Lapsed Donors: How to Avoid, Win back, and Grow.

Preventing lapsed donors

Now that we understand the main reasons that donors lapse, we need to solve a particular problem. We need to stop donors from lapsing in the first place. Why?

If we first start trying to win donors back, chances are they will lapse again. We need to stop this flow of donors from your organization before we do anything else. It will boost your revenue in the short term as donors stay longer. It will also stabilize your retention rate. Causing your hard work in the future to be felt even more deeply as you win donors back.

As you do this work you will notice something powerful. Donors love your organization! They will not find these suggestions as a burden. You do not have to worry about upsetting them. You will be giving them what they want!

How do we prevent lapsed donors? Well, we solve problems #2 and #3 from above.

Problem #2: Donors don’t know where their money is going.

Solution: Tell them

Yes, this requires communication with your givers. But if you don’t want them to lapse you have to tell them that they are making a difference. 3 way to get started:

1. Welcome Series- We all know the feeling when we buy something new. It's awesome for 10 minutes, and then the buyer's remorse sets in. The same thing happens to your donors! Don’t let it! Automate a minimum 7-part welcome series for every new donor. Fend off buyer’s remorse from the moment they give. Let them know exactly how their gift is making a difference.

This welcome series should have amazing stories of impact. Let your donors see the transformation that they are making. It should thank them multiple times. And at the end you should make them an offer to give again…

2. The Golden Gift- In the nonprofit space we need to get over our Orphan Oliver, “please sir may I have some more’ mentality. DONORS LOVE TO GIVE! It gives them joy. AFP has reported that only 19% of one-time donors will give again. They have also found that over 63% of donors who give a second gift will continue to donate. YES that is higher than the national average of all donor retention. We call this the golden gift. Get the second gift—by letting people know right away their money is making a difference. And inviting them to give again at the end of a welcome series.
3. Update Them Frequently- Donors are people. Just like you. They forget things unless they are constantly put back in front of them. After your welcome series you need a whole cadence of communication. With the same goal. Letting your donors know that their gifts are making a difference. They should hear from you at least 1x a month via e-mail if not more. They should get: newsletters, see you on social media, be invited to in person/virtual events, be sent articles and thought leadership pieces about your work. Send them an annual report with a handwritten thank you note attached. All these things serve to help keep givers from becoming lapsed donors.

Each year our company gives approximately 20% of our profits away. We distribute this money in January. And because we are a fundraising firm we watch to see who does the above. Very few actually do. Very few!

Problem #3: Donors don’t know they are lapsed

Solution: Tell them

Donors do not think about giving everyday like you do. Its something they do once a month or a few times per year.

Your givers are the same way. When asked most donors say they lapsed because 1) the organization didn’t communicate with them, or 2) how come no one told me I was lapsed?

Many donors if prompted and reminded will give again. But it has to be done the right way, after you have communicated their impact. 3 tips:

1. Wow factor- Donors love this! Random, out of the blue personal communication. Thank you so much. Here is what your gift did. Would you like to do it again?

Easy. Post cards, handwritten notes, automated e-mail. But DEEPLY impactful at keeping donors from lapsing. With the added benefit of celebrating them and making them feel great.

2. Giving statements- We get them from everyone else, why not our favorite nonprofits. Towards the end of a year why not send out a giving statement for donors who have not given yet that year. This is usually a nice piece. And it shows their giving in past years, and their giving this year. This should be used only for the appropriate segment of donors, but is highly effective.
3. Talk to them- As a donor is approaching the point of lapse (usually 12 months since their last gift), talk to them. Call them up, text them, send them a personal e-mail. Ask questions such as “What compelled you to first start giving to our organization?”, “what can we do better to serve you?”, “can we count on your future support?”.

Before we can talk about winning back lapsed donors, we need to create the systems that stop them from lapsing in the first place.

1. Create a dashboard that alerts you when someone has not made a gift in 10 months. This should alert you as a green on your dashboard. The green should move to yellow at 11 months, red at 12 months. The first step is knowing who is about to lapse. Then…
2. Ask them for another gift! How you do this can vary. A text. A since your last gift report (more below). An e-mail. A phone call. An automated e-mail series—yes another one!
3. At 13 months you need to move them into the “We want you back phase” below.

Winning back lapsed donors

Now that we have begun to fix the deeper reasons donors lapse. And we have put in a system to prevent them from lapsing. We move to how we win them back. If you are like most nonprofits you have a large list to draw from!

Disclaimer: You should not do this unless you have implemented everything mentioned above. It simply will not be effective!

Here are 7 steps to pull it off a lapsed donor campaign.

1. Build your segment.

I tend to make this easy. Go after any lapsed donor. And go back 7-10 years. Depending on your organization's size you may need to limit this or expand the list. However, your list should be a good size for you to see actual results.

Then segment within the segment. Who are major donors, mid-level or annual fund. You will start treating them all the same. But as time goes on you will customize your approach.

2. Plan your touch points.

Most people underestimate the number of touch points needed to win back a lapsed donor. I once had a staff member call me and say that it took 17 touch points. The result was a lapsed major donor gave a $50K gift. And has kept giving more and more ever since.

Plan to launch your lapsed donor campaign in March and continue it through December. This gives enough time for trust to build back up and for givers to get the message that you want them back. It also allows you to space out your touch points so you cut the risk of seeming too aggressive.

Here are some examples of touch points in a no particular order:

1. Since your last gift report- This is a well designed 3-4 page customized report. Letting donors know how you have been at work since they last gave. It should highlight results—not methods or tactics. It should tell stories of transformation. It should cast a vision for the future. In the report you gently nudge your donors to give again by reminding them they have not given for a while. For example: “Since your last gift in October of 2021 we have been busy extending your generosity and compassion. We can't wait to show you how”. What you have done here is remind the donor they have not given. AND YOU ARE showing the impact of their giving. You may include a response device in this report.
2. Survey- Ask them what they think of your work. “We’ve noticed you have not given a gift since October 2021. Can we ask you some questions to help us get better?” And link them to a survey. Sample questions include: What first compelled you to make a gift? What did you love most about the work we did together? Why did you stop giving? Would you be willing to give again?
3. Letter from the CEO- A personalized letter from the top leadership of the organization goes a long way and shows donors that they matter. Consider sending this as a one time piece with no formal ask. Remind donors why they matter and why your work matters.
4. Stories of impact- Its amazing how a story changes everything. Send your lapsed donors a series of stories showing the results of your work. Lets these linger, space them several weeks or a month apart. Tell them they were a part of this story and they can be again.
5. We want you back- Make a direct ask. Tell them you miss them. That you need them. And ask them boldly. This is best done after several other touch points.
6. Year end- If after 6 months of cultivation they do not reactivate. Include them as a special segment in your year end campaign. Which should run from September through December.
7. Build your tracking system.

You want your donors to come back! And so when they do you need to know about it! Why? First so you can thank them and keep them from lapsing again (link to problem #2 above). Second so you can take them out of your lapsed donor campaign. No one wants a ‘we miss you’ e-mail the month after they gave.

4. Automation cannot solve ever problem- You have to get on the phone, on the road and talk to your donors in person. They will be more likely to respond after these touch points. How you do this will depend on if they are an annual fund, midlevel or major donor. Which is why you have already segmented them!
5. Work the system—It may take 15-20 touch points. That is fine. Its worth the work!

Does this really work?

YES! It does. Several years ago, I was Chief Development Officer at a mid-sized nonprofit. When I started the retention rate of our donors was under 30%. After fixing why donors we leaving (first half of this article) retention rose to 50%. It was over 80% for our mid-level and major donors.

Once we fixed the ‘backdoor problem’ we implemented a major lapsed donor initiative. Within the first year we had reactivated donors worth $1.5M! Many of them became monthly donors. The other amazing thing that happened was how they gave.

Most of these donors were 'designated' donors giving to specific funds in the past. As part of the lapsed donor campaign we told the story of the whole organization. We cast a big vision. And when they came back to give—they gave us undesignated gifts. Over $1M of the $1.5M were unrestricted!

Action steps

If you are like most nonprofits you are sitting on a goldmine. What is keeping you from stopping your donor attrition? What is stopping you from going and reclaiming your lapsed donors?

It will take time. It will be hard work. But it will be worth it.

Do you need help creating your donor development strategies? Building your lapsed campaign? Or growing your fundraising dollars over all? We would love to help you take your mission to the next level of impact. Schedule a discovery call today to get started.