Conversion Rates and Non Profits

What could a conversion rate have to do with a Non Profit business? After all, most Non Profits are likely not going to be engaged in commerce, while those that are have a narrow focus (likely within their related business income focus.) This is all true. However, remember that the Non Profit model is unique in that it has multiple streams of revenue, none of which should exceed 50% (even 40% is a bit high in my estimation). Therefore, conversions and Non Profits will look different.

The one thing that all Non Profits have in common is donor support. At the end of the day, donor contributions will likely make up one of the larger streams of revenue that a Non Profit will have. Additionally, the stream of revenue generated from donors is one of the closest to individual customers that a Non Profit will have (even if there are paying customers served by a Non Profit, individual donors align similarly in many ways. The only difference is the size of their donation, which, based on the Non Profit, will likely result in greater tangible recognition.)

When it comes to the conversion rate with donors, the same is true with much of what has been presented in other articles that have run in different newsletters in this series. However, what is important here is finding ways to make it easier for a conversion to occur. Some things are low lying fruit (such as having a donate button on your website or making remittance envelopes readily accessible for people to donate.) However, some things are not as readily apparent.

One such arena in improving conversions and Non Profits is understanding trends. This was discussed in previous articles in other newsletters, but not under the lens of a Non Profit. Different generations handle giving differently. Younger generations (who are very much familiar with subscription models for services such as Hulu or Netflix) approach donations the same way. They would not mind giving a set amount on a recurring basis. Older generations can adapt to technology, but many prefer to use remittance envelopes to write a check.

Additionally, service providers gain in popularity, especially as it relates to ease of use (such as Venmo). While some of these services might have existed for a while, for one reason or other, they didn’t gain in popularity (or they steadily gained in popularity over time). Therefore, keeping an idea on generational giving trends as well as modes of donating can be extremely helpful when it comes to understanding ways to increase your donor conversion rates.

On this one point, it is worth noting the “Keep It Simple Stupid” slogan. This should be applied when it comes to getting things set up for donors online. The fewer clicks the better, because it means that if your donor wants to give something, it will be easy for them to get there and contribute accordingly. One quick note on this: while streamlining is an important part of the process, realize that at the end of the day, a completely streamlined process will not necessarily result in a dramatic increase in conversions. If someone believes in your mission, they will contribute. A simplified process will result in more conversions than one that is really complicated, but it isn’t a game changer at the end of the day.

The final area (and admittedly most important (when it comes to conversions and donors) has to do with your mission and messaging. Understanding trends in different generations as well as trends in channels of giving are both important. However, if you want to help increase your conversion rate with donors, keep your focus on improving your messaging. From telling stories about your mission more effectively to designing your materials in a clear, more focused manner,your efforts on this point will help improve your conversion rates in ways that the other approaches would not be able to achieve.

However, all three of these areas will feed off of each other. By understanding how different generations give as well as trends in donation channels, you will be able to streamline your process significantly, thereby maximizing the gains that you are able to achieve through improving your messaging.