Two women discussing engagement models.

July 23, 2024 | Donor Engagement

The Digital Donor Engagement Loop

4 Engagement Solutions for Reducing Donor Churn

Many fundraisers have experimented with “loyalty loops,” an adaptation of the traditional marketing funnel, to drive retention and revenue. Over time, various interpretations of the loop have emerged. The idea is to maintain donor commitment through ongoing, relatable engagements.

However, many versions of the loop focus on financial contributions, assuming donors engage in a set order or frequency. While today’s nonprofit experts recommend the loop over the donor funnel or pyramid, it shares a common flaw: it diminishes donor autonomy and undervalues non-monetary engagements.

An infographic of Donor Engagement as a Loop.

Our Digital Donor Engagement Loop encourages fundraising activities that close the gap between donor intent and donor impact, without focusing solely on donations.

There are four different phases of engagement in the loop:

  1. Inspiration – Engagement that motivates involvement in your mission.
    – Example audience: Donors who give to organizations similar to yours.
  2. Trigger – Engagement that sparks a contribution of money, time, or influence.
    – Example audience: Volunteers looking to deepen their involvement.
  3. Evaluation – Engagement that highlights impact opportunities.
    – Example audience: Donors who contributed this year but not last year.
  4. Commitment – Engagement that solidifies impact.
    – Example audience: Recent, yet sporadic contributors.

Your supporters’ journey to commitment doesn’t always follow a sequential order. Instead, the loop signifies ongoing relationships that ebb and flow, without prioritizing gifts over other kinds of involvement. This approach helps donors feel valued, even if they haven’t donated money yet. It empowers them to contribute on their terms, without feeling pressured.

4 Engagement Solutions for Reducing Donor Churn

1. Automated acknowledgments (Inspiration)

Fundraising automation builds trust by triggering an instant email receipt when a donor gives online. However, you can also use automated follow-ups for non-monetary interactions to provide inspiration and strengthen your connections.

Remember, people in the “Inspiration” phase of your Engagement Loop are not necessarily new to your organization – they’re people you want to bring closer. So, you can start by running reports for ideal supporter groups.

For example:

  • People in your system who have donated time, but not money
  • People in your system who have engaged before, but haven’t given
  • New supporters engaging with your nonprofit for the first time
  • Lapsed donors engaging for the first time in a while

To keep your connection going strong, you can provide immediate confirmation or acknowledgment for non-monetary contributions like sign-ups and registrations. Simply customize your online form to allow donors to request more information, show interest in specific programs, RSVP for events, or subscribe to your newsletter. You can then deepen the relationship with scheduled calls, thank-yous, stories, photos, or videos!

Connection win: Inspired supporters feel valued instead of pressured.

Promptly acknowledging gifts and engagements will increase the likelihood of future contributions. To send automated, personalized emails that reduce donor churn, start by integrating your online forms, donor records, and payment processing. DonorPerfect encompasses all of these in a neat little package.

A preview of a thank you in DonorPerfect.

2. Video messages (Trigger)

Many fundraisers use video messages to target specific audiences more effectively. For example, a major donor might receive a personal video from the founder of your nonprofit as a thank you, while others get a personalized email instead. 

However, assuming only top contributors need or want the highest engagement isn’t thinking past the surface. They give more, but they may not need as much inspiration or encouragement. 

For example, video messages can be very influential for lapsed or first-time donors. Imagine passively scanning a QR code or joining an email list and then receiving a personal video in response, explaining how you can help in a way that’s relevant to your interests.

Try recording a video to communicate an urgent need or share an emotional story. For your supporters, putting a face to a name can forge a personal connection that isn’t always possible online, giving them a sense of urgency or resolve.

Connection win: Supporters are moved by a personal connection they made with you.

Segmenting your contacts and developing donor personas can help you create tailored videos for each donor group. Check out our free guide to get started!
Fundraising systems like DonorPerfect with Moves Management features can help you track each supporter’s Engagement Loop phase.

An example of a Donor Persona.

3. Personalized thank yous (Evaluation)

Does your organization thank donors for connecting, or only for donations? 

Consider doing both, because there are many reasons why someone might hesitate to donate, and they’re often unrelated to their passion for your mission. To strengthen your connections, try showing appreciation for a variety of interactions and provide related avenues for deeper involvement.

Think of all the “little things” your supporters do when inspired. How can you show gratitude while also highlighting the impact they can create with your organization?

  • Thank you for your interest – learn about our beneficiaries and programs
  • Thank you for signing up to volunteer – here’s a list of upcoming opportunities
  • Thank you for registering for our event – start bidding on auction items
  • Thank you for attending our event – subscribe to our calendar for more activities
  • We’re grateful for your support – would you like to come tour our facility?

And no – this won’t make extra work for you! You can personalize, customize, and automate your thank-yous using a fundraising system that integrates with an email marketing solution. You can even use AI to write your emails – try this one just for fundraisers!

Connection win: Supporters aren’t left guessing how to move toward a commitment.

Nonprofit email marketing tools from Constant Contact are included with DonorPerfect subscriptions, so you can easily create donor groups, sync email lists, choose donor data to include in your email copy, and even use fundraising-specific email templates to develop your personalized approach.

A preview of Constant Contact.

4. Recurring and monthly giving (Commitment)

Your recurring and monthly giving reports are a great source of data for impact stories and updates – something your supporters can receive (via email, newsletter, postcard, etc.) whether they’ve set up a recurring payment or not. Keep in mind that people who haven’t contributed yet are still inspired to help and curious about their options. That’s why it’s important to share your goal progress with a variety of contributors.
Consider a recurring or monthly giving program name that focuses on connection rather than gifts. Words like community, neighborhood, or alliance give the feeling that you’re all in this together, even if some of you aren’t contributing right now. Keep in mind that supporters learning about your monthly giving program or reading your monthly newsletter still have the intent to get involved, and seeing others contribute in such a meaningful (and manageable) way could be infectious.

Connection win: Supporters feel part of something big, even if they have little to contribute.

Instead of manually reconciling recurring donations, you can automatically process gifts and update records at your donors’ preferred frequency. This automated process ensures accurate reporting on your goal progress AND significantly improves your donor retention rate. DonorPerfect users who utilize Automatic Monthly Giving typically retain 90% of their recurring donors! Check out our free Monthly Giving Success Kit to get started.

A preview of a form.

Frequently Asked Questions

1. What is a donor engagement loop?


2. Which donor engagement model should I use?


Continue your exploration with our next blog, The Digital Donor Engagement Network.

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