A long term business survival strategy for your nonprofit
Survival planning jumps to the forefront of our minds when considering the current pandemic; stockpiling supplies, social distancing, and self quarantining are all quickly becoming the new norm. Typically, nonprofit donations will slow dramatically during an economic crisis, which means now is a great time to think about your nonprofit contingency plan. Read on to learn how you can address some current fundraising concerns and adjust to the next generation of fundraising.
Help! My event’s been cancelled!
It’s time to analyze your donor retention efforts and replace your events with other programs that have a higher ROI. Sure, you may already have a recurring donor plan, but do you know your donor retention percentages? Do you know how to increase those numbers? Do you understand the domino effect of increasing those percentages?
- The average donor retention rate hovers between 40% and 45%.
- Donors are much more likely to donate to you again within a 12 month period of their last donation.
- Donors who give more than once in a calendar year are far more likely to stay with you for their lifetime.
- It’s much easier to retain your existing donors than it is to inspire new donors.
This sounds great! How do I implement it?
Communicate with your donors and supporters to start a monthly giving program. Reinforce your mission and remind your donors that the needs your nonprofit addresses are always present. Make sure your online donation form includes an option to make the gift a monthly donation as opposed to a one time donation. Ready to plan your ask amount? It’s better to ask for a smaller, more manageable monthly gift. A good rule of thumb is 30% of your last campaign’s average gift amount.
Perfect! Once I implement a monthly giving program, I’ll be set for life!
Not so fast! Remember the bullet point from earlier that mentions the increased likelihood of donors staying with you for their lifetime? This group of donors have more to offer after their lifetimes are over. Consider a planned giving campaign, and ask your monthly supporters to remember your nonprofit in their will.
It’s more important than ever to do our best in continuing on with business as usual in order to minimize a shock to our economy. Establishing some of these recurring donation plans will help your nonprofit move forward with confidence.
And most importantly, TALK with your donors. Do not assume that they do not want to be contacted. Donors think and behave in many unusual and wonderful ways- let their reaction be your guide, not your own personal opinions.
The Team at The Biedermann Group