It takes a lot of time, money, and energy to recruit new donors to your nonprofit. Of course, bringing in new supporters throughout the year is vital to the long-term financial stability of your organization. Many nonprofits began incorporating virtual fundraising events during the COVID-19 pandemic to continue fundraising and connect with new donors during the "age of social distancing."
Your nonprofit probably emphasized connecting to as many donors as possible during those virtual fundraisers. But something that many nonprofits overlooked in their virtual fundraising strategy is donor retention.
When you start crunching numbers, it's actually more cost-effective to focus on keeping your current donors than it is to constantly bring in new donors. That's why we took a deep dive into donor retention after virtual events. While there's still much to learn in the world of virtual fundraising events, there are some best practices and strategies you can incorporate to boost your donor retention.
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Donor Retention Basics
Before diving into the nitty-gritty of retaining donors after virtual events, let's review some basics of donor retention.
Donor retention refers to the number of donors from the last measurement (year, quarter, month, etc.) compared to this measurement. It's the number of donors you keep year after year.
In addition to knowing how many donors are continuing to give, it's critical to know the amount of donation revenue you're retaining from year to year.
Nonprofits want to keep as many donors as possible and keep the donation amounts consistent (or consistently increasing). After all, if you're donor retention is going up, but the annual donation amount is consistently decreasing, then that increasing donor retention rate is quite misleading.
How to calculate donor growth and donation growth rates
To calculate donor and donation growth rates, simply divide the number of repeat donors this year by the number of people who donated last year. So, if you have 160 donors who gave last year and this year but 300 people gave last year, your equation would look like this:
160 / 300 = 53%
Calculating your annual donation growth rate is a bit more involved. You need to know your total donation revenue from this year (x) and the total donation revenue from last year (y). Then, subtract this year's total from last year's total and divide that number by this year's total.
If your revenue from this year is $15,000 and last year your donation revenue was $14,000, this is how the equation would look:
($15,000 - $14,000) / $14,000 = 0.07 x 100 = 7% donation growth.
Your donation growth rate numbers become more valuable over time because you can analyze several years of data to identify trends and patterns in your fundraising efforts.
Why donor retention and donation growth rates matter
If your donor retention and donation growth rates are negative (you're losing donors or the donation sizes are decreasing), that's an indication it's time to step back and assess things to see what's going on.
Suppose your donation growth and donor retention rates are increasing year-over-year. In that case, that indicates you're doing well cultivating healthy relationships with donors, and your fundraising and donor care efforts are working well.
While donor retention and donor growth metrics won't tell you precisely what might be working well or going poorly, they provide a high-level overview and signal whether to keep going "full steam ahead" or pause and assess things.
7 Donor Retention Strategies for Virtual Fundraising Events
Most nonprofits report a donor retention rate of about 40%, but those numbers are much lower for first-time online donors. So, there's lots of room for experimenting and learning how to connect with donors at virtual fundraising events! Here are seven strategies to incorporate into your next virtual fundraising event to start boosting that donor retention rate.
1. Tell your nonprofit story effectively at your virtual fundraising event
Communicating in the digital space is challenging. Humans rely on non-verbal cues that don't always translate well on Zoom or other virtual settings. But stories can transcend a multitude of communication barriers--especially in fundraising. Story-centered content plays a vital role in all donor retention, but it can be especially powerful in connecting with people at virtual fundraising events.
Using real stories of how your organization positively impacts the world is one of the best ways to engage your audience. It connects human faces, names, and even emotions to a problem, showing the specific actions you take to offer real solutions.
If possible, use visuals with your stories. Photos and videos help tell gripping stories, especially when you can show before and after images (where applicable).
Powerful nonprofit storytelling demonstrates the success of your work thus far, as well as the specific need for continued support from donors. Don't forget to include a specific call to action, so people clearly understand how their action is part of the solution you're bringing.
2. Be quick to thank after a virtual fundraising event
Did you know that first-time donors are more likely to give again if they receive a personal thank-you shortly after their first donation? Saying thank you is a powerful donor retention tool in all kinds of fundraising, so practice being quick to thank!
Given the power of a simple expression of gratitude, try to incorporate several avenues into your donor care. The more "touchpoints," the better. In addition to your initial donation confirmation email, take the time to call donors after your virtual event to thank them personally. Write a quick handwritten note on some branded stationery. Many nonprofits even give "shoutouts" to donors on social media after their virtual fundraisers.
Regardless of how you decide to express your gratitude, when you send your follow-up email after the virtual fundraising event, be sure to include the following:
- A recording of the live virtual fundraising event (just in case they'd like to re-watch it)
- Say thank you for their donation (especially if they made a donation during your event)
- A summary of the fundraising results (how much you raised, how many people gave, etc.)
- An invitation to take another action (follow your social media to stay engaged, an invitation to your next event, information about your recurring giving program, etc.)
Including this information in your follow-up email continues the "conversation" with the donor and gives them opportunities to get more involved in your mission.
3. Stay in touch long after the virtual fundraising event
The most effective donor retention strategies are actually common sense, like staying in touch with donors long after the virtual event. Whether you publish a regular newsletter focused on stories and measured impacts of donations or use Facebook Live to update a project or program, people are interested in hearing from you.
Find ways to engage donors that aren't money or program-based. Offer volunteer opportunities, send birthday or anniversary cards, ask for testimonials from supporters. These kinds of donor interactions keep people engaged throughout the year. Continuous engagement is a crucial piece of the donor retention puzzle.
4. Create a post-event page for your donors
One creative idea to connect with your new donors is to create a digital "library" of all the key information someone might want or need about your recent virtual event. If this virtual event occurs regularly (or even annually), keep that page updated year-round to encourage ongoing engagement and sign-ups for the next event.
Post recaps, recordings, updates, highlights, and other valuable information that attendees and donors will want to access after the event. (Don't forget to mention event sponsors as well to boost the value of their sponsorship.) You can even include updated calls to action throughout the year for donors who are very interested in a specific project or initiative.
5. Add key moments from your virtual fundraising event to your blog
As you're reviewing and recapping the virtual fundraising event, identify compelling moments, talking points, tips, stories, and other highlights. Write a blog post summarizing the top moments from the event.
Some nonprofits even use teasers to encourage people to either download the full event coverage or invite them to sign up for the next virtual fundraiser. No matter how you decide to leverage it, virtual fundraising events can provide excellent blogs, social media, and other content long after the event is over to enhance donor engagement and retention.
6. Offer a recurring giving program
About 40% of millennial donors and 49% of GenX donors are enrolled in at least one recurring or monthly giving program. Whether it's good or bad, people appreciate "set-it-and-forget-it" style programs, and many people are accustomed to subscription-based programs and services. That extends to their charitable giving preferences, too.
Take advantage of this mindset by inviting donors to consider your recurring giving program at your next virtual fundraising event. Or use your post-event follow-up strategy to introduce your monthly giving program as a "next step" opportunity.
7. Think outside the box with your virtual fundraising events
Most of us think of virtual fundraising events as big productions or choreographed events designed to entertain and engage. There's definitely space for those kinds of virtual events, and they're valuable fundraising strategies. But many donors are looking for more personal, intimate virtual events where they can engage directly with you and your team.
Go beyond the big virtual fundraising gatherings and consider incorporating smaller events to engage your supporters year-round (or after a large virtual fundraiser).
Consider incorporating donor impact webinars designed to highlight the direct impact people's donations have on the mission. Give virtual tours of your facility or work sites. Take them behind the scenes to get an idea of what your programs and efforts look like day-to-day. Tell real-world stories of what you're up to and how their money is working.
Host regular Q&A events with founders, board members, or other leaders in your organization. Send out polls and question submission forms ahead of time to get the audience engaged and excited. You can even incorporate polls and questions throughout the event for real-time feedback from your donors.
There are countless ways to continue the conversation after each virtual event. From a small "thanks for coming" email to a follow-up virtual Q&A, these efforts will pay dividends over time in the form of greater donor retention and higher donation averages.
Because virtual fundraising events are still relatively new territory for nonprofits, there's plenty of room to experiment and discover new opportunities and best practices! Don't be afraid to get creative and ask your supporters what they appreciate, too.
Here are three more resources to keep you building your virtual fundraising success!
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