It’s easy to get caught up in working to acquire new donors. More donors are better, right? However, many times nonprofits miss out on increased giving from their existing donors because they do not make the most of their hidden gold mine – donor data.
On average, it costs a nonprofit 50-100% of the first donation to acquire new donors. However, even in 2020, during a pandemic, both the rates of donor retention rate and recaptured donors increased, according to Giving USA.
By working to retain donors rather than solely acquire new donors, nonprofits can decrease costs and time associated with donor acquisition while building a stronger donor base. Instead of working to raise awareness, build new relationships, and craft appeals daily, nonprofits can utilize their donor data to cultivate existing donors through increased giving and higher engagement.
So, how can you best take advantage of your donor data? Here are our top three tips for using your donor data to increase giving.
Keep it current.
Ensure that your data is up-to-date and synced with any sources you utilize to accept donations. By setting up an automatic update from your donation pages, you can ensure all data is entered and isn’t susceptible to human error. For the occasional paper check or cash donation, enforce a weekly inputting schedule to ensure your database is accurate.
While inputting data, ensure duplicates are taken care of and entries are clean. Then, organize donors by several main categories, like core donors (those who have donated for 3+ years), major donors (those who give more than a predetermined amount annually), and recurring (those who donate on a regular, automated basis, such as monthly) donors.
Act on it.
Once you’ve organized your donors, highlight a list of individuals that you would like to cultivate deeper relationships with. To keep track of touchpoints and schedule stewardship opportunities, we recommend the use of a project management tool that can keep your whole team involved.
By taking time to implement these three tips, your donors will feel more engaged and will be encouraged to increase their giving over time, providing your nonprofit with greater advocates and higher lifetime giving.
Want to learn more about utilizing your donor data to increase giving? Enroll in our 1.5-hour fundraising masterclass hosted by Lindsay Jordan, Founder and CEO of Write On Fundraising to get access to one of our top used tools – our fundraising assessment. This assessment will advise your nonprofit on which fundraising activities and donors represent the greatest use of your limited time. To learn more or register, visit our Learning Library today.