Donor Lifetime Value Study Part One

Donor Lifetime Value Study Part One

 How to Maximize Revenue from New & Existing Donors

Identifying new donors and growing your campaign or organization’s base of support is key to a successful long term fundraising program. The value of your new donors is largely in the control of the fundraising steward of each organization.

A valuable measure of an organization’s donor file’s health is derived from each donor’s lifetime giving history:  Average Lifetime Value. Average Life Time Value (LTV) is calculated using an aggregate of all donors giving history, divided by total dollars raised.

top graph

A single channel donor only gives via one method (whether online, phone or mail).  A multi-channel donor gives via more than one channel.  Upgrading a single channel donor into a multi-channel adds overall value to your file as well as dollars in your pocket.

bottom graph

The chart above outlines three major points when building your house file, using a file of 25K in all scenarios

  1. The first example has 10% of its donors that are multi-channel – and grosses a total of $8.65 million.
  2. #2 – same file size, but 15% of its donors are mulit-channel – and raises a total of $8.78 million.
  3. If you  get 30% of your file to transition to multi-channel donors, you’ll rate     $9.44 million.

ALMOST $800K more on same number of donors!

Fundraising is a numbers game – get the most out of your program by maximizing each donor by:

  • Mailing your phone and online donors
  • Phoning your mail and online donors
  • Sending email asks to your phone and mail donors
  • When you acquire a new donor, regardless of channel, you should ask for another gift within 6 weeks on the last one – the highest propensity to give again is within that time period.

This concludes part one of our Donor LTV study. Stay tuned for part two soon! As always, if you have interest in our Fundraising programs or anything else FLS, contact our offices at 844-FLS-2016.

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