Many charities are facing the pressure of having to meet aggressive fundraising revenue targets, in an increasingly challenging fundraising landscape, while keeping expenses as trim as possible.

There is an understandable impulse to be very efficient and take the most cost-effective acquisition route to raising as much money as you can right away; however, done in isolation, without careful thought as to whom to ask, when and how, and without a donor journey ready to go, you can be limiting your chances for fundraising success when you go back to those new reactivated donors next year.

It’s the fundraising equivalent of racing around the orchard, yanking apples from branches, and filling up the basket for the sake of filling up as fast as you can. Have you plucked apples that were actually ripe? Have you damaged your tree so it won’t yield as much next year?

Hopefully you’re using a mix of activities such as door-to-door solicitations, social media ads, delving into your donor database to reactivate long-lapsed donors through an acquisition direct mail package, or a mix of the above. (We do love us a good multi-channel approach!) But are you ready to welcome these new donors in a meaningful way and take them on a thoughtful journey before you ask them for a second gift? If not, then you’re not setting yourself up as best you can for future success!

Our newest Direct Mail Benchmarks show that, as sector, we could be making better progress with our renewal rates. We hit 59% this past year versus 61% the year prior. While this may have been impacted by the postal strike at the end of 2024, our research shows the sector has been stuck around the 60% mark. And we have room to improve on our 10.63% reactivation rate. While the cost per acquisition has (hopefully) stabilized at levels lower than the $200+ peaks we saw in 2022 and 2023, you still don’t want to squander your investment into acquisition by not being prepared to nurture a relationship with your new donors.

So, how do you maintain a balanced approach that meets the need for short-term yield while building for future success? Here are a few things to keep in mind when making decisions about where to invest your hard-won budget dollars!

• Metrics: Do you have a mix of targets for acquisition, conversion, retention, and upgradation? If you’re heavily weighted in one area, that will naturally become overly-represented in where you spend your efforts and budget. Which means you could be over-investing in short wins vs long-term growth or vice versa.
• Channels: Are you taking an integrated, muti-channel approach? Direct mail still drives more revenue than digital (56% more); however, 60% of donors who receive a direct mail opt to give online. Charities using an integrated, multi-channel approach see higher response rates and average gift amounts.
• Donor Segmentation and Journey Mapping: Who are your donors and how do you as one of the 100,000+ charities in Canada fit into their life? Why did they choose to make that first gift to you? And what is about your work that aligns with their values and celebrates who they are that will compel them to make a second gift…and another? The better you can integrate philanthropic psychology into your messaging, the greater the bond you foster and greater your fundraising revenue grows.

What would you add to this list? (Apple pie recipes or tips are also welcome!)