https://bloomerang.co/resources/speaking/ Fundraisers spend a lot of time acquiring new donors, and with good cause. However, in order to create a long-lasting relationship, the most critical gift isn’t the first; it’s the second. In this session, nonprofit technology veteran Jay Love will make the case for why development professionals should concentrate on acquiring a donor’s second gift in order to achieve sustainable funding, high donor retention rates and high donor lifetime values. You’ll see examples that can be implemented by any organization, whether you are a one-person shop or a large development department. The results can be astounding when put into daily use! Learning Outcomes: Explore current research on donor loyalty and retention Understand the importance of donor lifetime value Learn new donor communications techniques that get the second gift

1. Secrets of the 2nd Gift –
the Key to Donor Retention

2. Your presenter »
@StevenShattuck
Jay Love
@JayBarclayLove
Chief Relationship Officer,
Bloomerang
• 37 Years of Technology Leadership
• Over 20,000 Database Installations
• Former Founder & CEO of eTapestry
• Former CEO of Master Software/Fund-Master
• Former Senior VP of Blackbaud
• Conner Prairie Museum Board Member
• AFP Ethics Committee Chairman
• Rogare Research Institute Board Member
• Innovation Fund at Butler University
• Co-Chair of Indianapolis YMCA Capital Campaign

3. @JayBarclayLove
Why focus on the second gift?

4. @JayBarclayLove
It is the KEY to Donor Retention
&
Lifetime Value

5. @JayBarclayLove
# of Donors in Current 12 Months
(from the previous years pool)
Divided by
# of Donors in Previous 12 Months
https://bloomerang.co/retention
Calculating donor retention »

6. @JayBarclayLove
“The total net contribution that a
donor generates during his/her
lifetime in your database”
Defining Lifetime Value »

7. @StevenShattuck
The current state of donor retention? »
http://afpfep.org/reports/

8. Donor retention 2017 Results »
@JayBarclayLove
http://afpfep.org/reports/

9. Source: Fundraising Effectiveness Project http://afpfep.org
2018 Results just in & not good »
• Retention is down 6.4%
• New retained donors are down 18%
@JayBarclayLove
39.1% 19.8% 61.9%

10. Source: Fundraising Effectiveness Project http://afpfep.org
Recapture rate is falling »
@JayBarclayLove

11. Gift amount matters »
@JayBarclayLove
http://afpfep.org/reports/

12. # of Donors Attrition
Rate
Donors
Remaining
After 1 Year
Donors
Remaining
After 2
Years
Donors
Remaining
After 3
Years
Donors
Remaining
After 4
Years
Donors
Remaining
After 5
Years
1,000 20% 800 640 512 410 328
1,000 40% 600 360 216 130 78
1,000 60% 400 160 64 26 10
Donor attrition over 5 years »
(1% increase in retention = $45,634 annually)
@JayBarclayLove

13. @JayBarclayLove
Who to focus on »

14. Why do donors leave?
@JayBarclayLove

15. • 2001 study by
Adrian Sargeant
• Survey to lapsed donors of
10 major U.S.-based
nonprofits
• Respondents were asked
to check each reason for
stopping their
contributions
Why nonprofit donors leave »
http://www.campbellrinker.com/Managing_donor_defection.pdf
@JayBarclayLove

16. • 5% - thought charity did not need them
• 8% - no info on how monies were used
• 9% - no memory of supporting
• 13% - never got thanked for donating
• 16% - death
• 18% - poor service or communication
• 36% - others more deserving
• 54% - could no longer afford
Why nonprofit donors leave »
http://www.campbellrinker.com/Managing_donor_defection.pdf
@JayBarclayLove

17. Why do donors stay?
@JayBarclayLove

18. • 2011 study
• Survey of 1,200 recent (last 12 months), frequent (more
than 2 gifts to cause based charities) donors from over
250 nonprofit organizations
• Donors were given a list of 32 reasons why they might
continue giving
• Asked to rank them by order of importance
Key drivers of donor commitment »
http://www.thedonorvoice.com/national-donor-commitment-study-and-proof-of-link-between-donor-attitudes-and-behavior/
@JayBarclayLove

19. 1. Donor perceives organization produces outcomes
2. Donor receives a timely thank you
3. Donor receives opportunities to make views known
4. Donor feels like they’re part of an important cause
5. Donor feels his or her involvement is appreciated
Key drivers of donor commitment »
@JayBarclayLove

20. @JayBarclayLove
Thank you segments »

21. @JayBarclayLove
• Design a “style” and story for each segment
• Consider calling and mailing segments 1, 2 and 4
• Handwritten notes and/or P.S. are powerful
• Test, test, test!
• Personalize as much as possible (database fields)
• 3 “touches” in the first 90 days (survey)
• Always aim to convert to monthly donors!
Segmentation principles »

22. @JayBarclayLove
Donor communications »
“Successful donor
communications are quite
simple.
At heart, they are love
letters to donors &
prospects, woven through
with clear cries for help.”
- Tom Ahern,
Bloomerang Donor
Communications Head Coach
http://aherncomm.com

25. Stories get the second gift!
@JayBarclayLove

26. @JayBarclayLove

28. @JayBarclayLove

29. @JayBarclayLove

30. @JayBarclayLove

31. @JayBarclayLove

32. @JayBarclayLove

33. @JayBarclayLove

34. • “Why did you first give?”
• “What’s your connection to the cause?”
• “What would you like to hear from us?”
• Let them tell their story!
Other Survey Question Ideas »
https://bloomerang.co/blog/23-questions-to-ask-donors-and-prospects/
@JayBarclayLove

35. The for-profit world understands »
@JayBarclayLove

36. @JayBarclayLove

37. @JayBarclayLove

38. @JayBarclayLove

39. • Treat your first-time donors like
royalty
• they have lowest retention rates!
• Tell them the impact they will have
• Tell them the impact they have had
• Be unique!
• Survey early
• let them tell their story!
Final thoughts »
@JayBarclayLove

40. More examples »
@JayBarclayLove
5 Acknowledgment Principles
(Drastically Improve First Year
Donor Retention)
https://bloomerang.co/bloomies

41. Questions?
jay.love@bloomerang.co
@JayBarclayLove
Free eBook »
@JayBarclayLove

44. https://bloomerang.co/resources
•Nonprofit Wrap-Up
•Bloomerang TV
•Bloomies
•Daily blog post
•Weekly webinars
•Downloadables
@JayBarclayLove

45. Questions?
jay.love@bloomerang.co
@JayBarclayLove
Free eBook »
https://bloomerang.co/staytogether/
@JayBarclayLove