The Hidden Cost of Ignoring Donor Feedback

Has your nonprofit asked your donors for feedback regularly? Do you know why they gave to your organization, what they hope for the future and who else might be interested in the mission? If you're shrugging off donor feedback, the chances are high that you're losing fundraising revenue. 

Unfortunately, not many executive directors or fundraisers genuinely pay attention to — or even ask — for donor feedback in nonprofits. It's unintentional in many cases, but a great best practice is regularly asking for feedback to strengthen donor relationships. 

Most nonprofits aren't closed-door think tanks. They exist to respond to social challenges and achieve their missions for the greater good of their communities. As a result, organizations need to create an intentional donor feedback loop to ensure marketing amplification and donor support. 

Ignoring Feedback Comes at a Price

Donor retention is vital for every nonprofit. However, there's a connection between ignoring donors and making it expensive for organizations to know, ask, or know what supporters think. In 2024, nonprofits only retained 19% of new donors— particularly the smaller dollar donors, which is where many people begin their donor journey. 

The new donor retention rate is a massive challenge for nonprofits, and it's something fundraisers continually seek to improve. That said, a key reason for non-renewals or lapsed donors is not because of their bank accounts. It's because donors often don't feel like partners, and they're treated like cash machines. By not doing or ignoring feedback, you lose:

• Trust. Why should donors share their thoughts if no one’s listening?
• Messaging. The best place to go for donor messaging is to the source.
• Loyalty. Donors who don't feel connected are less likely to stay. 

So, how do you create a donor feedback loop without letting your mission slip?

1. Create a Donor Advisory Board — But Keep It Focused

An excellent approach to having regular and consistent donor feedback that you trust is to create a donor advisory board. Recruit 10 donors who meet every quarter and ensure that the chair or co-chairs keep the format of meetings short, sweet and focused. Have your team present concepts for fundraising ideas and upcoming campaigns. 

During the meetings, ask them if they would click, share or support what you're showing them, and ask them why or why not. Remember that constructive critiques are essential from your donors because your advisory group represents your donor base. By giving them a seat at the table and listening, the information you get will pay dividends. 

2. Launch a ‘We Hear You’ Section in Your Newsletter

Donors want and need to feel seen and heard — who doesn't? So, featuring them in a "We Hear You" section dedicated to donors is an excellent way to show those featured donors — as well as the rest of your supporters — that you care. Ensuring a dedicated donor section in your social media and email communications demonstrates that you're listening and responding to them. 

Make it a point monthly to highlight a donor who’s made a meaningful impact or even had a great idea. Also, include members of your donor advisory board. Celebrate the relationships and donors’ belonging — not just the gifts — you have with each featured donor. To do this, ask for their background and the whys of the things they’ve done for themselves and your nonprofit. 

3. Use Micro Surveys and Polls to Guide Messaging

Creating and deploying micro-surveys and polls in your content is also an excellent way to gain valuable donor feedback. You don't need to survey supporters with long surveys of 30 questions that most people will ignore. Instead, you can keep things light and easy. One or two questions on social or a poll in an email footer do the trick. 

Some questions you can ask include:

• What aspect of our mission is most urgent to you?
• What inspired your last gift to our organization?
• How easy did we make donating for you?
• What’s one thing we can do to improve our fundraising?
• How would you rate our messaging on a scale of 1 to 5?

Deploying micro-surveys isn't just an efficient approach to donor feedback. It empowers your supporters. 

Listening Is Not a Luxury — It’s a Leadership Strategy

The best leaders and teams in the nonprofit and business worlds listen closely to what their constituents want from them. They listen to the challenges and also listen for the opportunities. The nonprofit sector should remember that it's giving voice to those it serves and doing it for the people fueling the work. 

Donor feedback shouldn't be viewed as a burden but as a blueprint for greater success. The voices of your donors will allow everyone on your team to be smarter about how you approach them. However, the key to donor feedback is to keep it structured and intentional. You'll develop more straightforward campaigns, build stronger relationships and achieve better results. 

The preceding content was provided by a contributor unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.