{"id":27106,"date":"2023-03-16T15:09:39","date_gmt":"2023-03-16T19:09:39","guid":{"rendered":"https:\/\/www.donorperfect.com\/nonprofit-technology-blog\/?p=27106"},"modified":"2024-07-03T12:04:53","modified_gmt":"2024-07-03T16:04:53","slug":"fixing-donor-attrition","status":"publish","type":"post","link":"https:\/\/www.donorperfect.com\/nonprofit-technology-blog\/featured\/fixing-donor-attrition\/","title":{"rendered":"Confessions of a Serial Lapsed Donor"},"content":{"rendered":"\n
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Last year, you and your team worked tirelessly to meet your fundraising and donor acquisition goals. As the year passes, you slowly see the progress you made trickle away as each new donor you acquired fails to respond to this years\u2019 appeals. Fundraising can seem like a frustrating and insurmountable game when facing a high rate of donor churn. It can also seem like a mystery as to why you\u2019re losing donors. After all, you must have done something right when you first acquired them. <\/p>\n

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You can\u2019t estimate your donor retention<\/a> rate by looking at your year-over-year revenue. <\/strong>Fortunately, many modern CRMs make it easy to determine your donor attrition rate<\/a>. DonorPerfect builds the calculation right into its Comprehensive Donor Revenue Analysis<\/a> report and places your donor retention<\/a> rate metric right on your giving metrics dashboard<\/a>.<\/p>\n<\/div>\n<\/div>\n

Perhaps I can lend some insight into where all of your donors are going. After I got my degree, I worked for a nonprofit organization. I know firsthand how tirelessly fundraisers work at a financially strained organization. Since then, I consistently make charitable donations about twice a month. However, there are few charities I\u2019ve donated to with any regularity, and I\u2019ve only very recently become a monthly donor to two charities. While my perspective is just one, I\u2019ve found that I\u2019m a pretty typical donor when it comes to the reasons why I\u2019ve stopped giving to charities. So here\u2019s a firsthand account of why donors may be leaving your nonprofit.<\/p>\n<\/section>\n

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1. I didn\u2019t believe the nonprofit was trustworthy. <\/h2>\n

The donation process to a nonprofit I supported felt a bit underhanded. I had made what I intended to be a one-time donation to a charity only to discover a few months later when looking at my bank statement that it was indeed a monthly subscription. When going through the transaction process, monthly giving<\/a> was the default setting on their giving form, and during the confirmation process, there was no clear indication that it was a monthly gift. Feeling as though I had been taken advantage of, I reached out to cancel my subscription and have never donated to that organization again. Nor do I intend to lend my support to them again.<\/p>\n

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Don\u2019t let my blunder hold you back from acquiring monthly donors. <\/strong>DonorPerfect\u2019s online giving forms<\/a> alert your donors to their monthly donation each step of the way from the donation form to the confirmation page and the receipt.<\/p>\n<\/div>\n<\/div>\n

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This may not be of particular concern for your nonprofit, especially if you do not have monthly giving<\/a> set as the default option on your giving forms. Still, it is critical that you make it abundantly clear when a donor is subscribing to your monthly giving<\/a> program. There are other factors that may make a donor feel uneasy about giving to you. These could include things like unbranded donation forms, an unsecured site connection, or not knowing how you intend to use their funds.\u00a0<\/p>\n

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How to fix this donor attrition problem: Keep your donors\u2019 trust<\/h3>\n

Instill confidence and trust in your donors by ensuring you have a straightforward donation process. Customize your online forms<\/a> to match your organization\u2019s brand, and follow up all donations with a concise and truthful summary of how you have used or plan to use their donation.<\/p>\n<\/section>\n

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2. I felt like I could not afford to give again.<\/h2>\n

When I was 19, I received a considerable sum of money from a lawsuit where I had injured myself in a car accident. I donated much of this settlement to a charity in which I then became involved. Over the years, I would see countless appeals from their nonprofit. Despite my dedication to their cause, I always felt embarrassed to give again because I knew any secondary gift I made would not come close to my initial contribution. Now, this is a somewhat unique circumstance, but you can apply the basic takeaway strategy to countless donors.<\/p>\n

At one point, a donor may have made a gift to your organization at a specific giving level, and now the targeted messaging you are sending lists giving levels that fall out of their financial reach. While it is so vital to not underestimate a donor\u2019s generosity, it is just as important to remind donors that smaller gifts make a big impact as well. <\/p>\n

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How to fix this donor attrition problem: Adjust your giving levels<\/h3>\n

When donors lapse, strategize by sending them smaller ask amounts or asking them to become a monthly donor, where they can make a bigger impact over time. <\/p>\n<\/section>\n

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3. I forgot I had donated to the organization
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I have to admit, I thought I was the only one who frequently forgot about the organizations they\u2019ve given to until I started researching causes of donor attrition. This is one of the top reasons why donors stop giving.<\/strong> They\u2019ve simply forgotten they ever supported you in the first place. <\/p>\n

There are a number of reasons why I may have forgotten, including, but not limited to:<\/p>\n