While organizations focus on their development goal and raising money through major gifts, events, direct mail, grants and online, it is often stewardship and retention that fall by the wayside.
According to Adrian Sargeant and Elaine Jay, a 10% increase in donor retention can enhance the lifetime value of your donor base by up to 200%.
Those are sobering statistics and make it pretty clear what we should be focusing on. Here, Danielle J Vermenton provides 10 tips on how to embrace donor retention.
Retention is one of the Big 5 KPIs to measure, but why is it so important?
A 10 percent improvement in attrition can yield up to a 200 percent increase in projected value, as with lower attrition significantly more donors upgrade their giving, give in multiple ways, recommend others, and, ultimately, perhaps, pledge a planned gift to the organization.
In this sense the behavior of “customers” and the value they generate appear to mirror that reported in the for-profit consumer sector, where similar patterns of value and behavior emerge. Indeed, the marketing literature is replete with references to the benefits that a focus on customer retention can bring.
Adrian Sargeant explains more in this article.
Reinier Spruit discusses how we’re in the relationship building business and how we need to measure and register every response.
Ironically, we must quantify the relations with our donors, so we can improve the quality of the contact we have with them.
There are a ton of metrics we can track, and should track, like email open rates, sign-up rates per hour, one-off cash donations and appeal response rates. But there are 5 that are simply much more important. Mainly because they are the building blocks for making sensible decisions for the longer term.
I call them the Big Five. The Big Five are Volume, Expenditure, Income, Retention and Return on Investment.
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Philippa Christoforou has been part of the OxReach team at Oxford University Innovation since 2016. Since then over £200,000 for social good projects originating at the Uhttps://www.linkedin.com/pulse/why-crowdfund-philippa-christoforouniversity of Oxford has been raised.
But why crowdfunding? Why not just apply for grant applications? What is the benefit to the project in watching the pledge count slowly creep towards the target, whilst the anxiety builds that we might not make it?
Here, Philippa describes her experience of crowdfunding and the benefits gained.
Getting alumni, especially younger graduates, to donate is a challenge for many colleges and universities, especially those that rely on approaches that could end up in voicemail or the rubbish bin.
Crowdfunding models are increasingly popular for students to undertake peer-to-peer and social fundraising on behalf of a fundraising program to bring in new donors.
In this article in the Washington Post, Danielle Douglas-Gabriel provides a number of real life examples of crowdfunding campaigns and the impact they’ve had on college and university fundraising.
Crowdfunding campaigns aren’t just successful by chance. They require a lot of planning to ensure you’re reaching the right people to propagate your message.
In this essential guide, Jonathan May from hubbub provides excellent tips on how to plan your crowdfunding campaign.
Crowdfunding isn’t a new concept; it’s been around for nearly two decades. However, it has recently become more prominent as an alternative tool for the Higher Education sector.
In this blog, Eliott Falvert-Martin explains how Crowdfunding gives donors a unique opportunity to get interested in a cause on an emotional level and becomes an acquisition tool.
To deliver against their duties, charity trustees need to be able to identify the critical issues – the charity’s purposes and plans, its solvency, its resilience and quality of governance – and to be able to review these at regular intervals.
In this post, the Charity Commission has designed 15 questions to help charity trustees carry out such a review and decide what they need to focus on.
Boards play a crucial role in helping a charity achieve its mission and deliver the greatest impact possible. Sonali Patel discusses that when charities follow best practice in governance, they are more effective, forward looking and efficiently run.
Funders of charities require good governance for a charity to be effective. While there are exceptions, it is therefore surprising that there are not more funders who provide investment for charities to improve governance.
Dan Francis from the NCVO shares key findings from the Good Trustee Guide.
Amongst the recommendations, Dan discusses how to make boards more diverse, accessible and make inductions less complex.
Nonprofit board members have the potential to be exceptional ambassadors for the charity. However, finding the time to coach board members in the art of putting the organization’s public face on view can be tricky.
In some cases, the CEO simply doesn’t encourage contact between the board and staff. At other times, they fail to include selected directors in important conversations with key public figures and/or major donors or foundation executives.
In this article, Eugene Fram highlights a number of ways to develop “ambassadorships” on the nonprofit board:
If you’re on your way to or from #IoFFC and feel inspired to find more insightful topics to consider or discuss, here are a few worthwhile blogs to review:
I hope you have a brilliant conference!
The reference to mind tricks makes this blog by Dr Travis Bradberry sound a little sinister, but making yourself more astute and aware of your surroundings, and the way people engage with you, can give you an edge when dealing with prospects.
As soon as you become aware of these 11 tricks, they start popping up wherever you look. With minimal effort on your part, their unconscious influence on behavior can make a huge difference in how you handle your prospects and in your day-to-day life.
How do you set the right tone when you meet a donor or prospect for the first time?
Martin Leifeld has recorded an 8 minute video in which he discusses how you can pose meaningful questions, combined with gratitude and compliments to effectivley engage with your prospect.
Raising mega-gifts may be the fastest way for charities to achieve a step-change, but securing such large donations is easier said than done.
Matthew Ferguson and Gemma Peters provide invaluable insight into how major gift fundraising from those who have a net wealth of at least £50m is very different to other types of fundraising.
Impact investing, which aims to generate measurable social and environmental impact as well as financial return, is a wealth management buzz term right now. Yet while wealthy individuals and foundations are drawn increasingly to impact investing to advance their social missions, it is creating a few tensions in the philanthropic community. Some argue that impact investment does not always complement philanthropy and could even harm it. Others say it cannot replace donations.
Sarah Murray explains on this article from the Financial Times (subscription may be required).
If you’re anything like me – a quick escape into space can work wonders – you will enjoy this blog. If, however, you’ve never seen a Star Wars movie before, you can use this blog to bluff your way through a conversation by realising how similar a sci-fi romp and fundraising really is! 🙂
Regardless how you feel about Star Wars, this is a lovely intro on the fundraising characteristics needed to excel in fundraising by Ellie Burk.
Major donor fundraising is not about quick wins. Instead, careful and considered relationship building between key stakeholders can support the process in much more effective terms.
How can this be achieved and institutional expectations met? UKFundraising comes to the rescue with 7 key considerations to make.
What are the expectations a new Development Director faces when they start? Are they facing realistic objectives?
Susie Hills shares some important concepts in this fun blog to help institutional leaders and Development Directors avoid common pitfalls.
Many smaller fundraising and non-profit teams can’t make the investment to fully utilise analytics.
In this blog, the great Peter Wylie uses data from two schools to demonstrate how to build a very simple predictive score using nothing but Excel.