Key Donor Segments for a Better Year-End Appeal

Do you want to craft a more effective year-end fundraising appeal?

Don’t take a one-size-fits-all approach. Instead of sending a generic message to all of your supporters, you can improve your results by segmenting your donor base and tailoring your message accordingly.

Donor segmentation is the process of splitting your donors up into specific groups with shared features, based on what you know about them. Each group, or donor segment, then receives a tailored message during your campaign. Segmenting your outreach lets you personalize your appeals to inspire new supporters to make their first contribution—and motivate existing donors to give again. No matter the size of your nonprofit, it’s an important fundraising strategy that enables you to communicate with supporters in a more individualized way.

While there are numerous ways to segment your donor base, keep in mind that you’ll need to send a unique message to each group. And we know that you only have limited time. To make the most of it, start by drafting a basic message that everyone will receive. But before you schedule your year-end fundraising emails, print letters, or stuff envelopes, check out these key donor segments and how to use them to tailor your outreach:

Segment #1 = Your Current Donors

Only 2 out of 10 new donors will give a second time, but 6 out of 10 second-time donors will make a third gift. So the second gift you get from a donor is perhaps more important than the first.  This means you shouldn’t overlook (or undervalue) people who have already donated to your nonprofit this year.

Use your donor database to pull a report of your current donors that includes:

• new donors
• multi-year donors who gave in 2021, and
• recurring donors

Your report should include information about when and how much they gave. You’ll also want to know if they contributed to a particular fundraising campaign. Reference these details in your year-end appeal and give thanks for their last gift. Then invite them to increase their impact with an end-of-year contribution.

Segment #2 = Your Past Donors 

We already know that many of your first-time donors—80% on average—are unlikely to give again. While thanking your donors in a timely manner and staying in touch can increase giving rates, past donors also need special care and attention in your end-of-year outreach.

For this donor segment, create a report that includes:

• lapsed donors: those who gave LYBUNT (Last Year But Unfortunately Not This)
• prior year donors: those who gave SYBUNT (Some Years But Unfortunately Not This), and
• long-lapsed donors: those who haven’t donated for 2 years or longer

Like your current donor segment, you’ll want to know the details about your past donors’ last gift, mention them in your appeal letter, and say thank you. Remind past donors why they gave before and offer them a new way to engage. Instead of a larger one-time donation, they might make a smaller recurring gift or even simply share your online campaign on social media.

Segment #3 = your Volunteers

Research shows that 87% of volunteers also donate to charity, and 42% contribute financially to the organizations they volunteer with. This means volunteers make up one of your most important donor segments. They already share your vision and dedicate their time to your cause, so don’t leave them out of your year-end campaign. Instead, invite them to contribute in a different way.

Your volunteer report should include:

• All of your current and previous years’ volunteers

Tailor your outreach to this group to acknowledge the time they’ve donated. Include details about what program they volunteered with and what their impact was. If possible, this segment should receive a year-end appeal from someone they’ve worked closely with, like a volunteer coordinator or program manager.

Since almost a third of charitable giving happens in the last month of the year, it’s the perfect time to start segmenting your communications. With some basic donor and volunteer data, you can use these donor segments and tailored messaging to boost your year-end fundraising results.

Have you reached out to a certain donor segment successfully? We’d love to hear your story!