The sustainer debate

One interesting aspect of our line of work is settling disputes. Recently, the debate was about whether sustained giving is the way to go... and whether $5/month sustainers have value, or are insignificant to your efforts. 

There is no debate.  Monthly sustained giving is now a definitive best practice in nonprofit organizations nationwide. And most successful organizations are aggressively pursuing sustainers. 

Why?

Membership retention continues its slow decline.  And fewer people are entering the ranks as new donors. Add to that, new generational behavior, and the impacts of new technology, and we have shrinking donor files, diminishing revenue, and higher costs to acquire donors from a smaller pool of prospects.

Sustained giving can improve your net revenue bottom line far into the future.

Here’s an example: Let’s say 40% of your first-year members typically renew for a second year. This means that every year, you must work to fill up the hole that was left by the 60% who don’t return. This is difficult, time consuming, and expensive.

On the other hand, an average of 90%+ of your sustainers stick with you from year to year. This not only increases your gross revenue, but also adds to your bottom line since you’ve eliminated the need to spend money trying to renew them.

Additionally, sustainers are likely to give a higher average gift than they would if they were not sustainers (sometimes as much as 40% higher), which also boosts your revenue.

Research shows that donors are only likely to become sustainers to a maximum of four or five organizations, which is why it’s imperative to secure them now for your organization before all of your best prospects are tied up elsewhere.

Sustained giving is an exceptional tactic to employ, and is positively changing the revenue picture.

**Up next – is $5/month too low?

Caution

Incentives, benefits and deadlines are all valuable tools we have at our disposal to help raise more money. But be careful not to sell out on the value of your organization when you use them.

...It's the email that encouraged making a donation now in order to "minimize the need for additional fundraising"...

... or the one that opened to a giant photo of an IPad and gave the "chance to win" as the only reason to give.

What if the first looked something more like this... 

"Your contribution right now ensures that more time and effort can be spent delivering the programs and services you find so valuable.  Help make our campaign successful today so we can continue our important work tomorrow."

Or the second...

"When you support our organization today, not only will you do something great for our community, but you'll also be entered to win an IPad, a little something extra to inspire you to do your part now."

We all have big goals, but we also have a responsibility to the future of our organizations. If a donor's main motivation to give is based on ending fundraising... or winning a prize... it's not likely they'll return to make a second gift. Your up-front investment will be lost, and the long-term financial health of your program will be compromised.

Power to the people...

As you embark on your next campaign, here's a way to focus your thinking on the people you plan to communicate with.

Ask yourself this:

How would they change the world if they could?

Then tell them, in specific and meaningful ways, how their participation -- their donation to your organization -- can help make their world-changing dreams come true.

Give your donors the power to realize their part -- their importance -- in fulfilling your vision.

Show... don't tell

This is the time of year when newsletters and reports arrive in mailboxes as proof of performance in advance of our year-end appeals.

It's a good time to remind ourselves to spend less time on the facts and figures and "all the great stuff we did," and more time on what our donors helped us accomplish.

Show your donors... with stories and pictures... how these accomplishments make a difference in their life or the lives of the people you serve.

Here's a few starters to help put you in the storytelling frame of mind: 

Let me tell you what's happening...
This is important because...
Here's how it will make a difference...

Help your donors visualize what their impact looks like and feels like.  Because we're far more likely to remember and become passionate about the things we connect with emotionally -- the things that have meaning to us. Keep the focus on that.

The next monkey

Still intrigued by that new species of monkey discovered in the remote forests of Congo a few weeks ago. It's big. And it's been there all along.

Makes me wonder if there's an undiscovered monkey in our line of work. Something that might generate more funds if only we approach it in a slightly different way.

Take monthly sustained giving for example.  It's been right there under our noses for years. But not until recently did so many organizations "discover" it.  And now it's changing the shape of a multitude of programs for the better. 

What's the next new monkey? Well, that's why we ponder... and test... and analyze... and seek... and talk... and share. It gets us that much closer to a discovery that just might be hiding behind that tree over there.

Splash... or sink...

There's increasing thinking... perhaps confirmed by your own actions... that splash pages and pop-ups are creating new habits -- teaching us to click away before we even engage.

It's a theory worth considering if your major year-end online presence is centered around a splash page strategy.

Think about it this way.  When people come to your site, they're looking for something specific. They expect to find it quickly.  And your splash page is in their way.

It could be that a better strategy is to place a stronger focus on how you use your giving button real estate in that that upper right hand corner -- on every single page of your site --  which will make your campaign pop the entire time they're with you.

When you do that, you'll have a more permanent, urgent presence. And you'll give your visitors more of an opportunity to be inspired and take part on their own terms, in a more open frame of mind that just may inspire more donations.

Bravo Helen Kennedy!

Last Friday evening, colleagues, friends and family from near and far raised a glass to celebrate Helen Kennedy's remarkable career. Her list of accomplishments... miles long... spans more than 35 amazing years.

Fiercely dedicated to strengthening organizations and implementing best practices in fundraising, Helen has always been an exceptional analyst and strategist, never afraid to ask the tough questions and challenge the status quo. So many organizations thrive today because of her uncommon dedication to excellence.

What's next for LKA? Nova Hamar has been named President of the company, which she will lead along with Partner and Creative Director, Becky Chinn. Jim Lewis and Helen Kennedy will remain Partners Emeritus, and will provide occasional consulting on special projects. 

To Helen... we say "Bravo!" for a job well done! You used your gifts to do good in the world. A meaningful achievement.

And here at LKA, we look forward to a bright future of continued service in nonprofit fundraising, marketing and communications.