The reality of fundraising: your donor base shrinks naturally. What 6 buttons can you push?

Why do so many organisations struggle to grow structurally despite good campaigns? They think: if we become better at retaining our existing donors, our organisation will grow automatically. Indeed: retention is indispensable to your fundraising. But it’s not enough for those that really want to grow. Because the reality is: every donor base shrinks naturally.

We keep seeing the same pattern in analyses of various donor databases:

Donors are dropping out.
Some come back later.
Others increase their contributions.
Some become monthly givers.

But most eventually disappear from sight.
Even if you managed to retain 80% of your donors with a good programme, your active donor base will halve in four years.

In addition to retention, major donors and a legacy programme, you’ll also need to ensure new intake.

A good fundraising strategy follows two tracks

Track 1: How do we retain our existing supporters?

Most organisations do this well. We see important strategic priorities reflected in virtually every annual plan:

Improving retention by thanking everyone and reporting on the impact.
Increasing second donation conversion by asking again sooner.
Reactivating donors that have dropped out because that is cheaper than recruiting new donors.
Investing in monthly givers because the Life Time Value is greater.
Developing legacies and major donors for sustainable revenue growth.

That makes your fundraising more efficient and you increase the Life Time Value of a donor.

Track 2: How do we remain relevant to new generations of donors?

This track is missing in many organisations’ fundraising strategies. Yet if you do not invest in this, your future growth dries up.

For a future-proof revenue stream, you also need a new generation of givers: donors with the potential to become monthly givers, legacy donors and ambassadors. And they can be found among those who aren’t yet making any donations at all. You don’t engage them from one day to the next.

You don’t recruit your new generation of donors via temporary campaigns. It calls for a long-term mindset. You need to invest in your future donors now.

Which 6 buttons can you push?

When we develop a growth plan with organisations, we always look at both tracks: retention and recruitment. In doing so, we push these six buttons.

Expanding your reach

New audiences need to get to know your organisation, and understand and feel why your mission matters. That is why it is important for you to be visible. Social media and filler ads in newspapers and magazines are ideally suited for that.

Smart acquisition

You don’t just want more donors, you want more donors who have the potential to remain involved in the long term. That’s why we develop recruitment campaigns that not only produce as many new donors as possible, but also ensure long-term donors. Those can be addressed and also done successfully via ‘inserts’ in magazines.

Second donation optimisation

A new donor is not worth much unless they make follow-up donations too. The step from the first to the second donation is often crucial for future value. This step is an important – and underrated – opportunity for retention and growth. The sooner the second donation is made, the greater the likelihood of a relationship with the donor.

Reinforcing retention

Most charitable causes do not communicate with their donors enough.

Communicate with your donors regularly, so your organisation plays a regular and relevant role in their lives. This will lead to more donations than occasional communication does.

Inspiring donors to give more

Monthly donations, gift value, major donor programmes and legacies provide a sustainable income in the long term.

Reactivating donors

It is cheaper to win back a donor than to recruit a new one.

Not every donor that has dropped out is lost. You can reactivate valuable relationships with the right strategy and timing.

A healthy donor base follows two paths: recruitment and retention

Your donor base is constantly evolving and you need to keep maintaining and refreshing it. Are you pushing the right buttons for a healthy donor base?

The best way to get more major donors and legacies, or to increase your chances of getting more funds for your mission, is to involve more people in your work.

The more donors you involve in it, the better your chances of growth.

Do you want to know how well-prepared your donor base is for sustainable growth?

Find out how much value your current donor base offers in terms of retaining donors, winning them back and getting them to give more.