Giving is deeply personal, and for faith-based nonprofits, it is often fuelled by shared religious or moral convictions. This unique connection fosters a sense of belonging and community among donors, making them feel personally invested in the mission. Their contributions are more than just financialโthey are an extension of their faith, strengthening loyalty and ongoing support.
Research consistently shows that connecting with local communities offers significant fundraising advantages. For example, GivingTuesdayโs GivingPulse Report highlights that people give to local causes twice as often as they support national or international ones. In line with this, fundraising experts at RKD Group have long advised nonprofits to tap into the power of community.
This focus on community helps explain why faith-based nonprofits tend to have high donor retention rates and larger average gift sizes. However, even with strong benchmarks, faith-based organizations always have opportunities to enhance their impact and serve their communities more effectively. Here are several strategies to help faith-based nonprofits optimize their donor engagement:
1. Conduct New Donor Welcome Audits
First impressions matter. A thorough audit of both offline and online donor touchpoints can reveal critical insights into how a new donor perceives the nonprofit. By analyzing the donor journey, organizations can identify where engagement may drop offโfor example, if a specific email consistently has a high unsubscribe rate. Understanding and addressing these friction points can help build a stronger foundation for long-term support.
2. Expand Stewardship Efforts
Building and maintaining solid relationships with donors is essential for long-term success. Expanding stewardship initiatives can enhance donor retention and engagement. Faith-based nonprofits can introduce personal touchpoints such as phone calls, text messages, or handwritten notes. With todayโs tools, these efforts can be scaled efficiently without exhausting resources, ensuring a personal connection with every donor.
3. Personalize Communication
Donors are increasingly accustomed to personalized experiences in their daily lives, and nonprofits must meet these expectations. By implementing audience-first strategies, faith-based organizations can optimize their messaging with personalized ask arrays, diverse calls to action (CTAs) aligned with specific programs, and tailored creative assets based on donor demographics and behavior. This level of customization creates a deeper connection with supporters and drives more robust engagement.
4. Adjust Acquisition Strategies for Sustained Giving
While faith-based nonprofits have seen recurring gift revenue reach its highest point, the number of new donors is declining. Acquisition is challenging across the nonprofit sector, but faith-based organizations can benefit from refining their strategies. Telling more compelling stories about the mission and engaging new donors through emotional connection are key to driving acquisition.
To build a more sustainable donor base, nonprofits should focus on attracting sustainersโdonors committed to making recurring contributions from the outset. A targeted sustainer strategy can lead to higher long-term net revenue. Through AI and modeling, organizations can identify new donors likely to upgrade to a monthly gift, offering a path toward sustained growth.
5. Tap into Major Donor Potential
Faith-based nonprofits currently see a small percentage of their revenue from major donors. This presents a high-potential opportunity for organizations to focus on crafting tailored offers, opportunities, and CTAs that resonate with this group. A strong mid-level program can act as a pipeline for major gifts, and creating a roadmap for success in areas such as donor-advised funds and planned/legacy giving is essential.
Training staff to better understand these forms of giving and the strategies behind them will help nonprofits maximize the value of major donor engagement, leading to a higher return on investment (ROI).
Moving Forward with Confidence
Faith-based nonprofits’ high retention rates and generous gift sizes are encouraging, but continuous improvement is key to achieving more significant impact. By focusing on new strategies and addressing areas of opportunityโsuch as personalized communication, improved donor acquisition, and stronger stewardshipโfaith-based organizations can drive more support for their missions.
As the insights from the 2024 Virtuous Benchmark Report show, faith-based nonprofits can leverage data and best practices to make informed decisions about where to focus their efforts. With the right approach, these organizations will continue to thrive in their work of serving communities and making a difference in the world.
Download the Faith-Based Benchmark Report from Virtuous now!
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