Your nonprofit is struggling to manage donor relationships. How can you turn things around?

This question is too broad. A nonprofit struggling with managing donor relationship is like a plumber struggling with how to connect pipes together. If an organization self-diagnoses as struggling with donor relationships it needs help, immediately, from an expert on donor relationships to determine what is wrong and what can be done to correct it. Often, a path is available, but it takes a knowledgeable guide to point it out.

A good leader would know the value of building strong donor relationships and would never allow this bond to weaken. Good communication, frequent meet ups, involvement within your community and personalizing the relationship helps to create a strong donor relationship. It takes time and effort.

Assessing your donor landscape is key. Dive into data on demographics, preferences, and giving history. Measure KPIs like retention rate and lifetime value. This analysis isn't just about numbers; it's understanding your strengths and weaknesses to set meaningful goals.

An org I served experienced a drop off in giving at one point. Assessment occurred, but one key action did not wait for analysis. The Chief Fundraiser - the CEO - started writing personal notes and calling donors to thank them for their recent gifts. He started the long arduous task of rebuilding and strengthening relationships. Maybe you've heard it said, the best time to plant a tree is 20 years ago. This is that. Don't delay. Pick up the phone.

Understanding and quantifying what engagement means to the organization is important as a first step. And then matching it with what the donor thinks his engagement should be as well. For some catching up once a few months is all they'd like to do, they are happy to receive emails but largely ok to plug in infrequently. For others giving is a way to grow their knowledge and they want frequent check-ins and event invites. Creating a portfolio of activities helps to then target donors in a customized way. They can then choose from the engagements that work for them or appeal to them.

I think that segmenting donors is a game-changer. Recognizing diversity in motivations and expectations allows for personalized strategies. Tailoring communication and outreach elevates relevance, forging stronger connections.

There’s no doubt that an effective communication is the heartbeat of donor relationships. Regular, thoughtful communication builds trust and loyalty. Tailor your approach to each segment, ensuring the right tone and language. Share your mission, values, and impact to illustrate the difference their donations make. Gratitude goes a long way – thank, appreciate, and recognize your donors for their invaluable support.

Thoughtful communication is the key. Communication with donors should provide value to them. For example, while at Asia Society, I would send regular updates about our milestones, events, and education thought leadership to our donors. Of course, you need to understand your donors enough to understand what content is valuable to them and how to demonstrate the impact you are making with their donations.

One important way to solicit feedback is to talk to your most active donors. Why do they donate to your organization? What are some of the activities you do that motivate them? What do they hope to see in the future? Understanding your active donors will help you get an in-depth understanding of what makes an engaged donor 'tick'.

If you ever experience this, take a step back and look at all of your activities within your department including the organization. Non profits and development departments tend to slowly position themselves to becoming transactional. If through your assessment, there’s transactional activity, quickly remove all aspects of it.

My suggestion: Revitalize donor relationships with a 3-pronged approach: 1. Transparency: Showcase impact reports, share stories, actively engage donors. 2. Personalization: Segment interests, offer flexible giving options, recognize contributions publicly. 3. Collaboration: Partner with other NGOs, offer joint events, tap into new donor networks. Adapt based on data and feedback. Remember, building trust and engagement is key

Often, organizations devote excessive amounts of time to meticulously segmenting donors and poring over donor reports. Simply pick up the phone and directly engage with your donors. Start by asking why they choose to support your cause, how they prefer to receive information, and which specific causes resonate with them the most. While CRM systems are invaluable for organizing donor data, their effectiveness hinges on the quality of the information inputted into them. Additionally, reaching out to first-time donors can be equally enlightening. Discovering what inspired their initial contribution, how they found your nonprofit, and what aspects of your mission resonated with them.