How Responsive Fundraising Can Improve Your Nonprofit’s Fundraising Results
One impact of today’s changing nonprofit technology landscape is that donor expectations are evolving, too. Donors are expecting more personalized experiences in all aspects of their lives – including their interactions with your nonprofit.
So, how can you give donors the personalized experiences they have come to expect?
I recently asked Scott Holthaus, partner marketing manager at Virtuous, some questions about the company’s concept of “responsive fundraising” and how it can help to improve a nonprofit’s fundraising results by delivering more personalized experiences:
MB: At Virtuous, you talk a lot about responsive fundraising. What is it, and why is it important for nonprofits?
SH: At Virtuous, responsive fundraising is a modern approach to donor engagement that puts donors at the center of a nonprofit’s fundraising strategy. It’s about building authentic relationships with donors by listening to their needs and responding in personalized ways.
Responsive fundraising is important for several reasons, but mainly because donors’ expectations continue to evolve as the technology landscape advances, and they expect a personalized experience. Legacy fundraising tactics will continue to become less effective, and responsive fundraising is needed to continue to see fundraising success.
Additionally, responsive fundraising strengthens donor loyalty and reduces lapsed donors by engaging donors on their terms while leveraging technology and data to increase support and show your impact.
MB: What are the top challenges you see nonprofits facing today when it comes to responsive fundraising?
SH: A few of the challenges that nonprofits face today include:
- Limited access to data and insights
- Resource constraints, especially staff and volunteers
- Balancing personalization with scale
- Donor fatigue and changing expectations
Overcoming these hurdles requires a commitment to innovation, investment in the right tools, and a culture shift toward donor-centric fundraising. When nonprofits take on these challenges, they unlock deeper relationships, greater generosity, and long-term sustainability.
MB: What are some of the practical ways nonprofits can address these challenges?
SH: Nonprofits can start by implementing responsive customer relationship management (CRM) software that centralizes donor information. Nonprofits can gather insights incrementally without overwhelming their team or budget by focusing on a few critical metrics, such as giving frequency and engagement patterns.
Additionally, automating routine tasks like personalized thank-you emails and donor follow-ups frees up staff for higher-impact activities, while trained volunteers can assist with tasks such as donor outreach or data entry, making the best use of resources.
Finally, by diversifying communication methods, nonprofits can keep donors engaged without overwhelming them, building long-term loyalty and trust.
MB: Can you share a couple of real-world examples?
SH: Two examples of Virtuous customers using responsive fundraising include:
Ronald McDonald House Charities in Omaha (RMHC in Omaha)
Seeking a more cost-effective and mission-focused solution, RMHC in Omaha (RMHC
in Omaha) transitioned to responsive fundraising with Virtuous, leaving behind
its costly and inefficient nonprofit CRM. The result:
- 44.3% overall donor retention
- 68% repeat donor retention rate
- 15% increase in average gift amount
Read more about the RMHC in Omaha story
When asked how responsive fundraising and Virtuous impacted their donors, Hunter Samuels, Director of Stewardship & Communications, RMHC in Omaha, said, “We want every supporter to feel like the VIP that they truly are, and that’s what Virtuous does with their customers and partners… It was a strong, strategic fit for how we were looking to grow.”
Jewish Voice Ministries International (JVMI)
Using Virtuous’ open API integration, JVMI created responsive automation to re-engage lapsed donors, easing the administrative burden and achieving impressive results:
- 684% direct response return-on-investment
- 130 to 200 daily contact record touchpoints automated
- Increased lapsed donor ROI by 6x
Read more about the JVMI story
Because of the automation enabled by Virtuous’ platform, JVMI was able to do more without adding additional staff and saw significant ROI.
“The ROI from the direct response is 684%, and then if you actually add in the subsequent giving after that – either people signing up as recurring partners right away or just giving secondary gifts – it’s currently at about 1,000%… Between email and voicemail, we sent out about 40,500 communications in the last nine months.” — Justin Ferris, Director of Data Operations, JVMI
MB: What tips do you have for nonprofits that would like to take a responsive approach to fundraising?
SH: Change isn’t easy, but the right change is worth it. Shifting to a responsive approach is necessary to continue to see fundraising success with current and future donors. Here are some tips to do that:
- Listen to donors through data and feedback.
Use surveys, donor interviews, and analytics tools to understand donors’ preferences, motivations, and behaviors. Pay attention to both explicit signals (like survey responses) and implicit ones (like website interactions or email engagement). - Personalize communication and engagement.
Tailor messaging to reflect donors’ interests, giving history, and preferred communication channels. Move away from one-size-fits-all appeals and focus on creating meaningful, context-driven touchpoints. - Leverage technology for scalability.
Implement CRM and marketing automation tools to manage donor relationships effectively at scale. Use donor personas and automated workflows to send relevant updates and calls to action at the right time. - Show donors their impact.
Close the loop by sharing specific, tangible outcomes of their contributions. Use storytelling, impact reports, or videos to demonstrate how their support makes a difference. - Foster a sense of community.
Encourage peer-to-peer fundraising and provide opportunities for donors to connect with each other around shared passions. Celebrate donor contributions publicly and involve them in your organization’s mission as partners, not just supporters.
