Stewardship: The End and Beginning of a New Solicitation Cycle
Stewardship is the flipside of cultivation. Stewardship comes into action after a gift is received. Stewardship is how you keep your donors by letting them know that their gift is appreciated and will be put to good use. With the average retention rate of about 40-45%, we are not doing a good job of stewardship.
Why is it that six out of ten donors do not make a second gift? I think there are a couple of things going on. One is that many nonprofits don’t pay attention to their donors’ giving patterns, they don’t segment their donors, and they are not doing much beyond the tax receipt/acknowledgement/thank you email/letter before they are sending the next appeal.
6 out of 10 donors do not make a 2nd gift!
It’s not feasible for every single donor to have a stewardship plan, but it is possible for segments of donors to have one. Many if not most CRM’s have automated functions that allow you to schedule various emails or letters to your donors.
For example, a simple plan would be that donors who give between $xx – $xx receive a thank you email from the CEO/ED. Donors who give between $xxx-$xxx get phone call from the board chair. Everyone receives the monthly newsletter.
The Rule of 7 applies to many professions: marketing, sales, communications, and nonprofit fundraising. In the nonprofit world we say a (major) donor should receive 7 touch points or communications before the next Ask. That’s the bones of a stewardship plan.
Admittedly, that’s a lot of work, and unless you have an exclusive donor relations team, you cannot do that for every donor, but you can do something. Start by focusing on your most generous donors, those who give significant gifts and those who give recurring gifts. One touch point would be to remind them that your organization accepts gifts of stock and bequests. This may sound like an Ask, but it’s more of a reminder that there is more than one way to support your mission.
Lastly, be creative! Maybe you send a Valentine email or video. Or your CEO/ED could host a luncheon for a few donors. Donors want to be recognized for their support. It doesn’t have to be expensive or arduous, it does need to be sincere.
At DMGroupConsulting, our goal is to help you achieve your goals. Schedule a free 30 minute consultation.
