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Retention is the New Acquisition
publication date: Nov 25, 2014
author/source: Danielle Johnson-Vermenton
Lack of stewardship has a price, and nothing proves that more than the AFP Fundraising Effectiveness Survey. While organizations focus on their development goal and raising money through major gifts, events, direct mail, grants and online, we continue to see is a lack of focus on stewardship and retention.
Consider that for every 100 new donors gained, 105 donors were lost through attrition. While we raised more money, a $34 million net growth-in-giving, for every $100 gained through new, renewed or increased support in 2012, $96 was lost in 2013. Yet, according to Adrian Sargeant and Elaine Jay, a 10% increase in donor retention can enhance the lifetime value of your donor base by up to 200%.
Those are sobering statistics and make it pretty clear what we should be focusing on. Every organization needs to increase their investment in stewardship and retention. Poor stewardship comes at a hefty price: the loss of money, the loss of donors and, based on my 13 years of experience in the field, the sanity of the organization’s employees.
Great stewardship requires your organization to shift its focus away from raising the next dollar to keeping the next dollar. In everything you do, ask yourself “What do I want the donor to think, feel and learn about the impact they are making?” If you can let that guide your communications and activities, you will be on your way from good stewardship to great stewardship.
Here are 10 tips that any and all organizations can implement with the proper planning and resources.
I don’t know who originally said it, but I couldn’t agree more, “We need to stop measuring our success by whether or not we meet the needs of our annual budget.s. With every point of contact it’s about thanking, stewarding and growing a relationship with donors. Just think of it this way – by increasing your retention success, you are actually boosting your acquisition of loyal donors.
For ideas on online donor retention, download the free eBook: Show the Love: Donor Retention Strategies. http://bit.ly/DonorRetentionCharityInfo
For a thorough analysis of donor stewardship and retention read Adrian Sargeant and Elaine Jay’s text Building Donor Loyalty: The Fundraiser's Guide to Increasing Lifetime Value, 2004.
For the past three and half years, Danielle has been part of the Go! Team at Blackbaud. Prior to that, Danielle worked for more than 13 years in the nonprofit industry at organizations such as the American Red Cross, PBS and the Boys & Girls Clubs. A former speaker at BBCON, AFP Planet Philanthropy, the Boys & Girls Club Southeast Regional Conference and numerous webinars, Danielle’s passion is inspiring nonprofits to have a plan for today with a grand vision for tomorrow. You can follow Danielle on twitter at @DJVermenton.
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