Tom Kelly

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What is Donor Stewardship?

Donor stewardship is about bringing your donors—whether they’re corporate sponsors or individual givers—into your nonprofit’s journey. It’s more than just a one-time gift; it’s about inviting them to walk alongside your mission for the long haul and helping them feel like an integral part of your organization’s story. Stewardship can take different forms, such as donor engagement, volunteer engagement, or donor management. But at its core, it’s all about relationship-building.

How Deep Should You Go?

When it comes to building relationships with donors, it’s okay to go deep—get to know their favorite sports teams, family details, and what drives them. The key is to discover what inspired them to give to your nonprofit in the first place. Whether it was a story they heard, a hope they shared, or even a fear they felt, finding out what sparked that initial motivation allows you to build upon it over time.

“Donor stewardship starts with listening to your donor’s story,” says Miranda.

Asking the Right Questions

Miranda’s go-to question for first-time donors is, “What inspired you to give?” She stresses the importance of uncovering the donor’s motivation—whether they were moved by an online campaign, an in-person event, or a story they heard from your executive director. Understanding what makes a donor tick helps you engage them in a way that resonates and keeps them invested in your cause.

Volunteers are also potential donors. They give their time and talents, but figuring out what would inspire them to also give financially can be a game-changer. For example, Foundation Communities often turns long-time volunteers into donors by connecting the impact of their work with the organization’s mission.

Making Stewardship Personal

Stewardship is about listening and tailoring communication. Different donors prefer different types of communication. Some might enjoy a personal phone call, others a handwritten letter. For example, Miranda talks about “Donor Donna,” a supporter who prefers handwritten letters because she doesn’t use email or answer her landline often. By communicating with her through quarterly letters, Foundation Communities has kept Donna engaged in a way that works for her.

“Figuring out how your donors want to be communicated with is one of the first steps in donor stewardship,” Miranda advises.

Starting Small and Staying Organized

For smaller nonprofits, it might seem daunting to manage dozens or even hundreds of donors. Miranda recommends starting small—identifying five donors each month to engage with. Over time, you’ll discover how donors prefer to be communicated with, and you’ll see the impact of personalized communication.

One key tip: Utilize a CRM (Customer Relationship Management) system to organize your donors, track interactions, and set reminders for follow-ups. Even if your nonprofit can only afford a basic CRM, it’s crucial to start organizing donor data early to support relationship-building efforts.

The Goal of Donor Stewardship: Selling Hope

Miranda likens donor stewardship to sales, but with a twist: “We’re not selling a product; we’re selling hope.” Every interaction with a donor is an opportunity to share the vision and impact of your organization. By speaking your fundraising goals into existence, you’re inviting donors to be part of your mission and inspiring them to help reach those goals.

Sharing these goals and being transparent about funding needs is essential. A donor might hear that your organization is $200,000 short of its annual goal and be inspired to find ways to help make up that difference, whether through their own donations or by reaching out to others in their network

Conclusion: Build Genuine Connections

Donor stewardship is about human interaction—creating authentic connections and sharing stories that inspire donors to stay engaged and support your mission for the long term. By doing this, even a small nonprofit can build a strong donor base and grow towards its million-dollar goal.

Miranda Roberts

Activist | Volunteer | Storyteller | Fundraiser & Relationship Builder at Foundation Communities

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Frequently

Asked Questions

Donor stewardship is the process of building lasting relationships with donors by engaging them in your nonprofit’s mission and showing them the impact of their contributions. It involves communicating effectively, understanding their motivations for giving, and aligning their goals with your organization’s vision.

Start small by identifying five donors a month to engage with on a deeper level. Ask them what inspired their initial gift, and build a communication cadence that suits their preferences. Using a CRM system to organize donor information, track interactions, and set follow-up reminders is key to staying organized as you grow.

One of the best questions to ask donors is, “What inspired you to give to our organization?” The answer to this will help you understand their motivations, whether it’s a personal story, your organization’s mission, or a specific program. Use this information to tailor your communications and build a stronger relationship.

Investing in a CRM system is crucial for organizing donor data, tracking communications, and setting reminders for follow-ups. Many CRMs can be customized to fit your nonprofit’s size and budget, and using them effectively will help you maintain consistent and meaningful interactions with your donors.

Consistent communication is key. A good rule of thumb is to reach out at least once a quarter, whether through email, phone calls, or handwritten letters, depending on your donor’s preferences. The idea is to keep them updated on your organization’s progress, share your goals, and make them feel part of your journey.

Donor stewardship focuses on relationship-building and understanding donor motivations over time, while donor engagement often refers to specific activities to involve donors, like volunteer opportunities or events. Stewardship is about gathering information and nurturing the relationship, while engagement is about the actual touchpoints and interactions.

Personalized communication is key to turning one-time donors into recurring donors. Share impact stories that illustrate how their previous contributions have made a difference and let them know what more can be achieved with continued support. Building a relationship where they feel personally connected to your cause increases the likelihood of regular giving.

Respect the donor’s wishes and adjust your communication frequency accordingly. Some donors prefer to support quietly without much interaction, and that’s okay. You can still send updates through newsletters or general updates as long as it aligns with their communication preferences.