You want your donors to renew their contributions each year, but you don't really want it to be a hard sell. Rather, you want to convey to them that their support is valuable. Most important, you want them to feel as though they are a vital constituent within your donor family. But sending a key chain or refrigerator magnet doesn't seem adequate, especially in today's climate where people tend to be rather cynical.
So how do you communicate your appreciation? The answer is simple: just tell them, and tell them often.
Each year, nonprofits are concerned with retaining their most important assets -- their annual donors. At EHL Consulting, we believe the most valuable tool in retaining annual donors is communication: telling your donors where their dollars are being spent, thanking them and keeping them informed.
Be clear in your presentations asking for support.
Donors are careful and want greater accountability from the charities to which they give. They have a right to know where their dollars are going. Articulating the exact use of donations will eliminate possible discussion down the road concerning misuse or misallocation of funds. The American Institute of Philanthropy, a watchdog service whose purpose is to help donors make informed giving decisions, recommends that donors ask charities what percentage of their donation will be spent on program versus administration and fundraising. Make it easy -- just tell them. (As a guideline, 8-12% represents legitimate levels; anything below 6% is superb!)
Provide timely written acknowledgments and receipts.
Doing so enables donors to maintain accurate financial records necessary for tax return preparation and financial planning. In your acknowledgment letter, write "Your $500 contribution supports teacher salaries and the artist-in-residence series for the 2006 after-school program." If they attended a special fundraising event, tell them exactly what portion of their ticket is tax-deductible.
Send a regular newsletter or e-newsletter.
A monthly or quarterly newsletter, either printed or electronic, informs your donors about ongoing projects and new initiatives. Include pictures! A captioned photo of your organization's new building construction site provides visual evidence of how those capital campaign dollars were spent. And a professional-looking newsletter is also a perfect opportunity to again acknowledge their generosity.
Create Annual Reports.
Annual reports that disclose financial figures provide validation that contributions were spent wisely. If your budget is limited, consider a simple report as a supplement to your monthly newsletter. The annual report also represents another opportunity to express thanks to the sources of support from the previous year.
Maintain a vibrant website.
Donors need to know who you are and what you do. Make sure the information on your site is current. Include board members, articulate your major programs and create a section for acknowledging donors.
Open communication makes donors feel like they have made a difference. Whether they donated $2 million or $20, conveying ownership leads to continued involvement and ongoing financial commitments.attended a special fundraising event, tell them exactly what portion of their ticket is tax-deductible.
