donor retention

In Nashville, Tennessee, two families turn the key to enter their new homes, built by Habitat for Humanity. Thanks to the generosity of donors, families all over the world will be sleeping soundly tonight in homes built by the global charity.

Habitat for Humanity was founded in 1976 with a mission to build simple, decent, and affordable housing for families in need. For the work of building, they depend on the kindness of volunteers all over the world. For fundraising, a major part of the revenue that they generate comes from their ReStore locations, where they sell donated building materials, new and used.

Especially in larger city centers, these ReStore locations process a lot of volume—with donors requesting pick-ups and dropping off goods that can be resold. It’s a concept that a lot of nonprofits that operate retail locations will be familiar with. To help them process these donations and issue receipts, many ReStore locations have leveraged technology to save time and effort, both for donors and the teams in the stores. Here’s how.

Online Booking Gives Donors the Control They Want

Taking bookings for pickups over the phone takes time, and requires nonprofits to have dedicated team members focused on that task alone. The same is true of emailed booking requests—a time still has to be confirmed between both parties and the back-and-forth can take a non-trivial amount of time.

Online booking puts the control in the hands of the donor. The nonprofits can offer available pick-up windows in the booking tool, leaving it up to the donor to choose a convenient time. No more guesswork and no more back-and-forth. The LA chapter saw a saw a 300% increase in Habitat for Humanity donations by using online booking. “It’s really important for us to make it easy for people to donate,” says Karen Moore, ReStore Acquisition Manager for Habitat for Humanity of Greater Los Angeles (Habitat LA). “(It’s) really very simple for our donors; a step-by-step program for people to schedule a pick-up of the items they want to donate.”

“We opened our second store location in September 2016,” says Robin Henrichsen, ReStore Donations Manager of Twin Cities Restore in Minnesota. “To support increased donation pick ups and sales, we expanded our truck fleet from one to two trucks. This change was easy to implement in the software system and got us up to speed quickly for increased donations pick ups. We increased donation pick ups 170% in the first year with two trucks.”

Nonprofits Save Time on Scheduling and Administration

Since the customer has made the booking themselves, the nonprofit’s scheduling software automatically adds the booking to the calendar. It can even suggest the most convenient route for pickups. This way, the teams working at the ReStores can focus on staging the materials in the stores and ringing up sales at the register.

“We’re more organized, and we are able to take less time to schedule a pick-up,” says Kyle Thornhill, ReStore Manager of Habitat for Humanity of Huron Valley. “In the past, when someone would call to add an item to their pickup or to switch their date, we’d have to shuffle through papers and then rewrite their donation receipts. This took lots of time and also created a window for human error, which occurred often.” The switch to using nonprofit donation software worked. “We were doing approximately 40 pickups a week and (now) we’ve been doing approximately 64 pickups a week,” says Thornhill. That’s an increase of 60%. “We are currently having our best year-to-date and have beaten our sales records for each month since this past July.”

“Since we implemented online donation scheduling, we’ve seen that over 50 percent of all donation pickups are now scheduled online. That’s a better use of time than having to schedule over the phone with a member of our Call Center staff,” says Ryan Smith, Chief Retail Officer of Habitat for Humanity of Metro Denver. “Our donations have gone up 25 percent, our sales 35%, and earnings 40%.”

 

No Need to Create Manual Receipts for Donors

Receipts are another way that technology can save time. When the donor processes the booking themselves, the system can issue a donation receipt digitally. This saves both paper and time, which makes the locations much more efficient over the long term.

Even Drop-Offs Can Be Made Easier with Technology

Habitat for Humanity of East Bay/Silicon Valley has take the use of tech at their ReStore to the next level. Donors have the option of entering their items into an online donation form before dropping them off. Or, when donors bring items to drop off, they can also use one of the location’s iPad “kiosks” to process the donation and get a receipt.

Donors used to have to wait for store staff to record their donations and issue receipts, but the new way saves much more time. “The online form saves our donors time and offers them the convenience of automatically receiving a professional-looking email receipt containing all the details they need for tax purposes,” says Matt Nelson, Project Specialist at Habitat East Bay/Silicon Valley.

With so many conveniences it brings to nonprofit retail locations, and an increasingly savvy public who demand convenience, booking and scheduling software can be a major asset in helping nonprofits grow their donations and resulting revenue.

 

About Vonigo
Vonigo is a service business management platform that helps streamline operations and increase sales of mobile service companies and nonprofits. Vonigo offers a unified suite of configurable cloud-based modules including; CRM, scheduling, online booking, work order management, estimating, dispatch, routing, GPS, invoicing, payments, reporting, and more all accessible over the internet from any desktop or mobile device. Millions of jobs have been successfully booked and managed with Vonigo.

“Donor management” is a common phrase used to describe the way fundraising staff interact with donors. You’ll often hear about “donor management software” and “donor moves management.” As the CEO of Oliver Scholars, a nonprofit organization with a 30-year track record of success, I believe it is a good idea for development professionals to think in terms of “donor partnership” than “donor management.” Donors are your key partners in the fundraising process. Donors want your organization to succeed and can be your most passionate champions. In fact, a good partnership can change the entire trajectory of an organization’s fundraising. Successful partnerships with donors can result in major gifts that make possible an expansion of staff, program, and results. On the flip side, organizations that fail to maintain strong partnerships with donors often see their funding decline. They may even have to close their doors, leaving the individuals and communities they serve without critical resources and services. While every partnership is different, we believe the following five guidelines can help ensure a vibrant organization-donor relationship:

Consider Everyone a Potential Donor

Every individual who interacts with the organization should be considered a potential donor, and ensure that every experience that individuals have with the organization offer them the opportunity to feel close and connected with the mission. Always offer individuals who interact the chance to learn more about the organization’s impact, who you serve, and feel the mission in a way that is personal for them.

Make it Easy. Being a donor is harder than you may think. Often it isn’t easy to find the information you are looking for an organization’s website. Other times it isn’t clear which staff member to call for assistance or even to make a gift. Fundraising professionals (and all staff members) need to think of themselves as “personal concierges” who strive to provide donors with exceptional service. Make sure you provide all the information they will need to attend an event (date, time, location, room, directions, etc.) Your donors are investing their money in your organization; they deserve white-glove service. You want to make it as easy as possible for someone to work with your organization so that they are eager to contribute.

Listen More Than You Talk. Very few people prefer to be talked at rather than listened to. Donors are no exception. They want to tell you about their lives, their interests, and their reasons for giving. The more you listen, the better you will understand a donor’s motivation. And the more you understand a donor’s motivation, the better your case for support to the donor can be. If a donor has no interest in 80% of what your organization does and loves 20%, that is important to know – no need to waste your time sharing details about topics that don’t interest the donor. For instance, at Oliver Scholars, we have some donors who care greatly about our preparation program for high school and others who care most about where our students ultimately go to college. We individualize communication based on our audience.

Ask for input. Partnerships involve give and take. Donors are investors who not only want to share their money but also their insight and advice. You don’t have to take all the advice you are given, but at least be open to hearing what your donors think. You already know that their values align with yours because they have chosen to invest in your mission. An outsider’s perspective can be invaluable. At Oliver Scholars, we regularly solicit feedback from our donors through email queries, one-on-one meetings, committee discussions, and board meetings.

Keep your donors informed. Donors want to know where there money is going. What are your organization’s recent achievements? Give your donors a chance to celebrate them with you by keeping them informed. Of course, quantitative results are always better than vague descriptions of success. Have there been setbacks? Donors appreciate honesty and transparency. No donor wants to be surprised by learning bad news from a third party. Meanwhile, don’t forget to invite donors to program related events! Give them a chance to meet staff, clients, and other partners.

Remember that donors don’t owe you anything. It’s easy to fall into the habit of expecting donors to give (and getting annoyed when they don’t). But donors don’t owe you anything. It’s their money. How would you like it if someone expected you to hand over your hard-earned cash? Every gift a donor makes is an act of generosity. That means there is nothing more important than saying “thank you!” Your “thank you” needs to be heartfelt, timely, and personalized. (A form letter will not do!)  Pick up the phone, send a card, at the very least, write a personal note on that tax acknowledgment letter. Without proper stewardship, even your most loyal donors may drift away.

The vast majority of nonprofits use relationship management software to create donor profiles, record information and track giving history. Relying on traditional technology for administrative support is a regular and essential practice across the industry. But as competition for charitable dollars intensifies, is this type of technology providing enough support to help development officers measurably increase donations? And are nonprofits missing the opportunity to utilize technology to its full potential to strengthen relationships before an ask is even made?

Development executives will attest modern philanthropy is more relationship-based than ever before. Nonprofit executives must take into account the varying factors that drive an individual to give, like which charities their friends and neighbors support. They also need to understand that prospective donors have much more to give than monetary contributions. Until now, nonprofits have used technology as a means to track their fundraising progress and not necessarily as a tool to expand their donor knowledge, increase the number of donors they can manage and strategically align fundraising efforts.

As the culture of fundraising has evolved, nonprofits need to update their expectations of how technology can better support them. The future of nonprofit technology lies in the combination of data with psychology, enabling nonprofit executives to gain insights to make more informed and strategic asks. If your organization has yet to tap into technology for more than its administrative needs, take these steps and reconsider how data can paint a broader picture of every donor:

• Learn from Social Media -Accessing social data allows nonprofits to get a glimpse at a more personal side of the donor, which helps relationships to form. Did they go to college in east coast? Does your donor love tennis? Taking a look at social profiles before a meeting helps to break the ice and get to know the person better. This data also gives nonprofits insights into an individual’s philanthropic goals and needs. If a donor has grandchildren, discussing legacy planning might be of interest to them. Have they recently retired? Volunteerism might be a good option.
• Know Who They Know – Relational data helps nonprofits discover connections in a donor’s family, workplace and community who may also share an interest in your cause. From this data, a development officer can gain insights to guide their next action. Perhaps timing is off to ask for a cash gift. Instead, by referencing relational data, a nonprofit will know whether to ask for an introduction within the individual’s company to inquire about developing a corporate partnership. Another option might be requesting a donor host a giving circle with friends and family. If your donor is already a strong advocate for your nonprofit, they will be a champion of your cause in their circles, which will ultimately grow your organization’s network of supporters.
• Review Financial Data – It’s difficult to know what the right ask for an individual. Development officers should be confident that their requests are not under or over a donor’s giving capacity. Accessing prospective donor’s financial information is now possible thanks to wealth data overlays. This information enables development officers to be more strategic when meeting with clients, and have a clearer understanding of what they can give. Additionally, this data assists nonprofit leaders to determine whether a monetary gift is an appropriate ask, or if hosting a fundraiser, estate planning or volunteering would be a better fit.
• Receive Predictive Analytics – Predictive analytics paint a broad picture of a donor’s giving behavior. For instance, a development officer can see patterns in giving, like a donor averaging three $1,000 gifts per year. If that suddenly dips, the executive will be flagged with an alert to get in touch with the donor by phone or email to re-establish the relationship. Data points assist nonprofits so as to also tell when it is a good time to ask for a donation of a larger size.

Data is a highly powerful reference tool that helps guide nonprofit fundraising strategy, enable executives to be more prepared when meeting with donors and take relationship building to the next level. By taking a donor’s social, relational and financial data into consideration, nonprofits can better understand a donor’s philanthropic goals and move them from first time donors to passionate advocates.

Getting a donation is one thing, but keeping those donors coming back is something else entirely. Here’s what you can do to turn those one-time donors into long-term benefactors:

1. Keep Service Strong

When you’re dealing with products, making sure the donation process goes smoothly helps encourage companies to continue to donate. Did you make it easy for the donor to ship their products to you, did you accept and account for those products in a timely fashion, did you promptly send out promised tax letters recognizing the donation? All those questions have to have positive responses—not just for the first donation, but for every donation. In the donor’s eyes, you’re only as good as their last interaction with you.

2. Offer Trial Donations

For potential donors, giving them the opportunity to get their feet wet can be all that’s needed to reel them in. If they have two truckloads of products to donate, but are unsure if they want to commit the entire inventory to an unfamiliar group, suggesting a “trial donation” can help. Have them donate a small quantity, maybe just a pallet full of their products. If that donation goes smoothly, follow up to see if they’re now comfortable making a larger donation.

3. Get Customer Feedback

To stay on top of how your nonprofit is doing, consider sending out surveys to clients asking about how the entire process went for them. Make sure the survey is complete, yet not too lengthy. The longer the survey, the less likely you’ll be to get a response. Even so, don’t expect huge returns. Ten percent or so is probably typical. Make sure someone regularly reviews the surveys and addresses systemic problems or issues specific to certain donors. You can also use the surveys as a bit of good will. Ask your donors if they want to piggy back on your public relations efforts, offering them the chance to tout their own donations in your press releases and other promotional materials.

4. Make Communication Count

Once a company has made a donation, it’s important to keep the lines of communication open. That means honoring how and how often a company wants to be contacted. Some companies want to communicate strictly by email.  But if you have a choice, phone contact is the better option, with occasional in-person meetings to really help develop positive relationships.

5. Call Just Enough

When soliciting donations, you have to walk a fine line between keeping your organization in a company’s thoughts and becoming a pest. So how often do you call? It’s best to set up those parameters up front. When you’re first looking for product donations, ask how often companies take inventory or look to move excess product out of their warehouses. Is it on a quarterly basis, every six months? Find out, and time calls around then, when they are more likely to have items to donate.

6. Get Past the Gatekeepers

If you make a call and a company has nothing to donate, then ask if you can call back in six months or some other set amount of time. If they say yes, then you already have a foot partway in the door. This is especially valuable with companies that have “gatekeepers.” When you are able to tell the gatekeeper that, “Joe asked me to call back,” you’re more likely to have your call go through.

7. Build Relationships

Keeping in touch by phone and building a personal relationship with someone can help you increase your network of donors. Maybe that person will put another department that isn’t under their purview in touch with you when they notice that department has excess product. Or maybe they’ll let you know when they’re moving to another company or being transferred, so you can keep your contact list up to date.

8. Meet Face-to-Face

In-person visits are invaluable. If you can, it’s best to avoid limiting yourself to meeting with just one person. When you’re setting up a visit, ask if there is anyone else in the company who might like to join you. That way, a meeting with one person can turn into a meeting with four or five. That not only leaves the door open to more donations, but it keeps you from having to start from square one if the one person you were dealing with leaves the company.

9. Give Your Donors Value

Don’t assume that what a company values most is the tax benefits it receives. Many companies want to know where their donation went and how it was used. If you can provide that information, do so. It could be the best step you take to turning one-time donors into repeat donors.