Latest / The Nonprofit Podcast / Ep199| The Lifetime Value Mindset for Fundraisers

Transcript

Ep199| The Lifetime Value Mindset for Fundraisers · The Nonprofit Podcast

• 0:00
  SPEAKER_01: If you're leading fundraising, there are really two segments you should always be watching closely.
• 0:05
  SPEAKER_01: Some of the most valuable donors your nonprofit has might be the ones you notice the least.
• 0:10
  SPEAKER_01: The Nonprofit Podcast, powered by DonorBucks.
• 0:15
  SPEAKER_01: Welcome to the Nonprofit Podcast.
• 0:17
  SPEAKER_01: I'm Kara, Executive Director of Grace Care Center Foundation, and your On the Ground Podcast Correspondent here at DonorBox.
• 0:25
  SPEAKER_01: Each week we bring you practical strategies, clear insights, and inspiration to help you raise more, reach further, and take your nonprofit to the next level.
• 0:35
  SPEAKER_01: So these donors, the ones that are super valuable that you might be overlooking, they're not the ones always posting on social media, and they're likely not the ones speaking at your events.
• 0:45
  SPEAKER_01: But these donors are holding your organization together, and these are the donors who quietly give every single month.
• 0:53
  SPEAKER_01: You know, in fundraising, we often pay attention to the biggest gifts or the most visible supporters, the donors who show up at events or share your work online or make those big one-time gifts that really move the needle.
• 1:05
  SPEAKER_01: But here's something I've learned over time: the loudest donors aren't always the most committed.
• 1:10
  SPEAKER_01: Sometimes the people making the biggest difference are the ones who just keep showing up quietly and consistently.
• 1:18
  SPEAKER_01: Because when someone supports your organization every single month, they're not just making a donation.
• 1:24
  SPEAKER_01: Over time, they're building a relationship with you and your mission.
• 1:28
  SPEAKER_01: And sometimes those relationships quietly become some of the most valuable donors you have.
• 1:35
  SPEAKER_01: You know, I was reminded of that recently when I was looking through our donor list and I noticed someone was giving$200 every single month.
• 1:42
  SPEAKER_01: It was really great to see.
• 1:43
  SPEAKER_01: It was nothing flashy, just a steady monthly gift.
• 1:46
  SPEAKER_01: But then I saw something else that I hadn't noticed before.
• 1:49
  SPEAKER_01: Their employer was matching their donation.
• 1:52
  SPEAKER_01: So that quiet$200 gift, it was actually$400 a month, which adds up to almost$5,000 in the whole year.
• 1:59
  SPEAKER_01: And that's all from one donor who never asked for recognition and rarely replied to emails.
• 2:04
  SPEAKER_01: They're just quietly committed to the mission month after month.
• 2:08
  SPEAKER_01: And it made me think about how we look at donors.
• 2:11
  SPEAKER_01: You know, nonprofits often focus on major donors, and that makes complete sense.
• 2:16
  SPEAKER_01: You should be doing that.
• 2:17
  SPEAKER_01: Major donors matter.
• 2:18
  SPEAKER_01: And honestly, I personally spend a lot of time in that major donor space.
• 2:23
  SPEAKER_01: But here's another group we should be paying just as much attention to, and that's our monthly donors.
• 2:29
  SPEAKER_01: If you're leading fundraising, there are really two segments you should always be watching closely: those major donors and the monthly donors.
• 2:37
  SPEAKER_01: Major donors often create that transformational moment for your organization, but monthly donors create something different, but just as important, and that's your sustainable funding.
• 2:48
  SPEAKER_01: And when you start looking at the numbers over time, something really interesting happens.
• 2:54
  SPEAKER_01: Monthly donors often grow into mid-level or even major donors without anyone really even noticing because their impact builds slowly.
• 3:03
  SPEAKER_01: For instance, a$50 a month donor gives$600 a year and a$100 a month donor gives$1,200 a year.
• 3:10
  SPEAKER_01: And so if that those donors stay with you for five years, suddenly you're talking about real lifetime value and not just because of one big moment, but because of consistent generosity over time.
• 3:23
  SPEAKER_01: So let's talk a minute about that lifetime value mindset because it's very important.
• 3:28
  SPEAKER_01: And I think it's where fundraisers sometimes need to shift their perspective just a little bit.
• 3:33
  SPEAKER_01: So instead of always asking how big was this gift, we should be asking how long has this donor stayed with us?
• 3:39
  SPEAKER_01: And that's where lifetime value really comes into play.
• 3:42
  SPEAKER_01: So that donor giving$50 a month for five years, well, they've contributed$3,000 to your mission over five years.
• 3:50
  SPEAKER_01: And because of those recurring donations, those donors often stay engaged longer than those one-time donors.
• 3:56
  SPEAKER_01: And that real opportunity isn't just securing the gift in the first place.
• 4:01
  SPEAKER_01: The real opportunity is building the kind of relationship that keeps the donor connected to your work over time.
• 4:08
  SPEAKER_01: And fundraising is all about relationships, right?
• 4:10
  SPEAKER_01: I've said it here before.
• 4:12
  SPEAKER_01: I mean it from the bottom of my heart.
• 4:14
  SPEAKER_01: It's all about relationships.
• 4:16
  SPEAKER_01: And here is where nonprofits sometimes fall short.
• 4:19
  SPEAKER_01: If someone commits to giving every month, it's not a transaction.
• 4:24
  SPEAKER_01: It's the beginning of that relationship.
• 4:26
  SPEAKER_01: And if we're honest, a lot of those monthly donors just sometimes receive the same automated receipt everyone else gets.
• 4:33
  SPEAKER_01: So please, please, please don't ghost your monthly donors.
• 4:37
  SPEAKER_01: They are showing up every month, they're working hard, they're adding that recurring donation that moves your mission.
• 4:43
  SPEAKER_01: So treat them as valuable as they actually are.
• 4:47
  SPEAKER_01: Okay, but how do we treat our regular donors as valuable as they actually are?
• 4:52
  SPEAKER_01: Well, I'll share what's worked for me.
• 4:54
  SPEAKER_01: You know, our team started being much more intentional about how we communicate with our monthly donors.
• 4:59
  SPEAKER_01: Nothing elaborate, just a few thoughtful things that help them feel more connected to the mission that they're supporting.
• 5:05
  SPEAKER_01: So the first thing we created was a short email series.
• 5:08
  SPEAKER_01: It's a welcome series that triggers when someone becomes a monthly donor.
• 5:12
  SPEAKER_01: So it's just a handful of emails.
• 5:14
  SPEAKER_01: They're spaced out over the first couple of months after that recurring donation begins.
• 5:19
  SPEAKER_01: So the first email explains the impact of recurring gifts.
• 5:23
  SPEAKER_01: The next one introduces a program that their support is helping to sustain.
• 5:28
  SPEAKER_01: And then one email just simply thanks them and lets them know that they're part of a smaller group of supporters that's helping carry the work forward.
• 5:36
  SPEAKER_01: Because when someone commits monthly, they should feel like that commitment really matters.
• 5:41
  SPEAKER_01: Another thing we've started doing is creating small opportunities for monthly donors to feel like insiders.
• 5:47
  SPEAKER_01: And they don't have to be big, complicated donor events.
• 5:50
  SPEAKER_01: Most nonprofit leaders don't even have time for that.
• 5:53
  SPEAKER_01: So instead, we look for moments that are already happening and we invite donors into those experiences.
• 5:59
  SPEAKER_01: So, for example, um, our organization works with some really cool solutions around food security and poverty.
• 6:06
  SPEAKER_01: And at one point, uh, we hosted a documentary about the issues that we face and we followed it up with a panel discussion, and we just invited our monthly donors to attend.
• 6:16
  SPEAKER_01: We altered the invitation language to point out that they are funding this work every single month.
• 6:22
  SPEAKER_01: We wanted to them, we wanted them to be part of this conversation, not as a fundraising event, just as an advocacy event, as a as people who are helping make the work possible.
• 6:33
  SPEAKER_01: And then we hosted a small breakfast where we talked about a new program and how it was impacting our community.
• 6:38
  SPEAKER_01: They loved being able to ask questions and they really felt like we took time to make them feel like insiders.
• 6:44
  SPEAKER_01: It was 90 minutes on a weekday.
• 6:46
  SPEAKER_01: The in the individuals who attended are now even more inspired to support, and several of them increase their monthly donations.
• 6:54
  SPEAKER_01: So I'll also share with you one of the most meaningful things that we've done.
• 6:59
  SPEAKER_01: And it's surprisingly simple.
• 7:00
  SPEAKER_01: And you can do this.
• 7:01
  SPEAKER_01: I encourage you to do it today.
• 7:04
  SPEAKER_01: What we do is we reach out to our monthly donors and invite them to grab a coffee.
• 7:08
  SPEAKER_01: It's kind of that major donor fundraising mindset for your monthly donors.
• 7:12
  SPEAKER_01: And so the email I send is incredibly straightforward.
• 7:15
  SPEAKER_01: It's, hey, I notice you've been supporting us monthly.
• 7:18
  SPEAKER_01: I'd love to learn what inspires you to give.
• 7:21
  SPEAKER_01: That's it.
• 7:22
  SPEAKER_01: Because the truth is, many monthly donors care so deeply about your mission, but likely they've never been asked why.
• 7:29
  SPEAKER_01: And those conversations are so incredibly valuable.
• 7:32
  SPEAKER_01: You learn what part of the mission resonates most with them, what stories connect with them, and what inspired them to start giving in the first place.
• 7:40
  SPEAKER_01: And those insights help you build stronger relationships with those donors over time.
• 7:45
  SPEAKER_01: One thing I've learned over the years is this it's essential to make it easy for donors to give.
• 7:51
  SPEAKER_01: Make that monthly giving option nice and clear when they're on your giving page, because if donors can't see it or it's buried somewhere, they probably won't take that extra step.
• 8:02
  SPEAKER_01: One simple tool I've really liked using inside donor box is our recurring upsell feature.
• 8:07
  SPEAKER_01: And what I appreciate about it is just how natural it feels.
• 8:11
  SPEAKER_01: When someone makes a one-time donation, they're simply given the option to turn that gift into a monthly one.
• 8:17
  SPEAKER_01: There's no pressure, it's just a small moment that asks, hey, would you consider supporting this work every month?
• 8:23
  SPEAKER_01: And it works surprisingly well because a lot of donors simply haven't been asked before.
• 8:28
  SPEAKER_01: Even converting a small percentage of one-time donors into recurring supporters can make a huge difference in the long-term lifetime value of your donor base.
• 8:37
  SPEAKER_01: I know you have a lot on your plate and you're busy changing the world.
• 8:41
  SPEAKER_01: I totally get it.
• 8:42
  SPEAKER_01: So I want to leave you with something simple that you can do this week.
• 8:46
  SPEAKER_01: I encourage you, pull a report of your monthly donors and take a look at a few key things.
• 8:51
  SPEAKER_01: Notice who's been giving steadily for a year or more.
• 8:54
  SPEAKER_01: See if any gifts are being matched by employers.
• 8:57
  SPEAKER_01: Sometimes there's hidden impact you might not even know about.
• 9:01
  SPEAKER_01: And pay attention to donors who might be ready to increase their support.
• 9:05
  SPEAKER_01: Like maybe they started small, but they've been consistent for a while.
• 9:09
  SPEAKER_01: It might be time to ask them if they'd be willing to do a little bit more.
• 9:13
  SPEAKER_01: Pick a few of your supporters to reach out to and invite them to coffee.
• 9:17
  SPEAKER_01: Ask them what inspires them about the mission.
• 9:20
  SPEAKER_01: Because remember, the goal isn't just about managing donations, it is always about building relationships.
• 9:27
  SPEAKER_01: And remember, recurring donors aren't just giving monthly, they're choosing your mission every single month.
• 9:36
  SPEAKER_01: Thank you for choosing to listen to the Nonprofit Podcast.
• 9:41
  SPEAKER_01: We are delighted you're part of this community.
• 9:43
  SPEAKER_01: Your work matters, and we are so honored to support it.
• 9:47
  SPEAKER_01: If you enjoyed this episode, share it, leave a review, or subscribe to our YouTube channel.
• 9:52
  SPEAKER_01: Until next time, take that first step and stay inspired.
• 9:57
  SPEAKER_00: That warm feeling when you help someone, it's not just happiness, it's fulfillment.
• 10:02
  SPEAKER_00: And we believe it should be available to everyone, from frontline heroes to first time fundraisers.
• 10:08
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• 10:11
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• 10:12
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