Radically Transforming Donor Retention

Last week, I was fortunate enough to spend some time in Texas with an amazing organization. One of the key changes of culture that evolved out of our work together was that the amount of the gift the donor gave was the LEAST important part of their story, that we needed to look at their behavior first.

Here's why: In the latest fundraising effectiveness project report from Bloomerang which you can find here, the numbers are scary:


 

This is NOT sustainable for our industry. Donor retention is more than just a buzzword, it's a lifestyle. If we move the needle on donor retention, then the rest of our culture of philanthropy changes. And revenue changes along with it, and this makes fundraisers happy. 
What is our role in this? Our role is to radically transform the way we perform donor relations. It's no longer ok to focus our efforts at the top of the pyramid, regardless of the fact that over 80% of our revenue comes from the top. If we don't split our time equally, yup 50/50, then those entry level donors will NEVER grow to be major donors if they don't make a second gift. So it's our job, our pleasure,  to examine their behavior and what it tells us. Look at the following behaviors and make sure you have a corresponding donor relations touch for each one:

• First Time Donors
• Loyal Donors of more than 5 years
• Donors who upgrade their gift by 25% or more
• Donors who have lapsed and then returned
• Monthly or sustaining donors who make more than 4 gifts a year
• Online only/digital donors

There are samples of many of these on my site, I'd love to see yours. What I'd also like to see disappear is charts of what we do for donors based on their amount, that can be a factor later, after we've looked at their behavior FIRST. We need to show them we notice them and that they are unique and they will come back, and so will their gifts...

Time for a radical shift in the way we behave, and the donors will follow.
What are your thoughts?
Cheers,

Lynne

T-Rexes vs. Kangaroos

One of the challenges I often see in our organizations is the diversity of our fundraising workforce. Nope I'm not talking about the fact that we as an industry lack ethnic and socioeconomic diversity in spades, I'm talking about the never ending struggle between two groups. 

Now you're going to have to have a good sense of humor to make it through this blog and a vivid imagination...

Picture this if you will:

 

These are two opposing forces at work in our fundraising profession. 

Disclaimer: Help me out here by not focusing on the fact that these can be sweeping generalizations and are not true of everyone.

We have the T-Rexes,  wonderful people who have worked in our organizations for a long time (hence the pre-historic bend) and who are generally adverse to change. When a new idea comes, they use their ferocious growl and their short arms to try and bat new ideas down.

Then you have the kangaroos, (note: not the job hoppers) but they've only been at the organization for a while, have worked at other non-profits and come bouncing in with a pouch full of new ideas and limitless energy. They annoy the heck outta the T-Rexes who have seen them bounce in and out and around and the T-Rexes are still there, regardless. 

Have you ever seen a kangaroo fight? They're good at it! And, wow at the persistence (this is a google and youtube moment here) But everyone is so scared of the T-Rex that they won't even attempt it. And this my friends is one of the reasons why our organizations cannot be innovative.

How do we soothe the fears of the T-Rexes and allow the kangaroos to adapt to the culture of the organization without each of them wishing the other extinct. How do we ensure that our culture doesn't run the kangaroo off? (Remember the average tenure of a front line fundraiser is 16 months right now). How do we get each of them to extend their short little arms for an HR appropriate embrace?

The answer is that we must allow each person to understand that whether they hop around the office or stomp around the office, the relationship that matters the most is the one we have with our donors. They are the center of our universe, whether it be a pre-historic swamp, or a grassland down unda.

If we keep our mission and the donor at the center, then the length and effectiveness of our arms matters not. Our eons long divide shortens and we focus on what truly matters, the wonderful experience of philanthropy. Because for all the differences between a T-Rex and a kangaroo, they share a world view that philanthropy matters. And when we point out that shared commonality, the differences begin to fade...

Do you know a T-Rex? A Kangaroo? How do these forces come into play at your organization?

I would love to hear your thoughts.

Cheers,

Lynne