Segmenting Your Donors is More Important Than Ever

Fall is here, and segmenting your donors will make your end-of-year appeals as easy as pie.

You have a lot going on, and it may be tempting to send all your donors the same appeal and thank you letter But your donors are not the same. Some donors have given for at least five years , some are monthly donors. Yet, nonprofit organizations often fail to recognize that and send everyone a one-size-fits-all letter.  If you don’t segment your donors and send different letters to different types of donors, it might say to them that you don’t recognize them for who they are.

Don’t worry, you don’t need to create 100 different types of letters! Really four or five should be sufficient. Your appeal and thank you letter will stand out if it’s not the same old, same old. Here are a few different types of donor groups – feel free to add more if relevant to your donors. The more you can segment, the better. Investing in a good database will help you with this.


Donor Groups

Current single gift donors

One of the biggest hurdles nonprofits face is ensuring first-time donors give a second time. If they keep giving after that, they’re showing their commitment to your organization. Don’t ignore this! An appeal letter to current single gift donors must acknowledge their past support. This is also a good opportunity to ask for an upgrade. Many organizations don’t do this, but it’s a good way to increase your revenue. Even in a pandemic and economic downturn, it’s okay to ask donors to give a little more. They will if they can.

If these donors give again, they should get a handwritten note, phone call, or letter letting them know how much you appreciate their continued support. If they’ve upgraded their gift, acknowledge that, too.

Potential/new single gift donors

If you’re sending an appeal to someone who’s never donated to your nonprofit before, what is your connection to them? Are they volunteers, event attendees, or people on a list you purchased? The more you can establish a connection, the better chance you have of getting a donation. The retention rate for first-time donors is less than desirable, and one of the reasons is poor communication. You can help boost your retention rate by making your new donors feel special.

New donors should get a handwritten note, phone call, or letter welcoming them as donors. Invite them to connect with you in other ways such as signing up for your newsletter, following you on social media, or volunteering. Then a week or so later, send them a welcome packet by mail or email. Personalization is crucial with new donors.

New monthly donors

Brand new donors who opt for monthly or other recurring donations get the same special thank you treatment mentioned above. Welcome them to your family of monthly donors!

Current monthly donors

Your current monthly donors must get their own appeal that recognizes them as monthly donors. In this appeal, you can either ask them to upgrade their gift or give an additional year-end gift. When your donors renew or upgrade their monthly gifts, they, of course, should get a super fabulous thank you.

Current donors who become monthly donors

Your current donors who decide to become monthly donors are also showing their commitment to you. They should get a handwritten note, phone call, or letter thanking them for their continued support and for joining your family of monthly donors. From now on they should get specialized appeals and other communication targeted to monthly donors.


Segmenting your donors can pay off

In this down economy, some donors may cut back on their giving. Don’t let them choose between organizations that communicate throughout the year with engaging, personalized appeals, thank you’s, and updates and organizations who just send generic, one-size-fits-all communications. You need your donors. Spending extra time segmenting your donors and personalizing your communications will be worth it to raise additional revenue and boost your retention rate.

Via Ann Green’s Nonprofit Blog

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