Five New Year's Resolutions for Nonprofits

No, this is not some article I forgot to post six months ago.

It’s the beginning of July and for a great many nonprofits, it’s the beginning of a new fiscal year.

Many of us take the first days and weeks of a new year to reflect on the past and make our plans for the future.

So in these early days of FY25, here are five recommendations for you, whether you’re a nonprofit professional or a board member.

RESOLUTION 1: Take a look at your donor retention. Donor retention rates in the United States...well...frankly, they suck.

According to the Fundraising Effectiveness Project, overall donor retention rates in the United States hover in the low 40s. It’s even worse for first time donors – in the low 20s.

It’s so costly to acquire new donors; why would you not take the time to retain those you have? It’s quite cost efficient, creates stability in your contributed revenue streams, and promotes advocacy within your donors.

Next/After has a great resource on the topic.

RESOLUTION 2: Determine how quickly you are sending acknowledgement letters. I’ve known organizations that only send acknowledgements once a month. (And we wonder why over all donor retention is dismal?)

Somebody has made the decision to voluntarily donate to your organization. It’s our responsibility to honor that ensuring we thank them immediately. Best practice is for acknowledgement letters to be sent within 24-48 hours after you receive the gift.

Yeah, yeah, I know. The person who processes gifts was out. We didn’t have the time because of our upcoming board meeting.

I’ve heard it all.

Now, I acknowledge that there may be some systemic problems that prevent you from getting letters out. Fix them. Now.

If you can’t get letters out that quickly, at least make a phone call, send a text, or write an email the day the gift comes in to tell the donor that you’ve received the gift, you’re enormously grateful, and that the formal thank you will be coming shortly.

RESOLUTION 3: Sit down and actually read your acknowledgement letters. Have you looked at that form letter lately? Has it been updated recently? Does it begin with, “On behalf of the Board of Directors of XYZ nonprofit...”?

If you haven’t updated your letters in a while, now is the time.

And while you’re at it, get rid of that ghastly first line. The acknowledgement letter is a wonderful opportunity to share a story about the mission impacts of your organization. Tell a story about a child who learned to read, a dog that was rescued and placed into a good home, or someone whose heath was improved thanks to your educational programs.

RESOLUTION 4: Ditch the scanned signature. Call me old fashioned, but emails with PDF letters and scanned electronic signatures just don’t cut it.

Once again, your donors have volunteered to give you their precious resources. They deserve a printed letter, personalized, hand-signed, with a note, placed in an envelope with a stamp, and sent to the post office.

RESOLUTION 5: Go out and buy some notecards. Actually, strike that. Hit up your favorite stationery or bookstore (or, if you have to, Amazon), buy a whole ton of notecards. Always leave a box or two on your desk. Then every single day, hand-write and mail a card to a donor, board member, co-worker, or volunteer, just to express your gratitude for all they do throughout the year.

Not only is it the right thing to do, but as research shows, it can reduce stress and improve physical and mental health.

“…. many studies over the past decade have found that people who consciously count their blessings tend to be happier and less depressed….” Learn more from Gratitude Changes You And Your Brain (Berkeley’s Greater Good Magazine).

These five steps, most of which cost nothing, will make a big difference in your donors’ happiness with your organization, and ultimately, your bottom line.

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