According to the most recent Fundraising Effectiveness Project (FEP) Report, 57% of new donors acquired by a non-profit give ONE TIME and NEVER GIVE AGAIN.
If you work in the non profit sector, that should cause you to lose some sleep. A retention rate of 43% is the national average (2014) among 3,676 respondents – and that’s actually good news because for the first time in over 10 years, the data is showing an improvement.
If donor retention and attrition rates are something new to you, now is a good time to start paying attention to this essential piece of data. It is far more than a performance indicator – donor retention is the bottom line.
Improving donor retention by just 10% will double the lifetime value of your donor database.
And THAT is why these numbers matter. Dr. Sargeant’s claim is completely incredible, but true. It’s very simple math to calculate the monetary affect a 10% improvement will have for a charity – all you need to know is your current donor retention rate and the average annual value of one donor.
Once you have that information, there is just one more thing you need. A strategy to keep more donors.
I can help you improve donor retention and strengthen the value of your relationship with corporate stakeholders.
Improve Donor Retention
Just as you would have your temperature and blood pressure checked during a visit with your doctor, a NPO needs to know its donor retention rate. I’ve created a tool to help you learn this critical piece of data.
I’m providing you with TWO donor retention calculators – both are free. The SIMPLE retention calculator is right here. Just enter the requested data and it will show you your current retention rate. It’s easy, it’s free, and this little piece of information is critical to doing what you do, better.
You need the TWO most recent years of complete fiscal data. Enter the total number of donors of the first year. Then enter the number of donors who gave in year one and ALSO gave in YEAR TWO. (Note: The data for YEAR TWO is ONLY the number of donors who gave in BOTH years.)
Registered users can access the full-function donor retention calculator that provides your CURRENT Retention Rate as well as the these projections:
- 15 Year Projections at your CURRENT Retention Rate
- 15 Year Projections at a user definable TARGET Retention Rate
- Donor Loss Projections for each year
- Revenue Loss Projections for each year
- Donors Retained for each year
- Revenue Retained for each year
- Totals of lost and retained donors and revenue
Immediately after submitting your information, a detailed report will be emailed to the address you provide AND you can come back anytime to run additional reports. All you need to do to use it is login or register.