Overall, charitable giving increased 4.9% from 2012 to 2013. the largest year-over-year growth since the recession (2009).* In addition, all sectors experienced year-over-year fundraising growth.
It’s good that giving is growing. However, whats being called donor drop off also occurred in 2012. Gains of $769 million in gifts from new, upgraded current, and previously lapsed donors were offset by losses of $735 million due to lapsed donors and deduced gifts. ** Is donor retention a problem for your organization?
Gains and Losses
The answer to that question lies beneath the broad totals that most organizations use as benchmarks. To see whats really going on, you need to use data from the the past two (or more) years and drill down to analyze the changes in donors and donations in terms of gains and losses.
Of course a net gain in giving is good. But what if you discover that gifts from new donors accounted for most of the gains that a significant number of repeat donors did not contribute in the year you’re scrutinizing? Poor donor retention numbers may mean there is a disconnect. Perhaps it is time to take a fresh look at how you’re engaging with your donors.
Go Social
The opportunities to engage and communicate have proliferated. Fortunately, many of 
those opportunities are internet based so they are low cost or free. These days, nonprofits are reaching out directly via social networking websites, social media, and e-mail to engage and interact with current and potential donors.
Its a far cry from the days when donors put checks in the mail and received their confirmation a week or two later (or more). Today, the entire process can take place almost instantaneously.
Donor Impact
Because things can happen fast, you need to be donor ready. When you plan a fundraising campaign, plan how you’re going to recognize and thank donors at the same time. Personalize communications as much as possible so donors feel valued. Describe how their gifts are being used and the impact they are having.
Attitude Check
Few charitable organizations, if any, can survive without donations from supporters. It is a fact of life. How does your organization view fundraising: as a chore that drains time and resources but has to be done? Or as an opportunity to promote and support your mission? It’s easy to imagine that pessimism may make a difficult task even harder.
Establishing a culture of philanthropy within your organization can help change attitudes for the better, When mission and values come first, the entire fundraising process is viewed in a more positive light. And donor relationship building becomes a shared responsibility, involved everyone from executives and board members to staff and volunteers.
- Online Giving in 2013
- Revenue increased by 14%
- Number of gifts was up 14%
- Average gift grew by 2%
- Monthly giving accounted for 16% of online revenue
Source: M+R Benchmarks, 2014
* 2013 Charitable Giving Report, Blackbaud
** 2013 Fundraising Effectiveness Survey Report, the Urban Institute and the Association of Fundraising Professionals
Poor donor retention numbers may mean thereís a disconnect.
Keefe McCullough 