I’m sitting on an $80,000 wheelchair right now.
But you’re sitting on something worth much, much more.
It’s your list of active and inactive donors.
Nonprofits are in a constant race to secure the funds needed to drive their missions forward. Yet, many organizations make the critical mistake of underutilizing one of their most valuable assets — their donor base. There are tons of donations to be made there, and very visible tricks to help.
The Cost of Not Asking: Missed Opportunities
Nonprofits often focus their efforts on attracting new donors, underestimating the value of those who have already shown interest and support. However, engaging current donors and asking for more can have a significant impact on overall fundraising success.
- Higher Retention, Higher Returns
Retaining an existing donor is far more cost-effective than acquiring a new one. The cost to retain an existing donor is five times lower than acquiring a new one! Plus, increasing donor retention a little could give you a big boost. - Donors Want to Give More
Many donors are willing to give more if approached strategically. Nonprofits that fail to ask for more risk losing these willing donors. - Avoiding Donor Fatigue
While nonprofits often fear “donor fatigue,” only a portion of donors stop giving due to over-solicitation.
When I first started Team Trust Productions, I was so focused on getting new clients. My dad was in sales, and I thought he was always getting new deals.
Not necessarily.
When you are first starting out, yes, you need clients or donors. I get it. Yet, you need to keep doing business with them, and that will give you a financial safety net. Team Trust grew exponentially once we started doing more business with our current clients.
The Stats Speak For Themselves
The data is clear: nonprofits that consistently engage and ask their current donors for more money experience better retention and revenue growth.
- In 2022, the average donor retention rate was just 43.6 percent. Organizations that consistently engage donors and ask for more can boost this rate significantly.
- The top 1 percent of donors typically contribute around 60 percent of total giving. Nonprofits that build relationships with these key donors through regular asks can multiply their donation revenue exponentially.
How To Keep Your Asks Fresh
It’s not about asking for more money — it’s about how you ask. If you are always asking for donations the same way, people will get tired of it, and run away.
Here’s how you can spice up your approach.
Effective Storytelling
Storytelling has become a key driver of donor engagement. For example, sharing specific stories of how a previous donation led to measurable change, such as funding a scholarship or supporting a local family, helps donors see the tangible effects of their generosity.
By demonstrating how additional funds will directly impact the cause, you can evoke an emotional response that compels donors to give more.
Video fundraising campaigns see significantly more engagement than text-based campaigns.
We always keep this in mind when we’re working with a nonprofit, and we’d be happy to help you.
Targeted Campaigns
Nonprofits should tailor their appeals based on donor history and capacity. Personalized email campaigns that specifically highlight a donor’s past contributions and suggest a reasonable increase can feel more thoughtful and less intrusive.
This segmented approach has been shown to increase response rates and donations. Personalized email campaigns have an average open rate of 29 percent, higher than the general nonprofit average of 20 percent.
Team Trust, though not a nonprofit, has benefited from this approach. We sends emails specific to our nonprofit clients, and we have another set of messages for our SaaS clients.
Matching Gift Campaigns
Matching gift campaigns are a powerful way to encourage current donors to give more. When donors know their contributions will be matched by a corporate partner or major donor, they feel their gift has double the impact.
These campaigns are particularly effective in driving higher donations during key giving seasons, such as Giving Tuesday or year-end appeals.
In 2022, organizations that ran matching gift campaigns during Giving Tuesday saw an average increase of 135 percent in their total donations.
Similarly, we offer special promotions during Disability Pride Month and during peoples’ birthdays and anniversaries.
Donor Recognition and Stewardship
Recognizing donors for their contributions can encourage additional giving. Whether through a public acknowledgment in annual reports, naming opportunities or special invitations to events, demonstrating appreciation can inspire ongoing support.
When donors feel valued, they are more likely to deepen their commitment.
Nonprofits that practice strong donor stewardship see retention rates of 60 percent or higher, compared to the industry average of 43.6 percent!
It’s time for you to overcome a fear of asking. The data shows that when done thoughtfully, asking for more can lead to stronger donor relationships and long-term financial stability. Donors want to see their impact grow—and by asking for more, you’re giving them the opportunity to do so.
Plus, our Fall Super Special is designed to elevate your fundraising game and maximize the impact you make on the community. Grab it today, and see immediate results.