Summary of Increase Donor Retention: Interview with Claire Axelrad

00:00:00 - 00:10:00

In the video "Increase Donor Retention : Interview with Claire Axelrad," Claire discusses the urgent need for nonprofits to improve donor retention, noting that only about 23% of first-time donors remain engaged over time. She highlights the importance of shifting focus from merely acquiring new donors to nurturing existing relationships, akin to business practices that drive customer loyalty. Axelrad emphasizes the significance of understanding donor emotions, insisting that organizations must highlight the impact of donations to cultivate appreciation and connection. Strategies include prompt, personalized gratitude towards donors and fostering a culture of appreciation within nonprofits. She advocates for seeing donors as partners in the mission, promoting the idea that successful fundraising hinges on maintaining donor happiness, with fundraisers acting as "happiness deliverers" to fulfill donors' values and needs.

• 00:00:00 In this section, Claire Axelrad discusses the critical issue of donor retention in the nonprofit sector, emphasizing its decline despite many organizations' awareness of the problem. She highlights the alarming statistic that nonprofits are only retaining about 23% of their first-time donors, which drastically diminishes over time if not addressed, comparing it to a leaking bucket. Axelrad argues that nonprofits need to shift their focus from simply acquiring new donors to actively retaining existing ones, as demonstrated by commercial enterprises that effectively maintain high customer loyalty through positive engagement strategies. She suggests that fostering positive emotions in donor relationships can significantly improve retention rates, urging nonprofits to learn from successful customer retention practices in business to enhance their donor loyalty efforts.
• 00:05:00 In this section, Claire Axelrad emphasizes the importance of understanding donor emotions to foster loyalty and retention. She notes that donors seek appreciation, excitement, and happiness, while they are driven away by feelings of frustration and disappointment. Nonprofits should focus on the donor's perspective, asking "What's in it for the donor?" and creating communications that highlight the donor's impact rather than just organizational achievements. Axelrad suggests filling newsletters with content that resonates with donors, such as helpful tips and stories, rather than irrelevant organizational updates. Essential strategies for enhancing donor retention include promptly and personally thanking donors, which cultivates a connection and reassures them of their gift's impact. Lastly, she advocates for fostering a culture of gratitude within organizations, shifting focus to consistently appreciate and engage donors throughout the relationship.
• 00:10:00 In this section, Claire Axelrad emphasizes the importance of expressing gratitude to donors, highlighting that it's not just about the financial contributions they make but the impact those contributions enable, such as finding cures or addressing homelessness. She advocates for maintaining a donor gratitude journal to regularly reflect on specific acts of generosity, reinforcing the idea that donors should be viewed as integral partners in an organization's mission rather than simply as sources of funds. Axelrad shares that the core of fundraising is to facilitate philanthropy, allowing individuals to fulfill their values and find meaning through their contributions, and that maintaining a focus on donor happiness is essential for building long-term relationships and successful fundraising. Ultimately, she encourages viewing the role of fundraisers as "happiness deliverers" who serve the needs and desires of their donors.