What type of recognition do donors want?
You’ve just received a gift from a new donor. You’re very excited to put the money to use, but you don’t know the best way to let the donor know their gift is appreciated. This is where a donor recognition strategy comes into play. While donor recognition may seem like a nice gesture, it’s actually a necessity in a world where the donor retention rate is currently hovering around 45%. Of the donors who choose to stop giving, studies show that 8% stop because they aren’t sure how the money is used, 18% stop because of the organization’s poor communication, and 13% stop because they never got thanked for their donation.
Some donor retention issues may be out of your control, but these reasons are easy to avoid and simple to fix. So, how do donors want to be recognized? Here’s what we’ve learned.
Timing matters. It is important to reach out to your donors quickly after receiving their donations. For some organizations, this may mean 48 hours. For others, it might be up to 5 days. The important thing is to get in contact as soon as you can. Leaving a donor waiting weeks and weeks to hear their donation was received is not a great way to build donor relationships and increase donor retention.
Make it personal. Donors want to feel like more than a number, so do your best to add a personal touch to your thank-yous. This can include anything from using donors’ preferred names to referencing previous interactions that make this donation special. This can be especially important when building relationships with legacy donors. Studies show that committing to a legacy gift can lead to a dramatic increase in annual giving, so personalizing your thank-yous to legacy donors is key. For more ideas, check out this blog post about thanking supporters.
Explain the impact. Donors love to know how and where their gift will be used. Be sure to provide updates in your thank-you messages about how their donation is benefitting the organization or its constituents. Statistics are great, but a more personal story highlighting the gift’s impact can really end a thank-you on a positive note.
Be sincere. Donor appreciation ideas can vary from a simple email to a donor plaque to special events, visits, or opportunities. But no matter how you choose to recognize your donors, sincerity is key. Make sure your donors know that you are reaching out because their gifts are truly appreciated–not just because donor recognition leads to donor retention. Thank your donors on a regular basis–not just after a gift.
If you’d like to know more about developing a donor recognition strategy, please feel free to reach out. We’d be happy to answer your questions.