3 Solutions to Common Fundraising Problems Pt 2

In part 1 of our 3-part series (now 2) we identified three solutions to common fundraising problems – Building a Philanthropic Culture, Creating SuperDonors, and Effective Marketing. If you haven’t read part 1 on Building a Philanthropic Culture you can access it HERE.

In part two we will comibine and discuss the second and third solutions, Creating SuperDonors and Effective Marketing. Why? Because we want fundraisers to think like we do, that fundraising and marketing are ONE strategy, and they shouldn’t be planned independently. Especially for individual donors.

Why we got so focused on individual donors is easy to understand. First, they represent about 71% of all annual revenue in most nonprofits. However, what we worried about even more, and it should be very troublesome for every nonprofit, is the 90% loss of individual donors on a regular basis. It seems that it has become the norm and fundraisers prefer to stay on that hamster wheel of working to attract new donors, rather than focus on the real question, Why Are They Leaving?

Did you know it costs 5X more money to attract new donors

than to invest in retaining them?

RETENTION

Based on data from Bloomerang and other key resources, donor retention and monthly giving are the keys to creating a sustainable financial foundation for your nonprofit. When donors are retained, recruitment costs are saved. When those donors give monthly, it greatly improves an organization’s financial stability.

Every 100 donors gained is offset by 99 lost donors through attrition.

Every $100 gained is offset by $95 in losses through gift attrition.

Acquiring new donors is difficult and expensive. If those donors only give once, you’ve probably lost money. But if you can retain donors by building a relationship with them so they want to continue supporting your cause, your initial investment continues to pay dividends over time, and your organization spends less time and effort on recruitment.

As competition for donors and donor dollars continues to grow, it is important for nonprofits to become more sophisticated and targeted with their fundraising efforts. One key concept is the value of donors for more than funding but also marketing.

To retain donors stop focusing on the monetary levels - Give donors what they need and want.

What is a SuperDonor?

SuperDonors is a term the Philantrepreneur Foundation (TPF) coined after creating a marketing and fundraising strategy called the SuperDonor Framework (SDF). ?It was modeled after Pat Flynn’s book ?SuperFan (Flynn, P., 2019) which outlines a highly effective strategy developed for the business world to attract and RETAIN customers. TPF reframed it by incorporating key fundraising attributes, and marketing best practices from both worlds.

Why do you want Superfans (SuperDonors)? In the context of marketing, it refers to highly dedicated and passionate customers (donors) who have an exceptionally strong affinity for a particular brand, product, or celebrity. These individuals go above and beyond being just regular customers; they are fervent advocates who enthusiastically support and promote the brand or product they love. Superfans can have a significant impact on a company's success as they play a vital role in brand advocacy and word-of-mouth marketing.

So, you can see why we want to create SuperDonors that go above and beyond just giving but become one of your strongest advocates and supporters. They will help build awareness and help raise funds for their favorite cause.

SUPERDONOR FRAMEWORK

The SuperDonor Framework is grounded in a systematic marketing and communication plan that feeds donors everything they need.

Appreciation - Recognition - Communication

Within this communication model, it recognizes and values donor commitment and involvement, it provides donors opportunities for engagement, and provides important recognition and appreciation.

We mentioned earlier that we are addressing creating SuperDonors and Effective Marketing. Here is why SDF is important in marketing:

• SuperDonors are valuable assets for marketing strategies due to their authentic and passionate support.
• SuperDonor positive word-of-mouth recommendations influence prospects far more effectively than traditional advertising.
• SuperDonors contribute to community building and can act as influencers within their networks. Their advocacy helps generate a strong brand image and enhances credibility and trustworthiness.

In the nonprofit world we speak of stewardship and nurturing. Effective marketers often focus on nurturing their Superfans by acknowledging and appreciating their dedication. Special promotions, exclusive access, or personalized experiences are some ways to reward and further strengthen loyalty. These strategies are highly effective for nonprofit fundraisers too, and as you see, it is a joint effort of fundraising and marketing. ?

Become familiar with the SuperDonor Framework to increase individual donor retention, loyalty and engagement.

Check out the next SuperDonor Challenge Training

#philantrepreneurfoundation #fundraising #superdonorchallenge #donorretention

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