Guide: Uncovering Hidden Donors in Your Database, Part 2

Welcome back. Yesterday, we looked at finding hidden donors in your first-time donors, multi-engagement, monthly, and women donors. Today, we’ll delve into mid-level donors, planned giving and lapsed donors.

Mid-Level Donors: Your Hidden Upgrade

Mid-level donors, often the backbone of annual giving programs, are another valuable segment to target for upgrades. These donors are loyal and committed, making them excellent candidates for increased giving.

Who Are Mid-Level Donors?

Mid-level donors typically contribute between $1,000 and $10,000 annually. They are not just "big annual donors" or "small major givers"; their motivations, desired level of personalization, and engagement preferences set them apart. Understanding these nuances is crucial for effective engagement and stewardship. Make sure to review your monthly donors because you might find some hidden gems there with the capacity to upgrade if nurtured.

Key Indicators for Upgrade Opportunities

When analyzing mid-level donor data, two key indicators stand out: predicted discretionary spending and past philanthropy.

1. Predicted Discretionary Spending: This metric provides insight into a donor's financial capacity beyond their net worth. A figure in the $10,000 to $25,000 range suggests potential for mid-level giving.

2. Past Philanthropy: Consistent giving to your organization and significant political donations (e.g., $2,500 or more) indicate a higher likelihood of increased contributions.

Crafting Your Mid-Level Upgrade Campaign

Once you've identified mid-level donors with upgrade potential, the next step is to craft a compelling campaign that resonates with them. Here are some strategies to consider:

Personalization and Engagement

Personalized outreach is critical. According to a 2017 Accenture survey, 59% of donors said personalization would increase their donations by 10%, and 8% indicated it could boost their contributions by up to 50%. This trend has only grown, making thoughtful data segmentation and targeted communication essential.

Using AI and predictive analytics can enhance your ability to identify mid-level donors and tailor your engagement strategies. Mapping a donor journey, much of it automated, ensures consistent and meaningful engagement, fostering deeper connections.

Collaborative Approach

Successful mid-level giving campaigns often involve collaboration across various fundraising teams. Establish workflows, such as Julep’s Moves Management, that bridge direct marketing and major gifts teams, ensuring a cohesive donor journey. This integrated approach helps identify touchpoints across the organization and uncovers opportunities to surprise and delight donors.

The Value of Mid-Level Donors

Mid-level donors, who make up 1 to 5% of the donor file but contribute 25 to 35% of revenue, are incredibly valuable. They are highly reliable, with 73% maintaining their donation amounts during economic uncertainty and 8% increasing their giving.

Mid-Level Donor Profiles

According to a report by Sea Change Strategies and Edge Research, mid-level donors can be categorized into three types:

1. All Business (41%): Prefer minimal stewardship and renew gifts with little engagement.

2. Engagement Seekers (32%): Desire more interaction with the organization and are likely to increase their giving.

3. Hands-On Donors (27%): Personally involved and most likely to make major gifts.

Engaging Mid-Level Donors

Understanding the different types of mid-level donors helps tailor your engagement strategies. For example, "all business" donors require minimal intervention, freeing up resources to focus on "engagement seekers" who need more attention. Regular surveys and feedback mechanisms can help identify these preferences and adjust your approach accordingly.

Long-Term Engagement

Mid-level donors tend to be older, with a significant number being Baby Boomers or from the Silent Generation. However, they often establish connections with their favorite causes early in life. Investing in younger donors, even if the immediate payoff is not apparent, is crucial for long-term engagement. Cultivating these relationships can lead to significant contributions as donors age into their prime giving years.

The Value of Planned Giving Prospects

Uncovering potential planned giving donors in your database can unlock significant revenue. An analysis of 17 nonprofits revealed over 1,800 undiscovered bequests valued between $72 million and $127 million. Moreover, over 3,400 individuals were identified as ready to be cultivated for planned giving, potentially adding $123 million to $215 million in future gifts.

Characteristics of Planned Giving Donors

Wealth ratings often do not correlate directly with planned giving potential. Many planned gift donors are of average to moderate wealth. The best indicators include long-term giving history, volunteer status, and consistent engagement. Stewarding relationships with these donors is crucial to securing their planned gifts.

If someone is a long-term monthly donor or a mid-level donor, they are likely a good candidate for planned giving. Since this process can take years, it’s best to start identifying these donors as early as possible and build relationships.

Handling Lapsed Donors

Lapsed donors present a different challenge. It's essential to approach them with sensitivity and gratitude for their past support. Strategies to re-engage lapsed donors should vary based on their history with your organization. For instance, a donor who gave once and lapsed will require a different approach than a long-term donor who stopped giving.

Strategies for Re-engaging Lapsed Donors

For lapsed donors, consider cleansing your data regularly to maintain accurate contact information. If a long-term donor stops giving, it's crucial to reach out personally. A phone call to understand why they stopped giving can provide insights and potentially rekindle their support.

Often, it’s a matter of a bank account or credit card changing. Take a few minutes and call these donors. They are your reliable supporters and might not be aware that their giving stopped.

These segments = financial stability

Identifying and upgrading these categories of hidden donors in your database, particularly mid-level donors, is a strategic way to enhance your nonprofit's fundraising efforts. By understanding their unique giving patterns, leveraging technology, and fostering personalized engagement, you can unlock significant philanthropic potential. In a time of economic uncertainty, investing in these donor segments ensures sustainable growth and deepens the loyalty of your existing community, paving the way for a thriving future. By targeting each of these segments, you can boost fundraising and build stronger relationships with donors.