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August 9, 2024 | Donor Engagement

What Nonprofits Get Wrong About Donor Engagement

Contributed by nonprofit coach Mallory Erickson, creator of the Power Partners Formula, host and author of What The Fundraising

Traditional engagement can be transactional, but creating deep connections fosters long-term support and community building. Let’s shift the focus from mere engagement to genuine connection, offering insights and practical steps for lasting relationships with donors.

Many misconceptions about donor engagement lead to ineffective strategies. For example, fewer touchpoints may seem less intrusive, but infrequent contact fails to build relationships. Conversely, frequent impersonal communications can lead to donor disinterest. Personalized, segmented interactions reflecting donors’ interests are key.

To determine if your engagement strategies resonate with your donors, ask yourself:

  • Are you listening and responding to their interests?
  • How can you make communications more authentic?

Defining connection

Connection goes beyond engagement by building trust, mutual understanding, and a shared purpose. It involves recognizing donors as partners and making them feel seen, heard, and valued. Practical applications include using tools like DonorPerfect for personalized communication and tracking donor behavior. (See Brenda’s story below.)

Humans are wired to seek connection, and authentic relationships resonate deeply. Strategies that emphasize empathy, reciprocity, and personal recognition can enhance donor relations. Empathy, for instance, strengthens bonds when donors feel understood and appreciated.

Guiding questions include:

  • How can you align engagement with your values?
  • How can you incorporate empathy into engagement?
  • Are you recognizing donors in ways that build trust?
  • How can you foster trust and belonging?

Nurturing connected donor relationships

Engagement is just the first step. True connection involves making donors feel part of a community and essential to the mission. This can be achieved through personalized communication, creating positive experiences, and regularly showing donors the impact of their contributions. Annual events where donors engage with beneficiaries can deepen their connection.

Brenda Helget Headshot

Meet Brenda. In her first year using DonorPerfect, she says they raised a surprising $3.4 million, and their donor retention rate “went through the roof.” She uses the Contact screen as a Moves Management tool, categorizing each donor with a cycle stage based on their recent interactions.

See moves management tool

Using contact management tools like the Contact screen in DonorPerfect, you can keep detailed records of your interactions with each supporter, track their behavior and interests, and schedule timely follow-ups. 

This personalized approach enables you to create customized appeals to highlight the mutual benefits of collaboration. Additionally, these tools can help you identify opportunities for engagement and keep supporters informed of your initiatives.

Metrics: What should you be tracking?

Traditional metrics focus on transactions, but measuring relationship quality is equally important. Metrics like email open rates, donor retention, and satisfaction surveys provide a holistic view of donor relationships. Tools like DonorPerfect’s Custom Report Builder can analyze donor behavior, helping to tailor engagement strategies

10 metrics to measure your connections:

  1. Nonprofit email opens: Monitor the number of times your emails are opened to gauge the effectiveness of your subject lines and the level of donor interest.
  2. Nonprofit email click-throughs: Track how often donors click on links in your emails or online materials to measure engagement and interest.
  3. Donation form conversions: Record signups for newsletters, events, or volunteer opportunities to measure engagement and potential donor involvement.
  4. QR code scans: Track the number of times QR codes are scanned to measure the effectiveness of your printed materials and direct engagement efforts.
  5. Donor retention: Track how many donors continue to support your organization over time to evaluate loyalty and satisfaction.
  6. Donor lifetime value: Calculate the total value of donations from an individual over their lifetime to understand their long-term impact.
  7. Donor acquisition rate: Measure the rate at which you acquire new donors to assess the effectiveness of your outreach efforts.
  8. Crowdfunding campaigns: Monitor the number of crowdfunding campaigns initiated by your supporters to gauge their engagement and advocacy for your cause.
  9. Wealth scoring: Use predictive AI to assess the financial capacity of potential donors, enabling more targeted and effective fundraising strategies.
  10. Text-to-give conversions: Track the number of successful donations made through text-to-give campaigns to measure the effectiveness of this immediate engagement method.

Staying connected as the fundraiser

Maintaining donor connections requires ongoing effort and self-awareness. Fundraisers need to stay connected to their own well-being, set personal goals, and cultivate a supportive work environment. Understanding intrinsic motivators and creating a collaborative atmosphere can sustain long-term engagement.

Meet Lisa. Lisa has used DonorPerfect’s Custom Report Builder to analyze their donors’ behavior and understand what their passions are, then relate their mission to those passions. “It’s very easy to get a 360-degree view of your donors, whether they’re financial donors, or donors of their time, as a volunteer or a board member,” Lisa says.

See custom report builder

Using the Custom Report Builder with DonorPerfect, you can report on any of the information you collect with your integrated Online Forms – group, sort, count, sum, and average data to analyze trends like gifts by state, average volunteer hours, etc. To keep your board, staff, and stakeholders informed, you can schedule reports to be emailed to multiple people on a daily, weekly, or monthly basis.

Building genuine connections with donors is key to sustainable fundraising success. Moving beyond transactional engagement to meaningful connections reveals opportunities for deeper, more impactful relationships.

Download Mallory’s free Donor Connection Guide

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