How to Create a Donor Stewardship Plan

The fundraising process extends well beyond when a donor makes a gift to your organization. The main goal of your fundraising effort is to build a loyal donor base and secure a consistent flow of donations. 

That’s why donor stewardship should be viewed as just as important in your fundraising cycle as the phases leading up to it. 

This article looks at how to create a donor stewardship plan, strengthen the relationships with your supporters, and encourage continued giving. 

Donor stewardship is more than just sending a thank-you note. It’s the ongoing process of deliberately cultivating relationships with your donors to foster a sense of belonging, appreciation, and lasting connection to your institution. Think of it as building a community of invested partners who believe in your mission.

In the context of higher education, stewardship is especially vital. Donors are investing in the future of your institution, students, and programs. But to be inspired to give, they want to know that their contribution is making a real difference.

Effective stewardship involves:

• Recognizing and appreciating donors — Thanking your donors is a must, but it’s not enough. It’s essential to personalize your communications, acknowledge their specific contributions, and make them feel valued.
• Demonstrating impact — Show donors how their gifts matter and how they are being used to achieve tangible results. Share inspiring stories of student success, research breakthroughs, and campus improvements.
• Providing meaningful engagement opportunities — Invite donors to campus events, connect them with faculty and students, and offer exclusive experiences that deepen their connection to your institution. 

By undertaking effective donor stewardship, your school will be able to: 

• Improve donor retention —  When donors feel valued and appreciated, they are more likely to give over and over again.  
• Secure larger gifts — Cultivated relationships with donors can result in increased giving and major gifts. 
• Generate word of mouth — Loyal donors are your ambassadors who spread the word about your school and cause. 

Here are tips for creating an effective donor stewardship plan.

To ensure your plan is executed effectively and donors feel truly valued, it’s essential to bring together a dedicated team of individuals from throughout your organization with clearly defined roles:

This role is the cornerstone of your stewardship program. 

The Director of Donor Relations oversees all aspects of donor cultivation and stewardship, ensuring that strategies align with the institution’s overall fundraising goals. They are responsible for developing the overarching stewardship plan, setting objectives, and tracking progress. 

This role requires a deep understanding of fundraising principles, excellent communication skills, and the ability to motivate and lead a team.

This individual is the hands-on executor of your stewardship strategies. 

The Stewardship Officer manages the day-to-day activities of the program, such as creating donor profiles, ensuring timely acknowledgment of gifts, generating stewardship reports, and maintaining a stewardship calendar. 

They work closely with other team members to ensure that stewardship is integrated into all aspects of donor relations. This role demands strong organizational skills, attention to detail, and a passion for building relationships.

These frontline fundraisers play a crucial role in cultivating and maintaining relationships with major donors. They are responsible for personalized communication, impact reporting, and creating customized engagement opportunities for their assigned donors. 

Major Gift Officers possess strong interpersonal skills, a deep understanding of donor motivations, and the ability to build trust and rapport.

As ambassadors for your institution, board members can play a powerful role in stewardship. They can lend their influence to recognize and thank donors, particularly those at higher giving levels. 

Board members can participate in events, sign thank-you letters, and even meet with donors personally to express gratitude and reinforce the impact of their contributions.

• Annual Giving Officer manages stewardship strategies for annual fund donors, focusing on building a broad base of support and encouraging repeat giving.
• Communications and Marketing Team develop compelling content and communication materials that convey the value of donor support and highlight the impact of philanthropy on your institution.
• Database Manager ensures accurate record-keeping, tracks donor information, and provides data for reporting and analysis, enabling the team to measure the effectiveness of stewardship efforts.

By bringing together this diverse group of individuals and clearly defining their roles and responsibilities, you can create a robust stewardship program that cultivates lasting relationships with your donors and maximizes their support for your institution. 

You already know your donors come from different backgrounds and have various preferences, which means that you can’t use the same messaging for each of them. 

Segmentation is a marketing practice that allows you to personalize your communications with different audiences and achieve higher engagement and a greater return on your stewardship efforts.

Instead of treating all donors the same, consider segmenting them based on factors like giving history, interests, affiliations, and preferred communication methods. This allows you to tailor your approach and provide a more meaningful experience.

Here are a few ways to segment your donors:

• Giving frequency. Group donors based on how often they give (e.g., one-time, monthly, annual). This helps you understand their giving patterns and tailor your communications accordingly. For instance, you might send more frequent updates to recurring donors to keep them engaged.
• Communication preferences. Some donors prefer email, while others might appreciate a handwritten note or a phone call. Segmenting based on communication preferences ensures your message reaches them in the most effective way.
• Demographics. Factors like age and gender can provide insights into donor preferences and motivations. For example, older donors may be more interested in planned giving options, while younger donors might be drawn to volunteer opportunities.
• Average gift size. Segmenting by gift size allows you to tailor your stewardship efforts based on giving level. Major donors may receive more personalized attention and exclusive invitations, while annual fund donors might be engaged through newsletters and impact reports.
• Interests. What are your donors passionate about? Do they have a specific academic department they support? Are they interested in athletics or the arts? Tailoring your communications to their interests shows that you value their passions and helps create a deeper connection.
• Affiliations. Consider your donors’ connections to your institution. Are they alumni? Parents of current students? Faculty members? Understanding their affiliations can help you personalize your outreach and offer relevant engagement opportunities.

By thoughtfully segmenting your donors based on these factors, you can create a more personalized and effective stewardship strategy. This leads to stronger relationships, increased engagement, and ultimately, greater support for your institution.

The main goal of stewardship is to actively engage your donors and foster a deeper connection to your institution. That’s why the next step of your donor stewardship plan should be to find ways to provide meaningful opportunities for including them in your mission. 

Here are a few ideas to consider:

Host intimate gatherings exclusively for your donors. 

This could be a luncheon with a renowned faculty member, a behind-the-scenes tour of a research lab, or a pre-show reception with the cast of a campus theater production. 

These events create a sense of exclusivity and provide unique experiences that deepen donors’ connection to your institution.

Offer donors the chance to participate in hands-on volunteer activities that align with their interests. 

This could involve mentoring students, assisting with campus beautification projects, or supporting fundraising events. Volunteering allows donors to see the direct impact of their contributions and feel more invested in your cause.

Make your donors feel valued by extending personal invitations to campus events, lectures, and performances. Address them by name, acknowledge their past support, and highlight aspects of the event that align with their interests.

Although all these might seem like small gestures, they go a long way and show your supporters that you respect them. 

Share articles, reports, and stories that are relevant to your donors’ interests. 

For example, you could send them updates on research projects they’ve supported, profiles of students who have benefited from their generosity, or news about initiatives that align with their passions.

Show your donors that you value their input by soliciting their feedback through surveys or focus groups. 

This demonstrates your commitment to understanding their needs and preferences, and it can help you inform and tailor your future engagement strategies.

Create opportunities for donors to connect with each other. 

Think about receptions or dinners where they can network and build relationships with fellow supporters. The goal is to foster a sense of community among your donors and additionally strengthen their ties to your institution.

Such a diverse range of engagement opportunities allows you to cater to the varied interests of your donors and create a more personalized and impactful stewardship experience. 

Your communication strategy is the voice of your donor stewardship plan. It encompasses all interactions that help ensure donors feel valued and informed. 

Key principles of a well-thought-out stewardship communication strategy are: 

• Donor-centricity — Frame every communication around the donor’s impact. Use “you” more than “we.” Highlight what they made possible.
• Relevance and specificity — Tailor messages to the donor’s history and giving level. A new donor needs a warm welcome, while a long-time supporter deserves recognition for their loyalty.
• Personalization — Simply using the donor’s name isn’t enough. Reference past conversations, acknowledge their interests, and demonstrate that you see them as an individual.

Communication channels to include:

• Social media — Regularly acknowledge donors and share impact stories. Use scheduling tools for consistent posting.
• Direct mail — Send personalized thank-you notes, holiday cards, and invitations to events.
• Phone calls — Reserve these for major donors and long-time supporters. Use calls to express gratitude, answer questions, and gather feedback.
• Emails — Automate thank-you emails and send regular newsletters with updates and stories. Segment your email lists to ensure relevance.
• In-person — Capitalize on events, tours, and meetings to connect with donors face-to-face.

To effectively manage these diverse communication channels and maintain consistent, personalized outreach, a robust donor engagement platform is essential. It will automate your communication efforts and help you stay on-brand while respecting your donors’ preferences, and allow you to keep your campaigns on track. 

Apart from that, think about implementing the Engagement Center, a relatively new concept that acts as a centralized hub for managing all donor interactions, facilitating collaboration among your team, and ensuring a seamless and personalized experience for every donor.

Keeping lines of communication with your donors is important, but you need to be careful not to overdo it. To establish consistency and still avoid donor fatigue, implement a stewardship matrix.

This concept provides a framework for consistent and targeted communication.

1. Categorize stewardship opportunities:Acknowledgement — Immediate thank-yous after donations.Recognition — Publicly acknowledging donors (e.g., honor rolls, social media).Reporting — Sharing impact reports and financial updates.Ongoing engagement — Invitations to events, volunteer opportunities, and surveys.
2. Acknowledgement — Immediate thank-yous after donations.
3. Recognition — Publicly acknowledging donors (e.g., honor rolls, social media).
4. Reporting — Sharing impact reports and financial updates.
5. Ongoing engagement — Invitations to events, volunteer opportunities, and surveys.
6. Align with donor segments — Determine which communication types and frequencies are appropriate for each donor segment.

• Acknowledgement — Immediate thank-yous after donations.
• Recognition — Publicly acknowledging donors (e.g., honor rolls, social media).
• Reporting — Sharing impact reports and financial updates.
• Ongoing engagement — Invitations to events, volunteer opportunities, and surveys.

Here’s an example of a stewardship matrix:

Timing and coordination:

• General schedule — Create a yearly schedule for holiday cards, seasonal appeals, and regular communications.
• Coordinate with overall communication — Avoid overlapping stewardship with fundraising asks.
• Track outreach — Maintain detailed records of all communication to ensure personalization and avoid repetition.

Donor-centric language:

• Focus on impact: “Your gift provided…” or “Because of you, we were able to…”
• Use personal details: “Happy birthday, [Donor Name]! We appreciate your continued support.”
• Express gratitude: “Thank you for being a vital part of our mission.”

When you have many supporters, it’s easy for someone’s contribution to slip through the cracks. 

While major donors are always in the spotlight and get all the recognition, those smaller donations add up and make a huge difference to your school’s development, so don’t forget about them either. 

A well-structured donor recognition system ensures that every supporter feels valued and appreciated. However, not everyone wants the same way and level of recognition. Here are some factors to consider when creating your donor recognition system: 

• Segmentation — Align your recognition strategies with your donor segmentation plan. Different levels of giving and engagement should be met with varying degrees of recognition.
• Donor preferences — While a structured system is important, remain sensitive to individual preferences. Some donors may prefer public acknowledgment, while others value discretion.
• Tradition and innovation — Balance traditional recognition methods (e.g., donor walls, honor rolls) with fresh and creative approaches. Consider incorporating personalized messages, storytelling, or digital recognition platforms.

When talking about recognition ideas, some you can use as inspiration include: 

• Donor walls — A classic and impactful way to visually showcase donor contributions. Consider different tiers of recognition on the wall based on giving levels.
• Honor rolls — Publish lists of donors in annual reports, event programs, or on your website. Categorize donors by giving level or affiliation (e.g., alumni, faculty, parents).
• Donor profiles — Feature individual donors in newsletters, blog posts, or social media. Share their stories and highlight the impact of their philanthropy.
• Naming rights — Offer naming opportunities for buildings, classrooms, scholarships, or programs. This provides lasting recognition for significant contributions.
• Impact reports — Demonstrate the tangible outcomes of donor support through compelling impact reports. Share data, stories, and testimonials that showcase how their gifts are making a difference.
• Personalized thank-you videos — Create short videos expressing gratitude and featuring personalized messages from students or faculty who have benefited from donor support.
• Social media recognition — Publicly acknowledge donors on social media platforms, tagging them and celebrating their generosity.

A donor stewardship plan will set your fundraising goals in the right direction. But bear in mind that this is an ongoing process and the set-it-and-forget-it approach doesn’t work. Keep an eye on your metrics and tweak your activities along the way.