Donor Stewardship: Building Relationships and Retaining Donors

Ever witness how some organizations seem to have such wonderful loyal followings, and year after year, decade after decade always seem to be able to easily raise lots of money? These are the same organizations that never seem to have a problem with getting volunteers, high-caliber Board members, and great support for their case and cause. It is a tried-and-true fact that in development, over time, thoughtful well executed donor stewardship practices raise more money, friends, and followers. How did they get to that position and what are they doing that others are not? The answer is simple: these top-of-the-class organizations all have solid, well executed donor stewardship practices.

While the term donor stewardship or stewardship is often used interchangeably with donor relations, true stewardship is considered a subset of donor relations, a more comprehensive term in the industry. Stewardship is also a widely used term in religious circles and faith-based organizations often in place of donor stewardship. It is long believed that “stewardship” must be foundational to the underpinning of organizational philosophy and a priority. At the very least, it must be a priority amongst those on the staff level who are charged with development.

Creating and maintaining connections, relationships and partnerships with donors is an absolute necessity. There is such strong competition for scarce charitable dollars and loyal donors, every means, whether state-of-the-art technology or good old-fashioned methods must be employed to remain viable. What are staffers doing to make sure to get their share of the pie and more importantly to develop those donor/staff relationships everyone talk so much about?

One definition of donor stewardship is “the love, care, and feeding of donors or constituency.” The term stewardship seems misunderstood and not known or appreciated by many today. In a speech about stewardship to a diverse group of college students each was given a slip of paper with the question, “Define stewardship?” One can imagine the answers given. Responses included: “When someone gives to me,” “Giving to others,” “Being good a steward,” “To take care of things,” “It’s a religious thing,” and “I am not sure what it is.” This was the understanding among at least these young adults. 

A major gift donor once said to a career development officer, “The thing I like about you is that 90% of the time when you visit me, you’re not asking for money. I have several non-profits I give to that I only hear from when they want money.” This is a testament to how some donors feel about their relationships with the organizations they support. This donor appreciated how she was not viewed as a bank to make a withdrawal. Appreciating the importance of donor identity is a basic concept in human nature and behavior, and a deeper implication of what it is to be a good steward of the individual donor relationship. There is a well-known brokerage firm with the ad, “Your client won’t care how much you know — until they know how much you care.” Whoever wrote this ad understands what motivates human beings. If an organization can care for its donors and constituencies like their own family, imagine the impact and results that would develop from that relationship. How much does your organization care about its patrons?

Are you going to embrace your supporters and take care of them like your own family members? If you don’t a competing non-profit will or is already. 

Human beings want to give. People want to help others and make the world a better place. They also desire acts of appreciation and gestures of thankfulness.

In Southern Louisiana, the culture is warm, and hospitality is taken with great pride. It’s a special way Southerners like to think of as a form of stewardship. People hug, kiss, and offer food and drink with happy hearts to friends and even strangers. In some shops during Mardi Gras season, King Cakes are delivered to leadership donors. This investment has proven over and over to be lots of fun for donors and profitable for upcoming annual appeals.

Once a development officer, according to the story, was charged with building an advancement program literally from less than 500 donors of record. One of the very first actions was to call all donors to say hello, make the introduction and thank them for their financial support, regardless of the amount or how long ago it took place. The reactions were extremely positive. Many said that it was the first time in their life a non-profit called just to say, “thank you” and was not asking for a repeat or initial contribution. A positive impression was made and set the tone for stewardship with this simple act and proved to be a wonderful loyalty-building practice. In the same organization, the practice was initiated for the CEO personally hand sign every single thank you letter. At first, the CEO objected, but after a while, he began to know the names of our donors and “got it.” It showed the organization cared. Donors appreciated it. Giving increased.

For success in donor engagement, it’s essential to establish a comprehensive Donor Stewardship Policy that encompasses guidelines for all donors, whether they contribute regularly or on special occasions. This policy should receive formal endorsement from your organization’s CEO, Board, and staff members. A constructive initial step is crafting a donor stewardship mission statement during a staff or board retreat, especially if it’s not yet a part of your standard practices. It’s crucial to understand that stewardship extends beyond mere expressions of gratitude. Effective stewardship involves keeping donors updated, demonstrating the tangible outcomes of their contributions, and offering them opportunities for personal involvement with the mission of your organization.

We recommend creating and distributing personalized greeting cards for occasions such as Thanksgiving, Easter, anniversaries, birthdays, weddings, graduations, and times of mourning. Acknowledging these significant moments in donors’ lives with tailored communications is a key strategy for maintaining engagement.

Utilizing a mix of digital and traditional communication methods—including e-newsletters, social media updates, web articles, blogs, and printed newsletters or magazines—serves as an excellent standard operating procedure.

Leveraging digital tools like ThankView, along with the irreplaceable value of handwritten notes from your organization’s leadership, Board members, and even beneficiaries, represents another best practice in donor engagement.

Should budget constraints limit the scope of your desired donor relations program, never underestimate the power of direct, personal interactions. Phone calls, informal thank-you meetings over coffee, handwritten notes, and thoughtful cards for significant life events can significantly impact donor relationships. These strategies may require an investment of time from volunteers and staff, but they are cost-effective and deeply meaningful ways to demonstrate appreciation and build lasting connections.

If it has been a year since a donor last received a simple thank-you call or a generic acknowledgment letter, it’s time to reevaluate and enhance your stewardship efforts to ensure every contributor feels valued and engaged.

In the model development office, this is who should be included in your donor stewardship plan:

• Volunteers/Board/Staff
• Current Donors
• Corporate Sponsors
• LYBNTS/SYBNTS (Last Year But Not This Year/Some Year But Not This Year)
• Prospective Donors
• Special Event Attendees
• Clients/Recipients
• Vendors

Major policies and or components that should be in place:

• Centralized system (CMS) to capture and meticulously keep accurate database records of donors/volunteers that come in contact with the organization
• Minimum time after a gift is received the donor is thanked and acknowledged. (letter should include the thank you, date of gift, $ amount, appeal, purpose/designation of gift, amount deductible if any, and case for support highlight(s)
• Minimum number of touches/contacts per donor/supporter per year
• Annual Report to supporters of some kind should be published and distributed

Recommended best practices or KPI’s for donor stewardship

Give your organization one point for each item that you can take credit or practice.

1. Written Donor Stewardship SOP are followed and revised annually
2. Donors are thanked, regardless of the size of the gift either by phone, e-mail, or hard copy mailed letter within 48-72 hours
3. The CEO is assigned and makes at least one personal thank-you call to a top 100 donor every workday
4. Board members are regularly assigned to make thank-you calls to appropriate donor categories
5. Donors and volunteers are thanked in person at every opportunity
6. Staff are assigned to make thank you calls immediately upon receipt of whatever is considered a major gift
7. A record of contacts, personal touches, or thank you communications are maintained in a database or CMS of donor records
8. Fulfillment of all leadership giving/legacy society benefits and perks are rigorously and properly maintained
9. An annual hard copy newsletter-type publication is mailed to all donors
10. Fully utilizes the often-neglected powerful stewardship/donor relations tools built into your development software
11. Mail hard copy newsletters/special updates issued on a quarterly basis to leadership giving society members at least annually
12. A Wall of Recognition is regularly maintained in an appropriate high-traffic office/institutional facility
13. Named and memorial gift buildings, room, meeting space lettered signs, plaques and the like are cosmetically maintained
14. Annual or periodic donor appreciation events (not conducted as fundraisers) are conducted
15. Donor recognition awards are presented annually
16. Life milestone organization branded greeting cards for Thanksgiving, Easter, birthdays, anniversaries, bereavement, weddings, etc. are used as an SOP. If hard copy cards are not within budget, e-cards are used as necessary.
17. Blank organization-branded greeting cards are readily available for stewardship, cultivation, and general handwritten messages to donors
18. Each year standard and special appeal thank you letters are revised and updated with fresh and new messages of thanks and appreciation

Less than 6 points: Indicates that the organization’s stewardship practices may need significant improvement. There may be several key areas where the organization is not effectively engaging with donors or properly stewarding their support. It suggests that more attention, staff time, and budget may need to be dedicated to enhancing stewardship efforts.

7 to 12 points: Indicates that the organization has some foundational stewardship practices in place but may have room for improvement in certain areas. While they are engaging with donors and showing appreciation to some extent, there are still areas where they could enhance efforts to build stronger donor relationships and ensure effective stewardship.

13 to 18 points: Indicates that the organization is performing well in stewardship practices, implementing a variety of strategies to engage with donors, show appreciation for their support, and maintain strong relationships. The efforts demonstrate a commitment to effective stewardship and are likely contributing to donor satisfaction and retention. However, there are always opportunities for refinement and further enhancement of stewardship practices to ensure continued success.

Final thoughts

Effective donor stewardship is paramount for organizations striving to build lasting relationships and retain loyal supporters. Top-performing nonprofits understand the significance of stewardship, viewing it as a fundamental aspect of their organizational philosophy. By prioritizing donor care and engagement, these organizations foster trust, loyalty, and enthusiasm among their supporters, leading to sustained financial contributions and active involvement in their mission.

To excel in donor stewardship, organizations must go beyond mere expressions of gratitude. They should establish comprehensive policies that outline guidelines for engaging with donors at every level. Personalized communication, both digital and traditional, plays a crucial role in maintaining connections and demonstrating appreciation. From handwritten notes to personalized greeting cards, every interaction should reflect genuine care and acknowledgment of donors’ contributions.

Moreover, stewardship efforts should extend to various stakeholders, including volunteers, Board members, corporate sponsors, and prospective donors. By implementing practices such as timely acknowledgments, personal thank-you calls, and donor appreciation events, organizations can strengthen relationships and ensure that every supporter feels valued and engaged.

Ultimately, successful donor stewardship requires ongoing dedication, investment of resources, and a commitment to prioritizing donor relationships. By embracing stewardship practices wholeheartedly, organizations can not only secure financial support but also cultivate a community of passionate advocates dedicated to advancing their mission and cause.