6 What’s the Big Deal? Top 5 Reasons To Pay Attention to Receipting: 1.Improves New Donor Retention 2.Reduces Multi-Year Donor Attrition 3.Educates the Donors For Better LTV 4.Increases Revenue 5.Ministers to the Donor
7 Receipts Impact Retention/Attrition 3 Primary Reasons Why Donors Lapse: 1.Donor/Donation Wasn’t Appreciated/Acknowledged -Receipt Not Sent or Sent Too Slowly -Misspelled Name/Address, Wrong Gift Amount or Impersonal 2.2 nd Gift Request Sent Too Soon 3.Follow up Ask Was For Too Much
Campbell Rinker Research 8 Dec 2009 Internet Survey An organization’s actions need to speak to quality record-keeping and management first. Today’s donor thinks an organization should send a thank-you sooner than they send a gift acknowledgement for tax purposes. However, fewer donors expect gratitude at all from the organizations they support. Quality record-keeping trumps manners in terms of correct protocol among donors. Sending a gift receipt that doubles as a thank-you to donors is probably most appropriate for gifts of $25 or less. Gifts over $25 probably merit some additional attention to deliver the most positive impression. How much more attention is a tactical decision best left to the nonprofit, but at minimum mailing separate thank-you’s and tax receipts might be a good start. More individual attention could be added to the thank-you as the gift size increases. Organizations should strive to send a mail acknowledgement within a week of receiving a gift. This will meet the expectations of all but about 15% of donors, who expect a gift receipt sooner. Receipts for electronic gifts might be generated automatically and sent via return e-mail when the gift is made. Nonprofits should use their discretion as to what level of online gift requires a paper
9 The Receipt Design The 4 Most Important Elements: 1.The Receipt! -Make it first. Donor/Mission info. Gift amount. Deductibility. Year-to-Date Giving. 2.The Thank You. -Short letter. Make it Personal. Photos are nice. 3.The Reply. -Soft Ask. Mission Address Shows Through CRE. 4.The Outer Envelope. -Make it Difference From Appeals. Teaser/Photo is Important.
13 Receipt Myths 1.Every Gift Must Be Receipted. -$250+ and $75+ if including goods and services. 2.Receipts Can Be Mailed With Non-Profit Postage. - Tricky One. Best Practice says No! 3.Online Gifts Need/Should Not Be Receipted. - No. While they need not, they should be paper receipted. 4.Donors Get Angry Due to Mailed Receipts. - Not generally. 5.Receipts Must Have Orgs/Donors Tax ID/SS Info. - No. IRS Rules are pretty open. 6.Receipt Should Include Tax Statement. -Yes. But IRS rules are flexible on wording and format.
15 R-E-C-E-I-P-T Rapid! – Acknowledge all gifts within 24 to 48 hours. Efficient – A receipt communicates your ministries use of the gift in an efficient manner. Be careful not to overdo it (as some charities do). Remember, the Mission brand is tied closely to cost-efficiency (doing a lot with a little) so we must be careful not to communicate waste. Confirm – Use your receipt to reconfirm the gift amount, purpose and mission/vision of your ministry. Educate – The receipt is a great place to begin broadening the donor’s knowledge of your organization. Be selective, don’t include a 12-page color annual report but help them learn more about your programs. Include – Receipt. Thank You. Reply Device. Courtesy Reply (window) Envelope. Photos? (Inserts, planned giving, announcements, events, testimonies or brochure). Personal – By Name (no labels), handwritten notes, correct gift amount, year-to-date giving. Track – Be sure you have a good way to record your Thank You / Receipt responses. Separate from White Mail. If you can track by campaign or by month it is helpful for budgeting purposes.
THANK YOU! Randy Brewer (626) 359-1015 firstname.lastname@example.org www.brewerdirect.com