Five Steps To Engage/Re-Engage Lapsed Donors
A lapsed donor is a donor who used to give to your nonprofit but no longer does. Most organizations tend to define a lapsed donor as someone who previously gave but has not done so in the last 12 months.
Donor Retention And Donor Attrition
The donor retention rate is the number, or percentage, of donors that give another donation to your nonprofit in a specific time period. For example, a donor that gives more than one gift within 12 months would fall into the donor retention category.
The donor attrition rate is the percentage of donors that stop giving to your nonprofit from one time period to another. Donors give on their own timelines and give for reasons of their own, so it can sometimes be challenging to determine why the donor became inactive.
Statistics have shown that first-time donors make second gifts just 23% of the time. If a nonprofit can retain that first-time donor, they become 64% more likely to give again. This increase shows that engagement is essential in retaining donors.
The Meanings of LYBUNT and SYBUNT
Organizations tend to assign terms to situations to make communications about them more efficient. Nonprofits do the same, and two terms used in regard to lapsed donors are LYBUNT and SYBUNT.
Last Year But Unfortunately Not This Year and Some Years But Unfortunately Not This Year are two of those short-hand terms that refer to the donors a nonprofit is wanting to re-engage with. Donor retention is essential so that your nonprofit does not get overwhelmed with LYBUNT and SYBUNT designations.
It is crucial to understand why lapsed donors stopped giving. Adrian Sargent, the Co-Director of the Institute for Sustainable Philanthropy, is one of the most respected academics in philanthropy. He conducted a survey in which he asked the lapsed donors of 10 national nonprofits: "Why did you stop giving?"
The answers were these:
5% thought that the charity did not need them
8% received no information on how the monies were used
9% did not remember supporting the nonprofit
13% never received a thank you for their donation
16% were deceased
18% cited poor communication or service from the nonprofit
36% felt that other causes were more deserving
54% could no longer afford to donate
Adrian Sargeant concluded: "If nonprofits are to succeed in retaining donors, it seems clear that they need to secure a higher proportion of an individual's giving, improve satisfaction with the quality of service provided, and deepen the bonds that exist between them and their supporters. It is particularly disturbing to note that so weak are these bonds in some cases that almost one in ten lapsed supporters have no memory of ever having supported the nonprofit in the first place."
It is also important to note that of these eight reasons donors stopped giving, six of them are within a nonprofits ability to influence.
Tips For Re-engaging Lapsed Donors
Lapsed donors are still a valuable resource for a nonprofit. Finding and acquiring new donors can be a difficult and expensive process, so re-engaging lapsed donors takes on even more importance.
Decide On Your Definition Of A Lapsed Donor And How To Best To Communicate With Them
It is important to know how your nonprofit defines a lapsed donor. Is it a donor who has not donated within the last year, two years, or three years? Knowing the parameters will help you understand who to target in your re-engagement efforts.
The longer in between gifts, the less likely you will receive one. If you have not received from a donor in a year, you could reach out to say, "We miss you."
If it has been longer than that, your communication could take a different tone. You could say, "You have supported us in the past, and your gifts made a difference. We urge you to renew your commitment by sending a gift today."
Lapsed donors need to have a communication that’s tailored to them and not one that is generalized. The more personal the communication, the more engagement you will generate.
Do As Much As You Can To Reach Out Personally
Whenever it is possible, reach out and engage with lapsed donors personally. A phone call, and you can keep it brief, that thanks the donor for past support and lets them know the difference they have made will go a long way toward re-engagement.
Learn as much as you can about your lapsed donor before contacting them. If they send a gift once a year at Christmas, mention that in a handwritten note, letting them know how their funds were used and the impact it made.
Ask Your Lapsed Donors To Update Their Preferences
Another way to engage lapsed donors is to ask them to update their preferences. Give them the option to choose email type and frequency.
It may seem counterproductive for donors to receive fewer emails, but allowing donors to choose email preferences can increase their satisfaction with your nonprofit.
When emails are seen as a nuisance, one of the immediate reactions on the part of the recipient is to unsubscribe. Allowing donors to choose puts them in control of frequency tends to help them view your nonprofit's emails as communication they have requested.
Invite Lapsed Donors To Give Again And Don't Forget Social Capital
According to the survey Adrian Sargent conducted, one of the primary reasons for not giving was that the lapsed donor could no longer afford to give. We have all been in that position at one time or another, and the worst thing for a lapsed donor is to feel that, once they can no longer provide momentary help, they have no value to the nonprofit.
The capacity to give should also extend to volunteer opportunities and "social capital." Social capital includes the lapsed donors network, both social and professional.
If a lapsed donor was previously engaged, they were interested in your cause. Social capital is powerful. When we need a recommendation for a restaurant, a new car, an appliance, a doctor, or a worthy cause, people will turn to their network to seek those recommendations.
Those lapsed donors who cannot give financially at the moment can still support your nonprofit through their volunteering and social capital.
Employ The Three "R's," Reconnect, Recapture and Reactivate Lapsed Donors
When thinking of your nonprofit's lapsed donors, it is a good idea to think in terms of reconnecting, recapturing, and reactivating the relationship to win back those lapsed donors.
Reconnect with lapsed donors by touching base in a personal way that helps them understand you see them as an integral part of the success of your mission.
Recapture lapsed donors by reflecting with gratitude on their past contributions and the difference the donor involvement made.
Reactivate the relationship between the lapsed donor and your nonprofit by inviting them to engage again. This might be through donations, volunteering, or using their social capital to advance the cause.
Final Thoughts
Reconnecting with lapsed donors is a less time-consuming and more cost-effective way to bring in funding to your nonprofit. The more long-term supporters you have, the more your message spreads. The effort made to re-engage lapsed donors is well worth the effort.
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Crystal Hoag
This article was inspired by our customers and written to encourage your fundraising efforts. Although we work with nonprofits and events daily, our team members are not Event Consultants. We encourage you to consult with your event consultant, executive team, and/or affiliate organization before making any major changes to your events.
