Examination of Donor Loyalty

Download or read book Examination of Donor Loyalty written by Heather M. Schallock and published by . This book was released on 2016 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research identifies several drives of donor loyalty and strategies to build donor loyalty. Donor satisfaction is paramount to donor loyalty. Nonprofits need to build trust with their donors to demonstrate they are making sound, transparent decisions in fulfillment of their mission and the donors' intentions, which will help donors feel a commitment toward the organizations. As donors identify more with an organization, they become more loyal. Recruiting a new donor can cost two to three times the amount of an initial gift and with half of all new donors not making another gift, a concentration on recruitment without retention is costly. Donors stop giving because of a breakdown in the drives of loyalty, financial reasons, a major event in the donor's life, disappointment with recognition, or poor communications. Fundraising goals may pressure development professionals to treat donors and their gifts as one-time transactions. Quick communication, confirming the donation was received, and showing how it will be used are important, but another action is even more crucial to relationship building. Ongoing communication--before the next ask--about what the gift accomplished, progress toward achieving the goal, and/or any relevant updates must be part of the process. Nonprofits may share this information through in-person visits, phone calls, short newsletters, emails, or website stories. Regardless of the method, organizations must remember the focus is the donors' impact. The more successfully each nonprofit builds loyalty with its donors, the more the public will view nonprofits as vital and trustworthy, which will help strengthen the entire third sector.