Why thank you letters matter

The single greatest thing you can do to improve donor retention is to say thank you. That’s it, a real, heart-felt thank you. Non-profit organizations spend much of their time, effort and budget trying to solicit donations that it’s easy to consider the official receipt as a suitable thank you. But a good thank you letter is much more than a tax document.

When someone gives to your organization, or any organization, they’ve made an emotional decision to do so. Whether that decision was because you made an appeal, held an event or online campaign, or simply because they decided to do so out of the goodness of their heart, they supported a cause they believe in and giving made them feel good. How you say thank you is part of that experience and is a big part of what leads to future donations. 

A great thank you letter (which can be an email) keeps donors engaged in the positive feelings that led them to donate in the first place. And, it shows them that they’re appreciated and that their gift matters to you.

You don’t need to write a unique letter for each donor but you do need to send something simple and soon after the donation is received. And the most important thing to include in the letter, aside from the words thank you, is a short explanation about how their donation helped. Donors want and need an understanding of how their money will be spent. 

A thank-you letter is all about demonstrating gratitude. Here are three suggestions of what to include in your letter. 

1) Share recent progress. Your donors want to know that they matter so show them what you’re able to do because of their support. Were you able to fund a new program or keep a service going? This is also a great time to share a few statistics (but not so many that you overwhelm your reader). 

2) Tell a story. Storytelling is the greatest communication tool non-profits have at their disposal—and it’s not just for fundraising efforts. It’s just as effective when saying thank you because the thank you becomes much more personal. 

3) Add an invitation. You want your donors to stay engaged, so use your thank-you letter to invite them to do so. Invite them to your next free event (for example, your AGM), or ask them to follow your social media accounts for the latest news. 

Here’s one final important point about thank you letters to remember: it might be tempting in the letter to repeat your ask for donations. 

Don’t. 

While a thank you letter helps retain donors, it’s not the time or place to solicit additional donations. Save that ask for another day.