Donor Acquisition and
Retention

Why Chuck Longfield is
Worried
by Roger Craver
Allie Kolender – Novack
Assignment # 1
FUN...
Donor Acquisition and
Retention

TREND:
In fundraising today there
seems to be more
effort, resources and money
being put ...
Donor Acquisition and
Retention
•

Chuck Longfield is worried about the
future of fundraising. In the past 10
years…

•

T...
Donor Acquisition and
Retention
•

75% or 3 out of 4 newly acquired
donors leave by the end of the first
year

•

Accordin...
Donor Acquisition and
Retention

http://www.cstonecanada.com/publications/pdfs/
whitepapers/FileAudit_Whitepaper.pdf
Donor Acquisition and
Retention
Donor Acquisition and
Retention
•

Acquisition goals beat retention goals
2:1 on what nonprofits say they
planned to do in...
Donor Acquisition and
Retention
•

WHY DOES THIS MATTER?
Issues with future donor databases

•

Continuous attrition of lo...
Donor Acquisition and
Retention
•

•

WHY DOES THIS MATTER?
It costs around five times as much to
solicit a new donor as i...
Retention
SOLUTIONS:

http://www.urban.org/UploadedPDF/412731-Donor-Retention-Matters.pdf
Donor Acquisition and
Retention
SOLUTIONS:
•

Treat donors like assets and
actually invest in them (their
passions, wants ...
Donor Acquisition and
Retention
SOLUTIONS:
•

Focus early in the relationship on
those donors with the most
potential and ...
Retention
1.

QUESTIONS:
Besides the negative consequences I’ve
mentioned, what do you think are other
negative consequenc...
Donor Acquisition and
Retention

THANK – YOU
…I HOPE I HAVE RETAINED YOU AND
YOU WANT TO KNOW MORE 
Sources









Barber, P., & Levis, B. (2013). Donor Retention Matters .
Urban Institute, Washington.
Cornerstone. ...
Upcoming SlideShare
Loading in …5
×

Donor acquisition & retention

432 views

Published on

Published in: Education, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
432
On SlideShare
0
From Embeds
0
Number of Embeds
8
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Small foundations may be at a loss, resources will become exhausted, its literally becoming to costly Too much information, competing organizations
  • Donor acquisition & retention

    1. 1. Donor Acquisition and Retention Why Chuck Longfield is Worried by Roger Craver Allie Kolender – Novack Assignment # 1 FUND 535
    2. 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. 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. 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. 5. Donor Acquisition and Retention http://www.cstonecanada.com/publications/pdfs/ whitepapers/FileAudit_Whitepaper.pdf
    6. 6. Donor Acquisition and Retention
    7. 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. 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. 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. 10. Retention SOLUTIONS: http://www.urban.org/UploadedPDF/412731-Donor-Retention-Matters.pdf
    11. 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. 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. 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. 14. Donor Acquisition and Retention THANK – YOU …I HOPE I HAVE RETAINED YOU AND YOU WANT TO KNOW MORE 
    15. 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

    ×