Donor retention numbers are poor. Between 2011 and 2012, nonprofits lost 105 donors per 100 new and recovered ones. (“Donor Retention: How to Keep Donors Coming Back After the First Gift“)

Not encouraging at all, is it?

And, for small nonprofits, the picture is worse. “Organizations raising more than $500,000 had a 16.6% overall positive rate of growth, while those raising $100,000 to $500,000 had a net loss of -5.1%. Organizations raising less than $100,000 showed a net loss of -13.5%.” (Nonprofit Quarterly)

Many expert speculations abound. Adrian Sargeant, the Robert F. Hartsook Chair in Fundraising at the Center on Philanthropy at Indiana University, says that donors often cite the following reasons they no longer donate to a particular cause:

• No longer able to afford support
• No memory of ever supporting (more frequent than you might imagine!)
• Still supporting in some other way
• Thinking that the cause no longer needs their support
• Relocation
• Not reminded to give again
• Nonprofit did not inform donor how donations were used
• Nonprofit’s communications were inappropriate
• Nonprofit asked for inappropriate sums

Other than the reasons in purple, the rest are all ‘fixable.’ And, what’s more, they are part of an overarching mindset that many nonprofits fail to tackle - making the brand experience amazing!

And, what does that mean?

• The organization needs to weave a customer orientation into every transaction and behavior. Every single employee and volunteer should receive ongoing training and evaluation on living the brand and putting nonprofit customers first. And, that includes employees, too. They are internal customers. It needs to be part of the organizational culture.

• The organization needs to engage its donors a lot more. Find out more about them. Not, as an aggregate, as individuals as much as possible given the size of the database. What can your organization do for them? The first step to accomplish this is to follow your donors back in social media! Do you know how many nonprofits aren’t following and listening to their supporters? Reach out and help, especially when it has nothing to do with your mission. There’s a proven psychology about reciprocity.

“The rule of reciprocity is a type of social norm that can have a powerful influence on our behavior… This rule operates on a simple principle: We tend to feel obligated to return favors after people do favors for us… In many cases, the rule of reciprocity is actually a good thing. It helps us behave in socially acceptable ways and allows us to engage in social give-and-take with the people around us.” (What is the Rule of Reciprocity?)

• Be human. Use your nonprofit’s brand personality and be real with donors.

• Invest in the most important things that retain donors: marketing, branding, and customer orientation. Quit firing and rehiring fundraisers because they couldn’t deliver. The responsibility begins with senior management and the board.

What I fail to understand is why so many nonprofits see these solutions as a luxury instead of a necessity?

Why is there so much resistance? Got any theories?