3 Things You Can Do Now in Response to Current Fundraising Trends

By Chip Grizzard

Digital integration

The second strategy to work on is digital integration. According to Grizzard's 2014 DonorGraphics^TM Study, online is now donors' preferred method of giving, surpassing mail for the first time. However, direct mail is increasingly being used to prompt the donor to give online. It's common to see as much as 70 percent of your online and white-mail giving coming from donors who received a direct-mail piece within the previous 30 days.

In an analysis for a large national nonprofit client, we found the five-year value of a direct-mail-only donor was $191; an online-only donor was $421, but a donor giving via both channels had a five-year value of $965.

With boomers now preferring to give online and a donor giving through multiple channels worth five times more than a direct-mail-only donor, digital integration is a must. Make it a seamless experience, thank quickly and, to realize the higher value, get those online donors included in the mailstream fast.

How does nonprofit activity stack up?

The last three years I have conducted an annual-giving study to track major charities and their acknowledgment processes. I've commented on the timeliness, accuracy and content of the thank-you process. Each year I found the process took far too long, and most nonprofits did not fulfill my requests, whether it was to be added to the email list or to be sent information regarding a sustainer or planned giving.

After seeing little change with the direct-mail thank-you process, I decided to take a different approach this past holiday season. During the Thanksgiving holiday, I sat down at my computer and made online donations to 25 large charities.

Here's an overview, and you can see more in my recent blog:

More than 65 percent failed to make an ask within the next 90 days.
Just one out of 25 sent a direct-mail welcome series.
Only 50 percent sent a direct-mail thank-you.

Online retention rates are below that of direct mail, and it's because the follow-up and stewardship are taking too long. Make a gift to your organization, and see what your donors experience. There will be at least one or two enhancements you can make to improve their giving experience.