Did you know that 65% of new donors never make a second gift? And after five appeals we are down to only 10% retention. This has a tremendous effect on our ability to generate a consistent flow of revenue for our nonprofit organizations.
Why are we losing so many donors who were inspired enough to give a first-time gift? The answer is simple. We aren't giving them what they need! Donors desire three things after giving an initial gift and before giving a second. When we provide these three things, we move them from one time donors to engaged, committed investors in our organizations.
Research indicates that the following three actions highly influence a donors inclination to give a second gift:
When these three activities take place PRIOR...
Although fundraising and development go hand-in-hand, they are not one and the same. Each supports the other in building sustainable revenue for nonprofit and social impact organizations.
How are they different? When talking about funding nonprofits, we primarily use the word fundraising. But most of work falls in the development category. Here is an easy way to discern the difference:
fundraising = transactional
development = relational
Fundraising describes an activity that is transactional in nature. The focus is on immediate solicitation - The ‘ask’ or as I like to say, The Invitation.
Development on the other hand, is the building and nurturing of life-long relationships between the donor and the organization that results in revenue through donations AND advocacy in the community on your organization’s behalf. These relationships are cultivated and nurtured based on education, curiosity and attentive stewardship AND include solicitation - but on...