Guest post by Sarah Tedesco
In the world of nonprofit fundraising, a pivotal question every organization and team needs to answer is, How does someone go from an unengaged prospective donor to a loyal, long-term supporter of our mission?
The answer can be found in the donor management lifecycle, also known as the donor journey. This model explains the six key stages nonprofit supporters progress through as their relationship with your organization deepens and they become more engaged in your work. Through a process called moves management, your nonprofit can strategically and individually guide supporters from one stage of the donor journey to the next.
In this guide, we’ll walk through the six steps of the donor management lifecycle (as outlined in the flowchart below) and explain some of the moves your nonprofit should make at each stage to lead donors through their journey of supporting your mission. Let’s dive in!
1. Acquisition
The first stage in the donor management lifecycle is acquisition, in which your organization identifies potential new donors and makes first contact with them.
Donor acquisition looks different depending on each new supporter’s giving level. You’ll likely acquire most of your low-level donors (and possibly some mid-level donors) when they interact with your nonprofit’s mass communications, such as:
- Visiting your website based on a Google search, digital ad, or recommendation from someone in their personal network.
- Interacting with your organization’s social media feeds.
- Scanning a QR code on a flyer or mailer you’ve distributed throughout your community.
To acquire major donors, your nonprofit will need to take an individualized approach. Research prospective donors to find individuals who are financially able and may be willing to make a large gift to your organization, then contact them personally using their preferred communication method (email, phone call, etc.).
2. Cultivation
During the cultivation stage, your organization will build relationships with potential donors. For low-level supporters, you’ll likely just need to explain your mission and initiatives, answer any questions they may have, and make resources available in case they need additional proof that your organization is trustworthy before they give.
On the major donor side, DonorSearch’s donor cultivation guide recommends the following strategies:
- Meet one-on-one with each prospect so you can get to know them and they can learn about your nonprofit through a relaxed conversation.
- Develop regular communication cadences to keep your organization top of mind and provide them with all of the information they need to feel confident about supporting you.
- Offer engagement opportunities like volunteering, attending events, or assisting with an organizational project so they can experience your work firsthand.
- Adapt your cultivation plan and messages to each donor’s interests, values, and background to make them feel like valued members of your nonprofit’s community.
Since major donor cultivation can take a long time, continue researching each prospect as you build a relationship with them so you have all of the information you need to move them forward in their donor journeys.
3. Solicitation
At the solicitation stage, you’ll make your first fundraising ask of each donor. This usually happens faster with lower-level donors than major donors since it’s generally an easier decision to give $20 to a nonprofit than $20,000, and these small gifts will usually be unrestricted or pre-designated based on the campaign a donor chooses to give to.
Major gifts, however, require much more consideration and are usually designated for a specific purpose based on an agreement between the donor and your organization. Create a detailed presentation for each major donor prospect in which you suggest a gift amount and designation based on your research and relationship-building, but be prepared to pivot based on the donor’s response.
4. Stewardship
Once a donor says “Yes!” to your solicitation, it’s time to express your gratitude for their contributions and start to grow your relationship further. As Winspire’s donor stewardship guide explains, “When choosing recognition methods, the main thing to keep in mind is that the size of your nonprofit’s thank-you should match the size of the donor’s gift.”
Here are a few ways to show your appreciation for donors at various giving levels:
- Small gift: Thank-you email, text message for online or mobile gifts, end-of-year mass mailing thanking all low-level donors to that year’s campaigns.
- Mid-size gift: Handwritten thank-you note, phone call from one of your organization’s leaders, small gift (such as a gift card or branded merchandise).
- Major gift: Annual report mention, invitation to a donor appreciation event, inclusion in public-facing recognition displays (donor walls, award lists, etc.).
Even if you plan to recognize a donor in a more elaborate way later, always email or call them within 48 hours of receiving their gift. This confirms that the donation has been processed and ensures the donor isn’t left wondering if you appreciate their support.
5. Retention
The goal of the retention phase is to keep donors engaged with your nonprofit after their first contribution. Some of the best ways to do this include:
- Creating a welcome email series so supporters are reminded about your mission and initiatives once or twice a week after their initial gift.
- Sharing impact stories and data to let donors know how their contributions are making a difference in the community.
- Alternate donation requests with other engagement appeals like event invitations, volunteer opportunities, and advocacy initiatives to prevent donor fatigue.
- Ask for feedback on campaigns and communications and consider donors’ suggestions as you improve your strategies to ensure their voices are heard.
As of 2023, the average year-over-year donor retention rate in the nonprofit sector was just under 35%. So, if your nonprofit received donations from 100 supporters last year, you should strive to get at least 35 of them to give again this year (and more than that if possible, since donor retention is more cost-effective than acquisition). Also, the larger a donor’s giving capacity, the more important it is to retain their support.
6. Upgrade
At the upgrade stage of the donor management lifecycle, a supporter is ready to take the next step in contributing to your organization. This could look like going from:
- A one-time donor to a recurring donor
- A low-level donor to a mid-level donor
- A mid-level donor to a major donor
Continue tracking data on donors’ giving and engagement so you know what upgrades would be best to ask for at any given time. For example, if you notice that a donor has given $100 during your last two year-end giving campaigns, your first upgrade ask could be to join your recurring giving program at $10 per month. You’ll get $20 more from them each year—likely a reasonable ask—and they’ll be able to give more conveniently and regularly.
While the first three steps of the donor management lifecycle (acquisition, cultivation, and solicitation) progress linearly, the last three stages (stewardship, retention, and upgrade) are cyclical. Once a donor levels up their support, promptly thank them for their contribution and develop a strategy to keep them engaged with the eventual goal of another upgrade.
Sarah Tedesco is the Executive Vice President of DonorSearch, a prospect research and wealth screening company that focuses on proven philanthropy. Sarah is responsible for managing the production and customer support department concerning client contract fulfillment, increasing retention rate and customer satisfaction. She collaborates with other team members on a variety of issues including sales, marketing and product development ideas.
