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Lapsed Donors

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Nonprofit Q&A

A service of Jeane Vogel and Fund Raising Innovations
March 12, 2004
 

 

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Here is this week’s question:
What’s a good example of a lapsed donor letter?  

Oh my! This is going to be a long answer to a simple question. Before writing a lapsed donor letter, you need to know who these people are, why they left and what they value. To get them back, you must respond to their – not your – needs.  

First, some definitions.  

A lapsed donor is generally defined as a donor who has not given a gift in a year or more. A donor is someone who has given two or more gifts. 

Why isn’t someone who gave one gift a donor? Because one gift does not establish a relationship with your organization. A second gift does.  

Why would someone give only one gift? Let’s assume we’re talking about an average gift of $50, which is pretty typical. A $50 gift could be: 

bulletA memorial or tribute. Your organization isn’t on that person’s giving list, but it is on the list of a close friend or relative that the person wants to honor or memorialize.
 
bulletThe gift is in response to a request by a friend or staff member. Sometimes we call it “going away money.” A friend comes to me soliciting for her favorite cause. I write a check to make her “go away.” Am I a donor? No. Just a friend.
 
bulletResponse to emotional appeal. Sometimes a prospective donor will respond to a solicitation letter or appeal at an event. It’s like buying candy in the checkout line. It’s an impulse gift.

A donor, then, is someone who believes in the mission, gives a gift to further the mission, and probably didn’t make the gift impulsively because he or she is making a habit of supporting your organization. 

Now that we know who the donor is, why would a donor stop giving? In other words, what makes a donor go away? 

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 Did your mission change? Donors have personal, specific reasons for supporting you. If a favorite program ends or a direction shifts, that donor might not be interested in your mission anymore. 
 

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Was there donor fatigue? Was this person a donor for a long time without getting anything back from your organization? Was there good communication between the donor and the organization? 
 

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 Did the donor know how the money was being used? Did the donor get the feeling that he was making a difference? Was the donor confident in the integrity and long-term stability of the organization? 
 

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 Did the donor feel valued? Did the donor feel appreciated?  
 

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 Did you do something to annoy the donor? Was the donor recognized for his gift in the way the donor wanted?  

The care and feeding of small donors is an art form. Organizations tend to dote on the major donors because they have the big bucks. The smaller donors get taken for granted. Donors, no matter how much they give, want to feel that they are making a difference and are valued by the groups they support. 

Small donors are critically important because these are the people who might feel the most passionately about your mission and they will be around for a long time if properly cultivated. When the economy sours and the foundations leave you, your small donors will still be there. Groups are surprised to find that long-time donors who have smaller gifts often leave nice bequests if they have felt valued. 

Before writing your lapsed donor letter, take a good look at your donor management and recognition procedures. My suggestions:

bulletWrite your thank you letters promptly – I recommend within 48 hours. A quick thank you letter implies that the gift is important.
 
bulletHave the Executive Director or President sign the letter. That lets the donor know he or she is important. A lower officer, such as a development director, sends a message that this is a business traction, not a gift. It might be the development director’s job to send thank you letters, but a letter from the top sends a message of gratitude and care.
 
bulletTell your donors what you are doing with their money. Make sure they know that every gift matters to your success.
 
bulletAsk board members to add notes to thank you letters to their contacts.
 
bulletWait at least 60 days before giving the donor an opportunity to give again.
 
bulletInvite donors to special events just for them, such a briefing, an unveiling or a special donor appreciation cocktail party.
 
bulletRecognize donors in the way they want to be recognized. Pay attention to details. If they want their name in the newsletter, put it there. If not, don’t. If you publish names of donors,  put a sentence in the thank you letter that informs them of your policy and ask them to call you if it’s not all right to publish their name.
 
bulletThank them often. You can’t thank a donor too much.

Ok, now the crux of the question: what should go into a lapsed donor letter? By now you should have an idea of who the donors are and why they might have fallen off the list. If you know specifics, address them. If the agency has had a crisis or a change in direction, address that honestly and explain what has been done to fix the problem. 

Generally, if there hasn’t been a problem you just need to remind the donor why he or she liked you in the first place.

Open with sincere thanks for their past support. Tell them what you were able to accomplish with their gift. It’s not too corny to tell them that you missed them! 

As with all letters, focus on the program successes and invite them to be part of the success with you. Remind them why you are different from the other groups. Be upbeat and positive. Give them a reason to come back – a new program, and new building, a chance to serve more people. 

If possible, add a hand-written note to the letter. A personal note gets the donor’s attention and makes a stronger, emotional connection. Even if you write the same note on 300 letters, the donor only sees one – the one note meant for her! 

Each donor has a personal reason for contributing – and a personal reason for moving on. You can’t control every reason, so control the ones you can. How you treat a donor, how you communicate with a donor, how you thank a donor – those are things you can control and will make a difference in the ability to establish a long-term relationship. 

And remember, most people say they stopped giving because they weren’t asked!

© 2004 by Jeane Vogel and Fund Raising Innovations

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Last modified: 09/27/07