Latest / The Nonprofit Podcast / Ep 155| 10 Tips to win back lapsed donors

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Ep 155| 10 Tips to win back lapsed donors · The Nonprofit Podcast

0:04
SPEAKER_02: The Nonprofit Podcast powered by DonorBucks.
0:09
SPEAKER_02: Donors don't just disappear, they disengage.
0:12
SPEAKER_02: But why?
0:13
SPEAKER_02: Was it the timing, the messaging, or maybe the lack of it?
0:19
SPEAKER_02: Waiting too long to reconnect turns a quiet lapse into a permanent loss.
0:26
SPEAKER_02: The key to winning donors back isn't another urgent appeal, it's something far more effective.
0:32
SPEAKER_02: If you've got lapse donors, meaning donors who gave to you before but haven't in a while, then today's episode is for you.
0:40
SPEAKER_02: We are talking about how to reconnect with them in a way that feels natural, not pushy, and one send back.
0:50
SPEAKER_02: Welcome to the Nonprofit Podcast.
0:52
SPEAKER_02: I'm Jenna, Education and Community Engagement Manager here at Donorbox.
0:57
SPEAKER_02: And we're here each week with practical actions you can use today to increase donations and take your nonprofit to the next level tomorrow.
1:05
SPEAKER_02: And joining me today is our amazing donor box fundraising strategist, Brittany Stocker.
1:10
SPEAKER_02: Hey, Britton.
1:10
SPEAKER_01: Hey, Jenna.
1:11
SPEAKER_01: I am so I'm so looking forward to this conversation.
1:14
SPEAKER_02: Me too.
1:15
SPEAKER_02: I think it's a really important one.
1:18
SPEAKER_01: And just so that we're all on the same page, when we say lapse donors, we're not just talking about someone who's previously donated, right, Jenna?
1:27
SPEAKER_01: These are donors who haven't given within a set amount of time.
1:30
SPEAKER_01: What we mean here, Jenna, right, is a lapse donor who they may have previously donated, but they haven't donated within a certain amount of time.
1:39
SPEAKER_01: And that might be 12 months, 24 months, or even longer.
1:44
SPEAKER_01: What we know is every nonprofit, they really define things a little bit differently.
1:49
SPEAKER_01: Um, one thing though to remember is these are donors that they gave once, but they haven't given again.
1:56
SPEAKER_02: Yeah, yeah, exactly.
1:57
SPEAKER_02: Thank you for that clarification.
1:58
SPEAKER_02: And I think though, the best part about this is that you have your foot in the door, right?
2:04
SPEAKER_02: That you know that they already care for your mission.
2:06
SPEAKER_02: These folks are already bought into what you do and why you do it.
2:09
SPEAKER_02: So re-engaging them should be easier than trying to find a brand new donor.
2:15
SPEAKER_02: And you don't have to convince them from scratch, right?
2:17
SPEAKER_02: You just need to remind them why they supported you in the first place.
2:21
SPEAKER_02: And that's why we're gonna take this slow and steady today.
2:25
SPEAKER_02: We wanna break down step by step so you've got some super simple, doable ways to get those donors back on board.
2:33
SPEAKER_02: So, right, I want to start with the big question.
2:36
SPEAKER_02: Where do you even start, right?
2:38
SPEAKER_02: If a nonprofit has a long list of laps donors, how do they prioritize who to contact first?
2:44
SPEAKER_01: Oh boy.
2:45
SPEAKER_01: Well, first things first, don't freak out when you see your list of laps donors.
2:51
SPEAKER_01: I'm gonna spill some tea here.
2:52
SPEAKER_01: I serve on a working board here in Seattle.
2:55
SPEAKER_01: We finally just implemented our first CRM and we had a large number of laps donors.
3:02
SPEAKER_01: Let's just say, not just a lot, like a lot.
3:05
SPEAKER_01: And we had a bit of a freakout moment, Jenna.
3:09
SPEAKER_01: You know, first off, I can't believe that we had donors that have been with us for a long time.
3:14
SPEAKER_01: They've been supporting us, but they haven't been engaged.
3:18
SPEAKER_01: And so all to say, I get it.
3:20
SPEAKER_01: I'm guessing a lot of you listening in, you're there with small teams, you might be feeling the same way, and there's a sense of overwhelm with your list of laps donors and you're juggling a million things.
3:33
SPEAKER_01: You got a lot to do.
3:35
SPEAKER_01: So if you're working without a CRM, don't freak out, don't panic.
3:40
SPEAKER_01: You can still use it, might be a simple spreadsheet or even past donation records to figure out who to focus on first.
3:49
SPEAKER_01: We are all about a rule of three.
3:51
SPEAKER_01: Okay.
3:52
SPEAKER_01: Number one, start with recency.
3:55
SPEAKER_01: Look at who gave in the last one to two years.
3:58
SPEAKER_01: They're gonna be your best bets because they're still bought in, they're still invested to what you do.
4:05
SPEAKER_01: Two, identify big givers, anyone who gave a larger donation.
4:10
SPEAKER_01: For one organization, that might be over$500.
4:14
SPEAKER_01: For another, it might be$2,000.
4:17
SPEAKER_01: The key is prioritize your big givers in terms of who you're gonna reach out to next.
4:23
SPEAKER_01: And three, look at consistency.
4:26
SPEAKER_01: If someone has given smaller gifts throughout the year, year after year, they see the long-term value of your work.
4:33
SPEAKER_01: These folks matter just as much as your major donors.
4:37
SPEAKER_01: So I think one thing that to remember here, even without a CRM, you can manually track this in a way that makes sense for you.
4:45
SPEAKER_01: Start small, don't freak out, pick five to 10 donors and work from there.
4:51
SPEAKER_01: And don't stop there.
4:52
SPEAKER_01: Look at behaviors.
4:53
SPEAKER_01: You know, I'm talking about psychographics.
4:56
SPEAKER_01: These are, and I'm talking to people who have CRMs.
5:00
SPEAKER_01: People, psychographics are values, behaviors, and motivations.
5:03
SPEAKER_01: So do your donors, do they prefer to donate to your in-person campaigns versus your online?
5:10
SPEAKER_01: What type of campaigns are they apt to support?
5:12
SPEAKER_01: Are they healthcare related?
5:14
SPEAKER_01: Are they education related?
5:16
SPEAKER_01: Use these tiny bits of intel to personalize how you're going to re-engage with your donors on a deeper level, consistently throughout the year.
5:26
SPEAKER_02: Yeah, I think that makes a lot of sense.
5:28
SPEAKER_02: So you're personalizing your outreach and putting in the time and effort so that it's not just a big campaign to everybody who's lapsed, right?
5:36
SPEAKER_02: You are speaking specifically to them.
5:38
SPEAKER_02: And I say this probably every other podcast, but if you're talking to everybody, you're not talking to anybody, right?
5:43
SPEAKER_02: So find ways in which they are already engaging with your organization and play off of that when you are trying to re-engage them.
5:51
SPEAKER_02: I can't believe I'm saying this in March.
5:53
SPEAKER_02: I can't believe we're in March, first of all, but I want to look ahead for a second.
5:57
SPEAKER_02: Recapture donors dropped by 3.5% in 2023 in the giving season.
6:04
SPEAKER_02: And I haven't seen the 2024 stats yet, but I imagine it's pretty much the same.
6:09
SPEAKER_01: Yeah.
6:10
SPEAKER_01: And, you know, that drop is not just a number.
6:13
SPEAKER_01: I think it's a sign of something larger.
6:16
SPEAKER_01: Donor retention, it's getting harder and it's going to continue that way, right?
6:20
SPEAKER_01: And the truth is, nonprofits, we have to start engaging donors before year-end giving.
6:28
SPEAKER_01: Okay.
6:29
SPEAKER_01: Organizations that communicate year-round, not just when they need it the most, see better retention.
6:36
SPEAKER_01: And the problem here is too many nonprofits, they're still relying on that one big appeal at year-end giving.
6:43
SPEAKER_01: And we got to keep engaging throughout the year because otherwise, if we're engaging them one time, that leads to higher attrition.
6:51
SPEAKER_01: What we need to look at is how do we change that, Jenna?
6:56
SPEAKER_02: Yeah, absolutely.
6:57
SPEAKER_02: I think it's about consistency, like you said, not just urgency.
7:01
SPEAKER_02: When fundraisers start early and focus on re-engaging those lap donors, um, I think donors feel the difference, right?
7:10
SPEAKER_02: They see that it's not just the next ask, but it's about the relationship.
7:14
SPEAKER_02: And that's truly the key.
7:16
SPEAKER_02: When donors trust that they matter beyond their last gift, they are far more likely to stay connected.
7:22
SPEAKER_02: It's not about bombarding them, it's about steady, meaningful touch points.
7:27
SPEAKER_02: So little by little, that builds trust.
7:30
SPEAKER_02: And when the time comes, they're not just giving, they are actually invested, right?
7:34
SPEAKER_02: You're showing value slow and steady, always, always, always wins.
7:38
SPEAKER_01: Always wins.
7:39
SPEAKER_01: That's such a great point, Jenna.
7:41
SPEAKER_01: And look, I know many of us feel uncomfortable um reaching out, right?
7:46
SPEAKER_01: And maybe, maybe you're thinking, well, what if they don't want to hear from us?
7:51
SPEAKER_01: Or what if they're annoyed?
7:52
SPEAKER_01: Or what if, what if, what if?
7:54
SPEAKER_01: A lot of imposter syndrome.
7:56
SPEAKER_01: I would say, I think here's the thing.
7:58
SPEAKER_01: Most donors, they don't leave because they're upset.
8:01
SPEAKER_01: They just get busy.
8:03
SPEAKER_01: And this is where a thoughtful personal message, it's not going to feel intrusive.
8:08
SPEAKER_01: It's going to feel like just a nice welcome check-in.
8:11
SPEAKER_01: One other thing that I would like to add here, too, is oh my goodness, we overestimate how much people remember us.
8:20
SPEAKER_01: I know, Jenna, a donor who hasn't heard from you in 18 months, they might barely remember you the last time they give.
8:27
SPEAKER_01: That's why re-engagement, it's all about nudging, reminding, and not persuading because people are busy.
8:34
SPEAKER_01: We need those gentle reminders.
8:36
SPEAKER_02: And I say to people who feel uncomfortable about reaching out because they are worried about that.
8:42
SPEAKER_02: I have had so many moments where people were like, oh, thank you so much for reminding me, right?
8:46
SPEAKER_02: If you don't ask, the answer is always no.
8:49
SPEAKER_02: So it's just a good, good way to re-engage, right?
8:53
SPEAKER_02: Just keep that in mind.
8:54
SPEAKER_02: Like you said, people are busy.
8:55
SPEAKER_02: I've forgotten organizations that I've donated to before.
8:58
SPEAKER_02: And I'm always happy to get like the little packet in the mail or something like that.
9:01
SPEAKER_02: I'm like, oh yeah, that's why I did it, right?
9:04
SPEAKER_02: Okay, now I want to focus on how do we actually reach out in a way that works?
9:10
SPEAKER_02: I mean, um, I think there's an elephant in the room.
9:13
SPEAKER_02: Things are different post-COVID.
9:15
SPEAKER_02: I know COVID feels like so far away now, but it's still different.
9:18
SPEAKER_02: It feels so different.
9:19
SPEAKER_02: People are busier, definitely more stressed, and maybe even like a little skeptical.
9:24
SPEAKER_02: There are reports that show how many people actually trust nonprofits, and it's not a great percentage.
9:30
SPEAKER_02: So, how do we adapt in this world?
9:35
SPEAKER_01: Well, I guess let me start here.
9:37
SPEAKER_01: I think we can all agree that 100% we're all exhausted.
9:42
SPEAKER_01: And that means that nonprofits really need to be intentional and we need to make engagement easy.
9:48
SPEAKER_01: So, first, why not do yourself a favor?
9:51
SPEAKER_01: Ditch that generic email blast.
9:55
SPEAKER_01: Seriously, please.
9:57
SPEAKER_01: And, you know, something for us not to overlook phone calls, the old school phone calls actually work.
10:03
SPEAKER_01: Okay.
10:04
SPEAKER_01: I know, I know, I'm like cringing and oh my gosh, you know, we love text, right?
10:09
SPEAKER_01: Some of us freak out with phone calls, they can be intimidating, but trust me, they are one of the most genuine, heartfelt ways to connect.
10:18
SPEAKER_01: Connect.
10:18
SPEAKER_01: We we're not just talking the talk.
10:20
SPEAKER_01: Studies even show that phone calls with lapse donors have a conversion rate of up to 20%.
10:26
SPEAKER_01: They work.
10:27
SPEAKER_01: And you don't need a script here.
10:30
SPEAKER_01: Just a quick reminder: there are a few key elements.
10:34
SPEAKER_01: We talk about personalization all the time.
10:37
SPEAKER_01: This is not an opportunity when you're connecting on the phone to ask for money.
10:41
SPEAKER_01: You're basically there to one, acknowledge and thank them, remind them why they cared in the first place, be very specific about how their past support has created impact and in what ways.
10:55
SPEAKER_01: But really, this is your opportunity to get creative of where you want to send them next.
11:01
SPEAKER_01: And this is a non-monetary ask, okay?
11:04
SPEAKER_01: Um, and I'll give you some ideas.
11:07
SPEAKER_01: One other thing, though, too, is our donors they appreciate transparency and authenticity.
11:12
SPEAKER_01: We talked about exhaustion just a few seconds ago.
11:15
SPEAKER_01: If your nonprofit has gone through some major challenges, but overcome those challenges, it might be a transition to a new leader.
11:23
SPEAKER_01: It might be, oh, we had to do away with the program, but oh my goodness, we pivoted and we introduced this program instead.
11:31
SPEAKER_01: Be very clear, be very transparent about those challenges.
11:35
SPEAKER_01: In terms of where donors want to be headed to next, it might be inviting them to a donor appreciation event.
11:43
SPEAKER_01: It might be inviting them to a community resource fair.
11:47
SPEAKER_01: Your invite on these phone calls, it's not to make an ask, it's to simply re-engage, to show a level of support that you're paying attention to them and reinviting them to be a part of something next.
12:01
SPEAKER_02: Yeah.
12:01
SPEAKER_02: And you said a keyword here, transparency, right?
12:06
SPEAKER_02: And during last week's episode with Maria Bryan, when we're talking about crisis storytelling, we talked about a formula to build trust.
12:12
SPEAKER_02: That's time, transparency, and thoughtfulness.
12:16
SPEAKER_02: You've captured all those things right there in what you said, right?
12:19
SPEAKER_02: You're thinking about how you want them to engage.
12:21
SPEAKER_02: You are giving them the time, right?
12:23
SPEAKER_02: You're giving them a phone call that's incredibly thoughtful.
12:25
SPEAKER_02: And then you're being transparent, and that will rebuild trust.
12:28
SPEAKER_02: Maybe they never lost trust, but maybe they just forgot how much they trusted you.
12:32
SPEAKER_02: Um, and by the way, we'll be digging much deeper into donor stewardship best practices for phone and text engagement later this month.
12:40
SPEAKER_02: And that will be with Bart Lilly from Synergy.
12:42
SPEAKER_02: He'll be joining us.
12:43
SPEAKER_02: So keep an eye out for that episode.
12:44
SPEAKER_02: I'm really excited to dig deeper there.
12:46
SPEAKER_02: Um, that'll be a fun one.
12:47
SPEAKER_01: Jenna, I am so looking forward to that conversation.
12:50
SPEAKER_01: It's going to be great.
12:51
SPEAKER_01: I would say if you feel like you're not ready for a phone call, no worries.
12:56
SPEAKER_01: That's where the power of text messages come in.
12:59
SPEAKER_01: They're quick, they're easy, they're not overwhelming.
13:03
SPEAKER_01: And, you know, it might be sending a mini thank you video, heartfelt video from one of your teammates behind the scenes, or even one of your program recipients.
13:12
SPEAKER_01: Again, it's all about acknowledging, thanking the donor, tying their specific donation to a very specific outcome, and getting creative on where you want to send them next.
13:25
SPEAKER_01: Texts are great for that.
13:26
SPEAKER_01: Simple, short, and just meaningful.
13:30
SPEAKER_02: I've gotten text messages from organizations I've donated for, from like the executive directors, the development directors.
13:36
SPEAKER_02: And I can't tell you how seen that made me feel like, oh my gosh, they're texting me.
13:42
SPEAKER_02: How nice is that, right?
13:43
SPEAKER_02: So I love that tip too.
13:44
SPEAKER_02: If you're a little bit shy on the phone or you feel like you get nervous about a script, that's a great way to do it.
13:50
SPEAKER_02: And those short authentic videos are always wonderful.
13:53
SPEAKER_02: Now, when it comes to the actual ask, how should nonprofits do that?
13:59
SPEAKER_02: How do they ask for the donation?
14:00
SPEAKER_02: We're talking about re-engagement, not asking.
14:02
SPEAKER_02: So, how do we actually, when the time comes, ask for a donation?
14:05
SPEAKER_01: We're not here to guilt trip anyone and you don't want to start with, give us more money, okay?
14:12
SPEAKER_01: Focus on again, how can they stay involved in non-monetary ways?
14:18
SPEAKER_01: It's all about a journey of building relationships.
14:21
SPEAKER_01: So instead of saying, hey, we need your donation now, it might be, hey, we're hosting a behind-the-scenes virtual event.
14:28
SPEAKER_01: We have some state legislators joining us.
14:31
SPEAKER_01: Why don't you stop by and see what we're all about?
14:34
SPEAKER_01: Or it might be, hey, we're we have a new program in mind.
14:38
SPEAKER_01: We're feeling it out with the community.
14:41
SPEAKER_01: We'd love your input.
14:42
SPEAKER_01: Can you take this quick three-minute survey?
14:45
SPEAKER_01: It's all about getting creative in terms of calling in your supporters in non-monetary ways.
14:52
SPEAKER_01: You don't want to start with, hey, give us your money from the get-go.
14:55
SPEAKER_02: Yeah, I love that.
14:56
SPEAKER_02: Giving donors a way to engage without pressure makes them more likely to come back on their own terms.
15:03
SPEAKER_02: And I'll add something here that comes to mind.
15:06
SPEAKER_02: You want to give them some space.
15:08
SPEAKER_02: Um, if they don't re-engage right away, that is okay.
15:12
SPEAKER_02: People are responding at different speeds these days.
15:16
SPEAKER_02: And you so, you know, you don't need to hold tight to that 24 or 72-hour immediate response.
15:23
SPEAKER_02: It takes time.
15:24
SPEAKER_02: And if you're following up too quickly, that can feel spammy and you might not ever get to re-engage them.
15:30
SPEAKER_02: So space is your friend here too.
15:32
SPEAKER_01: Yeah, I love that idea of space and giving grace and in challenging this immediate urgency that we all have to respond within 20, 40, 48 hours, right?
15:43
SPEAKER_01: It's it's we're operating at very different speeds.
15:47
SPEAKER_01: Again, it's it's showing donors how important they are to your mission, how their continued support helps you do even more in a post-COVID world because we're all juggling a lot more.
16:00
SPEAKER_01: And we also know that life gets in the way.
16:03
SPEAKER_01: And so that's completely okay.
16:05
SPEAKER_01: Like we know that they're not, they haven't stopped caring, they just got busy.
16:10
SPEAKER_01: So keep it personal, keep it real, and keep showing them how much they matter.
16:14
SPEAKER_02: All right.
16:15
SPEAKER_02: So taking your advice and keeping it real, Britt, if there is one action our listeners should take today to start re-engaging their lapst donors, what would you say that is?
16:25
SPEAKER_01: All about keeping it simple.
16:27
SPEAKER_01: Pick one lap stonor and reach out today.
16:30
SPEAKER_01: One email, one phone call, one text, one handwritten note, one.
16:35
SPEAKER_01: Start somewhere.
16:37
SPEAKER_01: Again, doesn't have to be glammed up.
16:40
SPEAKER_01: And if you're feeling ambitious, you gotta track it.
16:42
SPEAKER_01: Okay, I know not everyone has a CRM.
16:44
SPEAKER_01: Track it on your Excel spreadsheet.
16:46
SPEAKER_01: Small intentional steps, they really do add up.
16:50
SPEAKER_02: I love that.
16:51
SPEAKER_02: Just one today.
16:52
SPEAKER_02: No pressure, just one.
16:53
SPEAKER_02: No excuse, no excuses.
16:55
SPEAKER_02: I think that's a really delicate way to just start a big movement into re-engaging these folks.
17:01
SPEAKER_02: And by the way, we have got a helpful guide on how to win back laps donors from our donor box nonprofit blog.
17:08
SPEAKER_02: So we went ahead and linked that in the show notes.
17:11
SPEAKER_02: So check it out.
17:12
SPEAKER_02: Britt, thanks for sharing your insights today.
17:15
SPEAKER_01: As always, it's such a pleasure, Jenna.
17:17
SPEAKER_01: Thank you.
17:18
SPEAKER_02: And thank you for joining us on the Nonprofit Podcast.
17:21
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