Many nonprofits have either neglected or mismanaged their mid-level donors. In addition, research tells us that it is easier for major donors to naturally migrate out of direct response files than to encourage mid-level giving. Developing a mid-level donor program is hard work and hence, for many, it has been avoided.
Today, however, with the number of direct response donors shrinking, focusing on mid-level donors has become a necessity. And while the upside of a vibrant mid-level program is attractive, there are also many pitfalls to jumping into this development process unprepared.
In the coming paragraphs, I hope to outline a prudent process of developing a mid-level donor program that minimizes your chances of failure and maximizes your chances of building a program that is properly tailored to your donor base.
We believe that every nonprofit donor base is different. Yes, there are similarities and best practices that drive much of our thinking. But the specific strategies we recommend are driven first by the historical giving data available, combined with the unique goals of each nonprofit.
For this reason, the first step in developing a vibrant mid-level donor program is understanding the unique historical giving profiles of your current donors. The definition of a mid-level donor will vary by nonprofit, and believe it or not, your data will tell you where the most potential is located.
For some, the bar may be $1,000 in annual giving. For others it might be as high as $3,000 or as low as $500. But the data will indicate where this optimal transition giving level is located.
Can it change over time? Of course. Can you develop aspirational goals to raise this level? Absolutely! But go in with your eyes open as to what is immediately possible and what is reasonably achievable over time.
The initial gifts of mid and major donors are often similar, but RKD giving data research bears out two distinct differences.
Given the above facts, it is imperative to do donor research early on to determine the correct path for those donors with significant upgrade potential. Research can triage donors into four primary upgrade categories:
At RKD, we look at three primary factors to determine the upgrade potential of these groups:
These three primary factors, along with 2,000 additional individual attributes, determine which upgrade category is best suited for the donor. Once targeted, the donor will fall into a communication strategy designed to optimize their long-term giving.
For the sake of this article, we will expound on mid-level giving only, but make note, each of the four upgrade categories require a disciplined communication plan and development track to optimize their potential.
When it comes to mid-level donor programs, there is no one definitive type of program that ensures success. Success can be achieved via a variety of methods, but one axiom rings true throughout: be disciplined and consistent over time.
Half the battle of being able to judge success is having reliable data. A consistent program will afford you the baseline numbers over time that will make reliable analysis possible. Also, don’t expect an immediate exponential return on investment. Year-over-year progress will be evident, but exponential growth takes time. Fortunately, thoughtful analytics and disciplined review can minimize your risk and maximize your return over the first three years.
With that said, RKD has developed successful mid-level giving programs that set a standard in form and style.
Again, it is important to note here that “one size fits all” is not a way to approach this opportunity. The unique drivers of the program are:
Program goals – Some mid-level giving programs are specifically designed to increase renewal. Due to the cause and offer, data research may indicate this program could start earlier in the giving process, focusing on cumulative giving above $500. Other programs can easily lift this number to $2,000, $3,000 or $5,000. Remember, advanced analytics combined with your program goals will lead the way.
Metrics for success – Understanding how to properly measure mid-level giving success is often misunderstood. Many fundraisers think with a direct response mindset, so they structure their metrics in that fashion—Did this call/text/email generate a response or a gift? But mid-level giving is different. It’s more personal. It’s more human. Here the focus is on quality output and stewardship. Reset your expectations and focus on measuring consistent execution of the plan.
Size – Some smaller programs may be forced into a more Spartan mid-level giving program because of the limited number of donors who will fall into this giving target.
Desired flexibility – Some nonprofits, due to a variety of factors above, may desire increased flexibility in moving donors in and out of the mid-level giving group. Pragmatically speaking, dedicating budget and energy to the program at this time is just not a priority. Still, even in these situations, a mid-level program can be designed purely off data, variable copy and increased package quality.
The end result is that some mid-level giving programs have a special name, branded materials, giving levels and benefits. Other programs may be as simple as more expensive packaging, a slightly lighter mail schedule, increased postage or special copy. At the end of the day, however, following these guidelines will help develop a mid-level giving program tailored to fit your specific cause and donor profile.