3 Effective Strategies to Increase Donor Acquisition for FY24
Many fundraisers view the topic of donor acquisition with a sense of trepidation. Recent changes in participation rate tracking have only added to the concerns, especially for development departments in higher education. In our upcoming RNL National Donor Workshop, along with the University of Miami's Heather Kopec as a co-presenter, we will discuss innovative approaches to donor acquisition. Here's a sneak peek:
- Harness the Power of Giving Days to Attract First-Time Donors
The concept of giving days is not new in fundraising. These time-bound campaigns have been used successfully for decades. Giving days create a sense of urgency, foster a collective spirit, and set clear goals or challenges. They also make the act of giving enjoyable, which is essential for donor acquisition.
Usually, giving-related messages are limited to solicitations, a few donor stories in alumni magazines, and giving websites. Those who are not already aware of the importance of giving may miss these messages. Convincing new donors to contribute can be challenging. One of the significant advantages of the giving day model is that it allows us to promote giving loudly and proudly without being obtrusive.
Giving days enable us to go "all-in" on giving for a brief period. We encourage staff, faculty, coaches, and volunteers to spread the message. This peer-to-peer model is highly effective for acquisition, and giving days are perfectly suited for this approach.
The gamification and donor challenge elements of giving days also resonate with first-time donors. Platforms like RNL ScaleFunder allow you to track and recognize the number of first-time donors on leaderboards and in matches/challenges, providing an excellent incentive for newcomers.
If you haven't already, take the time to evaluate your donor acquisition strategy surrounding giving day events and explore ways to enhance them further.
- Harness Micro-Campaigns and Cause-Based Crowdfunding for Donor Acquisition
Research across generations, especially the younger ones, shows that donors value the direct impact of their contributions. While making a compelling case for unrestricted funds is possible, specificity tends to be more effective in attracting first-time donors.
Your community, including alumni, parents, friends, fans, and local residents, is likely to be philanthropic toward causes they are passionate about. Providing avenues for them to contribute to funds and projects aligned with their interests within your organization is a welcoming approach. This avoids funneling them through a complex process towards a single option, reducing the risk of losing them along the way.
Crowdfunding has been a trusted form of community giving for over a decade. Incorporating it into your organization aligns with current societal and philanthropic expectations.
Like giving days, these campaigns enable you to leverage ambassadors and champions to spread the word and encourage their networks to give. Depending on how you structure these campaigns, it's crucial to ensure ease of giving. This could include QR codes on mailings, texted links, and reminders, or digital wallet payment options (e.g., Venmo, ApplePay, Paypal) on your giving forms.
- Implement a Comprehensive Donor Acquisition Approach: Educate, Warm Up, and Steward for Future Engagement
If you're like many annual fund practitioners, you're constantly managing numerous tasks, racing from one deadline to the next, and striving to meet yearly fundraising goals set by leadership. While planning your annual solicitation schedule is vital, dedicating time to plan a "wrap-around experience" for future acquisition success is equally essential.
Start by educating your key donor audiences. Before making a support request, consider how you're informing students, volunteers, and younger donors about the impact of philanthropy at your organization right from the beginning. Are you involving them in causes they care about during giving days and crowdfunding campaigns? Do you have a model to show parents, families, and community members how charitable gifts shape their students' experiences from the first tour to graduation? Are there ways to communicate with the local community about how philanthropy benefits the neighborhood and beyond?
Don't just focus on how to send out mail and emails. Ask yourself: If your prospects aren't aware of the importance of giving, how can they understand their potential role in it?
The process of warming up donors and thanking them after they give (stewardship) should work together. It's not sufficient to acquire a donor and then move on. Once a gift is secured, there should be a strategic effort to provide personalized stewardship and follow-up, ensuring each new donor becomes a loyal supporter.
Consider offering recurring gift options and tailored stewardship/follow-up strategies for this specific type of donor. Recurring contributions have become commonplace with subscription-based services, and people now expect them. Encourage first-time donors to become regular contributors.
Donor acquisition isn't merely a necessary task; it's a critical part of the donor pipeline. A substantial donor base is essential for future fundraising success, and the investment made today will directly translate into strong fundraising outcomes for decades to come. Instead of dreading donor acquisition, let it inspire your creativity. We have numerous tools at our disposal that can work to our advantage if we listen to what potential donors are saying, align our outreach with their expectations, and let the joy of giving flourish.
