I heard from DonorPerfect that their clients have seen a 6% increase in donations during this economic downturn. I thought it would be great to hear why they have experienced success while other nonprofits are having a hard time. Jon Biedermann, Vice President at DonorPerfect offered to share some tips as to why they have been so successful.
What has your organization done to create such great success in spite of a down economy?
I think our clients are more successful because we work closely with them to:
- Raise more money by uniquely targeting donors with the right message
- Build donor loyalty through better communications and acknowledgments that increases overall giving
- Analyze trends and patterns within their database to identify missed opportunities
- Track all information in one data source so that “no donor goes untouched”.
Another reason why our clients are more successful has everything to do with technology. For example, most nonprofits don’t use professional fundraising software- they muddle along on spreadsheets or cobbled-together Access databases. These solutions really aren’t solutions at all, and in many ways hurt an organization’s chances to grow.
What can nonprofits do to increase their giving during this time?
There are many ways nonprofits can continue to grow their giving, even during times such as these. Here is a recap from a recent blog post of mine:
- Be honest. Mention the economy in your appeal. One of the reasons people give is to help others not so fortunate.
- Offer an upgrade path. Encourage people to give more than in the past (while still offering their same support level).
- Offer a monthly giving program or pledge option. Donors usually contribute more when they have the ability to spread out payments over time.
- Offer a credit card option. Average donations for credit card gifts are up to 20% higher than other forms of payment.
- Be persistent. The number one reason people give is because they are asked. In fact, it usually takes 3 to 4 ‘impressions’ before people make a donation.
One of the greatest mistakes that organizations can make during times like these is to stop certain fundraising activities, such as acquisition campaigns. Though it is expensive to acquire new donors, the cost savings that they may realize today pales in comparison to the future revenue that is lost. Therefore, now more than ever it is important to keep fundraising to ensure your future income flow.