Fundraising comprises a large portion of your nonprofit’s funding. Collecting donations empowers your organization to expand its reach and accomplish its mission.

However, it can be intimidating to start a fundraiser from scratch, especially for newer organizations and less experienced fundraising coordinators. Fundraisers require a certain level of organization, a clear strategy, and a lot of hard work to be successful. From creating your initial goals to developing your marketing materials, there are so many considerations that go into starting a fundraiser.

To help you stay on track, we’ll teach you how to start a fundraiser by walking you through the fundraising process step by step. Along the way, we’ll offer advice on how to pull off the fundraiser of your dreams.

Take a look at the steps we’ll discuss to make sure your fundraising plan is complete:

1. Determine Your Goals For Your Nonprofit Fundraiser
2. Select a Fundraising Campaign Type
3. Develop a Fundraising Plan
4. Choose the Appropriate Software Before Starting a Fundraiser
5. Create Marketing Materials To Promote Your Fundraiser
6. Promote Your Nonprofit’s Fundraiser
7. Thank Donors For Contributing To Your Fundraiser
8. Assess the Results of Your Nonprofit’s Fundraiser

It’s our goal at NXUnite to equip nonprofits with the tools and knowledge they need to be successful. Fundraising is such a huge element of nonprofit operations, so it’s important to know how to start a fundraiser properly. That’s why we’ve created this ultimate guide to help your nonprofit reach its fundraising goals.

With that, let’s jump right into it and learn how to start a fundraiser!

1. Determine Your Goals For Your Nonprofit Fundraiser

To start a fundraiser off on the right foot, it’s important to set a focus for your campaign by creating clear goals. That way, you’ll build a strong foundation for the rest of the planning process.

The SMART Goal Method

Instead of creating generic objectives, there are some guidelines your organization should follow to make sure your goals are meaningful. The SMART goal model ensures that your goals are action-oriented and targeted to exactly what you want to achieve. Check out the elements of SMART goals:

1. Specific. Make sure your goals have a clear purpose. It’s not enough to say you want to raise money for your cause. Indicate exactly what the money will go towards.
2. Measurable. In this case, measurable typically refers to a clear monetary value you’d like to achieve. For example, your goal could be to raise $10,000 during the fundraiser. However, it could also be a certain amount of new donors you want to recruit or the number of returning donors you’d like to see.
3. Achievable. While it’s good to be optimistic, you’ll also want to be realistic about what your organization can achieve. Don’t set your fundraising amount too high or give your nonprofit too short of a time to reach its goals.
4. Relevant. Keep your organization’s current overall goals in mind when determining your fundraising goals. That way, your goals will align and make sense for your nonprofit.
5. Time-bound. Set a deadline for your goals to motivate your organization to achieve them. Otherwise, you might put them off or not achieve them as quickly as you could.

To sum up SMART goals, we’ll give you an example to refer to. If you coordinate school fundraisers, your goal might be to raise $100,000 over the course of the school year to help build a new playground. This goal is specific because it indicates exactly what the money will go towards. It’s measurable because you’ve assigned a monetary value to your goal.

Your team must determine whether your goals are achievable by evaluating your resources, but we know this one is relevant because it will add value to the school. Lastly, this goal is time-bound because it must be accomplished by the end of the school year.

Other Considerations For Your Fundraiser’s Goals

Now that you know how to create SMART goals, there are two other considerations you’ll want to keep in mind:

• Your definition of success. This consideration ties into the achievable aspect of SMART goals. Do you want to raise a certain amount of money? Maybe you want to secure new donors or retain a certain amount of donors from your last fundraiser. Whatever the metrics you’re using to determine your fundraiser’s success, they will help you determine how much you need to raise and how much you could raise realistically based on your organization’s size and scope.
• The intended impact of your goals. You might know what the money you raise will physically go towards, but why is that project or initiative important? Returning to our school example, maybe your school wants to build a new playground because it will teach kids the importance of being active. Illustrating this intended impact of the playground when you’re marketing your fundraiser will create a more compelling call to action for potential donors.

Putting thought behind your goals will set your campaign up for success before it even starts by giving participants something to work toward. Once your fundraising goals are solidified, it’s time to choose what your campaign will look like.

2. Select a Fundraising Campaign Type

There are tons of fundraiser options out there. Depending on your goals, budget, and resources, you can select a campaign type that best suits your organization’s audience and needs. Of course, your nonprofit can also combine several different fundraiser types for even greater reach.

Check out some of the most common fundraising campaign types below:

Online Fundraising Campaigns

The options are endless when it comes to online fundraising. It breaks down geographical barriers and makes it easier to connect with more supporters. Here are a few online fundraising campaign types to get you started:

• Online donation page. If you don’t have one already, set up a donation page on your website. Then, you can promote it using emails and social media posts. You’ll be able to drive traffic here across any type of campaign, making it easy to start a fundraiser at any point.
• Text-to-give. Donating is made simple through text-to-give. You just have to provide your supporters with a code word and number to text it to. They’ll then be prompted with a donation link. To use this option to its fullest potential, take advantage of phone appends. Phone appends add missing phone numbers to your supporter database so you can reach as many supporters as possible.
• Crowdfunding. Leverage the power of the share button and gain support from a wide range of people using a crowdfunding campaign. Using social media, you can request small donations that add up to your goal and ask that followers share your campaign page with their friends and family to level up your campaign further.

For the best results, you’ll likely want to combine your online fundraising methods with offline ones. This will increase the visibility of your campaigns and allow you to maximize your pool of prospects.

Offline Fundraising Campaigns

While they may take a little more effort than online fundraising options, offline ones can be just as effective. Many people prefer the personal touch of in-person interactions and traditional fundraising methods. Take a look at some of our ideas before you start a fundraiser:

• Direct mail. Requesting donations through mail can be a more personal outreach method. Segment your donors based on how frequently they donate and how much they have donated in the past.
• Fundraising event. There are so many different ways to gather your community in support of your cause. Examples include walk-a-thons, auctions, and restaurant fundraisers.
• Peer-to-peer fundraising. While peer-to-peer fundraising typically has an online component, the general idea is that your supporters raise money for your cause through their own family and friends. They could set up a social media fundraiser, organize their own fundraising event, or go door-to-door to rally support for your nonprofit.

No matter which combination of fundraising campaigns you use, remember to make it fun to get your supporters excited about their involvement.

3. Develop a Fundraising Plan

An effective fundraising plan will keep you organized and on track. It will serve as your roadmap and ensure you have everything you need to make your campaign successful.

To make sure your fundraising plan is comprehensive, here are the elements yours should include:

1. Goals. Start off your fundraising plan by adding the SMART goals you developed earlier. These goals will guide the rest of your fundraising plan.
2. Case for support. You’ll want to craft a compelling reason for why donors should support your cause. It’s best to make this specific to the initiative or project you’re raising money for.
3. Campaign type. Once you figure out which fundraising campaign you’re moving forward with, indicate that in your fundraising plan. Again, you can use any combination of the ones we’ve listed previously or others you come up with.
4. Marketing channels. Choose which marketing channels are best for your campaign. Examples of marketing channels include social media, email, and your organization’s website.
5. Timeline. Before starting a fundraiser, set a definitive timeline for your campaign. It might help to develop a campaign calendar to plan out the work that must get done each week.
6. Budget. Figure out how much you need to spend to make your fundraiser a reality. Think about the costs of fundraising events and initiatives ahead of time so you only spend what you need to.
7. Team members. Determine which members of your team will be part of this fundraising project and how much external support you’ll need from volunteers. You’ll want to delegate responsibilities to them so everyone knows what to do.

Incorporating all of these items into your fundraising plan will set clear intentions for your fundraiser, making it easier to move along with the planning process.

4. Choose the Appropriate Software Before Starting a Fundraiser

Fundraising software is necessary for your fundraiser to run smoothly. From accepting online donations and processing payments to managing donors and volunteers, there are so many aspects of your fundraiser that require software.

Events are one area where software can come in handy. You’ll likely want to take advantage of fundraising software to register and check in event attendees. If your event is virtual, you can provide a link or QR code to participants to make the process easier.

There are also specific platforms for certain types of fundraisers. For example, if you’re hosting a peer-to-peer fundraiser, you’ll want to look into peer-to-peer software, which enables your supporters to securely create individual fundraising pages to share with their networks.

If your organization already uses donor management software, find fundraising software that integrates well with the platform you use. That way, you can automatically import information about your new donors, saving your team time and energy. Later on, you can use that data to reach out to donors and shape future fundraising campaigns.

With fundraising software secured, you’re ready to move on to the next step in how to start a fundraiser.

5. Create Marketing Materials To Promote Your Fundraiser

Nonprofits need to come up with cohesive marketing strategies in order to promote their fundraisers effectively. Think about your campaign as a single story you want to tell. Every promotional material should work together in pursuit of your goals.

It can be difficult to create effective marketing materials, so here are some tips that will help you elevate yours:

• Focus your marketing on the impact your fundraiser will have. Of course, you’ll want to tell potential donors exactly what their money will go towards, but you’ll also want to highlight the underlying benefits of the project you’re funding. Make it clear why this project or initiative is important and what will happen if you don’t achieve your fundraising goals.
• Using multiple different marketing channels will allow you to reach a broader audience. While you’ll want to tell the same cohesive story to all of your supporters, remember to adapt your message and content to each channel. For example, your social media campaign might feature short videos explaining the fundraiser while your website might contain an entire page dedicated to the fundraiser.
• No matter which marketing channels you leverage, having well-designed images can help your marketing materials stand out. People are more drawn to images than words, and eye-catching designs can convey more information than you might think. Plus, images can break up large chunks of text to make it easier to read.

If your team has trouble creating its marketing materials, consider outsourcing the design work to a third-party graphic designer. We highly recommend Kwala, a nonprofit-focused graphic design company. By exclusively working with nonprofits throughout the years, they’ve become well-versed in what it takes to design materials that inspire support.

From social media graphics to fundraising flyers, they’ll help bring your visions to life and spread awareness for your fundraisers in no time.

Once your marketing materials are ready to go, it’s time to share them with your supporters!

6. Promote Your Nonprofit’s Fundraiser

Your fundraiser could be for an outstanding cause with an organized fundraising plan behind it, but if no one knows about it, you won’t reach your fundraising goals. Promoting your fundraiser will attract new and previous donors to contribute to your cause.

As we alluded to before, your organization can use many different marketing channels to spread the word about your fundraiser. Use any combination of the ones we’ve listed below:

Email

You can’t go wrong with email marketing. It allows you to reach new and previous supporters and send a variety of different communications related to your fundraiser. Whether you’re informing subscribers about your fundraiser in your newsletter, inviting supporters to a fundraising event, or thanking donors for their contributions, email is an effective way to communicate about your fundraising efforts.

Website

Your organization’s website is the home base for anything and everything about your nonprofit, so it’s a great place to include details about your fundraiser. Potential supporters will get the opportunity to look through other pages on your site to learn more about your organization before they lend their support.

Blog

If your nonprofit has a blog on its website, consider posting an article about the fundraiser. You could introduce or recap a fundraising event or provide an update about how much money you’ve raised so far.

Social Media

Social media is a great place to promote your fundraiser because your supporters can repost your content and share it with their own networks. You can also use social media as a chance to have some fun with your fundraiser’s promotion by playing into current trends and making short videos about the fundraiser with your team.

Press Release

See if any local media outlets will share a press release about your fundraising events. That way, you can reach members of your community who may know nothing about your organization.

Related Organizations

Ask your corporate partners, local businesses, or other related nonprofit organizations to help you spread the word about your fundraiser.

Google Ad Grants

The Google Ad Grants program provides nonprofits with $10,000 per month in Google Ad spending. As long as your organization is eligible, you can apply to the program and start leveraging Google Ads for free to promote your fundraisers and cause. For help with applying for the program and managing your account, reach out to a Google Grant agency so you can focus on building out your campaign instead of writing ad copy.

Again, the best marketing campaigns use multiple marketing methods. As long as you make the effort to interconnect each channel and communicate a cohesive message, leveraging multiple marketing channels will help you reach a larger audience.

7. Thank Donors For Contributing To Your Fundraiser

It’s always important to thank your donors, especially directly after they’ve made a donation. New donors can become life-long members of your community if you put in the effort to form relationships with them. Additionally, you can keep previous donors coming back by showing them you appreciate them.

The way you create a positive experience for donors is through effective donor stewardship. There are several ways to practice proper donor stewardship, such as:

• Thanking donors by emailing them or calling them directly after they donate
• Sending donors personal thank you letters with tax receipts
• Treating donors with respect and care
• Maintaining frequent communication with donors across marketing channels
• Inviting donors to stewardship events
• Sending donors reports that illustrate the impact they’ve made on your organization

Donor stewardship ensures that your organization creates and maintains strong relationships with your supporters. That way, your nonprofit can expand its network and build a community of supporters to work with and rely on when you start future fundraisers, projects, and initiatives.

8. Assess the Results of Your Nonprofit’s Fundraiser

After your fundraiser, it’s essential to go back and look over your goals to see if you’ve accomplished them. This final step is important because it allows you to take the lessons you’ve learned from this campaign and apply them to your next fundraiser.

A great way to assess the results of your fundraiser is to ask your donors or event attendees for their feedback by sending them a survey. That way, you can get another perspective on what worked and what didn’t from fundraiser participants rather than leadership.

Additionally, there are some questions you’ll want to review with your fundraising team to evaluate your success. These questions may include:

• Did you meet your initial goals?
• Which marketing methods were most successful in achieving your goals?
• Which marketing methods were unsuccessful?
• Did you set an appropriate budget?
• What were some successes that you should replicate when starting your next fundraiser?
• What were some failures or shortcomings that you should avoid for your next fundraiser?
• Are there any ways you could have used your resources more efficiently?

Taking the time to reflect upon your fundraiser will make your next one even more successful. Even though your team is likely busy with other projects, putting in a little time now means you’ll save time later in the planning process for future fundraisers.

Conclusion & Additional Resources

Now that you know the steps for how to start a fundraiser, it will be easier to stay organized and get the job done. Each time you host a fundraiser, you’ll get more familiar with the planning process, leading to more successful fundraisers.

In this guide to how to start a fundraiser, we touched upon many different considerations that go into fundraiser planning. We know you might have some further questions about how to host an effective fundraiser, especially if you’re a first-timer.

To help you out, we’ve compiled a list of resources that go beyond the basics of starting a fundraiser. These articles tackle more specific fundraiser tips and tricks that will help you along your fundraising journey. Check them out below:

• Venmo for Nonprofits: A Useful Tool to Boost Donations. Are you looking for a new fundraising source? Try using Venmo to give your fundraising efforts a boost.
• 15 Best Fundraiser Websites: The Complete List. If you’re looking to create a website for your fundraiser or create a fundraiser page on your own website, take a look at this article. It will walk you through several fundraiser website options.
• How to Create a Nonprofit Fundraising Strategy: 10 Steps. It can be difficult to develop your own comprehensive fundraising strategy when you’re just learning how to start a fundraiser. This article breaks down the process into steps to help you out.

Whether they consciously think about it or not, nonprofits collect data every day. From accepting donations to receiving new email newsletter sign-ups, every time a nonprofit interacts with its supporters, it’s absorbing different data points.

These days, all types of organizations understand that data should guide decision-making because it acts as clear evidence for trends and occurrences within your industry or operations. Nonprofits should be no different. Using data effectively can help your organization optimize its content and spread its mission even further.

The only problem with this data-driven approach is that if your organization has incorrect or incomplete data, then it can be difficult to comfortably rely on that data. That’s where data appends come in.

Data appends fill in the gaps in your data so that you can make well-informed decisions and communicate with a larger breadth of your supporters. If your organization isn’t familiar with data appends, then we’re here to help you learn the basics and how you can get started with the data append process.

Take a look at the questions we’ll answer in this guide:

• What Is a Data Append?
• What Types of Data Appends Are There?
• What Is a Data Append Service?
• What Value Do Data Append Services Add?
• What Is the Data Append Process?
• How Do I Select a Data Append Service to Work With?

Here at NXUnite, we connect nonprofits with the tools they need to be successful. We believe that data appends are an essential part of good data hygiene, which all nonprofits should practice in order to improve relationships with supporters and grow their organizations. Learning about what data appends are and how they work is the first step in improving your organization’s data hygiene, so you’ve come to the right place!

Equipped with data appends, your organization will not only improve its data hygiene but will also gain better insights into who your supporters are and how you can best reach out to them. But first, let’s learn what data appends are and how a data append service can help you with the process.

What Is a Data Append?

A data append is a piece of new information added to your nonprofit’s database. During the data appending process, data append services pull data from external sources to correct incorrect data or supplement incomplete data. They use any supporter information that you supply them with, such as contact information, to correctly identify the right individuals across different sources.

Data appends are important because they ensure your database is more complete with the information you need. For example, you could be missing an email address for an important donor. Without their email address, you won’t be able to thank that donor for their contributions or update them about your organization, potentially jeopardizing your relationship with them.

3 Different Approaches to Data Appending

While all data appends refer to adding new information to a database, there are different ways to go about the process and obtain the data you need. These are the three different approaches to data appending:

1. Forward: Forward appending is what most people think of when discussing data appends. It occurs when an append adds to basic information your organization already has. For example, you may have a donor’s name and mailing address, but a data append could add their phone number as well.
2. Reverse: As the name implies, reverse appending is the opposite of forward appending. With this approach, your organization uses a singular piece of data to fill in the related basic information. You might have email addresses from your newsletter subscribers, but you could use reverse appending to fill in their names.
3. Fractional: For a combination of the previous two approaches, use fractional data appending. In this case, you could use a supporter’s name and email address to find their mailing address. Fractional appending puts the best of both approaches together to find the information you need.

To determine which data append approach to take, think about which type of data you’re looking for. As we mentioned, forward appending is most typical and the most beneficial for nonprofits, so it’s never a bad idea to start there.

Data Append Timing

In addition to the different approaches to data appending, there are also two different categories of data appends based on the timing of when you’ll receive them:

• Batch: Just as it sounds, batch appending is when organizations send a batch of information to be appended. This approach is best for nonprofits with large databases that have a clear need for organization. For example, you might be missing some of your volunteers’ phone numbers and mailing addresses. To fix this, you can send a file with the data you have to a data append service, and they will add the missing information all at once.
• Real-time: For automatic updates to individual records, use real-time appending. Once you send in your information, a server will update it in real-time when needed. An example of a situation where you could use real-time appending is if you want to analyze your newsletter sign-ups and fill in contact information that subscribers left out.

Again, the choice between batch and real-time appending should depend on your organization’s needs. For most types of data appends, batch appending is more beneficial because it allows you to get all the information you need at once. However, real-time appending can be useful for ongoing data append-based solutions.

What Types of Data Appends Are There?

There’s a wide variety of data types you can append to your nonprofit’s database. Depending on your marketing goals and the information you have missing, you can choose the data appends that best fit your organization’s needs.

If you’re not sure which types of data would benefit your nonprofit, we’ll walk through the four different categories to give you a better idea of what your organization might need.

1. Contact Information

A lot of the data we’ve talked about so far falls under the umbrella of contact information, including phone numbers and email addresses. Believe it or not, social media profiles are also a type of data append in this category.

Communication with your supporters is essential to keeping your nonprofit running smoothly. Make sure your contact information is complete, up to date, and accurate with contact information appends. It’s important to review and update this type of data regularly since supporters’ contact information can change frequently for a variety of reasons.

2. Demographic Information

Demographic information allows you to learn a little more about who your supporters are. Types of demographic information you might collect include:

• Age
• Gender
• Race and ethnicity
• Income
• Employment
• Level of education
• Marital status

Although the benefits of having supporters’ demographic may not be as clear as those for contact information, knowing more about your supporters can help you reach them more effectively.

For example, date of birth appends allow you to know each supporter’s age so that you can segment them based on how old they are. Younger donors may respond better to text message outreach and social media campaigns while older donors may prefer direct mail. Additionally, knowing your supporters’ dates of birth presents the opportunity to offer birthday gifts or perks.

3. Geographic Data

Using geographic data appends can assist you in creating location-based campaigns. Segmentation based on location can be useful if your organization only operates in a certain area, if there are different localized branches of your nonprofit, or if you’re hosting in-person opportunities in certain areas.

The main geographic data append type is mailing address appends. Having the addresses of your supporters can allow you to send them direct mail and notify them of local opportunities.

4. Donor Wealth Screening

Donors are the primary source of your fundraising, so it can be helpful to know a little more about their assets. That way, you can predict how much and how likely they are to donate. It’s important to focus your marketing efforts on donors who seem to be open to upping or continuing their support at the moment. Doing so can help you prevent wasting time and energy on donors who may not currently be interested in lending their support.

Here are examples of donor wealth data you could append to your donor database.

• Net worth
• Likeliness to give
• Prior donations to other nonprofits
• Business and foundation affiliations
• Real estate
• Stock holdings

Data append services use donation and wealth databases to find this information based on the donor data you supply them with. Once you receive your donor wealth appends, you can customize your outreach to each donor based on their ability and propensity to give.

What Is a Data Append Service?

Since data appending can be rather difficult and time-consuming when done by someone who’s inexperienced, it’s best to turn to the experts. A data append service can help you obtain all different types of data appends. They work to fill in the gaps in your database to help you understand and reach your target audience better.

Data append services are reputable sources for help with your data hygiene. They can append any type of data you need. Additionally, efficient data append service providers will talk to your organization about your current data needs and concerns in order to help you figure out your next steps along your data journey.

You may still not be convinced that partnering with a data append service could be helpful for your organization. If that’s the case, we’ll explain the exact value data append services bring to the table for nonprofits in the next section.

What Value Do Data Append Services Add?

As a nonprofit professional, you must be incredibly careful to budget your funds and resources effectively. Data hygiene is important because it can save your organization time and money by making sure you’re reaching out to the right people.

Basic Benefits of Data Appends

Leveraging data append services is a smart investment for nonprofits because they can help you reach your target audience more efficiently. You’ll be able to make more data-driven decisions and have the right contact information for your supporters.

Now that you know the basic premise of what data append services do, let’s explore the benefits they can provide to your organization:

• New information. Data append services provide you with information you didn’t previously have access to. Whether that’s phone numbers, dates of birth, or mailing addresses, the right data append services can find the information you need.
• Accurate information. You may be missing information in your database, but you may also have incorrect or outdated information that needs to be updated. Data append services check the data you already have and replace outdated data with the most current information.
• Better segmentation. The more you know about your supporters, the better you can group them based on qualities relevant to your campaigns. Segmentation is a great way to customize each supporter’s experience and help them build a deeper connection to your organization.
• Time conserved. With access to the right resources, your nonprofit probably could find append data on its own. However, that would be very time-consuming for your team. Leave it to the experts who offer professional data append services, know what they’re doing, and can help save time that you can reallocate to other projects.
• Money saved. The investment of working with a data append service is nothing compared to the money you’ll lose on behalf of bad data. Data append services can help correct errors in your database to lower your marketing costs.

Beyond rounding out your supporter database, data appends add value to your organization in several different ways.

Nonprofit-Specific Benefits of Data Appends

While the above benefits apply to any organization, there are specific benefits for nonprofits that data append services provide, such as:

• Increased mission awareness. At the heart of your organization is its mission. Once you have the data you need to communicate with your supporters effectively, more people will become aware of your nonprofit’s cause.
• More donations. Now that you’re reaching out to the right audience, you’re bound to see more funds flood in for your cause. Especially if you’re able to leverage donor wealth appends, you’ll be able to improve your fundraising efforts tremendously.
• Industry-relevant data. Of course, all organizations could benefit from knowing their supporters’ names and email addresses, but there are certain data points that are especially useful for nonprofits. For example, if you know a donor’s employer, you can discover whether that employer participates in matching gifts and use that knowledge as an incentive for donors to contribute. Data append services geared toward nonprofits like NPOInfo are helpful resources for identifying opportunities to use data more effectively for your nonprofit.

If you’re looking to understand your supporters better, hiring a data append service provider is the right choice. While your organization won’t have to do much besides supplying them with the data you already have, it’s helpful to know how the data append process works so you can ask them any questions you may have.

What Is the Data Append Process?

We’ve talked a lot about the fact that data append services take the information you already have about your supporters and use it to find the data you’re looking for. How exactly does that process work though?

There are several steps that data append services follow in order to deliver data appends to their clients. Here are those steps:

1. Format the data. Before sending over your supporter data, make sure it’s all in the same format. Data append services typically prefer a comma-separated value (CSV) format for the data.
2. Upload the data. Next, compile all of the data into one file and send it to your data append service of choice.
3. Match the data. Once they receive your supporter data, the data append service will compare it to the databases they have in order to identify which information is missing or inaccurate.
4. Complete the appends. In this step, data append services enhance the data you’ve provided by adding the information they’ve found.
5. Check the data for accuracy. Before sending the appended information back to you, most data append services will check to make sure the data they’ve found is accurate. They may have manual or automated methods of verifying the data.
6. Send the data to the client. Lastly, the data append service will send the client the data file for them to download. While data append services like to work with CSV values, they can convert the file into virtually any format that the client prefers before sending it back to them.

The process is easy to follow, and once your organization formats and uploads the data, it’s all up to your data append service to put in the work. Since they’re experts in this area, they typically complete the process fairly quickly, allowing you to leverage your new data right away.

Now that you understand the data append process and how helpful a data append service can be, it’s time to find the data append service you’d like to work with.

How Do I Select a Data Append Service to Work With?

There are so many data append services out there that are ready to help your organization with its data needs. However, it’s important to do thorough research when finding a data append service provider to ensure that they have the qualities you’re looking for.

If you don’t know where to start, we’ve compiled a list of characteristics that we believe all data append services working with nonprofits should have, including:

• Employs accuracy checking. It would be a waste of your time and funds to go through the data append process and receive incorrect or outdated data. Look for a data append service that has accuracy checks or scans in place.
• Provides multiple kinds of appends. Chances are, you need multiple types of data, or you might in the future. Stick with the same data append service for all your data append needs by finding one that can provide all the information you’re looking for.
• Uses reputable information sources. You might not necessarily know where your data append service is getting their information from, but it doesn’t hurt to ask if they have a process of verifying the databases they’re using.
• Does a thorough job. Find a data append service that goes above and beyond to satisfy your data needs. In addition to data appends, you might look for a service that can talk you through your current data hygiene or opportunities for using your new data once you’ve received it.
• Has a quick turnaround. The faster you receive your data appends, the faster you can start using them to improve your marketing efforts and supporter communications. Ask your data append service how long they typically take to go through the process.
• Provides quotes. With a tight budget, your nonprofit will likely want to know how much data append services cost before committing. A reliable provider will give you that information ahead of time based on the information you need.
• Specializes in nonprofit data appends. For the best experience, partner with a data append service that regularly works with nonprofits. Of course, you can use a generic data append service, but for nonprofits, it’s best to work with one that is nonprofit-specific. They will understand your needs best and have the expertise you need to propel your organization forward on its data hygiene journey.
• Works with a variety of nonprofit organizations. Even if you’re working with a nonprofit-specific service, there’s no guarantee that they’ve worked with your organization type before. Look for a data append service that has worked with a variety of nonprofit organizations such as schools, healthcare organizations, and associations.

With these qualities in mind, NPOInfo is our recommended nonprofit data append service provider. They possess all the qualities we’ve listed above and have extensive experience providing data for nonprofits.

Conclusion & Additional Resources

Good data hygiene ensures that your nonprofit can gain important insights into who your supporters are. An essential component of data hygiene is data appends, which add missing information to your database to expand your supporter profiles. With data appends, you can personalize and even segment your supporter communications to connect with supporters on an individual level.

If you’re ready to move forward with the data append process, the next step is finding a data append service to work with. You can request a quote from NPOInfo, our recommended nonprofit data append service, to learn more.

If you need more information before diving into the data append process, that’s okay. Here are some additional resources about data append types that will help you better determine your organization’s data append needs:

• Email Appends: The Complete Q&A Guide for Organizations. These days, nearly every organization has some sort of email newsletter or communications. Ensure your messages are showing up in supporters’ inboxes with email address appends.
• Phone Appends: A Nonprofit’s Data Enrichment Guide. If you’re looking to call or text your supporters to inform them about upcoming opportunities, your nonprofit might benefit from phone appends. Check out this article to learn more about them.
• Your Ultimate Guide to Employer Appends for Nonprofits. Employer appends can help your organization identify matching gift opportunities. Optimize your fundraising potential with employer appends.

If you’ve been in the nonprofit fundraising world a while, you’ve probably heard of Google Ad Grants. For those who are unfamiliar, Google Ad Grants is a program created to help out nonprofits with their marketing and fundraising efforts by increasing their visibility online.

Participating organizations receive $10,000 per month to spend on Google Ads. These funds allow nonprofits of all sizes to grow their online presence and get more conversions.

It’s shocking how many nonprofits don’t already leverage the program. As long as your organization meets Google’s eligibility requirements and follows all rules of the program, you should have no problem getting into the program and staying enrolled.

Whether you’re looking to increase site traffic or connect with new prospects, leveraging Google Ad Grants is an effective way to reach your organization’s goals.

Whether your organization already leverages Google Ad Grants or has never heard of the program, we’re sure you have some questions. To clear up any confusion about the Google Ad Grants program, we’ve grouped the questions you likely have into these categories:

• The Google Ad Grant Essentials
• Google Ad Grant Eligibility Requirements
• Applying for Google Ad Grants
• Maintaining Your Google Ad Grants Account

Here at NXUnite, we’re always looking for new fundraising ideas that we can share with nonprofits, and Google Ad Grants is one of the most successful ones we’ve found. We’ve got a lot of questions to cover, so let’s dive right in!

What Are Google Ad Grants?

For those of you who are new to the program, we’ll start with the basics. The Google Ad Grants program gives eligible nonprofits $10,000 per month to spend on Google Ads. These ads typically appear at the top of relevant Google searches, allowing your organization to grab potential donors, subscribers, and volunteers’ attention.

To help you visualize Google Ads in action, we’ll give you an example. Say you’re a huge animal lover looking to make a difference. You might search “animal shelter” or “animal shelter near me.” From there, you’d likely see a Google Ad for a local animal shelter you can volunteer with or donate to in addition to other related resources.

While for-profit organizations can run Google Ads as well, Google Ads for nonprofits are a little different. To participate in the Google Ad Grants program, organizations must meet the eligibility requirements. Additionally, those who do not qualify for the program have to use traditional Google Ads and pay per click for their ads to run.

With the money granted by Google, nonprofits can bid on specific keywords and promote certain pages of their websites. Organizations choose which pages to promote based on their current goals. For example, if your organization has an upcoming event, you may want to highlight your event registration page.

Now that you have the gist of the program, it’s time to learn about its benefits in greater detail.

What Are the Benefits of Google Ad Grants?

If you’re going to spend time researching and applying for this program, you’ll want to know how it can benefit your organization. Take a look at the benefits Google Ad Grants could have for your nonprofit:

More engagement on your site.

To attract people to your organization, you’ll want to make sure you have the proper content on your website. However, your content could be great, but if potential supporters can’t find it, then it’s not serving its purpose.

The Google Ad Grants program helps to get the right web pages in front of the right people. For example, someone searching “donate to climate change donations” is likely looking for a place to contribute monetarily. As a result, you can use funds from your Google Ad Grant to promote your site’s donation page to this audience.

More conversions.

While you might associate conversions with sales and other related for-profit activities, nonprofits can also track conversions to measure outcomes and reach. Increasing conversions means that more people will be interacting with your site in the way that best suits them. Here are some examples of online conversions your nonprofit might track:

• Donations
• Volunteer signups
• Ticket sales
• Event registrations
• Petition signings
• Email list registrations

To increase site engagement and boost conversions, having the right content is key. If you don’t have the proper pages for meeting your conversion goals, then it will be difficult to increase conversions. However, once you create that content, Google Ad Grants can help you promote it accordingly and get it in front of the right audience.

Improving communication with your supporters.

Even with endless communication tools including email, calls, and social media, it can be difficult to interact with your supporters and share new information with them. Some people might feel overwhelmed with all the communication they receive from an organization. Others might be too busy to give your communication any attention.

Although Google Ad Grants don’t replace traditional communication strategies, they can enhance them. They provide a way for supporters to stay up to date on your content in a way that fits their own schedule and needs.

More information about your supporters’ goals.

Increasing communication effectively means understanding what information supporters need from your site. Using Google Analytics, you can see which pages users visit and what actions users take to learn more about which aspects of your organization are important to your supporters.

Since Google Analytics provides you with useful data about your campaign performance and website interactions, you can use that information to optimize your content and consequently increase engagement.

No competition for funding.

Google Ad Grants are not like traditional grants. While other grant programs have a limited amount of money that they distribute based on organizations’ needs, the Google Ad Grants program gives the same amount to all eligible organizations.

As long as your organization meets the program’s requirements, you will receive $10,000 worth of ad credits per month. This allows your organization to put more energy into using the grant effectively as opposed to stressing about how much funding you will receive.

What Can You Use Google Ad Grants to Accomplish?

Going into the Google Ad Grants program, it’s important to think about your goals as a participating organization. What pages do you want to promote? What conversions would you like users to make? These are some questions you may want to answer before applying.

To get you thinking, here are some reasons nonprofits use Google Ad Grants:

• To collect donations from current and potential donors
• To spread awareness about your organization’s cause
• To recruit volunteers for upcoming opportunities
• To share information about upcoming events and sell tickets
• To add subscribers to your email list
• To encourage users to take certain actions like engaging with your social media or signing a petition

The possibilities are endless with what you can use Google Ad Grants to accomplish as long as you define your goals ahead of time.

Is It Free to Participate in the Google Ad Grants Program?

As long as your organization is eligible for the program, it is free to participate! You must also follow the application process and stay compliant with all requirements once you accepted into the program.

Although the program is free for eligible organizations, determining your eligibility, applying, and preparing your account can be very time-consuming. If you want to participate in the program but don’t have time to figure out the process yourself, consider hiring a Google Grants agency. They will do all the hard work for you so you can focus on your goals as a participating organization.

How Large Does Your Organization Have to Be to Participate?

There’s no organization size minimum or maximum for participating in the Google Ad Grants program. Any nonprofit can benefit from the program and its opportunities to grow its online reach. Even small nonprofits will be able to access the program’s benefits, including increased engagement, more conversions, and greater knowledge about their supporters.

Google Ad Grants are great for smaller nonprofits because they allow opportunities for those organizations to grow as they expand their audience. However, if your organization is brand new, you might have to wait a few months to be eligible for the program. In the meantime, it will be helpful to learn more about the program and prepare your goals for participating in order to make the process run more smoothly once you’re eligible.

Which Types of Organizations Are Eligible for Google Ad Grants?

Since it’s free to participate in the program for any size organization, Google specifies several requirements that nonprofits must meet to be eligible for the program. The guidelines vary slightly based on your country, so be sure to check the unique requirements for your organization’s location.

The eligibility requirements are as follows in the United States:

• Register with the IRS as a charitable organization. In order to be a valid charitable organization, you’ll need to have 501(c)(3) status, exempting you from taxes. For verification of your organization, Google also requires you to register your organization with TechSoup.
• Accept the terms and conditions of the program. There are general Google for Nonprofits terms you’ll have to agree to as well as Google Ad Grant-specific certifications.
• Own your own domain and feature relevant content. Since you will be using Google Ad Grants to promote pages on your website, Google has some website requirements. These include owning your domain, featuring unique content, and including accurate information about your nonprofit’s purpose.
• Obtain an SSL certificate. Google wants to make sure your website is secure before they promote it, so they require Secure Sockets Layer (SSL) certification. If you have installed it correctly, there should be a lock icon in the navigation bar in Google Chrome, and your URL will include https:// instead of http://.

If your organization follows these requirements, you should be good to participate in the program. However, the following organizations are automatically ineligible for the program:

• Governmental agencies and organizations
• Hospitals and healthcare institutions
• Schools, academic institutions, and universities

Google prohibits these organizations from participating in the program. However, if your organization falls under the last category, you may be able to participate in Google for Education, a similar program specifically for educational institutions.

How Do You Apply for Google Ad Grants?

Applying for Google Ad Grants for nonprofits isn’t complicated, but we’ve broken down the process into steps to simplify it even further. Here’s a step-by-step guide on how to apply for Google Ad Grants:

1. Check the eligibility requirements.

As we just went over, there are several eligibility requirements for participating in the program. Before you apply, you’ll want to make sure you qualify and take any actions necessary to become eligible. This way, you can make sure the application process goes smoothly and avoid having your application rejected.

2. Sign up for TechSoup.

Once you’ve determined that your organization is eligible for the program, the next step is signing up for TechSoup. TechSoup is an organization that works with Google and other companies to give nonprofits access to helpful resources at discounted rates.

In order to register with TechSoup, follow these three easy steps:

1. Go to the TechSoup registration page and create an account.
2. Select your preferred language and the country where your organization is located.
3. Click ‘New Member,’ select ‘Register,’ and agree to TechSoup’s terms.

After you complete this process, TechSoup will give you a validation token that you’ll need to activate your Google for Nonprofits account.

3. Create a Google for Nonprofits account.

Google Ad Grants is just one of the resources Google provides under the umbrella of Google for Nonprofits. When you create your Google for Nonprofits account, you’ll be able to access:

• Google Workspace for Nonprofits, which grants your nonprofit access to Google’s suite of apps including Gmail, Docs, Sheets, Calendar, and Meet.
• YouTube Nonprofit Program, which enhances your YouTube account for the nonprofit space with features like a donate button and video annotations that link to your website.
• Google Earth and Maps, which allows people to find programs and resources near them.

In order to create an account, make sure you have your tax ID number, contact information, and TechSoup validation token on hand.

4. Set up Google Analytics.

It’s essential for your website to have Google Analytics connected to it before applying for Google Ad Grants. Circle back to the goals you have for participating in the program. This is where you’ll put them to work!

You should install Google Tag Manager and create some conversion tracking goals for your site that align with your goals for participating in the program. For example, you might want people to do one or more of the following:

• Sign up to be volunteers
• Register for an event
• Donate to your nonprofit
• Sign a petition for your advocacy campaign
• Spend a certain amount of time on your website

Adding these goals to Google Analytics will allow you to track which pages are most successful in acquiring conversions. It will also allow you to recognize which pages need some work so that you can adjust them accordingly.

5. Complete the Google Ad Grants application.

Now that the preliminary steps are complete, it’s time to actually fill out your Google Ad Grants application. You’ll have to log in to your Google for Nonprofits account to access it.

Part of the application process includes submitting your website for review. The Google Ad Grants team will look over your website and its content to see if your organization is ready for the program.

Another thing to consider about your application is whether you’ll choose to start a “Smart Campaign” or “Classic” account. “Smart Campaign” is a more basic option with automated settings. It requires less management whereas the “Classic” account has more tools and customization options included.

Finally, Google will review your application and respond within three business days. When Google approves your account, you’ll automatically be able to access and start using Google Ads to amplify your organization’s most important web pages.

How Do I Use My Google Ad Grants Account Successfully?

Now that you have your Google Ad Grants account, you’ll want to make sure you’re getting the most out of it. The way to do so is to have a well-thought-out plan for how to develop and implement your ad campaigns.

While Google Ad Grants will certainly increase your website’s visibility, it’s the work you put into optimizing your account that will allow you to see the best results. Here are some ways to make sure your account is successful.

1. Create good content.

It’s easier said than done, but creating good content for your website is an integral part of your success with the Google Ad Grants program. Without good content, it doesn’t matter how much traffic comes to your website because users will be less likely to make conversions once they see your pages.

There are a couple elements your content should have to increase its value, including:

• Topics with high search volume. Your content could be well written and engaging, but if no one’s searching for it, then it doesn’t matter. Make sure to feature content with popular topics that will help people find your site. For help with figuring out how topics rank, look at Google Trends or Moz to research keywords.
• Focus. People typically only search for one topic at a time, so you’ll want to design your page to reflect that. Spread your content out so that each page has its own focus.
• Built-out pages. On the other hand, you want to make sure your content on each page is substantial. This is not only crucial for user experience but also for how Google ranks your page. You’ll also attract more users if your pages actually contain helpful information people are looking for.
• Calls to action. You’ve created your conversion goals, and now you want to make it clear to users what you want them to do in reference to those goals. For example, if you want people to register for an event, make sure to include a button or a link that will take them to your event registration page.
• Mobile friendliness. More and more searches these days come from mobile devices. Therefore, it’s important to ensure that your content is mobile friendly so that people can access it in the format you intend for them to. Additionally, mobile friendliness is one of Google’s ranking factors for organic traffic, which you’ll want to keep up in addition to your Google Ads.

The better your content is, the more people will flock to your website. Hopefully, this increased traffic leads to more conversions, which are important to measure and analyze to make continuous progress for your mission.

2. Track your campaign goals.

Data should be the guiding force in making decisions about your Google Ad Grants account, and lucky for you, there are tools at your disposal to help you use data effectively.

To get the most out of your Google Ad campaigns, you’ll have to set up conversion tracking and data analytics. These tools are included within Google Analytics, which you should already have installed. Use Google Analytics to set up goals so that you can track your campaign performance accordingly.

As we’ve gone over before, your goals for participating in the program are what shape how you will use Google Ad Grants to your advantage. You’ll want to track these goals to make sure you’re accomplishing them and adjust your website if you’re not performing as well as you had hoped. Ideas for goals are:

• Signing up for your email list
• Making a donation
• Submitting a volunteer registration form
• Buying a ticket for an event
• Signing a petition

For each goal that you have, you’ll want to set up conversion tracking in Google Analytics. That way, you’ll be able to see how well your goals are panning out and make necessary changes.

3. Get to know your audience.

The Google Ad Grant program has ways for you to limit who your ads are shown to. To take advantage of this feature, you’ll want to define your intended audience and keywords for each campaign. That way, you can ensure that each campaign is focused and reaching the people you want it to reach.

To get to know your audience, it’s also helpful to do some keyword research. Once you know exactly what people are searching for that’s related to your page, you’ll have a better idea of what keywords to include in your own content that will help them show up in searches.

If you have an idea of what your audience isn’t searching for or what unrelated audiences are searching for, use negative keywords. Unlike regular keywords, negative keywords are used to prevent your content from showing up in searches that contain certain words.

Once you’ve been using Google Analytics for a while, you can start to look through the search queries of people who visit your site to see which ones don’t result in conversions or aren’t related to your nonprofit. This process will allow you to add more negative keywords to your list and only show up for relevant searches.

4. Use other marketing efforts.

Google Ad Grants are certainly a powerful marketing tool, but don’t forget about what else is out there! Continue your usual marketing activities, whether that’s regularly posting on social media or sending out email newsletters once a week. The data you collect from your Google Ad Grants campaigns will also be useful to consider for these marketing methods as well.

Additionally, your Google for Nonprofits account gives you access to other marketing tools that you can leverage. For example, the YouTube Nonprofit Program makes it easier to fundraise on YouTube by teaching you how to create effective campaign videos and equipping your account with a donate button.

5. Focus on quality.

Although the program gives you $10,000 a month in ad spending, most nonprofits don’t use it all. This may be because some organizations don’t have enough time or resources to manage multiple campaigns. Alternatively, others may not have content geared toward their audience’s needs and therefore aren’t getting good results.

Whatever the issue is, you can still spend only a portion of what Google provides and have a successful Google Ad Grants account. For example, your audience may be specific to a certain area or interest that may allow you to reach it without spending the full amount of money.

In conclusion, remember to focus on the quality of your content and its ability to create conversions as opposed to haphazardly using all the funds Google provides.

How Do I Maintain My Google Ad Grants Account?

Maintaining your Google Ad Grants account is an ongoing process. You’ll want to make sure you’re using the funds Google provides effectively and that your campaigns reflect the data you’ve collected. Check out our suggestions for keeping your Google Ad Grants account strong:

• Run at least 3-5 campaigns. When you start using Google Ads, get a feel for how many campaigns your organization can manage at once. Less than three won’t be enough to show results, but too many campaigns might overwhelm whoever’s managing your account. You’ll want to have multiple campaigns to promote different aspects of your website. For example, one campaign might highlight your donation page while another simply promotes your homepage with background information about your cause.
• Connect your ad groups to your cause. Like your website’s landing pages, you’ll want to make sure your ad groups are focused on their respective topics as well as your organization’s mission. For example, if you’re an animal shelter looking for volunteers, your Volunteer ad group should include keywords like “volunteer at an animal shelter,” “work with cats and dogs,” and “help animals get adopted.”
• Use ad extensions to your advantage. Ad extensions invite users to click on your content by providing them with extra information. There are several different kinds of ad extensions. An example is callout extensions, which allow you to add bullet points under your ads to highlight what’s important.

While creating your account was easy, maintaining might be more complicated than you originally anticipated. Not to worry though! This just means you might benefit from the help of a professional agency. Google Grants agencies can save you time and energy by managing your Google Ad Grants for you.

What Are the Google Ad Grants Account Rules?

Just as Google has certain requirements for creating a Google Ad Grants account, they also have rules for keeping your account active. It’s important to follow these rules to not only run your account successfully but to also avoid suspension.

Google lists out the requirements for compliance in its official compliance guide, but we’ve summarized some of the most important ones below:

• Avoid using single-word keywords unless it is on this list of approved exceptions.
• Don’t use overly generic keywords.
• Only use keywords with a quality score higher than 2.
• Maintain a 5% monthly clickthrough rate (CTR).
• Set up conversion tracking with Google Analytics and Google Tag Manager.
• Create at least 2 ads per ad group and at least 2 ad groups per campaign.
• Include at least 2 sitelink ad extensions.
• Answer the yearly program survey.

To stay on top of these rules and any potential changes to them, make sure to regularly check the Google Ad Grants compliance page. You may want to bookmark it or schedule time on your calendar each month to review it. A Google Ad Grants agency could also answer any questions you may have about the program’s compliance requirements.

Why Was My Google Ad Grants Account Suspended?

As long as your account remains compliant with the program’s requirements, it will renew monthly, requiring no further action. However, not maintaining your account’s compliance could put your account at risk of suspension.

Take a look at some of the most common reasons Google Ad Grants accounts are suspended besides the compliance rules we’ve reviewed:

• Violating the program’s terms multiple times
• Not meeting eligibility criteria
• Losing 501(c)(3) tax-exempt status
• Abusing the ad network
• Not reverifying your account when asked to do so
• Falsifying information about your organization

If your account does get suspended, don’t panic! A Google Ad Grants agency can help you to figure out the problem and how to solve it to get your account back.

Can Someone Help Me Manage My Google Ad Grants Account?

Yes! If you’re at all confused or need help in any step of the Google Ad Grants process, a Google Ad Grants agency is equipped to help you out.

You could turn to a regular nonprofit marketing consultant, but for the expertise you’re looking for, a Google Ad Grants agency would be a better choice. Since they spend all their time working to manage Google Ad Grants, they have the knowledge of and familiarity with the program that you’re looking for.

Google Ad Grants agencies will manage the entire grant management process, including:

• Determining your Google Ad Grants eligibility
• Applying for the program
• Researching keywords
• Managing your campaigns
• Maintaining your account’s compliance
• Optimizing your pages
• Reactivating your account if it is suspended

Whatever you’re having trouble with, Google Ad Grants agencies are the best source of help for your questions about the program.

What Else Do I Need to Know About Google Ad Grants?

By now, we hope you feel like an expert on Google Ad Grants! Now that you know all about what they are, how you can use them, and how you can manage your account, you have all the tools you need to be a successful participant in the Google Ad Grants program.

However, we know you might have even more questions that we weren’t able to cover. In case that’s the case, here are some resources that can help:

• Google Ad Grants for Nonprofits: The Complete Guide. Want to take a look at another handy guide all about Google Ad Grants? Getting Attention has you covered.
• Why Are Google Ad Grants Confusing? And How to Simplify Them. We’ve just given you a lot of new information, so it’s likely you’re confused about some of it. Check out this article to sort out any confusions you may have.
• How to Optimize A Google Grant Account: 8 Mistakes & 9 Tips. Once you’ve gotten your account up and running, here are some tips for making it the best that it can be.

Fundraising is an increasingly data-driven activity, just like most other forms of business and marketing today. 

For nonprofits, this makes sense. Effectively stewarding your limited resources with quantitative insights derived from data is a responsibility that simply comes with running a nonprofit. It’s essential for growing your reach and pursuing your mission over time. 

Looking towards the new frontiers of nonprofit technology, artificial intelligence can take much of the guesswork out of campaign planning. However, you still need a solid understanding of the data that drives more technically complex processes that you might adopt, like AI.

But where do you start? What are the most important fundraising metrics that a nonprofit should prioritize tracking?

This is by no means an exhaustive list, and different metrics will be important in different circumstances, but here are what we consider to be three critical top-line metrics that nonprofits should track, study, and seek to improve for healthier fundraising and donor stewardship over time.

Fundraising ROI

Fundraising return on investment (ROI) is a fundamental metric that compares how much money you raise against how much you spent to raise it. 

ROI essentially tells you about the effectiveness of your fundraising campaigns—do they generate revenue through donations, or do they cost more money to run than they make? Both outcomes can be valuable learning experiences, but a negative ROI typically means you’ve encountered issues that need immediate attention to keep your program healthy.

How to Calculate It

To calculate fundraising ROI for a campaign:

• Subtract its total costs from its total returns (or the amount raised). This gives you your campaign or appeal’s net revenue.
• Then, divide the net revenue by the total costs. This is your ROI as a ratio. 
• Multiply this number by 100 to present it as a percentage.

A positive ROI indicates that you raised more than you spent and generated revenue. The greater the ROI, the more effective the fundraising appeal was at securing donations. A negative ROI indicates that you spent more than you raised and lost revenue.

How to Improve It

There’s a practically infinite number of tactical ways to improve ROI depending on the unique context, audience, and goals of your campaigns. This open-endedness is the reason why digging even deeper with data is so useful but can also feel overwhelming.

There’s one core concept to understand: You need to raise more while spending less. The most fundamental way to do this is by better targeting your campaigns to specific donors in order to improve returns. 

For example, rather than sending a direct mail appeal to an extremely broad segment of your donors, try tailoring your message to a smaller but more targeted list of donors who are actually likely to give right now. When you send the appeal, you’ll secure more and larger donations on average than you would have otherwise, and you’ll have spent less on printing and postage. The result is a stronger, positive ROI for the appeal.

Whether you’re seeking unrestricted annual gifts in a mail appeal, asking for support for a specific program via email, or inviting donors to your next big-ticket event, this underlying concept will improve your ROI. Machine learning technology offers the most direct way to get started targeting your donors, offering a quicker and more accurate approach than traditional data analysis techniques.

Donor Retention

Your nonprofit’s donor retention rate is the rate at which you retain active donors from one campaign (or other period of time) to another. How many donors who gave to one appeal gave again to the next one? What does churn look like in your regular giving program? How does your retention of those donors track over time?

Donor retention is critically important to your nonprofit’s bottom line. Retaining the support of existing donors is much more cost-effective than focusing solely on acquiring new ones. Tracking and continually seeking to improve your donor retention rate is a must.

After all, reaching new audiences, catching their attention, and inspiring them to give is a costly and time-consuming process. However, keeping existing donors excited about giving is an easier lift, and it allows your team to focus more on growing those relationships and gifts over time—meaning a larger base of support for more efficient fundraising in the future. This is especially true in your regular giving programs, where the cost of acquisition can be high.

How to Calculate It

To calculate your donor retention rate:

• Determine the timeframe or specific comparison for which you’d like to calculate your retention rate, for instance, annual retention in your regular giving program.
• Divide the number of retained donors at the end of the year (i.e. donors who stayed the whole time) by the number of donors at the beginning of the time period. This is your donor retention rate for that particular time frame.
• Multiply this number by 100 to present it as a percentage.

This will give you a top-line idea of how well your campaigns have retained the support of your existing donors. 

But remember that this formula does not account for donor acquisition, meaning you could see strong retention metrics that are in fact inflated with new donors who joined halfway through the time period. Donor acquisition is great news, but don’t lose track of how well you’re encouraging them to actually stick around over time. 

Effective data management software should make it easy to exclude specific types of donors, like those newly acquired, to keep your numbers accurate. The granularity to aim for will depend on exactly what you’re trying to accomplish, but it’s never a bad idea to dig deeper into the data when possible.

How to Improve It

Failing to retain donors, also called donor churn, can be caused by an extremely wide range of factors. Whatever the specific reasons that individuals choose not to engage with your campaigns, the overarching issue is that you’re losing their commitment. 

This is especially critical when it comes to your recurring donation program since these donors generate such high value for your organization over the long run and can be costly to acquire. The program only succeeds when the churn rate is low.

The best way we know how to address churn at its source is to proactively identify churn risks in advance. Artificial intelligence technology can be used to screen your nonprofit’s CRM, find patterns that lead to churn, and flag these individuals for extra attention. Engage them with phone calls, other forms of personal outreach, or event invites—just don’t ask for another donation right away.

Donor Lifetime Value

Donor lifetime value (LTV) is a measure of how much a donor gives to your organization from their first donation up until the time they stop giving. LTV is often averaged across particular segments of your donor base.

Understanding your donor LTV is important because it allows you to make all kinds of informed cost-benefit decisions relating to acquisition, retention, and stewardship.

For example, acquiring new donors can be costly, but if you know that your campaign will attract a segment of donors with a high average LTV, the cost of carefully acquiring them will be worth it. Additionally, tracking your donor LTV over time can reveal deeper retention issues—if the average lifetime value of a core segment of your donor base is falling, you’re losing them to churn and should address it.

How to Calculate It

To calculate donor lifetime value, use the following formula:

Donor Lifetime Value = Average Donor Lifespan x Average Donation x Donor Frequency

To generate the metrics necessary for the formula, you’ll need to make some initial calculations:

• Compile the set of donors whose lifetime values you’ll be averaging, whether that’s your entire donor base or just one segment.
• Determine the average number of years that donors in your segment actively give donations (Average Donor Lifespan).
• Divide the total value of donations made by those donors by the number of individual donors (Average Donation).
• Divide the total number of donations in a recent period (for instance, 5 years) by the total number of individual donors. Then, divide again by the number of years during which the donations were made (Donor Frequency).
• Multiply your Average Lifespan, Donation, and Frequency numbers to generate your LTV for that set of donors over that specific timeframe.

Here’s an example: If 100 donors have given 1,000 gifts (totalling $100,000) in the past 5 years, and your average donor gives for 10 years, your LTV is:

Average lifespan = 10 years

Average donation = ($100,000 / 1,000 gifts) = $100

Donor frequency = (1,000 gifts / 100 donors / 5 years) = 2 gifts per donor per year

10 Years x $100 x 2 gifts = $2,000 LTV

In other words, these donors give 2 gifts of $100 every year for 10 years. The retained support of one of these donors represents a total of $2,000 for your mission over time.

How to Improve It

Many factors and unique contextual elements impact donor LTV, so it can be difficult to lay out a one-size-fits-all improvement strategy. However, the underlying issue is that donors aren’t sticking around long enough to give more and larger gifts over time. 

Churn and disengagement are often at the root of dropping LTV metrics—anything you can do to retain donors and keep them excited about your mission should help. Identify at-risk donors in advance so you can personally reach out, invite them to more events, diversify your campaign offerings, and send a wider range of messages than just the same appeals each year. 

To proactively improve LTV, pursue new stewardship opportunities, like by using AI to identify potential mid-level donors and singling them out for individual outreach. You can also explore corporate giving connections to help donors generate more value for your mission without needing to make more donations themselves.

The exact strategies you roll out to improve any of these metrics will vary based on the unique context and goals. But most importantly, be sure to actively track them over time and use tools like AI and a robust CRM platform to simplify the process of organizing and studying them. 

By taking a strategic approach backed up with data, you can begin to develop concrete acquisition, engagement, and retention strategies for each bracket of your donor base as your organization grows.