Donor Attrition Threatens Not for Profit Organizations
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Non-profit organizations have an urgent need for donations now and for the near future. A lot of them have experienced substantial cuts in funding and restrictions to their primary sources of funding, which are local or federal government agencies, as well as state and federal ones which could affect their short- and long- sustainable long-term viability. Donors’ support has become more crucial more than before.It is not unusual organisations to loose up to 60 percent of new donors between their initial or second request. With such a high percentage of newly acquired donors not returning to give, this has led to a decline in the loyalty of donors. Section 18A Tax Certificate
The challenge for organizations is not just receiving donations, but also maintaining an ongoing, long-term commitment to their donors.
It is common for us to hear the leaders of non-profit organizations speak about the lack of donations. There are a myriad of reasons that contribute to this phenomenon. The most important of them all is the inadequacy of information about what is the most effective way to build lasting loyalty and the absence of a planned campaign devoted to this goal. Loyalty to donors is a major competitive advantage , yet very few organizations have the expertise to maximize the benefits of this.
Knowing what is considered to be loyalty and how to implement a strategy for loyalty is essential. According to Sage Insights, “Loyaltyis faithfulness or devotion to a person, country, group, or cause.”
They add “Donor Loyalty as an emotional connection and relationship between donors and your organization. The relationship itself is defined by the donor’s perception.”
According to a 2013 study carried out in 2013 by Sage Insights, 69% of organizations that were not for profit didn’t know or were unsure whether the organization had an official approach to manage the donor’s loyalty. In addition, the organizations varied widely in regards to where duty lie. Further, many organisations did not even know the proportion of regular donors they had.
Our experience has taught us that to build and maintain loyal donors, it’s important to think of every interaction with every person as an opportunity to deliver value every moment! Each and every service point is important and each point is accompanied by an expectations from the donor that should be managed and understood. We refer to these points of contact as, “Points of Connection.”
Traditionally, non-profits were focused on creating strong, positive connections within the community. They created an argument for action based on the feelings surrounding the essential needs of that community. In the past, this approach has worked well. In the present with numerous philanthropic options Non-profit organizations must improve their positioning and distinguish their worth. This can be done by asking questions to determine or highlight what is “most important” to the donor. It is essential to do this in ways that help to build and strengthen connections.
Sage Insights cites the following steps that companies can take in the present:
- Consistently and clearly communicate to donors the values of your organization.
- Make sure that all promises made to donors are kept to.
- Monitor and report on your company’s impact , or the key performance indicators.
- Be sure communications are in line with donor expectations regarding the content, frequency and quality.
- Inform donors of the reasons of major decisions that are related to strategies or programs.
- Keep a complaint process or procedure.
- Engage your donors in a two-way discussion about the services they can anticipate.
- Keep a donor-welcome program in place.
- Determine the quality of the services provided to donors and/or the constituents.
- Conduct regular exit polls of those who have resigned supporters.
We also recognize that the manner in which the information is shared is vital and must be in line with your donors. Every person in your company must know how to communicate to make positive points of connection. This is crucial as each positive interaction brings your donors closer while each negative one makes them leave.
Knowing your personal style of communication is a good starting point. 13. If you’re a head of a not-for profit organisation and would like specific details about your organization’s way of working to help donors stay loyal,