The Donor Journey: From Donor Acquisition to Legacy Giving

Sam and Martha started giving to The Salvation Army in 1992.  They were acquired through a normal direct mail appeal, and gave $250 total that first year.  Over the next 16 years, they gave $250-$500 per year, responding to Christmas appeals and youth program campaigns.  Although they were annual sustainers of the mission, their giving amount wasn’t enough for them to show up on the development office’s radar.  Until …

Donor Acquisition

All fundraisers know that acquisition is really important to their charity’s long-term success, because every donor has to start their relationship with a nonprofit somewhere.

Here are a few reasons why acquisition is an important part of the donor journey:

• Every organization, whether charitable or commercial, experiences donor (or customer) attrition.
• In order to continue a growing pool of constituents, every group must make a regular investment into activities that draw new people (donors, customers) into the fold.
• Approximately 35 to 40 percent of all donors who contributed in any given year will not contribute during the following year.
• It’s the best way to get your organization’s name out to the widest audience.
• 90 percent of Major Gifts and Planned Gifts first came on the donor file through acquisition.

• Acquire enough new donors each year to offset natural attrition, and increase the number of active donors who will support you throughout the whole year.
• Acquire higher-value donors.  The first gift from any donor is a solid indication of ongoing gift level, so the initial average gift of new donors is also important.
• Acquire these high-value donors at the best possible long-term ROI.

Stewardship and Annual Sustainer

In 2009, Sam and Martha gave $2,000 through a direct mail appeal.  Since this was a big jump from their usual gift amounts of $250–$500, the Major Gift team took notice: Wow, they’ve been giving 16 years.  They’re very committed, and we need to get to know them better.  That’s when Karen, their assigned Major Gift Officer, started reaching out with phone calls, sending notes, and thanking them for their giving.  Sam and Martha weren’t used to being specially recognized in any way for their contributions, they simply believed in The Salvation Army’s work.  In fact, the couple increased their next Christmas gift to $10,000, because they trusted that The Salvation Army was Doing the Most Good.  They were already committed!

We believe a donor truly becomes YOUR donor once they’ve made an ongoing commitment to you.  Like Sam and Martha, they give gifts to support your mission because they believe in your organization, and want to be part of your good work.

Transactional vs. Sustainer Donors

Of course, many donors will choose to remain in the transactional camp — they give because of one specific opportunity or set of circumstances, but remain unsure when or if they’ll give again.  That’s to be expected, and those donors and their donations are still valued.

But a committed donor — a “sustainer” — is a donor who has decided that your work is worthy of her ongoing investment, and she will maximize her own sense of value and worth through her investment to your cause.

Further, a sustainer donor is not necessarily a monthly donor, though they can be.  A sustainer simply commits to giving regularly (annually, two times a year, quarterly, monthly, or even 100 times).  They choose their preferred giving frequency in exchange for something they value — which is being your partner in doing transformational work.

Donors want to know their gifts make a difference, and that they are appreciated.  What they enjoy most through their involvement with your nonprofit is a sense of relationship and a higher purpose that is honoring of all parties.
 

The TrueSense Approach

We practice these principles every day — both in how we serve our clients, and also where we guide them in taking steps for growth.

For 15 years, we’ve been offering our clients an opportunity to enter into a committed relationship with donors through our Donor Design — “sustainer” — strategy.  Donor Design allows a donor to commit to giving an amount of their choosing, at the frequency they desire, in exchange for less mail — with the provision that they will receive all the nonprofit’s newsletters, be given an annual summary of their giving, and be given the opportunity to participate in one or two key campaigns.  Donors become part of a special group recognized for the life-changing commitment they have made.  The result of this strategy is 95 percent retention rates — and the type of satisfaction that has caused donors across the country to write letters to newspaper editors, wishing that all charities would take this approach!  In addition, donors often exceed their giving commitment with gifts over and above their agreement.

For 11 years, we’ve been making thank-you calls to our clients’ donors.  We built a model and hired callers to do nothing else but thank donors over the phone, and write notes of appreciation and affirmation for the donor’s kindness and generosity.  That’s how you show that you respect donors!  To listen to some of our conversations with donors, click here.

How do you turn a Transactional Donor into a Sustainer Donor?

Stewardship is a vital part of developing your organization’s relationship with your donors and guiding them along the Donor Journey.  A successful stewardship program:

• Provides appropriate recognition and appreciation for each gift.
• Keeps the donor informed and up-to-date about the use of her gift.
• Communicates to the donor your organization’s needs and new priorities, while also cultivating her for the next gift.

Cultivation and Stewardship

In 2010, the Christmas after Sam and Martha’s generous $10,000 gift, Karen put together a gift basket of things that were personal and made by children.  When Karen delivered the basket to the couple’s home that December, she spoke with Martha in person for the first time.  It was a brief, but very pleasant visit.  Martha was very grateful for the gift and the thought behind it. This started their personal relationship.

After that first visit with Martha on her doorstep, Karen called to see if she could come visit again.  Sam and Martha said yes, and after the next visit, they told Karen she was welcome anytime.  They said to stop by whenever she wanted.

Karen was becoming a regular visitor and learning more about Sam and Martha, including the fact that they had included The Salvation Army in their estate plan!  Karen brought the Planned Giving Director, Matt, into the relationship.  Sam and Martha gave $10,000 for the next two Christmases, then in the third year of our relationship cultivation (2012), they increased their annual giving to $21,000.

Karen took the time to get to know Sam and Martha.  She didn’t want to be pushy, but she knew that they were important donors to be cultivated.

Getting your donors to migrate to high-value giving levels requires both cultivation and stewardship.

What’s the difference between donor cultivation and stewardship? 

• Stewardship: Communications with your donors that do not include an “ask.”  These stewardship touchpoints should recognize the donor for their generosity and inform them of the impact of their gift.
• Cultivation: Communications with your donor that directly encourage them to make a gift.  These cultivation touchpoints often ask the donor to increase their support.
   

5 Steps to Come Alongside Your Donor on Their Journey Toward a Transformational Gift

1. Meet face to face.  Thank the donor for their recent gift.  Ask them to coffee to learn about why they choose to give to your organization.  Ask them what specific programs they’re interested in and how they’d like to keep informed about them.  Ask their advice pertaining to your organization.  Listen to your donors.
2. Show your program in action.  Take the donor on a “behind the scenes” tour of your organization.  Invite them to a “special invite only” event.  
3. Offer volunteer opportunities.  Ask the donor if they’d like to volunteer at an upcoming volunteer day.  If they’re elderly (or otherwise not up for being on their feet), suggest they assist in an advisory role.  Perhaps they’d like to serve on your board or provide ad hoc guidance.
4. Provide updates.  Share what’s new!  Is your organization growing by leaps and bounds?  Are you struggling and need help in a certain area?  Did you need publicity for an upcoming event, and your donor has ties to the local broadcast community?
5. Know donor tipping points.  What does a typical donor look like before they make their first major gift, or before they add your nonprofit to their estate plans?  Most organizations see patterns in their donor behavior before moving to a transformational giving level.  For instance, the donor has given for 6+ years consecutively, or their last gift was above $3,000 and was 50 percent higher than their second-to-last gift.  Dig into your donor data to learn their tipping points, and to determine when would be a good time to cultivate your donor to a higher giving amount.

Connect Your Mission to Your Donors’ Passion

Sam and Martha don’t have any children.  They live in a very modest home.  They are not interested in “things.”  They don’t need a whole lot or want a whole lot.  They own a pumpkin farm next to their house on 100 acres, which had been in their family for generations.  It was the kind frequented by kids looking to pick pumpkins and go on hay rides.

Through her donor stewardship, Karen discovered Sam and Martha's passion: helping the homeless.  Karen got them involved in sponsoring family homes through The Army’s transitional living center.  Sam and Martha loved that with these transitional housing units, The Salvation Army worked directly with homeless people to help them find permanent housing.  In 2013, they sponsored four homes — a gift of $25,000.  The following year, they renewed their sponsorship of four homes, and they increased their unrestricted giving to $80,000.

Since they’re elderly and couldn't visit or tour facilities, Karen and Matt — the planned giving officers — would bring the couple soup from the local hospital (because it’s their favorite).  They spent a lot of time doing thoughtful things for Sam and Martha, which they definitely deserved and appreciated.

Do you know what donors are passionate about?

It’s crucial to connect your mission to your donors’ passions.

With more nonprofits than ever before, (over 1.5 million across the United States, according to The Chronicle of Philanthropy) donors are ever-vigilant about where their dollars go.  The average Salvation Army donor gives to roughly 9-12 charities per month.  Donors’ time, energy, and money are pulled in many directions.

Karen’s excellent stewardship gained her valuable insight into Sam and Martha’s heart for people who are homeless.  Karen knew that by connecting the couple with this ministry, they’d be delighted to see their money going to use … in their favorite way possible.
 

Why is it imperative to connect your mission to your donors’ passion?

• To create a long-lasting bond between donor and organization.  When a donor knows they are making a literal difference in others’ lives by supporting a shelter or providing food or education, it creates an indelible bond with your organization.
• If you’re not connecting with your donors, then another nonprofit is!  As mentioned above, there are over 1.5 million charities in the U.S. — that’s a lot of competition for your donors’ passion to be matched elsewhere.
• Lapsed donor prevention.  If a donor feels truly passionate about what your organization is achieving, they’ll feel committed to sending in their check each month, or will sign up to be a monthly sustainer!  Check out this post from Heroic Fundraising about 6 Ways to Win Back Your Lapsed Donors.

Donor Legacy

In 2015, Sam passed away at age 95.  He was a farmer.  Really gentle man.  Really hard worker. During Karen’s visits over the years, Sam would be on his tractor, plowing the field next to the home.  In his 90s.  It’s what he did.  It’s what kept him going.  He did it up until months before he passed away.

Martha is still alive, and Karen still visits her on a regular basis.  Martha decided last spring that it was time to sell the 100 acres next to her home.  As part of their estate plans, The Salvation Army benefited $2.5 million from the sale.  

In Christmas of 2016, Martha contacted Karen and gave another $80,000.  Today, she’s 96. Still lives in the same house.  To date, the couple has given just under $3 million.

Why did Sam and Martha choose to give to The Salvation Army?  Because they helped Sam’s family when he was young.

Whether you’re reading the Bible, Native American proverbs, or secular literature and beyond, the notion of leaving a legacy is a familiar one.

• “Do to others what you would have them do to you …” (Matthew 7:12)
• “We will be known forever by the tracks we leave.” — Native American proverb
• “Don’t judge each day by the harvest you reap, but by the seeds that you plant.” — Robert Louis Stevenson
• “Today, I shall behave as if this is the day I will be remembered.” — Dr. Seuss

It’s human nature to want to make an impact on the world that lasts beyond your lifetime. Donors are no different.  Through their giving, they are choosing which causes they want to influence, and which organizations they trust to go about Doing the Most Good. 

Sam and Martha gave to The Salvation Army because Sam’s family received assistance when he was young.  However, most donors won’t be able to give anywhere close to $3 million.  Can they still leave a legacy?  Absolutely!

Whether someone feels an affinity to a specific organization, like Sam, or just wants to share their resources with people in need, there are myriad opportunities.

Four Ways to Leave a Legacy:

1. Give time.  Offer to babysit, so parents can have a date night.  Mow the lawn for an elderly neighbor.  Organize a neighborhood toy and/or clothing drive for newly arrived refugee families.
2. Give talent.  Offer cooking lessons to newlywed couples.  Lead a sing-along at a senior center.  Offer a photography lesson to a budding artist.
3. Give knowledge.  Tutor students.  Help guide a high school student through the college application process.  Lead a young adult class on financial planning.
4. Give monetary resources.  Donate to a capital campaign.  Underwrite an event. Include your favorite charity in your estate planning.