By Kurt Worrell, SVP Donor Engagement and Non-Profit Strategies , Publishing Concepts

 

The concept of the giving pyramid no longer exists. Why do I believe this? For one, the face of donor acquisition has changed completely. With the rising cost of postage, minuscule response rates, and a 13.8% retention rate (FEP 2024), what used to be a 24-month payback is now more than three years for many organizations. Donors at the low-dollar level (less than $100) account for the most significant declining donor group. Secondly, the harsh reality is that donors who joined at less than $50 have approximately  a 1% chance of making a gift of $1,000 or more over the next 10 years. The majority of donors just don’t move in a linear fashion anymore.

I share these thoughts not to discourage you but to emphasize the need to change our  approach to retaining and growing our donor base. The importance of your mid-level donor segment has never been greater. For many organizations, mid-level donors represent 35%+ of annual giving revenue and typically about 5% of the annual giving population.

Each organization defines mid-level donors differently. I consider mid-level donors to be those giving $1,000+ who are not in an active major gift portfolio. An effective mid-level program must have a full life-cycle strategy, including acquisition, retention, growth, and movement.

Acquisition into Mid-Level

Donors join the mid-level ranks in one of two ways: they either grow their cumulative annual giving or make their first gift at the mid-level threshold. The best place to find these donors is your organic pipelines (alumni, patients and their families, followers, and subscribers). Focus your donor acquisition efforts on creating a content stream to engage prospective donors before they make a gift. Identify prospect pools with the potential to give at the $1,000+ annual level. Provide them with something of value—not a premium like labels or tote bags, but meaningful information delivered through their preferred channel that engages their interests. Delight them with storytelling.

For existing donors, creating a donor journey that includes meaningful stewardship will keep them engaged and show them that they are important to you. This can take the form of impact reports, authentic and personal gratitude, educational opportunities, webinars, offers of tours, and recognition of giving anniversaries and birthdays. Make it personal. When donors reach a giving threshold (e.g., $500), kick off the journey. Evaluate your donors monthly or quarterly and invest in growing these donors into your mid-level segment.

Strategies for Retaining and Upgrading Mid-Level Donors

First, you have to treat these donors differently than your $50 donors. A named giving society is not a program.  It is critical to show them that they are on your radar and you value their generosity and feedback.

1. Talk to Your Mid-Level Donors

The first objective with major gift prospects is to interview them and learn more about them. You need to make that same investment in your mid-level segment. Find out their “why.” Understanding their motivation for giving, what is most important to them about the work you do, where you rank in their philanthropic priorities, their current state of consideration, and their big life-stage events. Never introduce an ask during an interview. Lead with stewardship, and have a plan to capture and retain the information learned.

2. Identify Your Pioneers and Settlers

Not all of these mid-level donors are the same.  By discovering who is possibly open to doing more you can segment this population and better personalize your outreach to this group.

  • Pioneers: These donors show capacity and engagement, indicating potential growth to transformational giving.  This is the group where your major gift prospects will come from.
  • Settlers: These are loyal, long-time donors who are likely giving at their maximum capacity. Meet them where they are and capture their preferences (e.g., preferred communication channels, timing of gifts, stewardship preferences). Settlers make outstanding gift-planning prospects.

3. Consider Creating Portfolios of Mid-Level Donors

Just like with major donor management, creating portfolios and providing personalized outreach is a powerful way to grow and retain your mid-level segment. Here’s how a Donor Experience Officer might operate with a mid-level donor portfolio:

  • Manage a portfolio of 1,000 donors to annual performance benchmarks.
  • Conduct annual donor interviews to identify growth opportunities and preferences.
  • Thank donors promptly, personally, and often via phone, email and hand-written notes
  • Utilize impact reports to personalize outreach based on donor preferences.  Match what you know the individual donor cares most about with the work that you are doing.
  • Create and send email and direct mail templates tailored for each donor.
  • Engage donors authentically via telephone, email, and personal notes.
  • Share compelling stories about the impact of their generosity.
  • Collect donor stories and conduct surveys.
  • Provide high-touch, multichannel engagement monthly, including thank-yous and impact reporting.
  • Experiment with innovative solutions to make donors feel like insiders. For example, provide a donor update from a board meeting or create learning opportunities around your mission.
  • Make asks whenever the opportunity arises.
  • Email the portfolio monthly with updates on upcoming communications.
  • Collaborate with your team to serve donors effectively.
  • Align your annual giving case for support with strategic goals.
  • Track engagement, including email opens, clicks, and subscriptions, as passive consumption also has an impact.

4. Create a Donor Journey for Your Entire Mid-Level Segment

If portfolio management isn’t feasible, develop a donor journey for all mid-level donors. Create a calendar emphasizing interviews, impact reporting, and personalized asks similar to major gift proposals. The more personalized, the more effective.

5. Establish a Process for Moving Donors

Define criteria for moving donors out of mid-level treatment and into major gift or planned giving opportunities. Stick to KPIs around engagement and giving. When donors move up from mid-level, track their subsequent giving as part of your ROI calculations.

6. Track your Results

Set a baseline for KPI’s like, retention of mid-level donors, cumulative giving, number of new major gift prospects, etc.

By prioritizing mid-level donors and implementing thoughtful strategies for acquisition, retention, and growth, organizations can build stronger, more sustainable donor bases. A strong mid-level program is more critical than ever to maintaining and growing your annual giving revenue.  The success of your mid-level program will be determined by your ability to create true one-to-one relationships with your donors.  The mid-level donor segment represents a vital opportunity to strengthen philanthropy and ensure long-term success.