On Donor Retention | When donors stop giving…

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7K0A0642It’s like you've been dumped...

A donor who regularly supported your organization for years just called and asked to cancel his recurring gift. You need to learn what went wrong and determine whether this is an individual issue or sign of a larger issue with donor retention. If you handle the situation well, you may be able to save and strengthen this relationship.

Here are some scenarios you might face and my suggestions for how to respond:

Donor says:
“I appreciate all the work your organization does for the local community, but I’m moving out of state. If I weren’t moving away, I’d continue donating to your cause.”

Do this:
Show your thanks and say goodbye with grace. Access the donor’s journal, edit the recurring gift, enter a stop date, and save the schedule.

After you stop the recurring gift, send a letter as confirmation.

  • If donors rarely cancel recurring gifts, the easiest way to send a letter is also the most low-tech. Locate  paper with your official letterhead and use a word processor (such as Microsoft Word) and then write a personal letter. Alternatively, send a one off email.
  • If donors frequently want to stop recurring gifts, create a communication template in eTapestry. The template should thank the donor for past support. You might want a generic letter for this situation, which you can edit in special situations. To do this, generate a one off letter, download it to your local computer, open it in a word processor, enter your changes for the special situation, and then send it to the donor.

In either case, remember to copy the contents of the letter into a journal contact for future reference and to update the account’s addresses. If you use a user-defined field to track mailing preferences, update the account’s defined fields tab too.

Donor says:
“I love the great things your organization does, but my boss cut my hours and my kid is really sick. I just don’t have the money to spare anymore.”

Do this:
Show your thanks for the past support and show empathy for the current situation.

  • Ask whether the donor wants to continue receiving emails and newsletters so that he can stay in touch with your organization.
  • Let the donor know about upcoming volunteer opportunities and emphasize how much value volunteers bring to your organization.
  • Try to add a personal touch, especially if the donor has historically been a strong supporter.

If you can keep the relationship strong, then the donor will be more likely to support your organization in the future when his situation improves, even though he has to reduce his support for the present.

Donor says:
“Honestly? The passion is gone. I used to really like your organization, but lately I just don’t feel the connection anymore. I still want to make the world a better place, but I think I can make more of a difference with another organization instead.”

Do this:
Ask follow up questions to try to learn from the broken relationship.

  • Did the organization do something to offend the donor, such as constantly misspell his name?
  • Did the donor feel unappreciated because he never received thank you letters?
  • Did the donor feel like you asked for money too often?
  • Did the donor feel like he was wasting his money because he wasn’t well informed about the things your organization has been able to accomplish as a direct result of his support?

Some of these problems could already be hurting your relationships with other donors too. Consider this a wake-up call and use it as motivation to make improvements. If you can correct these types of issues, donors like him will be more likely to continue their support.

To discuss donor loyalty issues and best practices to increase retention, check out the eTapestry user community.

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