Overcoming Donor Hesitancy: Strategies to Keep Donors Engaged and Giving Amidst Challenges

Donor hesitancy remains a constant threat to nonprofits. With continually diminishing donor retention numbers and a steep decline in new donor acquisition, alongside rising operational costs, nonprofits are feeling unstable and under-resourced. 

With stability being a catalyst for growth, what are some of the obstacles donors are facing and how can nonprofit organizations overcome them?

Obstacle: Economic Uncertainty

Though there are some bright spots in the economic climate, with inflation subsiding and unemployment numbers remaining steady, it is undeniable that the recent economic volatility has people feeling generally uneasy. 

This volatility can lead to short-term holds on individual giving, event participation and high burnout from staff. Consider what long-term investments your organization can make — even short-term needs may be stealing your team’s attention. 

Overcome It: Invest in Revenue Diversification, Donor Retention and Donor Stewardship 

As in similar periods in the past, organizations that had strong revenue diversification, from streams like recurring giving, legacy planning, major giving and donor-advised funds (DAFs), maintain more stability in staffing and programming than their more self-limiting counterparts.

Donor retention (how many donors repeat a gift to your organization at least annually) is a challenge for nonprofits, especially in uncertain economic times when organizations must work harder to maintain revenue, let alone grow it. Don’t forget, keeping donors engaged costs an organization far less than attracting new donors. Save your organization money and time by increasing your donor retention rates.

What steps can your organization take to improve donor retention? 

Thank your donors quickly and personally. Inform donors throughout the year how their gift was used to further your mission. Offer diverse giving options, such as recurring giving and peer-to-peer events, to round out your engagement opportunities.

Another way to improve relationships with your donors is to engage them beyond the gift. Ask them to volunteer. Offer them a tour or an inside look at your programming. Add more to the relationship with your supporters beyond donation transactions. 

As people continue to give, and you look more closely at your highest-engaged and supportive donors, you can steward those individuals for larger opportunities, such as DAF sponsorships, legacy planning, major gift proposals for growing your programs and more.  

Obstacle: Limited Understanding and Awareness 

Not knowing how donations were used is one of the top reasons donors don’t give again, according to Forbes. 

Donors want to feel relevant to your mission’s success. They want to know how their gift made a program possible, helped a constituent or was invested in a longer-term goal. Donors need to understand how and why they matter to your organization. 

Your team has the power to overcome this donor frustration. 

Overcome It: Increase Transparency 

Share with your support network when you achieve a goal or bring something life-changing to your community. Also share with your donors when you have a miss or are at risk of canceling something important, and why. Share when your expenses have gone up and by how much. 

Goods and services costs are soaring. This affects everything from your event experiences to program deliverables, such as food, power, shelter and other supplies. People often assume that nonprofits get a cost break in every facet of their business, but that isn’t always the case. Tell your supporters where you have specific shortfalls and share why you need their continued support. 

Overcome It: Improve Storytelling

Effective storytelling is imperative to achieving success with your fundraising strategy. It creates deeper connections with your supporters.  

Great storytelling makes your cause and constituents feel relatable, real and urgently in need. Involve your high-level volunteers in thank-you videos, and share impact data and testimonials from your constituents. You can share your stories on social media, during events, via email, mailings and on fundraising home pages.

Even with limited resources and time, you can press record and improve the way you share your mission and successes to inspire donor engagement and giving. Steady revenue follows once you’ve cultivated relationships with your donors that are personalized to what they care about.

Overcome It: Ask Donors to Give Again

Another top reason why people don’t give again, per Forbes, is that they were not asked and, more specifically, did not get a personalized ask. Seems simple enough and obvious, but many organizations are not doing this or at least being smart about it.

If you’ve invested a bit more energy in your storytelling and stewardship, alongside sharing the specific ways an individual has made a difference to your mission, the follow-up ask to give again should be natural. 

In 2020, the trend of declining donors reversed for the first time in a decade. That year was also full of uncertainty and upheaval, yet donors delivered. 

While donor hesitancy seems to be a constant presence over these past few years, organizations have curated steady revenue streams and overcome obstacles by investing time and energy into their donor relationships, storytelling and personalized supporter experiences. 

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.