Four Philanthropy Essentials: Communication - Part 2

Four Philanthropy Essentials: Harnessing Your Data

Effective donor stewardship is both an art and a science. We often find that nonprofits have a comfort level with the art—the relational aspect of development and stewardship. But many feel intimidated by the science. In this series, Four Philanthropy Essentials, we’re outlining the key strategies every charitable organization should have in place for the healthy stewardship of donors.

It’s time to conquer the fear: understanding your donor patterns and trends is a critical part of your stewardship, and it’s absolutely essential to a healthy giving program. With a few simple habits, you can begin harnessing the information you have to better acknowledge, communicate with, and steward your donors.

ESSENTIAL #2: Harness Your Donor Data

💡 1. Take the time to study your giving data and patterns.

• Run reports from your database to identify recurring donors and their giving habits.
• Determine what percentage of your donors give online versus by paper check.
• Identify donors who have set up recurring gifts (credit card or ACH).
• Flag new, first-time donors.

Tip: Your database doesn’t need to be sophisticated to provide these insights. Even a basic Excel spreadsheet can help you organize and analyze this information. Plan regular (at least quarterly) deep dives into your data.

💡 2. Study reports to flag key donor behaviors.

• Look for increases in donor giving or contributions to specific campaigns.
• Review open rates for emails and engagement metrics for social posts. These analytics reveal donor interests and giving trends.

💡 3. Pay attention to gifts received through Donor-Advised Funds (DAFs).

• Donors giving through DAFs are often passionate and intentional.
• Develop a stewardship plan tailored to these donors, even though you won’t receipt these gifts for tax purposes.

💡 4. Use your database or giving platform to identify trends.

• Track lapsed donors who haven’t given recently.
• Identify monthly givers who have stopped contributing (e.g., due to expired credit cards).
• Even if your database is basic, perform this review manually once a quarter. It’s time well spent.

Why This Matters

Taking these steps can establish benchmarks to assess the health—and future growth—of your stewardship program. They also provide a way to identify new opportunities:
✅ Spot donors who may become major gift prospects.
✅ Understand donor preferences and tailor your communication strategies.
✅ Strengthen relationships by addressing lapsed or disrupted giving patterns.

For example:

• If recurring donors giving via credit card or ACH make more consistent contributions than those writing checks, focus on promoting automatic giving options.
• If many first-time donors fail to give again within six months, adjust your communication and acknowledgment efforts to better engage this group.

Looking Ahead

Your donor data holds valuable insights that can inform your communication and stewardship strategies. By pairing this "science" with the "art" of relationship-building, you can strengthen your nonprofit’s mission and deepen donor relationships.

In the coming weeks, we’ll explore additional philanthropy essentials, including personalized acknowledgments and the basics of non-cash (asset) giving.

Tim Smith