We just sent out our loyal donor milestone mailer this month. We honor the donors who have given to our organization for at least five years or more. Our donors who have given for more than 50 years (our golden givers) receive a call from our Chancellor or a handwritten note thanking them for their unwavering support over the past five decades.
It got me thinking about loyalty and how it happens. What makes someone determine that this person, this product, this organization is the one they prefer? We all have things we prefer—Pepsi or Coke; Skippy or Jif; Nike or Adidas; United Airlines or Delta Airlines; Boys and Girls Club, or YMCA, but do we know why we stick by these companies or organizations?
The 2024 Capital One Shopping Research report contained fascinating data that helped explain what drives brand loyalty. Brand loyalty is perception-based (image and experience). Loyal customers believe that a certain brand represents higher quality than any other competitor. The report found that the top two drivers of loyalty are brands that share their values and provide good customer service.
If we apply this research to our donors, we know they are loyal to us because our organization’s values align with their own. That is likely why they made their first gift, and they stay loyal to us because we have done a wonderful job providing a positive donor experience. From the first thank you to every deliberate step we took to steward their gift, communicate with them, and engage them in our organization, all our efforts made them feel appreciated. Yay us!
There are other important factors in building donor loyalty:
Emotional connection: We have created a special bond with our organization, and our donors feel aligned with our organization, values, and work. Donors stay loyal to us because of this connection. They feel they are part of the solution.
Trust: Our donors have confidence in our organization, leaders, vision, mission, and values. They continue to give because we have proven that we are consistent, transparent, and honest. If we accept a gift, we will do our best to use it as intended.
Community: By giving to our organizations, our donors join a community of like-minded people who share their interests. Whether it is health care, the arts, higher education, or animal welfare, by coming together, they become part of something bigger than themselves. Together, this community becomes an integral part of the change that their support creates.
Loyalty is critical to a strong development operation. We know that only 20% of our first-time donors will give again, but this percentage jumps to 60% for donors who continue to give after their second gift. This is often referred to as the “golden rule of donating”—if we can get donors to give two or three times, we are more likely to turn them into loyal donors.
We know what makes a donor loyal. We know that frequency of giving plays a factor in loyal giving. This group of donors can move our fundraising enterprise. So, let’s lean into this group of donors. Let’s do our research and find out more about them. Who are they? How many do we have now? Who are our longest giving donors? Once we know more about them, we can create a program that honors this behavior. When resources are limited (budget and staff), we can stay focused on our most loyal donors.
If you are looking for ideas on how to build a loyal donor program, check out our on-demand webinar, Maximizing Donor Loyalty: Strategies, Models, and Success Stories.
In this on-demand webinar, we explore vital segment of loyal donors. We share strategies, models, and real-world case studies to help you enhance donor retention, reduce attrition, and effectively recognize and celebrate key donor giving milestones. This is your guide to building a loyal donor program, including identifying the right model for you, the accompanying data requirements, designing and implementing compelling collateral and visual assets, and project management and timelines to get you from concept to launch!
