Click here to read on PND
by Sarah Tedesco
#GivingTuesday is a global day of generosity that usually takes place the Tuesday after Thanksgiving. In 2019, $1.97 billion was raised on that Tuesday alone. And this year, nonprofits have an opportunity to build on that success and generate even more support for their programs and mission.
As you and your colleagues begin to prepare for this year’s event and start to brainstorm strategies to maximize your organization’s success, consider how donor data can help. From conducting prospect research before the big day to analyzing the data afterwards, there are many ways that donor data can be used to elevate your #GivingTuesday results specifically and overall fundraising results more generally.
Below, we consider in more detail some of the most effective ways to utilize donor data, including:
- keeping your data clean
- identifying your best prospects
- segmenting your donors
- optimizing future outreach
- looking for opportunities to match gifts
Let’s take a closer look at each of our recommendations for putting donor data to good use this #GivingTuesday.
1. Keep your donor data clean. We’ve found that it’s easier to use donor data when that data is clean. Strategizing and designing a #GivingTuesday campaign with incorrect data can negatively impact relationships with donors you’ve spent so much effort cultivating. If you’re looking for an in-depth explanation about the importance of data hygiene, check out this article from AccuData.
The easiest way to create and maintain clean data is to use a CRM (constituent relationship management) database. A CRM compiles information about each of your constituents in individual profiles, enabling you to easily access any donor’s giving history, communications activity, and relationship status.
With a CRM, you can also do the following to clean your data:
- remove duplicate profiles
- verify that a donor’s contact information is up-to-date
- remove the profiles of donors who haven’t given in many years (although you should send a final appeal to them before removing their profiles from the system)
- search for donors who have passed away since your last communication
- egment your donors into relevant groupings
Once you’ve cleaned the data, analyze it for insights that can help you craft an effective outreach strategy. #GivingTuesday only comes around once a year, so make sure your planning for it is based on the best data you can get your hands on.
2. Identify new prospects. After you’ve cleaned your donor data, take the time to analyze it. Part of that process is what we call prospect research. Simply put, prospect research is the process of researching your would-be supporters to see which of them is most able and willing to donate to your organization. Some of the prospects you identify through the process will become regular supporters of your organization and a few of them could even have a significant impact by contributing a major gift.
Major donors should always be a priority for your organization. Some fundraising professionals even go so far as to say that 89 percent of a nonprofit’s fundraising revenue should come from just 14 percent of its donors. That’s why it’s important to start cultivating these relationships as soon as you can — major donors tend to give their biggest gifts to organizations that consistently and authentically engage with them.
Determining which of your supporters is most likely to be a major donor before #GivingTuesday gives you the chance to approach them ahead of time and see where they stand.
To conduct prospect research efficiently, start by filtering your donor data using wealth and charitable indicators:
- Wealth indicators. Things like real estate ownership, stock holdings, business affiliations, and so on will give you an idea of an individual’s capacity to give.
- Charitable indicators. A donor’s past giving patterns, his or her relationship to your cause, his or her political contributions history, and so on will give you an idea of his or her willingness to give.
While you can conduct prospect research manually, your best bet is to invest in a tool built for the purpose. To learn more about how all these factors can be brought together to create useful profiles of your donors, check out our Essentials for Prospect Research guide.
3. Segment your donors. You can also use donor data to segment your donors. This is a great marketing strategy and is something you should do both before and after #GivingTuesday. Why?
Donor segmentation helps you better communicate and reach out to supporters in ways that are most likely to catch their attention and encourage their engagement.
You already know that donor data is key to beginning and sustaining valuable relationships. And, as we’ve noted, a good CRM will store and organize all your data for effective management.
Once your data is organized in your CRM, you can start grouping supporters. Segment your database into different lists based on key metrics and then formulate different communication strategies for each one. You can, for instance, segment donors by:
- donation frequency
- preferred method of giving
- engagement preference or history
- business affiliations
- volunteer history
All of these factors (and more) should influence how you reach out to supporters before #GivingTuesday (and afterwards). For example, you might find that younger people in your audience prefer to be communicated with via social media, whereas older folks prefer email or even direct mail.
4. Optimize future outreach. One of the best ways to increase response rates, build deeper connections, and improve donor retention is to personalize your outreach. Simply sending a thank-you email with a donor’s name and the size of her gift size will help her remember you the next time she decides to make a donation.
And after #GivingTuesday is over, you’re likely have a whole batch of new donors, as well as data about them that will come in handy for your future fundraising and stewardship efforts.
You can use that data to retain some of these new supporters and broaden your donor base in the long run by doing the following:
- sending personal, targeted appeals asking for a specific contribution amount based on your donor analytics;
- automating personalized gift receipts and acknowledgments, which can be done by using a mail-merge tool in your CRM;
- using templated donor letters to explain to supporters how their gifts have advanced your mission and how their future gifts will continue to make an impact.
These and other ideas can help you close out the giving season on a positive note and set up additional donor-cultivation efforts in the new year.
5. Look for opportunities to match gifts. The relationship between nonprofits and for-profit businesses is changing as corporate social responsibility (CSR) policies are adopted by more and more corporations and companies step up to match donations that their employees make to nonprofits.
Unfortunately, many gifts go unmatched simply because donors are unaware that their gifts are match-eligible.
It’s estimated that the nonprofit sector misses out on $4 billion to $7 billion in matching funds every year.
This #GivingTuesday, don’t leave money on the table. The best ways to incorporate matching gifts into your strategy and ensure you leverage your donors’ support to the maximum include:
- embedding a matching gift database on your donation page that allows donors to look up their company and access any information it may have provided about its matching-gift policies.
- using software that allows you to automatically look up email address domains provided by donors. If an email address is associated with a company that matches gifts, the donor will be notified of his or her eligibility.
Read more about corporate matching-gift programs and learn how you can maximize your fundraising potential by reviewing Double the Donation’s corporate matching gift guide.
There are many ways to analyze and use your donor data. Whether that means identifying prospective donors, segmenting donor profiles, or just keeping your data clean, everything you do with the information you collect will have an impact on your fundraising efforts going forward. But don’t take our word for it. Maximize your donation revenue this #GivingTuesday by trying out some or all of these techniques!
Sarah Tedesco is executive vice president of DonorSearch, a prospect research and wealth screening company.Return to Insights & Events