NEW DONOR TRENDS        Center of Philanthropy Symposium        November 201202/07/2013   Customer & Market Insights   1
DECLINE IN NEW DONOR ACQUISITION   2001- 2 0 1 0                                                               % Change   ...
DECLINE IN FIRST YEAR RETENTION   2001- 2 0 1 0    Sector                        Retention Rate       Retention Rate    % ...
SUMMARY OF CHALLENGES       • Acquisition is increasingly more expensive       • First year retention rates are declining ...
02/07/2013   Customer & Market Insights   5
EMPHASIZE DONOR RETENTION OVER ACQUISITION       • View donors as valuable assets!       • When acquiring new donors, fact...
02/07/2013   Customer & Market Insights   7
EMPHASIZE DONOR RETENTION OVER ACQUISITION       • View donors as valuable assets!       • When acquiring new donors, fact...
02/07/2013   Customer & Market Insights   9
EMPHASIZE DONOR RETENTION OVER ACQUISITION       • View donors as valuable assets!       • When acquiring new donors, fact...
FOCUS ON LIFETIME VALUE, NOT RESPONSE RATES       • Be willing to invest in your donors, e.g. thank you calls.         See...
02/07/2013   Customer & Market Insights   12
FOCUS ON RESULTS, NOT EFFORT       • Set goals and measure your results       • Find peer groups and benchmark your result...
INVEST IN YOUR MOST PASSIONATE SUPPORTERS       • Organize yourself to recognize a donor’s passion for your         missio...
02/07/2013   Customer & Market Insights   15
KEY TAKE-AWAYS       1. Emphasize donor retention over donor acquisition       2. Focus on a donor’s lifetime value, not a...
THE BLACKBAUD INDEX       Get up-to-date data on fundraising trends and valuable analysis by leaders in the sector.       ...
WWW.SOFII.ORG A unique online resource of everything you could want to know about fundraising from c.1500 BC to the presen...
QUESTIONS?     Chuck Longfield, Chief Scientist     chuck.longfield@blackbaud.com02/07/2013   Customer & Market Insights  ...
Upcoming SlideShare
Loading in …5
×

New Donors Trends by Chuck Longfield

3,281 views

Published on

Fact-packed presentation from the 2013 DMA Washington Nonprofit Conference. Chuck is the Founder of Target Analytics and Chief Scientist at Blackbaud. Read the companion blog post at: http://www.event360.com/blog/identify-and-invest-in-your-most-passionate-supporters/

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
3,281
On SlideShare
0
From Embeds
0
Number of Embeds
93
Actions
Shares
0
Downloads
26
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

New Donors Trends by Chuck Longfield

  1. NEW DONOR TRENDS Center of Philanthropy Symposium November 201202/07/2013 Customer & Market Insights 1
  2. DECLINE IN NEW DONOR ACQUISITION 2001- 2 0 1 0 % Change % Change Sector Total # New Donors New Donors/Year New Donors/Year (# of organizations) 2001-2010 2001-2007 2007-2010 Advocacy (16) 6.6 million -9.5% 14.4% Hospitals (23) 1.2 million 17.2% -0.4% Cultural (16) 2.2 million 5% -2% Environmental (37) 16.4 million -23.1% -11.0% Health Research (30) 117 million 12.5% -14.8% Human Services (36) 6.7 million 4.7% 2.5% Colleges (34) * 350,000 -18.9% * The % Change for colleges is for the period 2006-2011 SOURCE: TARGET ANALYTICS02/07/2013 Customer & Market Insights 2
  3. DECLINE IN FIRST YEAR RETENTION 2001- 2 0 1 0 Sector Retention Rate Retention Rate % Change % Change (# of organizations) 2001 2010 2001-2007 2007-2010 Advocacy (16) 34.0% 27.4% -19.5% 0.1% Hospitals (23) 21.2% 18.1% -2.7% 0.6% Cultural (16) 33.3% 26.8% -13.7% -6.5% Environmental (37) 29.7% 24.0% -18.2% -1.4% Health Research (30) 20.9% 19.3% -11.7% 0.4% Human Services (36) 30.8% 26.3% -10.9% -4.2% Colleges (34) * 30.8% 28.1% -8.8% * The % Change for colleges is for the period 2006-2011 SOURCE: TARGET ANALYTICS02/07/2013 Customer & Market Insights 3
  4. SUMMARY OF CHALLENGES • Acquisition is increasingly more expensive • First year retention rates are declining • Trends started prior to downturn and will likely continue after recovery • Younger donors are less loyal than older donors • Low ROI on new donor acquisition (and getting lower). - too costly to acquire new donors to replace lapsing donors • WHAT CAN WE DO? !!!02/07/2013 Customer & Market Insights 4
  5. 02/07/2013 Customer & Market Insights 5
  6. EMPHASIZE DONOR RETENTION OVER ACQUISITION • View donors as valuable assets! • When acquiring new donors, factor in whether you will retain the donor, and at what dollar level • Fill the holes in your leaky bucket! • Why did the donor give? Stop giving? • According to Adrian Sargeant, Ph.D. from Indiana University’s Center on Philanthropy “A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200% .”02/07/2013 Customer & Market Insights 6
  7. 02/07/2013 Customer & Market Insights 7
  8. EMPHASIZE DONOR RETENTION OVER ACQUISITION • View donors as valuable assets! • When acquiring new donors, factor in whether you will retain the donor, and at what dollar level • Fill the holes in your leaky bucket! • Why did the donor give? Stop giving? • According to Adrian Sargeant, Ph.D. from Indiana University’s Center on Philanthropy “A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200% .”02/07/2013 Customer & Market Insights 8
  9. 02/07/2013 Customer & Market Insights 9
  10. EMPHASIZE DONOR RETENTION OVER ACQUISITION • View donors as valuable assets! • When acquiring new donors, factor in whether you will retain the donor, and at what dollar level • Fill the holes in your leaky bucket! • Why did the donor give? Stop giving? • According to Adrian Sargeant, Ph.D. from Indiana University’s Center on Philanthropy “A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200% .”02/07/2013 Customer & Market Insights 10
  11. FOCUS ON LIFETIME VALUE, NOT RESPONSE RATES • Be willing to invest in your donors, e.g. thank you calls. See Donor-Centered Fundraising – Penelope Burk • Determine a donor’s potential early in your relationship and allocate resources accordingly • Be Donor-Centric, not Campaign-Centric02/07/2013 Customer & Market Insights 11
  12. 02/07/2013 Customer & Market Insights 12
  13. FOCUS ON RESULTS, NOT EFFORT • Set goals and measure your results • Find peer groups and benchmark your results • Checklist Manifesto, by Atul Gawande • Identify best practices • Find ways to collaborate to maximize results02/07/2013 Customer & Market Insights 13
  14. INVEST IN YOUR MOST PASSIONATE SUPPORTERS • Organize yourself to recognize a donor’s passion for your mission • See yourself through the eyes of your donors • Be willing to invest in your donors • Test investments and track results carefully02/07/2013 Customer & Market Insights 14
  15. 02/07/2013 Customer & Market Insights 15
  16. KEY TAKE-AWAYS 1. Emphasize donor retention over donor acquisition 2. Focus on a donor’s lifetime value, not a campaign’s response rate 3. Focus on results, not effort 4. Identify & invest in your most passionate supporters02/07/2013 Customer & Market Insights 16
  17. THE BLACKBAUD INDEX Get up-to-date data on fundraising trends and valuable analysis by leaders in the sector. Subscribe to free monthly updates by texting "index" to 69866 or via email by signing up at www.blackbaud.com/blackbaudindex.02/07/2013 Customer & Market Insights 17
  18. WWW.SOFII.ORG A unique online resource of everything you could want to know about fundraising from c.1500 BC to the present day • Over 300 of the best fundraising ideas ever, at your fingertips 24/7…for free! • Contribute your own exhibit. • Sign up to receive hot news and updates. • What three things will you do differently, starting next week?02/07/2013 Customer & Market Insights 18
  19. QUESTIONS? Chuck Longfield, Chief Scientist chuck.longfield@blackbaud.com02/07/2013 Customer & Market Insights 19

×