Digital trends impacting donor retention

Regular donations have always been a source of stability for charities, enabling them to plan their resources for the future based on the funds from a reliable income stream from committed supporters.  

 

However, research has shown that the rate of regular giving has declined somewhat since 2020, largely due to COVID-19 and its resulting impact on household incomes across the country. Regular giving has recently stabilised but remains down on previous years, accounting for 54% of a charity’s income in 2021. 

 

Increasing the number of donors who give regularly is critical to the longevity of charities. While digital donations are booming, this new report points out that these are mostly in the form of one-off gifts. The next step is learning how to retain this digital support to create a flow of reliable income to sustain organisations through potential uncertainty and help them meet challenges head-on.   

 

Based on Salesforce.org research in collaboration with partners like the European Fundraising Association – 4 Trends Impacting Donor Engagement & Retention in Europe - can help. The report looks at the different trends impacting donor retention and highlights the tools and strategies charities can use to strengthen and grow regular giving in today’s digital world. 

 

We’ve outlined some key trends below.

 

 

Half of charities are increasing their focus on donor retention 

 

According to the research, one in four non-profit organisations saw a drop in supporter numbers in 2021. While seven in ten were able to increase their reach and engage with new supporters digitally, half now say they are focused on taking the next step: getting those donors to stick around.  

 

More than two-thirds (68%) of organisations say their ability to meet customer expectations relies on their digital capabilities. Salesforce.org recommends charities first identify where they are on the digital maturity scale so they can take the next steps to engage donors and provide high-quality experiences. 

 

 

Three-quarters of charities lack a data strategy 

 

The study notes that good data is the key to driving engagement with supporters, both old and new. Yet 76% of charities still lack a data strategy, despite three in five saying they are making greater use of digital overall for fundraising and supporter engagement.  

 

Getting data in order and making it visible to everyone in your charity helps them to understand their supporter base, identify new opportunities, and create relevant communications to appeal to new audiences. 

 

 

Seven in ten people prefer to give digitally or online 

 

Digital donations have grown exponentially over recent years but tend to be one-off gifts. While many charities have successfully adapted to make online giving easier, most nonprofits still rely on telemarketing to convert digital donors.  

 

Salesforce.org points out that online donation pages are three times as likely to default to a one-time gift than a recurring one. Similarly, only 1 in 5 organisations that offer a recurring giving option on their website provide an actual value proposition to encourage it. 

 

Just as with one-off donations, charities need to make it as easy as possible for donors to give regularly – including giving them an obvious reason to do so. This includes talking about the impact of their donation on services and beneficiaries or even exclusive content they may gain access to by becoming a committed supporter.  

 

These are just a few insights, .to find out more about how charities can use digital to retain and engage donors, download the handy report below.