Why Donors Leave & What You Can Do About It 2016 HSUS Conference Panel: Adventures in Donor Retention and Lapsed Donor Recapture

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1 Why Donors Leave & What You Can Do About It 2016 HSUS Conference Panel: Nicole Stern, Director of Philanthropy Animal Humane Society Golden Valley, MN Jessica Mehlhoff, Advancement Operations Strategist It typically costs two to three times as much to acquire a new donor than to retain existing donors. The numbers are clear it s much more cost-effective to keep your donors. But donors are constantly coming and going from our organizations. How can we know why they are leaving and is there anything we can do about it? Of course you can! By following fundraising best practices that build on what we know about donor loyalty, you can address many, if not all, of the reasons donors leave. The following statistics are based on research from Adrian Sargeant, a foremost scholar on donor retention. Why Donors Leave 5% Thought the charity didn't need them. 8% No information on how monies were used. 9% No memory of supporting. 13% Never got thanked for donating. 16% Death. 18% Poor service or communication. 36% Others are more deserving. 54% Could no longer afford. What You Can Do About It

2 Why Donors Leave & What You Can Do About It 2 5% Thought the charity didn't need them. Your donors initially joined because they wanted to help you. But they still need to be reminded why you still need their support and what it does for your organization. Communicate your case for support. Answer the questions Why do you need my help and What does my help do with specifics. Emphasize that the work you do cannot happen without the donors support. Integrate your case for support into all kinds of communications, not just fundraising appeals. Animal Humane Society receives no government funding. Every dollar raised comes through earned revenue (adoption and program fees, retail sales, and dividends from the for-profit subsidiary, Now Boarding), donations, bequests and special events. Seventy percent of our operating budget comes from people like you. Without your help, we would not be able to save the 21,000 animals in the Twin Cities that rely on us for help every year. Your donation provides shelter, medical care, vaccinations, enrichment activities and behavioral therapy to help animals find homes quicker.

3 Why Donors Leave & What You Can Do About It 3 8% No information on how monies were used. Donors want to know that their money was used wisely and that it made a true difference. Demonstrate the impact. Tell stories of specific animals and share them in a variety of ways: acknowledgment letters, fundraising appeals, blog or newsletter articles, photos on social media, annual report, etc. Share updates on how your programs directly help animals lives.

4 Why Donors Leave & What You Can Do About It 4 9% No memory of supporting. Donors may support a variety of organizations similar to yours. Make sure that when they hear from you, they know exactly who the message is coming from. Distinguish your organization through consistent messaging and branding. Make sure all your communications look and sound like you. Integrate consistent messaging/images across all fundraising channels. Be specific about what your organization does. Refrain from general statements about your services that could apply to other organizations. i.e. We give animals a second chance at a better life. Remind donors that they gave to you and ask them to give again.

5 Why Donors Leave & What You Can Do About It 5 13% Never got thanked for donating. Failure to properly thank your donors shows lack of care and respect. Donors need to know that their donation was received and appreciated. Thank every donor for their support. Promptly and personally acknowledge the donor s support. Incorporate gratitude into all communications newsletter articles, website, social media posts. Think of the acknowledgment as the beginning of the relationship with a donor, not the end. Dear DONOR NAME, I am overjoyed by your support of Animal Humane Society. From all of us at AHS especially the animals thank you for your gift of $AMOUNT, received on DATE. Together, we are creating happier, healthier lives for animals in our community. Last year, AHS impacted the lives of more than 23,000 companion animals, served more than 12,000 people through our education programs, and responded to over 1,500 reports of animal cruelty. Your generosity makes all of this possible. Working at AHS, I witness the impact of your support every day. I invite you to visit animalhumanesociety.org/animaltracks to see for yourself how your gift is making a difference in the lives of animals. If you have any questions about your donation, please feel free to contact our Donor Services team at Thank you again for your kindness and generosity.

6 Why Donors Leave & What You Can Do About It 6 16% Death. If you ve done a good job cultivating the relationship, some donors will make their largest contributions at the end of life in the form of bequests or other planned gifts. Establish a planned giving program. Make it easy for donors to let you know they ve included your organization in their will or estate by including information on planned giving into your regular appeals and communications. Offer the donor resources on how to set up your organization as a beneficiary.

7 Why Donors Leave & What You Can Do About It 7 8% Poor service or communication. Spelling a donor s name correctly and responding to their questions builds trust just as much as anything. Give donors the care and attention they deserve not just when you re asking for money. Respond promptly to inquiries. Ensure your donors names and information is accurate. Personalize your communications to donors. Speak your donors language no jargon. Respect their wishes if they want less/more communications, listen to them. Establish and communicate your donor privacy policy, with details about donor information, list sharing, discontinuing contact upon request and the Donor Bill of Rights.

8 Why Donors Leave & What You Can Do About It 8 36% Others are more deserving. Without a powerful case for support, you leave the door open for donors to find similar organizations to help. Communicate your case for support again and again. Share successes that will differentiate you from similar organizations. Don t be afraid to repeat yourself messages are more effective when repeated.

9 Why Donors Leave & What You Can Do About It 9 54% Could no longer afford. This could be a catch-all of excuses why donors stop giving, but if you make a strong case and steward your donors well, you ll be less likely to be trimmed off the bottom of their list. Demonstrate the impact of donations at all levels. Communicate the importance of every donation. Provide positive experiences for donors at all levels. Establish a sustaining giving program that makes it easy for donors to spread their gift out over the year..