The problem we are going to tackle today is one that I’ve personally struggled with as a fundraiser and one that I’ve seen my clients struggle with. With Giving Tuesday just around the corner, this seems like a timely conversation as well. The problem we’ll be tackling today is, how can nonprofits retain online crowdfunding donors?
For many nonprofits, these crowdfunding campaigns can take a lot of effort to coordinate. From sending out emails to posting on social media, pulling together the information for the nonprofit’s page on the crowdfunding site, to reaching out to participants and getting stories to share. Even though crowdfunding seems easy, there’s a lot that goes into it.
The good news is that the work is paying off. When we look at the numbers, it’s clear that crowdfunding like Giving Tuesday is becoming part of the mainstream.
But, for as much as nonprofits and donors use crowdfunding sites, avenues for retention of donors that have been acquired is surprisingly low.
How can nonprofits engage these donors in the long-run?
Here’s what you can expect to take away from this episode…
⦿ Why successful crowdfunding may inadvertently cause donor attrition
⦿ An understanding of the factors influencing crowdfunding donor retention and attrition
⦿ How to plan your crowdfunding campaign to retain crowdfunding donors
SNEAK PEEK AT THE EPISODE…
⦿ [4:22] Well, some of what makes crowdfunding so successful inadvertently contributes to donor attrition.
⦿ [7:22] Research indicates that donors are motivated by the outcome and the likelihood of meeting a goal. Once donors know that a goal is likely to be met, the risk of giving decreases, and so they are motivated to give.
⦿ [9:50] Because donors have so many avenues through which they can give to a nonprofit, it’s difficult to determine whether a nonprofit really lost a donor or whether they just give through another platform.
⦿ [13:19] Again, based on consumer data which indicates a good experience on a website encourages return visits, the researchers hypothesize that a good donation experience would contribute to donor retention.
⦿ [15:00] While this study looked at how donors were acquired and how that affected donation behavior, the second study we’ll consider today considered another important aspect of giving which is a donor’s motivation for giving.
⦿ [20:10] On the front end, knowing that referred donors have a greater retention rate, you could focus your efforts on growing a network of ambassadors who can bring referred donors to your crowdfunding campaign.
⦿ [21:38] Specifically, you could test out ways to create social ties with your nonprofit by grouping donors together who have similar motivations for giving.
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LINKS MENTIONED IN THIS EPISODE:
⦿ Article: Does heart or head rule donor behaviors in charitable crowdfunding markets?
⦿ Article: Exploring donor’s intention in charitable crowdfunding: intrinsic and extrinsic motivations
⦿ Article: The role you play, the life you have: Donor retention in online charitable crowdfunding platform
⦿ Article: Voice of charity: prospecting the donation recurrence and donor retention in crowdfunding
⦿ Article: Donor retention in online crowdfunding communities: A case study of donorschoose.org
⦿ Download “The SIGNALS Framework” e-book
