Chuck Longfield is worried about the future of fundraising because acquisition costs have increased while donor retention has decreased from 33% to 27% over the past 10 years. Specifically, 75% of newly acquired donors leave within the first year. While the number of new donors decreased 20% from 2003 to 2007, the average donation amount rose 23%. Most nonprofits prioritize acquisition goals over retention goals despite retention costing five times less. This overemphasis on acquisition risks losing loyal donors over time and lowers net profits for nonprofits. To improve retention, nonprofits should invest in existing donors by learning their passions and building relationships with the most promising donors.

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

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


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