5 Ways to Make Your Donor Stewardship Program More Effective
The center of your fundraising efforts lies in your donor stewardship program. Within a nonprofit organization, it’s easier to communicate with and receive contributions from existing donors than it is to attract new ones. These donors are your primary source of consistent financial support and the best prospects for larger donations. In essence, your current donors are the most valuable asset for your non-profit organization.
Given their significance, it is vital for your nonprofit to have a well-crafted donor stewardship program in place to ensure that your donors continue to contribute and grow more closely tied to your organization with each passing year. It’s important to note that your stewardship system should have three clear and measurable objectives: retaining donors, upgrading their giving levels, and garnering referrals.
To achieve the best possible stewardship system for your nonprofit, let’s discuss five methods to enhance its effectiveness:
1. Focus on the Donor
There is a high chance that often your donor communications may unintentionally shift towards being too focused on the organization itself. While discussing your programs and their achievements, it’s possible to adopt a mindset that separates “them” (the donors) from “us” (the non-profit) and implies that the donors solely fund the work while the non-profit solely carries it out. Unfortunately, this type of thinking can seep into your donor communications without your awareness.
Top-performing non-profits recognize that there should be no distinction between “we” or “they” — there should only be “us.” Your team encompasses staff, management, volunteers, and donors. Without any of these groups, your organization’s work would be impossible. This is why it’s crucial to adopt a donor-centric approach in your stewardship communications. It’s important to show appreciation for your donors, acknowledge their contributions, and incorporate them into your communications. One of the primary objectives of your stewardship program should be to make your donors feel like a crucial part of your team.
2. Personalize your Communication
The success of your fundraising program is directly proportional to the level of personalization in your donor stewardship efforts. One of the most personal and intimate forms of stewardship is meeting with your donors one-on-one, not with the intention of soliciting funds, but to express your gratitude for their support and provide them with updates on your organization’s work.
However, it may not be feasible to meet with all of your donors due to time and resource constraints. Hence, it’s recommended to prioritize meeting with your major donors and hold group cultivation events, like tours and roundtables, for the rest of your donors. Additionally, make an effort to thank and update your mid-level donors through phone calls and personalized emails. When possible, send handwritten notes and personalize your emails to add a touch of personalization to your communications.
To make the most of your donor communications, try to personalize them as much as possible within the limitations of the number of donors you have and the resources at your disposal.
3. Tell More Stories
At the core of effective fundraising is the ability to communicate well. However, the key to good communication lies in telling compelling stories. Typically, donor stewardship primarily revolves around reporting statistics, budgets, and numbers to donors, which is important as it indicates that their contributions are being put to good use. However, solely focusing on these figures can make it difficult to engage donors emotionally. It’s essential to make donors feel a range of emotions like passion, urgency, warmth, faith, excitement, concern, and gratitude, as it motivates them to continue supporting your organization.
To accomplish this, it’s important to tell stories about your non-profit’s mission and work. These stories can involve the people you serve, staff, volunteers, donors, and the work that you do. Additionally, you can highlight the work that your organization could accomplish with more funding. Incorporating storytelling into all your donor communications is a key component of effective donor stewardship.
4. Build Two-Way Communication
The most effective donor communications are those that resemble conversations, where communication goes both ways — you speak to your donors, but also take the time to listen to what they have to say. When communicating with donors, either in person or on the phone, encourage them to provide feedback by asking open-ended questions and giving them time to respond. Ask them about their reasons for getting involved, areas where your organization can improve, and how they would like to be involved in the future. One critical step is to ask for their advice. When donors share their knowledge, opinions, and expertise, they become more invested in your non-profit and more likely to make further donations.
While it may not be possible to speak personally with all low-dollar donors, you can still simulate a conversation with them through mass communications. Use surveys, polls, and requests for feedback in your emails to encourage them to respond to your donor stewardship communications.
5. Build a Donor Stewardship System
To achieve success in fundraising, it is essential to establish a donor stewardship program that outlines how you will engage and cultivate relationships with your existing donors. This involves developing a communication plan that is tailored to different donor groups. For instance, you might send a monthly e-newsletter to all donors, host an annual appreciation event for those who contribute over a certain amount, and schedule personal meetings with major donors once a year.
Naturally, your donor stewardship program should begin with a robust system for expressing gratitude. This includes sending thank-you letters promptly, contacting donors shortly after their donation to express your appreciation, and frequently acknowledging their commitment to your organization.
Final Thoughts
In essence, donor stewardship is all about developing strong relationships with donors following a gift. It requires a well-structured plan that outlines how to express gratitude, communicate effectively, and engage donors in ways that reinforce their commitment over time. This involves managing gifts, providing regular updates on the campaign’s progress and impact, and involving donors in your organization’s work. A solid donor stewardship plan is crucial to ensure financial stability and to create a positive donor experience that encourages repeat giving. Successful implementation of stewardship techniques requires a systematic approach integrated into the daily functioning of your organization.
