Blog.

While we tend to think of lapsed donors at the start of the new year, it really is a process that should be reviewed year-round.  In fact, more than ever, lapsed donor strategies need to be in place to ensure the best retention rates possible. Did you know that donor retention rates have been on the decline since 2008? In fact, the national average for repeat gifts from a donor who has given multiple times is only 65%. Even the very best organizations aren’t going to have a 100% renewal rate.

All of this means two key things: you must have a plan in place, and you must be intentional about renewing, cultivating, and acquiring new donors

However, if you don’t yet know your numbers, it will be difficult to create a plan. Your lapsed donor goals should be included within your development plan and retention rates can be expected to resemble this if you have solid best practices in place:

• First time donor repeat gift – 25%
• Second time donor – 50%
• Multiple time donor – 65% or higher
• Monthly donors – 75% or higher

The easiest way to do this is look at the total number of donors in 2017 and find out how many of those donors also gave in 2018. This is your retention rate.

Whether you are pulling lapsed donors from 2017 who didn’t renew in 2018 or a donor who gave at an event in one year but not the next, the strategies for each resemble one other. Once you run that lapsed donor report, assess which lapsed gifts require more sensitivity to renew, and which ones will just be too costly to renew. For instance, if a major donor’s $5,000 gift lapsed, you might consider bringing that donor on a tour, inviting them for coffee, etc. However, a gift of $25 may end up costing you the same amount in company expenses to renew. Determine time and resources when trying to renew these gifts.

Make sure to let these donors know you have missed them and what you will be able to accomplish in the new year with their renewed engagement. Maybe update them on a crucial project they helped fund the prior year. Make sure the donor knows that you know who they are!

Overall, the best thing you can do is not let your donor lapse in the first place. Do this by proactively reviewing monthly or quarterly reports to see whose gift is about to lapse. The next best thing is to have a monthly giving plan in place since retention rates are highest amongst this group.

Retain activities and initiatives that are working from year to year. If you drop an initiative, have a plan in place to transition those donors into another giving opportunity. Do what makes sense for you and your organization. But react appropriately to your donor’s behavior and their data trends. Don’t just pull a lapsed donors list and mail everyone the same letter.

To summarize in one word, PLAN, and your retention rates should be on the rise.

Kennari Consulting was a proud sponsor of this year’s National Philanthropy Day (NPD), presented by the Association of Fundraising Professionals West Michigan Chapter (AFPWM). Our own Steve Ozinga was the Chair of the event, working many long hours to ensure the day was a success. Congratulations to him and the entire AFPWM team on what truly was an inspirational afternoon.

National Philanthropy Day is a great chance for fundraising professionals to come together with peers, celebrate some of our community’s outstanding leaders in philanthropy and hear from great minds in the philanthropy world. This year, AFPWM welcomed keynote speaker, Dan Pallotta, an award-winning speaker, author, and fundraising innovator. His keynote address was a breath of fresh air – and we are proud to stand beside so many and say, “I’m overhead.” Kennari wholeheartedly agrees that nonprofits need to invest more in infrastructure and overhead or are otherwise paralyzed by a lack of resources. Pallotta’s speech was inspiring and we hope this marks the beginning of a movement to change the rule book for the nonprofit sector.

Additionally, congratulations to all of this year’s awardees: Vicki Weaver (Spectrum Health Foundation/Helen DeVos Children’s Hospital Foundation); Phoenix Society for Burn Survivors; Louise “Punky” Edison; Stephanie Kerr-Cathey (Kids’ Food Basket, Muskegon); Lake Michigan Credit Union; Veverly Austin (Girl, Get Your Fight Back and Rock The Runway); Janean Couch and the Grand Rapids Community Foundation Youth Grant Committee. And to all out there serving our community through their tireless work in the nonprofit sector, we salute you. Keep up the good work!

To view Dan Pallotta’s TED Talk, click here.

Kennari Consulting works with organizations of all sizes, focus areas, and passions. Ottawa County Parks Foundation is no exception!

In 2015, a small group of Ottawa County, Michigan residents formed an all-volunteer committee with the intent to form a Parks Foundation. A year later, that dream became reality and the Ottawa County Parks Foundation (OCPF) was formed! OCPF reached out to Kennari Consulting to assist with its inaugural Strategic Plan. Over the summer of 2016, the Kennari Strategic Planning team worked with the Foundation to create the important first plan. After defining OCPF’s Value Proposition, Mission, and Vision, we defined important strategic priorities for a brand new foundation. This included alignment with the Ottawa County Parks and Recreation Commission, Board and Infrastructure Development, Visibility, Financial Sustainability, and support of land acquisition and development.

Over the past two years, OCPF successfully launched its fundraising programs, became ingrained in Ottawa County, created working committees under the Board, hosted a number of successful cultivation events, and hired its first full-time employee! Kennari Consulting is currently working with OCPF on a Strategic Plan refresh that will help carry the organization into the next phase of success.

Strategic Plans are important for multiple reasons, including organizational alignment, simplification of decision making, and consistent communication. For more information on how effective Strategic Planning can benefit your organization, please contact Steve Ozinga, Vice President of Strategic Planning and Planned Giving at steve@kennariconsulting.com or 616-340-8771.

“Kennari Consulting was hired to lead the newly established Parks Foundation Board through a strategic planning process in 2016. This was a critically important project because the organization was new and needed to determine its core beliefs. Steve Ozinga of Kennari led the Foundation Board through the process and did an outstanding job. Board members were fully engaged and excited to contribute. Most importantly, the resulting product is one that has provided the framework for Foundation’s activities over the past couple of years. The plan does a wonderful job of identifying the Parks Foundation’s basic mission and includes text with a timeless quality that is used regularly in Foundation documents. The Parks Foundation was more than satisfied with Steve Ozinga and Kennari’s work on the strategic plan and continues to rely upon them for assistance with strategic decision-making.”   ~John Scholtz, Director, Ottawa County Parks

To learn more about Ottawa County Parks Foundation, visit their website.

Though it often feels like getting through an event is a major hurdle, it’s really what happens after the event that makes all the work worthwhile. Don’t let all that hard work go to waste! Here are some strategies for making sure what happens after your event keeps your donors engaged all year long.

Philanthropy vs. Fundraising

Rather than simply fundraising for the net return of the event, you can take it to the next level by looking at events as ways to renew, recruit, and cultivate donors. An important component of philanthropic events is equal attention to your follow up.

Plan Post-Event

Knowing that the days immediately after the event will likely be jammed with “catching up” on other demands, it is helpful to make your follow up plan and have time scheduled on your calendar for those important details. Here is a handy guide for planning the week, month, and three months after your event.

Within One Week

• Process cards and deposit checks If possible, at the event so if there is any omission in information, problems can be immediately resolved. Look for opportunities to convert donors to pay in unique ways such as text to give and other electronic methods.
• Thank You Letters should be written in advance to speed the process. There is really nothing more important than prompt donor acknowledgement. Your donors are likely donors to other organizations, so your thank you lag time may be noticed.
• Facebook/Instagram posts will be a great way to keep the focus on your event. People like to see pictures of themselves and their friends. Photo posts get the most attention and can help grow interest in your event. Social media posting is also a way to thank sponsors, honorees, and committee members.
• Email to Attendees “Here’s what you helped us do!” Send an email letting them know that they participated in the success of your event. Share some photos and the results. Links to video and testimonial message are also great to include.
• Cards to Participants/Committee Members More than just donors need to be thanked! Send kind and intentional notes to those who helped make the event a reality.
• Major donor and first-time donor calls Block time in calendars for the day after an event to make calls. Voicemails are acceptable. Determine prior to the event who will need to make calls. Significant donations should get a call right away – same day if possible.

Within One Month

• Internal Staff Debrief with the development team and key players involved, such as program staff that may have helped with identifying stories or data, will help maintain the relationship between development staff and the rest of the organization.
• Committee Debrief Find a committee member to host this to change the tone. Must be guided discussion to ensure feedback on specific pieces. It is an opportunity to see how they felt about the planning process and whether they feel connected to the event’s success.
• Follow Up with Honoree to acknowledge the personal impact the honoree made on your organization. Share how they helped bring new people into the donor family through their influence. Look for ways to keep them engaged by being on the committee or have them present the award next year.
• Donor Development Committee follow up on high-level gifts. The DDC is already trained to help with donor relations so it’s part of their charge as a volunteer. They can help with customizing next steps for major donors or those whose gifts increased.

Within Three Months

• Sponsor Report Develop a 1-page recap that shares the success of the event, number of people in attendance, dollars raised, number of first-time donors. Focus on the benefits they received so they will see the marketing value as well. Send program to absent sponsors. NOTE: Be sure to thank all appropriate contacts at the sponsor’s business: CEO, Marketing Manager, “table wranglers.” Offer sponsors the opportunity to give feedback on benefits.
• Set a Google alert on sponsor/donor names (www.google.com/alerts) so you can be reminded of when they are mentioned online, and then reach out to let them know you saw it.
• Donor tour You can invite all donors – most won’t come but they’ll be glad they were asked. Those who are interested will be able to see the facility and your mission in action.
• Schedule next year’s event!  It might seem really soon, but there are so many events, you want to stake your claim early. Check nonprofit calendar to avoid conflicts with other key events. Commit to a date and time and get your event on the calendar as soon as possible.

Happy Events!