SAGE INSIGHTS SURVEYD O N O R LOYA LT Y S T U DY , 2 0 1 3

DID YOU KNOW ?

of nonprofits surveyed do not know or are not sure if they have a formal strategy in place for managing donor loyalty.

69%

What Is Donor Loyalty?“Loyalty” is faithfulness or devotion to a person, country, group, or cause. While philosophers may debate what things people can actually be loyal to, we define Donor Loyalty as an emotional connection and relationship between donors and your organization. The relationship itself is defined by the donor’s perception.

Donor loyalty doesn’t mean that your nonprofit is the sole recipient of a donors attention and giving. It means that a donor is listening, engagedand motivated to action repeatedly. Connecting through advocacy, volunteering, and yes, giving to your organization!

A donor loyalty program is the output of your focused attention on creating and building a relationship through multiple touchpoints or experiences you have delivered.

WHOSE JOB IS IT

ANYWAY?

Of the organizations with a donor loyalty program,

identify development as the function that is primarily responsible for and owns the donor loyalty strategy.

Followed by

41% Executive Management

24% the Board of Directors

24% Program Director or Management

74%

How Often Is Your Donor

Loyalty Program Reviewed?

AnnualBi-AnnuallyQuarterlyMonthly2-3 Years

129

3-5 YearsOtherDo Not Know

364

3413

96

6

Number of Responses

What are the External Challenges?

Potential losses in local, state and federal funding as a result of budget cuts

Economic down-turn affecting available dollars

Increased competition with so manynonprofit organizations

Staffing

Other

46%

34%

9%

7%3%

What are the Internal Challenges?

Reducing costs without impactingservices

Doing more with less

Developing and motivating teams for results

Reporting performance

Managing assets and risks

Other

39%

35%10%

5%6%

4%

Donor Communications

None 1 to 3 4 to 6 7 to 9 10 to 12 More than 12

26% 28% 18% 7% 9% 13%

17% 47% 25% 5% 3% 3%

67% 27% 3% 1% 1% 0%

38% 47% 9% 3% 1% 2%

41% 20% 10% 6% 9% 15%

13% 60% 14% 4% 3% 6%

43% 44% 7% 3% 2% 2%

47% 41% 6% 3% 1% 2%

In the past 12 months, how many times did your average donor received communication from your organization via each of the following methods?

Received an email message

Received a direct mail piece

Received a survey

Receieved a phone call

Received a social media message

Received a thank you letter

Received a handwritten thank you note

Received a call, thanking a person

Asking donors how you canserve them better is a greatway to enhance loyalty.

Handwritten notes or in-person thank you’s

reign as king of loyalty.

THANK YOU

What Is Your Current Donor Attrition Rate*?What does

your organization

do today?

Clearly and consistently communicate to donors your organization’s values.

Ensure that all promises made to donors are adhered to.

Measure and communicate your organization’s impact or key performance indicators.

Ensure communications match donor expectationsin respect to content, frequency and quality.

Provide staff training in customer service.

Communicate to donors the rationale for major decisions related to strategy or programs.

Maintain a complaints process or procedure.

Engage donors in a two-way dialogue about the service they can expect.

Maintain a donor welcome program. Measure the quality of service received by donors and/or constituents.

Conduct regular exit polling of lapsed supporters.

* the percentage of donors who give one year but not the next

What Is Your Current Donor Attrition Rate*?

Don’t Know

Yes, We Measure

51% 49%

26-50%

0-25%

76-100%

35-75%PERCENT WHO MEASURE DONOR ATTRITION

DONOR ATTRITION RATE

GOOD TO KNOW

Knowing what percent of your organization’s donations are recurring is a first step in benchmarking your organization’s donor loyalty program.

However, a significant number of organization’s surveyed “Don’t know” and are unable to quantify the percent of recurring donations.

When A Recurring Donation Ends,

What Do You Typically Do To Follow Up?

Phone CallNothingDirect MailEmailNo Recurring Donors

208

OtherConduct an Exit Poll

169150

9565

1145

Number of Responses

29%of nonprofits do nothing

when a donor lapses.

SHOCKING NEWS

What Branded Promotional or Motivational Objects Do You Provide To Donors?SHOCKING NEWS

Computer or tech accessories (memory drive, phone charges, mouse pad, iPad)

Caps or hats

Pens, pencils, and markers Drinkware

5% 11%

24% Clothing (t-shirt, jacket, dress shirt)

19% 21%

52% give nothing

The pen is tops when it comes to loyalty gifts,

probably due to affordability.

52% give nothing

Annual Reports are used by

69% of respondents to

communicate how donorsmonies will be used.

AnnualReport 2012

Annual Reports are used by

69% of respondents to

communicate how donorsmonies will be used.

Annual Report

Acknowledgementat events such

as an annual gala

Donor name onplaque, signage,

tree or wallAward or recognition ceremony Donor name listed

on your website

Recognize Donor in

Social Media

Press Releases

Purchase mediato acknowledge

and thank

WHO RESPONDED TO OUR SURVEY?

15% Less than $1 Million

$1 Million to $4,999,999

$5 Million to $10 Million

$10 to $50 Million

$More than $50 Million

18% 46%

17%

4%

Annual Operating Budget

Human and Social Services

Other (specify)

Advocacy

Health and Hospitals

Faith-Based

Education (Higher)

49%

15%

12%

9%

9%

Community Development/Organizer

Education (K - 12)

Environmental and Conservation

Arts, Culture, and Humanities

8%

7%

6%

5%

5%

4%

0 5 10 15 20 25

Animal Welfare

Membership

4%

3%

30

Museum/ Zoo

Church

Foundation

2%

2%

2%

35 40

Education (Other)

45 50

Science

United Way

International

1%

1%

Library

Public broadcasting/media

1%

0%

0%

Organization Type

About Sage Nonprof i t So lu t ions

Sage Nonpro f i t So lu t ions has been se rv ing nonpro f i t and gove rnmenta l o rgan i za t ions th roughout Nor th Amer ica fo r more than 30 yea rs . The o rgan i za t ion he lps more than 32 ,000 un ique no t - fo r -p ro f i t o rgan i za t ions i nc rease e f f i c i ency and more eas i l y manage the i r ope ra t ions th rough the use o f t echno logy . F rom fund account ing , donor and fundra i s ing management , and g ran t management to on l i ne dona t ion p rocess ing , human resources (HR ) , pay ro l l , and f i xed asse t management , Sage o f fe rs a so f tware p roduc t o r se rv ice to meet the o rgan i za t ion ’s need . Fo l low Sage Nonpro f i t So lu t ions on Tw i t te r® (www. tw i t te r .com/SageNonpro f i t ) and Facebook® www. facebook .com/sagenonpro f i t ) , r ead i t s b log (www.sagewords .ne t ) , and jo in i t s commun i t y fo r no t - fo r -p ro f i t s ( h t tp : / /commun i t y . sagenonpro f i t . com) .