From Lost to Found: Turning Lapsed Donors into Loyal Supporters

Why do 57% of donors decide not to donate after their first contribution?

As somebody who worked in fundraising, this statistic stopped me in my tracks.

I remember how hard it was to attract and convert new donors. All the time creating content, crafting appeals, developing relationships, going to lunches, presenting to new audiences - just for them to give once and then ghost your organization? It makes me cringe!

In the world of fundraising, it can be disheartening to see once-dedicated contributors slip away. But fear not, because there is hope! With the right strategies and a well-executed plan, you can transform those lost donors into enthusiastic advocates for your cause.

In this article, we will explore proven techniques for rekindling the relationship with lapsed donors and getting them back on board. From personalized communication to compelling storytelling, we will uncover the secrets to reignite their passion and commitment.

What is a Lapsed Donor and Why Do They Matter?

Lapsed donors are individuals who have previously donated to your organization but haven't made a contribution within a specific timeframe, typically a year or more. They may have various reasons for their lapse, such as financial constraints, a change in personal circumstances, or simply a lack of connection with your organization's mission.

The Importance of Donor Retention

Donor retention should be a top priority for any nonprofit organization. While acquiring new donors is essential, retaining existing donors is equally, if not more, important. Studies have shown that retaining donors is more cost-effective than acquiring new ones. According to AFP, the overall donor retention rate in 2020 was 43.6 percent, which had dropped 4.1 percent from 2019. This means that only 43.6 percent of donors who donated to a nonprofit in 2019 donated again to the same nonprofit in 2020.

Additionally, loyal supporters are more likely to make larger donations and become advocates for your cause, spreading the word to their networks, attending events, and volunteering their time. By having a proper donor stewardship plan and engaging with donors, organizations boost donor retention rates, reduce the need for new and costly outreach efforts, increase donor satisfaction, and build a dedicated base of support invested in the mission.

Why Do Donors Lapse?

Before you can effectively re-engage with lapsed donors, it's crucial to identify the reasons they stopped giving. Some reasons that donors choose not to give to your organization are within your control - and some aren’t. Identify what you can change and improve accordingly.

When I began to track and engage with lapsed donors as Development Director, I realized that some donors didn’t even know they stopped contributing. Surprisingly, some had forgotten their previous donations and simply needed a reminder about their past acts of kindness, which is likely to bring a smile to their faces. Others have been caught up in the hustle and bustle of life, or perhaps they thought they had made a donation but never actually did. The truth is that some donors don’t consciously decide to stop their support.

For the rest of the donors who have chosen to stop donating, conducting donor surveys or engaging in one-on-one conversations can provide valuable insights into their motivations. For major donors, review the communications that were had with that donor and make note of anything you want to bring up when you reach out to them. Identify any trends that you see and report to your development team so these can be addressed and improved upon.

Some common reasons for donor lapses include:

• Lack of communication or updates from the organization
• A perceived lack of impact from their contributions
• Deciding to support another nonprofit instead
• Economic downturns
• Over-soliciting from your organization
• Inadequate acknowledgment or appreciation
• Changes in personal interest or priorities
• Lack of engagement opportunities

Re-engaging with these individuals isn’t just about reminding them that they’ve lapsed; it’s about reigniting that spark of generosity and rekindling their connection to the cause. By understanding these reasons, you can tailor your re-engagement strategies accordingly.

Finding Your Lapsed Donors

Identifying lapsed donors within your current donor base is the first step to re-engaging this group of supporters. You can establish clear criteria that define what constitutes a lapsed donor for your organization.

Typically, organizations identify three groups of donors: active donors, recently lapsed donors, and long-term lapsed donors.

An example of recently lapsed donors includes individuals who contributed to your organization last year but did not do so this year. These donors represent warm leads, making them highly likely to re-engage with your cause. Specifically, those who have donated on multiple occasions but not within the past year present the greatest opportunity for conversion.

A long-term lapsed donor could include people who gave for more than one year in the past but haven’t made a gift in the last three years or more. These donors are going to have a slightly higher return on investment than a cold call, but are still going to need a lot of nurturing and updating about where your organization is today and why they should decide to give again.

While it’s likely that only a portion of your lapsed donors will donate again, you cannot ignore the potential. You already have their names and contact information, and you know that at some point they loved your mission. Not taking advantage of these donors is leaving money on the table!

Once your definition of donor lapsing has been established, use your CRM or donor management system to segment these groups into lists.

Many donor management systems have a built-in LYBUNT reports (or SYBUNT) report, which stands for Last Year But Unfortunately Not This year (or Some Year But Unfortunately Not This year).

This will pull a list of anybody who made a contribution to your organization during the chosen timeframe but has not made a gift this year. You can use these lists to segment your donors and communicate with them in a more impactful way.

How Can Nonprofits Prevent Donor Lapse?

1. Enhance Communication and Personalization

• Personalize Your Outreach: Tailor communications to match the interests and previous interactions of your donors. Use their name, acknowledge their past support, and update them on how their contributions have been utilized.
• Regular Updates: Keep donors informed with regular updates about your organization’s progress, successes, and ongoing needs. Transparency in communication builds trust and reinforces the importance of their contributions.

2. Demonstrate Impact

• Share Success Stories: Regularly share stories and testimonials that highlight the tangible impact of donations. This can be through newsletters, social media, or personalized reports to donors.
• Visual Evidence: Use photos, videos, and infographics to visually demonstrate the impact of donor contributions. Seeing is believing, and visual evidence can be a powerful motivator for continued support.

3. Foster Relationships Beyond Transactions

• Engagement Opportunities: Offer various ways for donors to engage beyond financial contributions, such as volunteering, attending events, or participating in advocacy campaigns. Engaged donors are more likely to remain loyal supporters, so talk about these options often!
• Feedback Channels: Create avenues for donors to give feedback and feel heard. Surveys, donor forums, and feedback sessions can provide valuable insights and make donors feel valued and connected.

4. Recognize and Thank Donors

• Timely Acknowledgment: Promptly thank donors for their contributions with personalized messages that convey genuine gratitude.
• Donor Recognition Programs: Implement donor recognition programs that highlight the contributions of donors at various levels. Public acknowledgment, certificates, and small tokens of appreciation can go a long way in keeping donors engaged.

5. Implement a Donor Retention Plan

• Regular Review of Donor Data: Analyze donor data to identify patterns or signals that a donor might be disengaging. This can help in taking proactive measures to re-engage them before they lapse.
• Retention Strategies: Develop and implement specific retention strategies aimed at different segments of your donor base, considering factors such as donation size, frequency, and interests. Make sure somebody on your team is taking responsibility for monitoring and engaging with these donors.

6. Educate Donors on Other Ways to Give

• Diverse Giving Options: Inform donors about different ways to contribute, such as matching gifts, legacy gifts, donations of stock, and in-kind donations. Offering variety can accommodate changing financial situations without losing support.
• Flexible Donation Plans: Offer flexible giving options, such as monthly giving programs, which can be more manageable for donors and provide a steady income stream for the organization.

Need help understanding or explaining unique ways to support your organization? Download our guide, 11 Ways Donors Can Support Your Organization.

7. Leverage Technology

• Automated Communication Tools: Utilize a CRM and other fundraising software to automate personalized donor communications, ensuring regular and consistent outreach.
• Social Media Engagement: Engage with donors on social media platforms by sharing impactful stories, celebrating achievements, and creating a community around your cause.

8. Keep Up with Change of Addresses and Deceased Suppression Requests

• NCOA: The National Change of Address (NCOA) service will help you keep track of the 13% of folks in the U.S. who move every year. Often these movers don’t want to lose touch with you. But with everything else they have to do, updating your organization just doesn’t get done. Services like NCOA can help you keep track of these people.
• Deceased Suppression Process: According to one study, 16% of donors do not give again because they are deceased. Having a process for when this happens allows you to handle their memory with care, notify their next of kin of the great impact their loved one had, and ensures that you don’t unintentionally cause any upset by sending communications meant for the departed. It’s also a chance to reach out to their families and possibly recruit a new donor into your world!

Strategies for Re-engaging Lapsed Donors

Now that you have a better understanding of who lapsed donors are and why they stopped contributing, let's dive into some proven strategies for re-engaging them.

Crafting Personalized Communication

One of the most effective ways to rekindle the relationship with lapsed donors is through personalized communication. Sending generic mass emails or letters won't cut it most of the time.

Take the time to segment your lapsed donor list based on their previous giving patterns, interests, or any other relevant factors. Then, craft tailored “We miss you,” messages that acknowledge their past support, express gratitude, and provide updates on how their contributions have made a difference.

Personalization shows that you value their support and that they are not just another name on a list. If you are able to include their past level of giving or a handwritten note in the communication, that’s even better!

Identify the major donors that have lapsed and pick up the phone. Giving them a phone call and talking to them about why they stopped giving can pay off in two ways. First, they may decide to give again. Second, you can learn to not make that mistake again. 

Create a Special Campaign for Lapsed Donors

Another strategy to consider is creating a special campaign designed for lapsed donors. This can be a limited-time opportunity or a unique initiative that reignites their interest and motivates them to contribute again. Hosting a phone call or hand-written note campaign to engage lapsed donors is a great way to connect with people and get board members and volunteers involved.

Highlight the impact their support had in the past and present a compelling case for why their continued involvement is vital. Be specific with the need that your organization has right now and how their funds would be used to make a difference.

Leveraging Storytelling to Reconnect With Donors

Storytelling is a powerful tool in re-engaging lapsed donors. Share impactful stories that illustrate the work your organization is doing and the lives that have been positively impacted as a result.

Use narratives that evoke emotion and connect with the donor on a personal level. Stories have the ability to inspire and reignite passion, reminding lapsed donors of the importance of their contributions. Incorporate storytelling into your communications, website, and social media platforms to create a consistent and compelling narrative.

Recognizing and Appreciating Lapsed Donors

Don't forget to show appreciation for lapsed donors who choose to re-engage with your organization. Recognize their past support and express gratitude for their decision to contribute again - and don’t be afraid to go over the top! Make them feel like a superstar.

Consider sending personalized thank you notes or making phone calls to express your appreciation. If the message can come from a perceived VIP like a Board President or Executive Director, even better. By making them feel valued and appreciated, you increase the likelihood of them becoming long-term supporters.

Gamification

Introduce a gamification aspect to your re-engagement efforts. Create a challenge or a series of tasks for lapsed donors, such as social media sharing, attending virtual events, or participating in surveys. Offer badges, recognition, or rewards for completing these tasks. You can also consider giving exclusive benefits or incentives for returning donors, such as VIP access to events or recognition on your website. Make them feel like they are an integral part of your organization's success.

Include your staff in the games - it will motivate them to reach more donors. This not only makes it fun but also deepens their involvement with your cause.

Donor Reunion Events

Organize virtual or in-person reunion events specifically for lapsed donors, celebrating their past contributions and updating them on recent achievements. This can rekindle the sense of community and shared purpose. Encourage them to bring a guest (or multiple) so they can include their family and friends.

It could be a cozy get-together at a board member’s home or a themed bash with all the trimmings. You could create a digital time capsule and invite lapsed donors to contribute messages or photos or stories. Then, you and your donors can look forward to a future event where you can unveil the capsule, relive the old memories, and make some new ones. It’s a heartfelt way to bring back lapsed donors into the fold and show them they’re still a big part of the organization’s future.

Track and Analyze the Success of Donor Re-engagement Efforts

To ensure the effectiveness of your re-engagement efforts, it's essential to track and analyze their success. Set measurable goals and track key metrics, such as the number of lapsed donors re-engaged, the average gift size, and the retention rate of re-engaged donors. You’ll also want to track your inputs – such as the number of phone calls made, the number of emails sent, etc. This will help keep you motivated in the short term and allow you to see which efforts have the best return on investment.

Regularly review these metrics and adjust your strategies accordingly. Use donor management software or CRM tools to streamline the tracking process and gain valuable insights into donor behavior and preferences.

Build Long-Term Relationships With Donors

Re-engaging lapsed donors is an opportunity to build long-term relationships that can greatly benefit your organization. By understanding their motivations, crafting personalized communication, creating special campaigns, leveraging storytelling, and recognizing their contributions, you can turn lost donors into loyal supporters.

Remember, donor retention is key to sustainable fundraising success. Invest time and effort into rekindling the relationship with lapsed donors, and you'll see the positive impact on your organization's mission and financial stability.

So, don't wait any longer. Start implementing these strategies today and watch as your lapsed donors become enthusiastic advocates for your cause.

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