Donor attrition is inevitable, but learning to mitigate this inevitably can be the difference between sustainability and downfall. This article explains how to identify lapsing, lapsed, and inactive donors, create a plan to manage them, run a cost/benefit analysis on your appeals, and carefully consider your communication strategy.
For the purpose of this example, we are defining donors whose last gift was between 12-24 months ago as Lapsing Donors, while those whose last gift was over 24 months ago as Lapsed Donors. We'll look more closely at four buckets and and suggest some strategies to keep them from slipping away:
Almost Lapsing
Lapsing
Almost Lapsed
Lapsed
We'll utilize the click-through reports of your Donor Retention wheel, and modify them for each bucket. You may use Bloomerang CRM's default retention wheel filters, or your customized filters. You can then use these reports in your letters and emails. We recommend running these reports and communications about once a month so you have a manageable list, and the sooner you re-engage the donor, the better.
Almost Lapsing Donors
These are donors whose last gift was 11-12 months ago. They aren't in danger yet, but you don't want a year to go by since their last gift. You may choose not to send these donors an appeal just yet - as they still have time before they are considered lapsing - but it is worth keeping an eye on them.
Consider that their last gift was likely to a special appeal at this time last year, and make sure that they are on the list for this year's appeal. If their last or only gift was to a special event, consider running an "unrestricted" appeal at about the same time as last year's event.
Report on Almost Lapsing Donors
Click on lapsing donor segment from the Donor Retention wheel. This opens the report with the filters applied, and the output set to Household.
Under Include, click Has any Specific Transactions, then click Date is last fiscal year.
Click Last fiscal year, and select Previous number of days.
Enter 365, click Ok, then Ok again.
Under Exclude, click Has any Specific Transactions, then click Date is this fiscal year.
Click This fiscal year, and select Previous number of days.
Enter 335, click Ok, then Ok again.
Save your report.
This should give you a list of households whose last gift was between 11-12 months ago.
Lapsing Donors
These are donors whose last gift was 12-13 months ago. They have just moved into the lapsing bucket.
No donor considers themselves "lapsed" or "lapsing," and this is something you should never mention in your communications. Instead focus on their impact and what you have accomplished since their last gift. You can say something like, "Thank you for your support! Since your last gift on [date], we have accomplished..." or "It's been just a year since your last gift to [your organization], a lot has happened since then..."
Report on Lapsing Donors
Copy the report on Almost Lapsing Donors.
Under Include, click Has any Specific Transactions, then click the Date filter.
Enter 395, click Ok, then Ok again.
Under Exclude, click Has any Specific Transactions, then click the Date filter.
Enter 365, click Ok, then Ok again.
Save your report.
This should give you a list of households whose last gift was between 12-13 months ago.
Almost Lapsed Donors
These are donors whose last gift was 23-24 months ago. They are on the upper limit of your lapsing donors and are in danger of becoming lapsed.
In your communications, consider language that sets an expectation but remember to always convey gratitude for past support. "Next month, it will have been two years since your last gift. We'll always be grateful for it! But our policy is to drop people from our regular mailing list after two years. We will still drop you a note or an email once or twice a year; but you won't be receiving our quarterly newsletter or our special event invitations -- unless you renew your support with a gift today!!!"
Report on Lapsing Donors
Copy the report on Lapsing Donors.
Under Include, click Has any Specific Transactions, then click the Date filter.
Enter 730, click Ok, then Ok again.
Under Exclude, click Has any Specific Transactions, then click the Date filter
Enter 699, click Ok, then Ok again.
Save your report.
This should give you a list of households whose last gift was between 23-24 months ago.
Lapsed Donors
These are donors whose last gift was over 24 months ago. There could be many reasons for why a donor lapsed. Activate your Lapsed Donor Survey to automatically send out a survey to lapsed donors and find out why they stopped giving. Download The Fundraiser's Guide to Re-Engaging Lapsed Donors for tips on how to win these donors back.
Aside from these tips, once a year -- maybe as a segment to your year end appeal, maybe as its own separate mailing/email -- solicit all your 25-month to 5-year lapsed donors with an email or even a letter. As with earlier communications, focus on gratitude and the impact. Something like "You may not have seen all that's happened, but your gift a few years ago was part of what made it all possible..." could just win them back.
Report on Lapsed Donors
Copy the report on Lapsing Donors.
Under Include, click Has any Specific Transactions, then click the Date filter.
Enter 1825, click Ok, then Ok again.
Under Exclude, click Has any Specific Transactions, then click the Date filter
Enter 730, click Ok, then Ok again.
Save your report.
This should give you a list of households whose last gift was between 23-24 months ago.
Next Steps
Talk among your colleagues and define what lapsing and lapsed means for your organization. Adjust the filters according to your definition.
If you are not able to address all these buckets, which are most important for your organization? As you go along and the lists become more manageable, you might be able to revisit this later and do more.
Think about other exclusions you might want to make. If a donor hasn't given within your defined time frame, could they be giving in other ways? For example, is anyone on your list an active volunteer?
What are your plans for ongoing cultivation once you re-engage the donor?
What are your plans if you an unable to re-engage the donor? When do you consider a donor to be inactive?