Secrets of the 2nd Gift –  the Key to Donor Retention

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https://bloomerang.co/resources/speaking/ Fundraisers spend a lot of time acquiring new donors, and with good cause. However, in order to create a long-lasting relationship, the most critical gift isn’t the first; it’s the second. In this session, nonprofit technology veteran Jay Love will make the case for why donors should concentrate on acquiring a donor’s second gift in order to achieve sustainable funding, high donor retention rates and high donor lifetime values. You’ll see examples that can be implemented by any organization, whether you are a one-person shop or a large development department. The results can be astounding when put into daily use! Learning Outcomes: - Explore current research on donor loyalty and retention - Understand the importance of donor lifetime value - Learn new donor communications techniques that get the second gift

Government & Nonprofit

Secrets of the 2nd Gift –  
the Key to Donor Retention

Your presenter »
@StevenShattuck
Jay Love 
@JayBarclayLove 
Chief Relationship Officer,  
Bloomerang 
• 33 Years of Technology Leadership
• Over 20,000 Database Installations
• Former Founder & CEO of eTapestry
• Former CEO of Master Software/Fund-Master
* Former Senior VP of Blackbaud
• Conner Prarie Museum Board Member
• AFP Ethics Committee
• Rogare Research Institute Board Member
• Innovation Fund at Butler University
• Co-Chair of Indianapolis YMCA Capital Campaign

@JayBarclayLove
Why focus on the second gift?

https://bloomerang.co/blog/infographic-2017-fundraising-effectiveness-project-survey-report/
The 2017 results are in »
@JayBarclayLove

First-time donor retention »
https://bloomerang.co/blog/infographic-2017-fundraising-effectiveness-project-survey-report/
@JayBarclayLove

Repeat donor retention »
https://bloomerang.co/blog/infographic-2017-fundraising-effectiveness-project-survey-report/
@JayBarclayLove

Recurring donor retention »
@JayBarclayLove

Gift amount matters »
https://bloomerang.co/blog/infographic-2017-fundraising-effectiveness-project-survey-report/
@JayBarclayLove

# 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
Donor attrition over 5 years »
(1% increase in retention = $45,634 annually)
@JayBarclayLove

• 2001 study by  
Adrian Sargeant
• Survey to lapsed donors of
10 major U.S.-based
nonprofits
• Respondents were asked to
check each reason for
stopping their contributions
Why nonprofit donors leave »
http://www.campbellrinker.com/Managing_donor_defection.pdf
@JayBarclayLove

• 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
Why nonprofit donors leave »
http://www.campbellrinker.com/Managing_donor_defection.pdf
@JayBarclayLove

• 2011 study
• Survey of 1,200 recent (last 12 months), frequent (more
than 2 gifts to cause based charities) donors from over
250 nonprofit organizations
• Donors were given a list of 32 reasons why they might
continue giving
• Asked to rank them by order of importance
Key drivers of donor commitment »
http://www.thedonorvoice.com/national-donor-commitment-study-and-proof-of-link-between-donor-attitudes-and-behavior/
@JayBarclayLove

1. Donor perceives organization produces outcomes
2. Donor knows what to expect with each interaction
3. Donor receives a timely thank you
4. Donor receives opportunities to make views known
5. Donor feels like they’re part of an important cause
6. Donor feels his or her involvement is appreciated
7. Donor receives info showing who is being helped
Key drivers of donor commitment »
@JayBarclayLove

Stories get the second gift!
@JayBarclayLove

• “Why did you first give?”
• “What’s your connection to the cause?”
• “What would you like to hear from us?”
• Let them tell their story!
Other Survey Question Ideas »
https://bloomerang.co/blog/23-questions-to-ask-donors-and-prospects/
@JayBarclayLove

The for-profit world understands »
@JayBarclayLove

• Treat your first-time donors like royalty
• they have lowest retention rates!
• Tell them the impact they will have
• Tell them the impact they have had
• Be unique!
• Survey early
• let them tell their story!
Final thoughts »
@JayBarclayLove

https://bloomerang.co/resources
•Nonprofit Wrap-Up
•Bloomerang TV
•Bloomies
•Daily blog post
•Weekly webinars
•Downloadables
@JayBarclayLove

Questions?
jay.love@bloomerang.co
@JayBarclayLove
Free eBook »
https://bloomerang.co/staytogether/
@JayBarclayLove

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Secrets of the 2nd Gift –  the Key to Donor Retention

1. Secrets of the 2nd Gift –   the Key to Donor Retention

2. Your presenter » @StevenShattuck Jay Love  @JayBarclayLove  Chief Relationship Officer,   Bloomerang  • 33 Years of Technology Leadership • Over 20,000 Database Installations • Former Founder & CEO of eTapestry • Former CEO of Master Software/Fund-Master * Former Senior VP of Blackbaud • Conner Prarie Museum Board Member • AFP Ethics Committee • Rogare Research Institute Board Member • Innovation Fund at Butler University • Co-Chair of Indianapolis YMCA Capital Campaign

3. @JayBarclayLove Why focus on the second gift?

4. https://bloomerang.co/blog/infographic-2017-fundraising-effectiveness-project-survey-report/ The 2017 results are in » @JayBarclayLove

5. First-time donor retention » https://bloomerang.co/blog/infographic-2017-fundraising-effectiveness-project-survey-report/ @JayBarclayLove

6. Repeat donor retention » https://bloomerang.co/blog/infographic-2017-fundraising-effectiveness-project-survey-report/ @JayBarclayLove

7. Recurring donor retention » @JayBarclayLove

8. Donor retention » @JayBarclayLove

9. Gift amount matters » https://bloomerang.co/blog/infographic-2017-fundraising-effectiveness-project-survey-report/ @JayBarclayLove

10. # 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 Donor attrition over 5 years » (1% increase in retention = $45,634 annually) @JayBarclayLove

11. Why do donors leave? @JayBarclayLove

12. • 2001 study by   Adrian Sargeant • Survey to lapsed donors of 10 major U.S.-based nonprofits • Respondents were asked to check each reason for stopping their contributions Why nonprofit donors leave » http://www.campbellrinker.com/Managing_donor_defection.pdf @JayBarclayLove

13. • 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 Why nonprofit donors leave » http://www.campbellrinker.com/Managing_donor_defection.pdf @JayBarclayLove

14. Why do donors stay? @JayBarclayLove

15. • 2011 study • Survey of 1,200 recent (last 12 months), frequent (more than 2 gifts to cause based charities) donors from over 250 nonprofit organizations • Donors were given a list of 32 reasons why they might continue giving • Asked to rank them by order of importance Key drivers of donor commitment » http://www.thedonorvoice.com/national-donor-commitment-study-and-proof-of-link-between-donor-attitudes-and-behavior/ @JayBarclayLove

16. 1. Donor perceives organization produces outcomes 2. Donor knows what to expect with each interaction 3. Donor receives a timely thank you 4. Donor receives opportunities to make views known 5. Donor feels like they’re part of an important cause 6. Donor feels his or her involvement is appreciated 7. Donor receives info showing who is being helped Key drivers of donor commitment » @JayBarclayLove

17. Stories get the second gift! @JayBarclayLove

20.

25. Email receipt » @JayBarclayLove

31. • “Why did you first give?” • “What’s your connection to the cause?” • “What would you like to hear from us?” • Let them tell their story! Other Survey Question Ideas » https://bloomerang.co/blog/23-questions-to-ask-donors-and-prospects/ @JayBarclayLove

32. The for-profit world understands » @JayBarclayLove

36. Homework?

38. • Treat your first-time donors like royalty • they have lowest retention rates! • Tell them the impact they will have • Tell them the impact they have had • Be unique! • Survey early • let them tell their story! Final thoughts » @JayBarclayLove

39. https://bloomerang.co/resources •Nonprofit Wrap-Up •Bloomerang TV •Bloomies •Daily blog post •Weekly webinars •Downloadables @JayBarclayLove

40. Questions? jay.love@bloomerang.co @JayBarclayLove Free eBook » https://bloomerang.co/staytogether/ @JayBarclayLove

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