Welcome back to another edition of Ask a Responsive Fundraiser! This week, Virtuous released the Faith-Based Nonprofit Benchmark Report and hosted a webinar with RKD. Our very own Carly Berna and Tamara Wheeler, senior vice president of client partnership at RKD, reviewed the Benchmark Report for Faith-Based Nonprofits and offered up actionable insights.
With that in mind, here is our first-ever vertical-specific edition of Ask a Responsive Fundraiser. Look out for more to come in education, human services, and healthcare, and sign up for the webinars!
Be sure to check out past editions of Ask a Responsive Fundraiser and leave us a comment on LinkedIn so we can answer your questions!
Dear Responsive Fundraiser: As a faith-based nonprofit, it is common for donors to tithe—how can we translate that to our nonprofit?
—Translating Tithing
Dear Translating: That’s a great question! Some donors tithe to their church but others tithe to a ministry or nonprofit organization. They might be passionate about a certain mission and want to give to that instead. This is a great opportunity for recurring giving.
The subscription economy (think Netflix, Spotify, and the like), has translated into the nonprofit world as a sustainable revenue model. For many organizations, recurring donations provide a reliable, consistent source of funding, especially in uncertain times like the pandemic.
However, the success of recurring giving programs hinges on more than just offering the option on a donation form. It’s about creating a community—a sense of belonging for donors who participate. For example, the nonprofit I worked at had a “100% program” for recurring donors where their contributions were exclusively allocated to fieldwork, ensuring none of the funds were used for administrative expenses. This approach made donors feel more connected to the cause and confident that their contributions were making a direct impact.
A key factor in driving donor engagement is transparency. Donors want to know how their contributions are being used and what impact they are having. Some organizations have successfully introduced matching gift campaigns, where a donor’s monthly contribution is matched for an extended period—such as the first 12 months—making the donor feel even more motivated.
If you don’t have a recurring giving program in place, now is a great time to start.
Dear Responsive Fundraiser: Our faith-based nonprofit looks consistently at our metrics but what areas should we focus on first to maximize our efforts to advance our mission?
—Maximizing Metrics for the Mission
Dear Maximizing: Great news: Faith-based nonprofits tend to have a higher retention rate than other sectors. Attracting and securing new donors is more expensive than re-engaging existing donors, so consider focusing on a lapsed-donor campaign. If faith-based donors have a stronger retention rate, re-engaging lapsed donors could result in them staying with your organization longer, as they are likely still connected to the mission and believe in your cause. This would be a great place to invest resources—targeting those who have lapsed from your donor file and asking if you can win them back.
Jewish Voice Ministries International (JVMI) launched a successful lapsed donor campaign using Virtuous’ CRM automation. They re-engaged donors with personalized communications, including voicemails and emails, targeting donors who had not donated in nine to 12 months. Automation saved hours by eliminating manual outreach, with up to 200 daily contact points. The campaign achieved a 684% return on investment, climbing to 1,000% when including follow-up donations, showing the power of personalized, automated engagement in donor retention and re-engaging lapsed donors.
Next year will mark the five-year anniversary of the pandemic and its impact. Many nonprofits saw an influx of donors during the “COVID bump”—now would be a good time to reach back out to those donors and see if you can re-engage them.
Dear Responsive Fundraiser: The end of the year is quickly approaching. What should we focus on in our strategic planning for 2025?
—Year-End Yikes!
Dear Year-End: In considering the future health of your organization, it’s crucial to evaluate your key metrics to determine where you should focus the following year. In our latest benchmark report we list the seven key metrics to focus on. I would suggest taking a look at these and seeing what areas you have opportunities to grow in. Based on that, you can shift your budget and strategy for 2025 to focus on these areas so you can improve the health of your fundraising.
Depending on your specific areas of focus, it’s important to consider how you can leverage technology and tools to support your fundraising efforts. Proposals for funding technological upgrades could unlock new avenues for sustainability and growth. This strategic investment not only enhances your operational capabilities but also positions you to better engage with potential donors at scale.
