In fundraising, any improvement can have a big impact. The 1% improvement principle is all about making small changes that add up to a big difference. This principle can be applied in many different ways, but here are a few of the most important ones.
1. Personalize your outreach
When you’re asking people for donations, it’s important to make a personal connection. Generic appeals are much less effective than ones that are personalized to the donor. You can use data from your donor management system to segment your donors and create more targeted appeals. For example, you might send one appeal to first-time donors and another to major donors. Or you might create an appeal for donors who live in a certain state or donated to a particular campaign. The key is to make sure that your appeals are relevant to the donor and demonstrate that you know them as an individual.
Why does personalization matter in nonprofit fundraising?
Personalization has become increasingly important in the world of nonprofit fundraising. Donors are bombarded with appeals from multiple charities on a daily basis, so it’s more important than ever for nonprofits to find ways to stand out from the crowd. When donors feel like they are being treated as an individual rather than a number, they are more likely to continue supporting your organization.
Moreover, personalization is not just about creating a good donor experience; it’s also about being strategic. By understanding what motivates your donors and tailoring your fundraising appeals accordingly, you can dramatically increase your chances of meeting your fundraising goals.
2. Test your asking strategies
Asking people for money can be tough, but it’s important to test different approaches to see what works best. You might want to try testing different ask amounts or ask frequencies. Or you might want to test whether online or offline appeals are more effective. By testing different strategies, you can find the approach that works best for your organization—and that will ultimately help you raise more money.
To put this rule into practice, start by identifying one key fundraising metric that you want to improve. It could be donor retention, donor acquisition, online giving, or major gifts. Once you’ve identified your metric, set a goal for how much you want to improve it by. Then, test different strategies and tactics to see what works best. Keep track of your results so that you can continue to fine-tune your approach. Remember, even a small improvement can have a big impact over time!
What is the Importance of Testing Your Asking Strategies?
One of the keys to successful fundraising is testing your asking strategies. Why? Because what works for one nonprofit might not work for another. What works in one part of the country might not work in another part of the country. And what works today might not work tomorrow. That’s why it’s so important to continually test and refine your approach.
One way to test your asking strategies is through A/B testing. This is a type of experimentation where you compare two different versions of something (usually an email or web page) to see which one performs better. For example, let’s say you’re testing two different email subject lines to see which one gets more opens. Version A might be “Don’t miss our biggest fundraiser of the year!” while version B might be “You’re invited to our annual fundraiser.” You would then send both emails to a small group of people and track which one got more opens. From there, you would send the winning email to the rest of your list and continue to track its performance over time.
Another way to test your asking strategies is through focus groups. Focus groups are small groups of people (usually 6-10) who provide feedback on a given topic or issue. For example, if you’re thinking about changing your nonprofit’s name, you could gather a group of people who are familiar with your organization and ask them what they think about the proposed new name. Do they like it? Do they think it’s confusing? Would they donate to an organization with that name? Their feedback will help you make a decision about whether or not to proceed with the change.
3. Use data to inform your decisions
In fundraising, data is everything. You need to track progress towards your goals and measure the results of your efforts. But it’s not enough just to collect data—you also need to use it effectively. Analysis paralysis is a real problem in fundraising, but if you take the time to analyze your data, it can be a powerful tool for making decisions about where to focus your efforts. When you’re looking at your data, pay attention to trends over time and compare similar groups of donors. That way, you can identify which fundraising strategies are working and which ones aren’t—and make changes accordingly.
Data is more important than ever in the modern fundraising landscape. With so many options and variables to consider, it can be tough to make decisions that will have the biggest impact on your bottom line. That’s where the 1% Improvement Rule comes in.
Data can help you understand which areas need improvement and how much of an impact each change will have. For example, let’s say that you’re trying to decide whether to focus on increasing donor acquisition or donor retention rates. You can use data to see which one will have the biggest impact on your bottom line and then focus your efforts accordingly.
Data can also help you track your progress as you work towards improving your fundraising efforts. This way, you can see exactly how well each change is working and adjust your strategy accordingly.
4. Prospect research
Researching potential donors is another great way to improve your fundraising results. When you know more about a donor’s background, interests, and giving history, you’ll be better equipped to solicit their support. There are many different ways to conduct prospect research, including using online tools such as Google and LinkedIn, searching public records, or contacting mutual acquaintances. The more information you have on a potential donor, the better your chance of making a successful ask.
How do you do donor Prospect Research?
If you’re not regularly reviewing and updating your prospect research, you’re missing out on a major opportunity to improve your fundraising results. Just a 1% improvement in the accuracy of your research can have a significant impact on your ROI. Take the time to review your research methods and sources on a regular basis. Are there new databases or online tools that you could be using? Could you be doing more to verify the accuracy of your data? Even small changes in your prospect research process can make a big difference in the quality and effectiveness of your fundraising efforts.
How Can Prospect Research be Improved by 1%?
There are a number of different ways that prospect research can be improved by 1%. One way is by using data-driven prospect lists. Data-driven prospect lists are compiled using criteria that has been shown to be predictive of philanthropic giving, such as income level, net worth, and past giving history. By using data-driven prospect lists, nonprofits can save time and resources by only researching prospects who are most likely to give.
Another way to improve prospect research by 1% is by using technological tools such as advanced search engines and online resources. These tools can help you quickly gather information about potential donors so that you can make informed decisions about whether or not to pursue them further.
Finally, another way to improve prospect research is by building relationships with key stakeholders within the organization, such as the development staff and board members. By collaborating with other departments within the organization, you can get a better sense of the organization’s overall fundraising goals and priorities, which will in turn help you focus your efforts on researching prospects who are most likely to give.
5. Improve your donor acquisition
The key to making the 1% improvement principle work is to start with something small that you know you can do consistently. For example, if your goal is to increase donor acquisition by 10%, then you would start by setting a goal of acquiring just 10 additional donors per month through your online giving page. Once you hit that goal for 3 months in a row, then you would increase your goal to 20 additional donors per month. And so on and so forth until you reach your desired outcome.
How can you make a 1% improvement in donor acquisition?
- Make it easier for people to donate. If you’re still using paper forms, switch to an online donation system. If you’re already using an online donation system, make it mobile-friendly.
- Make your ask more specific. Instead of asking for a general donation, ask people to support a specific program or initiative.
- Ask new donors to give again sooner. sending a follow-up email or letter within a few weeks of their initial gift to thank them and ask them to give again.
- Get personal. Find out what motivates your donors and craft your appeals accordingly.
- Focus on renewals. Donors who give regularly are your most valuable asset. Invest in keeping them engaged with your organization so they continue giving year after year.
- Make giving fun. Have a themed month or campaign where donors can support their favorite programs or causes. For example, during June you could have an education focus with donations going to support literacy programs.
- Train your staff and volunteers.Make sure they understand why donors give and how important it is to stewardship! Teach them how to properly thank donors and keep them updated on the impact of their gifts.
6. Donor retention
Retaining existing donors is one of the most effective ways to improve your fundraising results. It costs far less to retain a donor than it does to acquire a new one, so it’s important to focus on keeping the donors you have. One way to do this is by maintaining regular communication with your donors and keeping them updated on how their contributions are being used. You can also show your appreciation for their support by sending them thank-you notes or giving them special recognition. By taking good care of your donors, they’ll be more likely to continue supporting your cause.
Review your thank-you process and identify one small change you can make to improve it. Perhaps you can add a personal touch, such as a hand-written note, or make sure donors receive their thank-you gifts within a certain timeframe.
Take a close look at your donor communications and identify one small change you can make to improve them. Perhaps you can be more personal in your communications or send more timely updates on the impact of their donations.
Analyze your fundraising campaigns and identify one small change you can make to improve them. Perhaps you can test different messaging or ask donors to give in new and different ways.
Examine your overall donor experience and identify one small change you can make to improve it. Perhaps you can streamline your donation process orfind new ways to engage and recognize your donors.
By applying the 1% improvement principle in these three areas, you can significantly improve your fundraising results—and make a big difference for your organization.
