When nonprofit donors were asked by researcher Penelope Burk about what would make them stay loyal to a nonprofit (make additional donations) and increase the value of their donations, their answers were simple. Burk published her findings in the 2003 Donor Centered Fundraising. Donors reported that after making a gift, they wanted three things:
- A prompt, genuine thank you letter acknowledging the gift
- Confirmation that their gift will be put to work as intended
- Measurable results on how their gift was used before being asked for another gift
Remarkably, two of the three things donors demand can be satisfied with a great thank you letter. By giving donors the things they want, a nonprofit organization will increase donor retention and upgrade giving levels.
Donor Thank You Letters: Time is of the Essence
Sending acknowledgment letters should not be seen as an administrative task. Based on Burk’s findings, sending acknowledgment letters is a fundraising task (normally part of the fundraising cycle known as stewardship).
Some organizations aim to have acknowledgment letters sent out within 48 hours of receiving the gift. This can be more easily achieved with a good system in place:
- Prepare a number of thank you letters that can be customized for each donor. If the nonprofit organization accepts designated gifts, a corresponding thank you letter should be drafted.
- Begin the process of drafting thank you letters immediately upon receipt of gift; don’t wait until after the check has been entered into the system or – worse – cleared. Remember that the letter of appreciation is for the donor’s generosity, not a receipt for a transaction.
- Have a backup signer. If a nonprofit’s policy is to have the executive director sign acknowledgment letters, but that person often travels, be sure an accessible board member or vice president can sign in the executive’s absence.
- Double-check that the donor’s name is spelled correctly and is as the donor wants it. Check the address block and salutation against the donation form.
Drafting a Great Donor Acknowledgment Letter
It may be helpful to the letter writer to imagine a donor has just walked in the door and given the letter writer a check. How would the letter writer respond? This is the spirit to be captured in a great donor thank you letter.
It seems very unlikely the letter writer would respond with bland, institutional language reiterating the mission of the organization, or that the letter writer would simply dash off a receipt for the donor to keep for tax purposes.
Genuine warmth should come through. There’s no need to “keep selling,” but rather the letter should reassure the donor that her gift will be put to work as she expects. Focus on what will be accomplished. Donors generally give because they want to support the work of the organization, not because they want to support the organization in and of itself.
Learn the most important word of donor communications – “you.” This is a word that leaps of the paper for donors and draws them in. Use it in the letter’s opening sentence, and use it often. This helps to make donors feel they are involved in the process of the organization’s work.
Avoid the overused thank you letter opener – “Thank you for your generous gift of …” A good opening paragraph is usually only one sentence. Be original and make it count.
Thank You Letters Can be Paired with Thank You Calls, Emails and Notes
While the formal thank you letter should be signed by the person in the organization with the most clout with donors (this is usually a board member or executive director), it is a good practice to have others in the organization say thank you as well, especially in the case of staff members who have a direct relationship with the donor and program directors with programs that will benefit from the donation.
Communications with donors need not be formal. In fact, donors generally appreciate feeling like they are “insiders” and part of the team.
When responding to a gift made online, it is customary for a thank you message to come up on the donor’s screen, or for an automatic email to go to the donor. These responses are prompt, but a nonprofit should consider an additional acknowledgment – by email or postal mail – to make the donor feel personally thanked. Two thank you’s are never too many.
By making the donor thank you letter process a top priority, nonprofit organizations will benefit from increased retention and higher gift amounts.
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Molly Schar - With more than a decade of experience in fundraising, communications and nonprofit management, Molly Schar has worked with mission-based, ...
