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Have you looked at your overall and new donor retention rates lately? If your organization is like most other nonprofit organizations, there is ample room for improvement.  According to the 2017 Association of Fundraising Professionals’ (AFP) 2017 Fundraising Effectiveness Survey Report, the average overall donor retention rate for the nearly 11,000 nonprofits participating in the study was 45%. The average new donor retention rate was 23%. 

As noted in the AFP report, for the past 10 years, the average overall donor retention rate has been less than 50%.

How can your organization move the needle on donor retention?  A good place to start is with donor stewardship.

by Angela White

Some time ago, I recorded a short video interview on why we advocate feasibility studies at JGA, and I find that those reasons continue to hold true.

Conducting a feasibility study prior to a campaign is a common and proven way to gauge what level of support may be achieved in a campaign and what strategies should be employed – not only to achieve a financial goal but, perhaps as importantly, to build both unity and momentum for organizational success. 

A feasibility study provides the opportunity for your current and prospective lead donors to dream big, to think through what the future will look like for your organization, and to share how they see themselves participating in that future.

Over the years, JGA has often been asked to help nonprofit organizations move from a transactional fundraising model – focused heavily on direct mail and special events – to a long-term sustainability model. The latter approach is based on building donor relationships that encourage and create meaningful opportunities for philanthropic investment in an organization. A key to success in this relationship-building, major gifts-focused model is a formal prospect management approach.

How do you put in place such a system?  What actions need to be taken to formalize an ongoing program of major gifts fundraising?  The following are four fundamental steps in implementing a systematic approach to major gift development:

A feasibility study, in JGA’s view, is active campaigning and is an integral part of the cultivation and involvement process of major donors and prospects.

I’ve spent a good deal of my career thinking about events and how to best use them in successful development programs. I’ve worked for organizations where key special events serve as the base of their philanthropic outreach.

A common practice among nonprofit organizations -- the offering of naming opportunities to donors – is seemingly receiving increased scrutiny. In the past fifteen months, for example, The New York Times featured an op-ed article on revising the way tax law treats naming rights and The Wall Street Journal ran a story on how naming rights can go wrong, focusing on a legal battle over a gift made by country singer Garth Brooks.

After 19 years of consulting, the feasibility study process is still the most rewarding work that I do at JGA. We are honored that so many esteemed nonprofit organizations trust JGA to step into key donor relationships and assist in strengthening donor bonds that advance their missions.

Have you ever considered raising philanthropic funds to reduce or eliminate your organization’s debt?

Raising funds for debt relief is good in theory, but requires a specific approach to gain support from donors. A key to fundraising is aligning the needs of the organization with the philanthropic goals of your donors. Yet, paying off debt is not often high on a donor’s list of projects they want to support.

So, I have been on a soapbox lately about a practice that we fundraisers often do – we role play the “ask” meeting. You know the drill – pair off and one of you be the donor and the other the solicitor. Then switch. Then debrief.

In today’s world, we are offered choices at every turn. Do we buy vanilla ice cream or chocolate or one of 53 other flavors? Do we choose to watch a movie, a home improvement show, or a sports event on TV?