Calendar vs. Anniversary Donor Renewals

Which approach is better for your fundraising program?

When it comes to donor renewal fundraising programs, non-profits often face a critical decision: should they adopt a calendar-based or anniversary-based approach? Each method has unique advantages and challenges, and the best choice can depend on the specific needs and resources of your nonprofit organization.

Let’s explore these two approaches in detail and review the pros and cons of a calendar-based versus an anniversary-based renewal series.

What’s the Difference?

Calendar-Based Renewal Programs:

In a calendar-based renewal program, all donor renewals occur at the same time each year, typically starting in January or aligned with some significant date to the organization like its fiscal year.

Anniversary-Based Renewal Programs:

In an anniversary-based renewal program, renewals are based on the donor’s original join date or last gift date, spreading renewals throughout the year. Example: If a donor last gave on June 15th, their renewal request would be sent out around the same date each year.

Which one is Better?

Pros and Cons of Calendar-Based Renewal Programs

Pros:

1. Simplicity and Predictability: All renewals occur at the same time, making it easier to plan and execute campaigns. This can streamline administrative processes and reduce the complexity of managing multiple renewal dates.
2. Budgeting and Forecasting: With a concentrated renewal period, it becomes easier to predict cash flow and allocate resources effectively. This can be particularly beneficial for small-staff organizations.
3. Focused Efforts: Staff can concentrate their efforts on renewals during a specific period, allowing for more intensive and targeted campaigns.
4. Cost-Effective: Bulk mailing can reduce costs and streamline the renewal process.

Cons:

1. Grace Period Management: Managing grace periods can be tricky, as decisions need to be made about continuing benefits and services during this time.
2. Potential for Overlap: If many organizations use the same renewal period (e.g., end of the calendar year), donors might feel overwhelmed by multiple renewal requests at once. Additionally, there may also be overlap within the organization’s other fundraising programs, for instance a donor who responds to a Giving Tuesday or Year-end Special Appeal in December might find it annoying to be asked to renew their support in January.
3. Less Personalization: Messages may be less personalized, as they are sent to all donors at the same time regardless of their individual renewal dates.

Pros and Cons of Anniversary-Based Renewal Programs

Pros:

1. Continuous Engagement: Renewals are spread throughout the year, allowing for ongoing engagement with donors. This can help maintain a steady relationship and reduce the risk of donor fatigue.
2. Timeliness: Direct mail is sent close to the donor’s expiration date, making the renewal request timely and relevant.
3. Personalization: Anniversary-based renewals can be more personalized, as they align with the donor’s original join or last gift date, potentially increasing the likelihood of renewal.

Cons:

1. Complexity: Managing renewals on an ongoing basis can be more complex and require robust systems to track and manage data and print inventory systems.
2. Resource Allocation: Continuous renewal efforts might require more consistent resource allocation, which can be challenging for organizations with limited staff.
3. Potential for Overlook: With renewals happening year-round, there is a risk that some renewals might be overlooked or not given the attention they deserve.

Conclusion

Having a donor renewal strategy is critical now more than ever! According to the most recent FEP report, the total number of donors giving year-over-year continues to decline. FEP Data for Q3 2024 Shows More Dollars Coming from Fewer Donors in a Continuing Trend | Association of Fundraising Professionals

Choosing between a calendar-based and anniversary-based donor renewal program depends on the specific needs and capabilities of your organization. Calendar-based renewals offer simplicity and predictability. On the other hand, anniversary-based renewals provide continuous engagement and personalization, which can be beneficial for maintaining strong donor relationships.

Ultimately, the best approach is the one that aligns with your organization’s goals, resources, and donor preferences. By carefully considering the pros and cons of each method, you can develop a donor renewal strategy that maximizes retention and supports your fundraising efforts.

Need help building or revamping your donor renewal program? Get in touch with one of IDM’s experts today!