The focus on fundraising that comes with #GivingTuesday and the typical December annual appeal make this time of year ripe for focusing on how to thank nonprofit donors. But, as one source points out, thanking and recognizing donors is something that should be at the forefront of our minds year round: “It is important to embed the spirit of gratitude in the very fabric of your organization.” (I. Ibrisevic, 10 Ways to Thank Your Nonprofit Donors). You also want to build relationships that bring a donor closer and set the stage for additional contributions. According to one source:
[t]hank you letters are powerful and profitable, since they can lead to additional contributions. [The] Burk [Donor Survey] notes: “45% of donors said it was an outstanding thank you letter that inspired them to give again and 23% said they gave more generously because of the quality of the acknowledgement they received.” (Saying Thank You Like You Mean It).
So how should you thank your donors and how do you embed the spirit of gratitude into the fabric of your organization? It is to answering those two questions that we now turn.
1. Ways to thank nonprofit donors
There a multitude of ways of thanking donors and, as we shall see, it is important to build a donor stewardship framework that addresses donor recognition well before a donor is asked for a gift. The options presented below are not mutually exclusive and careful thought should be given to employing them in your organization. One source suggests that “a good rule of thumb is that a donor should be thanked in multiple ways by multiple people, as well as told how their donation was used … before being asked for another gift.” (Eisenstein, A. How to Thank Your Donors).
A. Email and letters
Universal agreement is lacking in the literature about the format of the formal thank you. Should it be an actual letter that is delivered via U.S. mail or will an email suffice? If a letter is sent, what circumstances argue for something that is hand-written rather than mail merged? As is the case for most of the donor thank you options discussed here, the best answer is, likely, “it depends – on the donor context of the gift.” There seems to be general agreement that handwritten notes should be reserved for your most committed donors and/or for special occasions, such as the advent of a second donation, the anniversary of a first donation, and around the holiday season. (Alves, C. 15 Creative Ways to Thank Donors); (Koenig, These 12 Ways).
Whether you opt to send an email or a letter, there is agreement that “you can write the ideal thank-you letter in just a little longer than it takes to send a tax receipt” and that the focus should be on quality and following a few best practices. (Hayden, J. How to Thank Your Donors). They include the following:
(1) Where you are using email, include “thank you” in the subject line. (Esquivel, M. Donor Thank You Letters).
(2) Use personalized merge tags, offered by most email marketing providers. This allows you to type in “Dear [first-name]:” when you are setting up an email. The software then searches the datebase for the recipient’s first name and the actual email reads, “Dear Jane:”
(3) Create personalized paragraphs that can be swapped in or out based on whether you are writing to a first-time donor, repeat donor, major donor, board member, or other volunteer. (Eisenstein, A. How to Thank Your Donors).
(4) Focus on the donor, not the donation. (Ibresevic, I. 10 Ways). Thank the donor for being the kind of person who cares enough to take action and make them feel a part of the team. “Don’t lapse into bragging about your accomplishments or your future aspirations. Instead, tell them about all that they have enabled. Everything that they made possible. Make them look great, because they are.” (Koenig, These 12 Ways).
(5) Keep your message simple and emotional. (Koenig, These 12 Ways). Use the “kitchen table technique” to make your letter simple, warm and personal. This involves imagining that your donor is sitting across from you at your kitchen table. The two of you are having a cup of coffee and discussing the change your programs create in the lives of those you serve. Your donor hands you a check. What do you say in response? Write that down. Write like you talk. (Rees, S..Perk Up). Here’s a sample of “simple and emotional” in action from a nonprofit that saves greyhounds:
What does it mean when we say you’ve changed a life?
For racing greyhounds, it means they can leave the racetrack behind and begin their journey to a forever home. Your gift of three sets of quilted dog crate pads is very much appreciated and helps free up funds that can be used for emergencies or veterinary bills for those greyhounds that need extra care.
Tahoe is one of those greyhounds. He is going blind. The good news is that Tahoe is not in any pain. He is playful and friendly. The bad news is that his condition has no cure, and he will completely lose his sight.
But, because of your donation, Tahoe will be cared for at Fast Friends for as long as it takes to find his perfect home. You have truly changed his life.
While not every greyhound has a condition like Tahoe, each one needs special care before being ready to go home with a forever family. Some greyhounds come to us with track injuries. Others are very shy. Still others need some time to adjust to a life away from the track.
You are changing each one of their lives with your gift, and we are so grateful for your support. (Rees, S. How to Create).
(6) Be honest about where the donation went and the impact it had or will have.
(7) Reference the gift amount and past giving.
(8) Offer a next step (so long as it is not making another donation). It might include joining an email list, attending a free event, watching a particular video about your work. (Koenig, These 12 Ways). One source suggests including a P.S. at the end asking donors to share your campaign on social media or forwarding your email to five of their friends. (Esquivel, M. Donor Thank You Letters).
(9) Ensure that the communication is signed by a senior person within the organization. (Esquivel, M. Donor Thank You Letters).
(10) Create your thank you letters and emails when you craft your appeal. That way, you’ll be ready to thank donors once the campaign has concluded.
(11) Send the initial communication fast. One commentator suggests that first-time donors who get a personal thank you within 48 hours are four times more likely to make a second gift. (Koenig, 12 Ways).
For a downloadable template, illustrating these best practices, visit the Bloomerang Blog.
B. Beyond the Written Thank You
Below are some additional suggestions for making donors feel truly appreciated. Obviously, their implementation is dependent on many factors, not the least of which is your staff and board bandwidth. I will tell you that, in my own organization, we have employed phone calls, modest videos, small donor-recognition events, and photos to good effect. Let’s explore these ideas.
(1) Phone Calls
Calls, along with the next option, video, allow you to establish a more personal connection to a donor than might happen with a simple thank you letter. As one source notes, “[h]earing a real voice over the phone helps build connections and establish trust.” (I. Ibrisevic, 10 Ways). The main message is the difference the gift has made. The best time to make calls is within two months of a gift having been made. And it is best to have board members make calls and to call as many donors as possible, regardless of the size of his or her gift. (I. Ibrisevic, 10 Ways).
(2) Videos
Given the quality of video that can be captured with many smart phones, and the advent of relatively easy, video-editing software like Camtasia, creating a short video is quite doable, even for a small organization. Here’s one fairly simple example featuring those impacted by the gift. Here’s another that I made recently with Camtasia and sent with an email gift acknowledgement to donors who supported our #GivingTuesday campaign for a trail project. (You can learn more about Camtasia software on my resources page). These videos can be shared easily via social media and on your website.
(3) Highlighting Donors in Social Media
As one source has noted, “[s]ocial media allows for a low cost, public acknowledgment of your followers and donors.” (I. Ibrisevic, 10 Ways). You can tag donors in photos, repost their content, and post simple shoutouts. At the same time that you are recognizing and thanking your donor, you are also showcasing his or her support of your organization and encouraging donations from others.
(4) Sending Photos and Stories
The basic idea with photos and stories is to provide concrete evidence that the donor’s gift made a difference. It’s the donor’s evidence of “return on investment (ROI).” One commentator suggests that, where the gift is for a project with many milestones, a status update should be sent to the donor at regular intervals, say where the project hits 25%, 50% , 75% and 100% completion intervals. (Ibrisevic, I. 10 Ways).
When it’s time to follow up, “use numbers to show how your organization reached its goal, and how many people, animals, or plant life you will be able to support with that money.” (Esquivel, M. Donor Thank You Letters). “Be specific: why did my donation matter? What did it accomplish? Why should I be hopeful and excited to contribute to the future my donations are creating? Who life was changed? The follow up needs to be just as carefully crafted as the appeal …” (Koenig, M. These 12 Ways).
(5) Donor Recognition Events
Donor recognition events, which can simply be a house party without “the ask” are a great way of getting to know donors face-to-face and fostering personal relationships that bring donors closer to your organization. (For more on how to host a houseparty, see this post). The important thing is to strike a balance between socializing and promoting your organization. Within my own organization, we have used these events to recognize exemplary volunteers and donors with “Green Jackets,” a green fleece jacket with our logo and tagline. We have posters that we display at events with pictures of a long line of winners. Whatever your mission might be, never underestimate the power of having someone see a display in which they are featured as a major volunteer or supporter of your organization.
(6) New Donor Welcome Packets
Several commentators have underscored the importance of implementing a thoughtful onboarding process for new donors. The idea is to educate the donor about other ways of becoming involved and the packet might include:
- A hand-signed thank you / welcome letter from the executive director
- An overview of member benefits
- A listing of upcoming events
- The most recent newsletter
- A list of short-term volunteer opportunites.
(Ibrisevic, I. 10 Ways). Ideally, the packet should be sent within two weeks of the gift having been made (15 Creative Ways).
(7) Website Appreciation
One source suggests that nonprofits should develop a stewardship section on their websites that appeals to both one-time donors and recurring donors. The idea is that “posting a message on your website that promotes thankfulness to a broad audience shows you appreciate their time and efforts, and the impact they’ve made on the organization.” (Alves, C. 15 Creative Ways).
(8) Annual Report
An annual report is a great place to list donors names and to profile contributors. The questions to ask in vetting donors for the spotlight include (1) why now; (2) What’s the point from a marketing perspective; and (3) What are you trying to achieve by telling this story about this person? (Alves, C. 15 Creative Ways). (You can learn more about how to create an annual report in this post). Just before our #GivingTuesday campaign this year, we sent our annual report to our donors by regular U.S. mail, listing everyone who had given during the fiscal year. I had someone donate to the #GivingTuesday campaign because she liked the campaign AND she had just seen her name in the Annual Report. Here’s the note she sent after she made a donation:
Your fundraising campaign was effective! I loved the graphic on its website to sponsor the trail segments. I got the annual report the week before Giving Tuesday, and I saw my name as a donor. That set you apart from the other groups I donate to. (I rarely see my name recognized). So when I got something in the mail, and email from you about Giving Tuesday, I was happy to donate. I got several asks from other groups, and I liked your's best (the segments). I couldn't do just a half a segment!
(I’ve written this free primer on #GivingTuesday for Small Nonprofits).
(9) Acknowledge the Donor’s "Donor Anniversary"
One source suggests that you should recognize the anniversary of a donor’s gift “whether someone has been giving for one year or they’re celebrating their 10th anniversary.” (Ibrisevic, I. 10 Ways). At the heart of this idea lies the element of surprise. Most donors probably haven’t been recognized this way and they may not remember when they gave to your organization. It’s a small gesture that can be carried out simply and elegantly and bring a donor closer to your organization. One commentator suggests boosting its importance by having your board chair sign the card. (Alves, C. 15 Ways). It does argue for adopting a database that can track and remind you of donor anniversaries. There are many out there. We started out with a simple database program called “Akubo,” which you can read more about here.
(10) Google Photobooks
For less than $20, you can upload photos to Google Photos, then create captions and cover material, recognizing a donor or volunteer with a photobook about a project to which he or she has contributed time and/or money. The quality of the resulting product is incredible! My experience in using the service is that the product comes back fast, usually within two weeks. You can learn more here.
(11) Tours of Facilities or Projects
If you can connect a donor physically with your work, it can help to cement a relationship. One commentator suggests inviting donors to tour a project site or attend a meeting about a project with staff, where possible. (Alves, C. 15 Ways).
2. Organizing How You Thank Nonprofit Donors
Given the myriad ways you can thank nonprofit donors and the extent to which timing is important if you are to do it well, you need a system to manage the process. Enter the stewardship matrix, which is a tool for embedding the spirit of gratitude into the fabric of your organization. One approach to structuring the matrix is to organize which approaches you will use and when according to giving tiers. (Ibrisevic, I. 10 Ways). The matrix might look something like this:
(Source: Eisenstein, A. How to Thank Your Donors).
3. Conclusions
Donors need to be thanked personally and in multiple ways if they are to be retained. Time spent developing and implementing your plans for donor stewardship is, therefore, like money in the bank. If you know someone who might benefit from the strategies outlined here, please forward this on!
RESOURCES
Alves, C. 15 Creative Ways to Thank Donors (Available at: https://www.classy.org/blog/15-creative-ways-to-thank-donors/).
Eisenstein, A. How to Thank Your Donors: Stop Focusing on the Money! (Available at: https://www.amyeisenstein.com/how-to-thank-donors-stop-focusing-on-the-money/)
Esquivel, M. Donor Thank You Letters: Best Practices and Nonprofit Examples for Giving Season (Available at: https://www.wholewhale.com/tips/donor-thank-letters-best-practices-examples/)
Fischman, D. How to Thank Your Donors Like You Mean It (Available at: https://www.johnhaydon.com/thank-your-donor-like-you-mean-it/)
Ibrisevic, I. 10 Ways to Thank Your Nonprofit Donors. (Jan. 11, 2018) (Available at: https://donorbox.org/nonprofit-blog/10-ways-to-thank-your-nonprofit-donors/).
Koenig, M. These 12 Ways to Thank Donors Will Keep Them from Saying Goodbye (Nov. 18, 2013) (Available at: https://nonprofithub.org/nonprofit-marketing-plan/best-donor-thank-you-letters/).
Rees, S. How to Create a Power-Packed Thank-You Letter (March 7, 2017) (Available at: https://getfullyfunded.com/2017/03/07/create-power-packed-thank-letter/).
Rees, S. Perk Up Your Nonprofit Thank You Letter with This Clever Tip (Dec. 1, 2015) (Available at: https://getfullyfunded.com/2015/12/01/perk-up-your-nonprofit-thank-you-letter-with-this-clever-tip/).
Saying Thank You Like You Mean It (Nov. 22, 2013) (Available at: https://www.wildapricot.com/blogs/newsblog/2013/11/22/saying-thank-you-like-you-mean-it).