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Retain for greater gain
The annual Giving Report from Indiana University’s Lilly Family School of Philanthropy is out. Once again, it shows that individual donations and bequests make up around 80% of total giving. It also shows that…
…giving was up 4.4% overall.
Recently, Gail Perry provided an overview of this report. (I hope you’re receiving her weekly email.) In her summary, she provides key data points and offers her insights. She notes that while giving is up overall, the increase was driven by major gifts from loyal donors. Her bottom line:
“Create a donor retention task force to ‘love on’ your current donors.”
Last week I referred to Penelope Burk’s research showing the startling impact of simply having board members make thank you calls. Place this basic activity within a strategic approach to donor retention and your program will take off.
You’ll also avoid what the Giving Report suggests may be a looming storm – a net loss of 12 donors for every 100 gained or retained since the Recession. How does your retention rate compare?
Why have I written on this topic for two weeks in a row? The cost difference between renewing donors and acquiring new donors is around one dollar for every dollar given. You read that right. According to data from the Association of Fundraising Professionals (AFP), renewal efforts cost around $0.20 for every dollar given while donor acquisition costs around $1.20 for every dollar given.
It may be time to evaluate your donor retention efforts. You can’t afford not to.