https://bloomerang.co/retention This session explores the Fundraising Effectiveness Project report commissioned by AFP and the Urban Institute. The dismal news in this report can and should be an eye opener for every nonprofit engaged in fundraising. We will focus on the root causes of poor retention rates, and offer tips for improvement based on the principles of Dr. Adrian Sargeant and Tom Ahern: two world-renowned authorities on building donor loyalty. Sargeant and Ahern’s principles are based upon years of research conducted in the sector and can be used by any organization, whether you are a one-person shop or a large department. We will show examples of their principles in action. The results can be astounding when put into daily use! Learning Outcomes: - Be familiar with current research on donor retention and how an increase or decrease can impact your bottom line - Understand how to calculate your donor retention rate - Learn new donor communications techniques in order to improve donor loyalty and retention

1. What Fundraisers Can Do to
Stop Falling Donor Retention Rates
Wayne Robbins

2. • Wayne Robbins
• 20 Years in Nonprofit Sector
• 10 Years of Technology Leadership
• Over 5,000 Database Installations
• Former Director at eTapestry
• Former Director of Development
• Former Board Member and Current Volunteer
for many nonprofit organizations
3
Your presenter »

3. 3

4. “Active donor commitment is the enduring
passion for your nonprofit.
Inspiring donors is key for loyalty.”
- 101 Fundraising
Retention »
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5. 1. WHY? The Case for building/improving Donor Retention
2. Addressing the Attrition Problem (Building Donor
Loyalty)
3. HOW? – Retention Drivers
4. Conclusion: Donor Engagement!
Agenda »
5

6. In our surveys, less than
45% of fundraisers
knew their current
donor retention rate.
Do you know your retention rate?
https://bloomerang.co/blog/infographic-the-state-of-donor-retention-in-2014

8. What does a 10% increase in donor
retention mean in terms of
LIFETIME dollars raised?
• 50%
• 100%
• 150-200%
8
Do you know your retention rate?

9. Donor Attrition Over Five Years
# of
Donors
Attrition
Rate
Donors
Remaining
After 1
Year
Donors
Remaining
After 2
Years
Donors
Remaining
After 3
Years
Donors
Remaining
After 4
Years
Donors
Remaining
After 5
Years
1,000 20% 800 640 512 410 328
1,000 40% 600 360 216 130 78
1,000 60% 400 160 64 26 10
So what?

10. http://afpfep.org
Growth in Giving Initiative / FEP »

11. Participating Donor Software Firms:
• Donor2/Campus Management Corporation
• PhilanthrAppeal (FundTrack Software)
• DonorPerfect Fundraising Software
• The Raiser’s Edge ® (Blackbaud)
• eTapestry
• Avectra
• Bloomerang
• Sage Software
• MatchMaker FundRaising Software
• Telosa Software (Exceed!)
• Metafile
Fundraising Effectiveness Survey »

12. The 2014 results are in »
Nearly 6 out of every 10 donors do not give again!

13. New donor retention is even worse »

14. Participating Donor Software Firms:
• Donor2/Campus Management Corporation
• PhilanthrAppeal (FundTrack Software)
• DonorPerfect Fundraising Software
• The Raiser’s Edge ® (Blackbaud)
• eTapestry
• Avectra
• Bloomerang
• Sage Software
• MatchMaker FundRaising Software
• Telosa Software (Exceed!)
• Metafile
Fundraising Effectiveness Survey »
(Not a SINGLE firm
above has taken any
steps to address the
continually increasing
problem of FALLING
Donor Retention!)

15. Donor Attrition Over Five Years
# of
Donors
Attrition
Rate
Donors
Remaining
After 1
Year
Donors
Remaining
After 2
Years
Donors
Remaining
After 3
Years
Donors
Remaining
After 4
Years
Donors
Remaining
After 5
Years
1,000 20% 800 640 512 410 328
1,000 40% 600 360 216 130 78
1,000 60% 400 160 64 26 10
So what?

16. Donor retention math »

17. Addressing the Attrition Problem!
Is It a Donor Loyalty Problem?

18. Building Donor Loyalty!
1. Listen to your donors
-Find out what will compel them to further help you achieve your mission. Ask for their
advice, and put it to practice.
2. Share your good news
-Communication is key to building any relationship, and nonprofit relationships are no
different. Think about newsletters, e-mails and face-to-face visits to keep the flow of
information open.
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19. Building Donor Loyalty!
3. Measure your success
-“In general, donors like to receive regular, measurable and concrete feedback about
how their money makes a difference,” says Ursula Pfahl.
-By sharing the impact in real measures, you solidify the good work you are doing.
4. Survey your donors
-When Courtney Polster, fund development manager at Agrace HospiceCare, started
surveying her donors, she discovered that a high percentage were utilizing planned-
giving vehicles to support a charity — but she was surprised to see how few said hers
was their charity of choice for this option. This revelation led to further research.
“Quality initiatives like these are helping build a stewardship and recognition program
as well as a planned-giving program," Polster says. "It has been most beneficial!”
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20. Building Donor Loyalty!
5. Leverage donor loyalty
-Use your board members to make calls and write thank-you notes. The power of
appreciation from a strong board member can go a long way in building loyalty.
6. Involve donors in the cause
-By regularly inviting donors to come and see their donations in action, Keith Greer,
fundraising and membership coordinator at Popejoy Hall, has changed the way donors
view his organization and increased retention rates by 14 percent and the average
donation size by $500!
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21. Building Donor Loyalty!
7. Get social
-Create connections in the social networks where your donors spend their time.
Connecting socially is very powerful.
8. Customize your approach
-“Bottom line: Loyalty comes when we show folks we know them. This means we have
to really listen to them. There's no cookie-cutter approach, as donor preferences vary.
We have to be sensitive to our donors’ particular styles, then give them what they
want,” says marketing and fundraising consultant Claire Axelrad.
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22. Building Donor Loyalty!
9. Recognize repeat donors
-“Whether your organization is new or has been around for years, you can recognize
continuous yearly donors in your annual report. Give recognition to donors who have
supported you (at a set level) for three years, five years, 10 years — break it down
however it works for you — but with recognition, if they have to drop a nonprofit one
year, hopefully it won't be yours!” says CFRE Debbie Joyner.
10. Say thank you
-“One easy element is thanking donors for every gift either with a phone call or personalized e-
mail. When dealing with loyal donors, I am always sure to mention how long they have been
giving and let them know how much their continued support is appreciated. Most donors haven't
thought about how long they have been giving, and I think these small gestures have deepened
donor relations with a pretty small investment of my time and our long-distance bill,” says Daniel
Blakemore, assistant director for individual giving at International House, New York.
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23. Lifetime value »
Dr. Adrian Sargeant,
Bloomerang Chief Scientist
Professor of Fundraising at the Center on
Philanthropy at Indiana University holding what
is presently the world’s only endowed chair in
that discipline.
Professor of Nonprofit Marketing and
Fundraising at Bristol Business School (U.K) and
an Adjunct Professor of Fundraising at the
Australian Centre for Philanthropy and Nonprofit
Studies.
Top 10 Most Influential People in Fundraising

24. “The total net contribution that a
customer/donor generates during
his/her lifetime in your database”
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Defining Lifetime Value (LTV) »

25. LTV = ∑Ci
Where
c = net contribution from each year’s fundraising
activity
i = expected duration of each relationship in
years
Defining Lifetime Value (LTV) »

26. Key Decisions in Building Donor Loyalty
• Costs vs. Donation Revenues
• Average Lifetime (1-25 Years)
• Your Retention Rates
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28. Key Decisions in Building Donor Loyalty
• Costs vs. Donation Revenues
• Average Lifetime (1-25 Years)
• Your Retention Rates
• Best Use of Staff Time
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29. $1000 +
$500 - $1000
$100 - $500
$25 and under annually
$25 - $100
Value
Value Segments »
Time

30. Key Decisions in Building Donor Loyalty
• Costs vs. Donation Revenues
• Average Lifetime (1-25 Years)
• Your Retention Rates
• Best Use of Staff Time
• Using Retention/Reactivation
Practices
• Finding a Database that Helps
rather than Hinders Loyalty!
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31. 39
Why customers leave »
• 1% - death
• 3% - relocation
• 14% - won by competitor
• 14% - bad service/complaint handling
• 68% - lack/loss of interest
http://www.insightsfromanalytics.com/blog/bid/335381/5-Reasons-Customers-Leave-and-9-Ways-to-Keep-Them

32. • 5% - thought charity did not need them
• 8% - no info on how monies were used
• 9% - no memory of supporting
• 13% - never got thanked for donating
• 16% - death
• 18% - poor service or communication
• 36% - others more deserving
• 54% - could no longer afford
Does your Donor feel Connected?
Why nonprofit donors leave »
https://www.linkedin.com/today/post/article/20140520191728-746287--infographic-why-donors-stop-their-support

33. 41

34. 6 Key Retention Drivers
(That can double lifetime value)
• Drip feed mission performance data

35. 6 Key Retention Drivers
(That can double lifetime value)
• Drip feed mission performance data

36. 6 Key Retention Drivers
(That can double lifetime value)
• Drip feed mission performance data

37. 6 Key Retention Drivers
(That can double lifetime value)
• Drip feed mission performance data

38. 6 Key Retention Drivers
(That can double lifetime value)
• Drip feed mission performance data

39. 6 Key Retention Drivers
(That can double lifetime value)
• Drip feed mission performance data

40. 6 Key Retention Drivers
(That can double lifetime value)
• Drip feed mission performance data

41. 6 Key Retention Drivers
(That can double lifetime value)
• Drip feed mission performance data

42. 6 Key Retention Drivers
(That can double lifetime value)
• Drip feed mission performance data
• Connect often (1st 90 Days!)
• Be personal (SEGMENT via DB)
• Develop like a good personal friendship

43. 51

45. 6 Key Retention Drivers
(That can double lifetime value)
• Drip feed mission performance data
• Connect often (1st 90 Days!)
• Be personal (SEGMENT via DB)
• Develop like a good personal friendship
• Find & use numerous human connectors
• Always communicate what monies are doing!

46. Conclusion:
So Strive For:
• Donor Satisfaction
• Donor Commitment/Engagement
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48. Retention Drivers
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49. Conclusion:
So Strive For:
• Donor Satisfaction
• Donor Commitment/Engagement
• Donor Trust
• Donor Loyalty
Doubling your lifetime value = ?
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50. Questions?
Retention Based Fundraising
Date: 1/21/2016
Presenter: Wayne Robbins
wayne.robbins@bloomerang.co