mission Matters Stand Out in Crowded Campaigns: The Importance of Showing Donors Your Impact June 24, 2024 Are you showing your donors your impact? The key to donor retention in 2024 and beyond is getting your donors connected to your programs and letting them see the impact of their gifts. Here’s what you should know. Is donor retention a priority for your organization? If not, it should be! How can you stand out to donors in 2024 and beyond, especially during periods of economic fluctuation? We explore here. How do economic fluctuations impact nonprofits? During periods of economic downturn, many find that their discretionary income is lower and philanthropy decreases as a result. When funding is at a low, basic needs have more funding vs social services, mental health and healthcare. How do organizations cope with donor fatigue? Unless your pitch is something that really tells the donor what they are supporting, you are not going to have donor engagement. Donors are looking to make an impact; if your ask doesn’t result in them seeing the impact; they’re going to go to another organization with their donations. “Deepening donor relationships in 2024 depends on getting donors connected to the programs they’re supporting. Let them see the programs, celebrate the programs, show the impact of the gifts. Telling stories helps engage donors and helps them understand how their dollars are being used in everyday programs. That’s what they want to see.” -Jamie Hansen To get donors more engaged in 2024—show them video testimonial; see the projects, see the camps. Anything to see their investment at work. For example, let’s say your organization is running a summer camp program for disadvantaged youth—donors want to see how many children your program has helped in the past, how many meals you’ve provided to low income families during the summer months, etc. Why is donor retention important? Keeping donors is cost-effective: Getting new donors is crucial but expensive. Keeping donors mainly requires time and nurturing, but the more donors you keep each year, the more cost-effective it becomes to acquire new ones. Keeping donors brings stability: Regular donor support means you can rely on consistent income. This makes budget planning easier because you can predict donation revenue more accurately. Relying only on new donors, who may stop giving regularly, makes it hard to predict income. Also, if your budget for getting new donors gets smaller later, having loyal donors will help lessen the impact. Keeping donors encourages advocacy: When donors give regularly, it shows they care about your cause and believe in your work. So, they're more likely to talk about your nonprofit to their family, friends, and colleagues. In the competitive world of online fundraising, where new nonprofits appear often, having loyal donors who spread the word can set your organization apart. After all, word of mouth is still a powerful way to get attention! Is your organization running its first capital campaign? Check out our blog, Building Trust with Donors: Why Proper Pledge Recording is Essential for valuable considerations when it comes to pledges receivable.
