Donor acquisition & retention
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  • Small foundations may be at a loss, resources will become exhausted, its literally becoming to costly Too much information, competing organizations

Donor acquisition & retention Presentation Transcript

  • 1. Donor Acquisition and Retention Why Chuck Longfield is Worried by Roger Craver Allie Kolender – Novack Assignment # 1 FUND 535
  • 2. Donor Acquisition and Retention TREND: In fundraising today there seems to be more effort, resources and money being put into Donor Acquisition rather than Donor Retention
  • 3. Donor Acquisition and Retention • Chuck Longfield is worried about the future of fundraising. In the past 10 years… • There has been a steady increase of acquisition costs • There has been a decrease in donor retention from 33% to 27%
  • 4. Donor Acquisition and Retention • 75% or 3 out of 4 newly acquired donors leave by the end of the first year • According to Cornerstone Canada (2009) from 2003 to 2007 there were 20% fewer new donors • The quality of donation rose by 23%
  • 5. Donor Acquisition and Retention http://www.cstonecanada.com/publications/pdfs/ whitepapers/FileAudit_Whitepaper.pdf
  • 6. Donor Acquisition and Retention
  • 7. Donor Acquisition and Retention • Acquisition goals beat retention goals 2:1 on what nonprofits say they planned to do in 2013 • Which way should one swing with limited resources • The sector wont just “hop to it”
  • 8. Donor Acquisition and Retention • WHY DOES THIS MATTER? Issues with future donor databases • Continuous attrition of loyalty • Word of Mouth – create successful relationships, indirect way of acquiring and reducing marketing expenditures
  • 9. Donor Acquisition and Retention • • WHY DOES THIS MATTER? It costs around five times as much to solicit a new donor as it does to do business with an existing one Lower net profit – The sector continues to waste a substantial proportion of its annual fundraising expenditures rather than put funds back into the foundation to fund its
  • 10. Retention SOLUTIONS: http://www.urban.org/UploadedPDF/412731-Donor-Retention-Matters.pdf
  • 11. Donor Acquisition and Retention SOLUTIONS: • Treat donors like assets and actually invest in them (their passions, wants etc.) • A simple thank-you call will yield a 30% ROI • Factor in whether or not they can be retained and at what cost
  • 12. Donor Acquisition and Retention SOLUTIONS: • Focus early in the relationship on those donors with the most potential and allocate resources accordingly • Build a relationship • Be DONOR-CENTRIC
  • 13. Retention 1. QUESTIONS: Besides the negative consequences I’ve mentioned, what do you think are other negative consequences of rising acquisition and deteriorating retention? 1. Most of this research takes place with direct giving, do you think this is the same or could happen for online giving based on what we have learned/ seen so far in our courses? 1. Longfield gave some reasons for why he believes retention is low and donors don’t regive, such as over fishing or a changing demographic, why do you think retention is low?
  • 14. Donor Acquisition and Retention THANK – YOU …I HOPE I HAVE RETAINED YOU AND YOU WANT TO KNOW MORE 
  • 15. Sources      Barber, P., & Levis, B. (2013). Donor Retention Matters . Urban Institute, Washington. Cornerstone. (2009, January). Fundraising Trends & Challenges in the Canadian Direct Marketing Sector . Retrieved September 25, 2013, from Cornerstone Canada: http://www.cstonecanada.com/publications/pdfs/whitepapers/ FileAudit_Whitepaper.pdf Craver, R. (2013, Feburary 12). Why Chuck Longfield is Worried. Retrieved September 25, 2013, from The Agitator : www.theagitator.net/dont-miss-these-posts/why-chucklongfield-is-worried Leroux, K. M. (2013, January 16). Donor Acquistion vs. Retention in 2013. Retrieved September 25, 2013, from www.nonprofitmarketingguide.com: http://www.nonprofitmarketingguide.com/blog/2013/01/16/don or-acquisition-versus-retention-in-2013/ Sargeant, A. (2008, May ). Donor Retention: What Do We Know and What Can We Do About It? . Retrieved September 25, 2013, from AFP : http://www.afpnet.org/files/ContentDocuments/Donor_Retenti