors, it is time to upgrade! It is impossible to properly steward donors without a way to track donations, interactions, and cultivation plans. There are numerous CRMs available for organizations. Many are more affordable than you may assume. However, don’t skimp on a product. Commit to purchasing a CRM that will meet your needs. Creating the space in your budget for a quality CRM leads to a high return on investment.
2. Thank Your Donors Within Two Days
Now that you have your CRM in place, there is no excuse for missing a “Thank You” letter. Because donors have such a wide variety of options for their charitable dollars, it is imperative that you send “Thank You” letters as quickly as possible. A letter sent within two days to a donor sends the message that you value the gift and that you are a trustworthy organization. Conversely, late acknowledgments send the message to your donors that you did not appreciate the donation, or worse, that you didn’t need it.
3. Communicate With Your Donors Regularly
So, you tracked your donations and thanked your donors, now what? Today’s donors are smart; they don’t trust blindly. They expect to hear from you and want to learn how their money impacted your clientele. To build effective relationships with donors, it is critical that you communicate with them throughout the year. Unless they indicate otherwise, add all new donors to your mailing lists for newsletters and marketing. Go one step further and track their specific interests to send tailored messages.
4. Find the Right Donors in the First Place
Nonprofits thrive by creating lasting relationships with individuals who are passionate about the organization’s mission. A successful individual development plan is not created by recruiting just anyone. Individuals who aren’t excited about your mission are not only unlikely to give annually, but they also take up unnecessary space in your CRM. Before anything else, recruit new donations from individuals who are passionate about what you do!
Do you need help creating or evaluating a development plan? If so, click here to set up an appointment today.
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