We encounter many firsts throughout our lives, and these experiences often shape our future decisions. For example, when you buy your first car, your experience at the dealership can influence whether you return there for your next purchase. If that experience was negative, you will likely seek a different dealership in the future. The same principle applies to giving. There are always other worthy causes and nonprofits that may connect with donors more effectively.
The example and principle are clear: by enhancing your stewardship efforts for first-time donors, you can significantly improve your retention rates. Creating donor journeys for those who make second and third gifts will help you build a pipeline that can transform your first-time donors into loyal supporters. Remember, a donor is only a first-time donor once. It is up to your organization to shape that experience, and ensure they continue giving in the long term. While this may seem straightforward, many organizations struggle to get it right. And by failing to provide meaningful and enhanced stewardship, you run an elevated risk of losing those donors to another organization—and if that happens, chances are, they may never return.
Check out these quotes below to get inspired:
“A first-time donor is never more excited than the moment they give. A well-crafted thank-you and a meaningful follow-up are what determine whether that excitement turns into long-term support.” - Penelope Burk (Author of Donor-Centered Fundraising)
“A first gift is a test. If your donor relations game is strong, you’ll pass with flying colors and turn that one-time donor into a lifelong supporter.” - Lynne Wester (Principal and Founder of DRG)
First-time donor retention rates continue to linger in the 20% range. However, research shows (thanks to a recent study of higher ed organizations by Evertrue) that if you could keep just 10% more donors, you could actually boost fundraising revenue up to 200%. This is a talking point we should all be using with our leadership. Donor relations teams work hard to be “at the table” with development, this talking point helps us prove that increased stewardship and focus on first-time donors has a direct correlation to our fundraising dollars. Our work is so important to the success of the fundraising mission, do not forget this.
From the Evertrue research: “Studies show that acquiring a new donor costs seven times more than retaining an existing one, yet our research found that nearly 62% of first-time donors don’t give again within three years. These statistics highlight the importance of engaging new donors promptly and meaningfully to increase the chances of repeat giving.”
I highly suggest that you take a deep dive into the data and research of their report. I guarantee you will learn something new and useful.
“First-time donors who go an entire year without giving again have just an 11% chance of making a second gift the next year. If they lapse for two years, that chance drops to only 4%.”
So, what does this mean for your organization? Now is time to pay attention to first-time donors, no excuses, you need to get started!
If you have a first-time donor journey in place –Yay for you! Make sure you are tracking your donor's retention and making adjustments annually to your plan. Maybe it’s time to mix things up. Have you tried tailored messaging and segmenting your donors? Alumni donors vs. friends of our institutions have different reasons for giving. If you can tap into why donors give and incorporate this in their journey, this will make them feel more connected. The Bloomberg article link below gives some fantastic metrics to help you make decisions.
If you don’t have a first-time donor journey in place, it’s time to take the plunge!
Building a journey for your donors can feel overwhelming, so start small, and start simple. As your team can show results with increased retention rates, this might be just what you need to justify more support for your team.
Here’s a sample timeline:
Engagement 1: Automatic thank you
Channel: Email
Message: Thank you!
Timing: Immediate/up to 72 hours
Engagement 2:
Personalized acknowledgment letter noting first-time gift
Channel: Mail or email (depending on how the donor made their gift)
Message: Thank you!
Timing: within two weeks
Engagement 3: Personal thank you
Channel: Postcard
Message: Thank you!
CTA: Learn more at our website
Timing: 1-2 Mos.
Engagement 4: ThankView/Vimeo Video
Channel: Email
Message: Impact of the donation
CTA: Watch this video/read this blog
Timing: 6-10 Mos.
Engagement 5: Personalized solicitation renewal
Channel: Email or mail
Message: ways to be involved
CTA: Click button to give
Timing: 12-13 Mos.
Now that you have some ideas to get started, it’s time to pull your teams together and begin planning. Don’t forget this should be an open and collaborative process, and it takes time. Be sure to include your annual giving team in the process as they will be a valuable resource. And lastly, don’t forget about metrics—track all your efforts and analyze all the results!
Happy stewarding!
Written by Christine McGuire
