Every nonprofit who relies on fundraising to accomplish their mission looks for more effective ways to raise money and improve donor retention.
Fundraising effectiveness is an ongoing, evolving, and challenging reality.
Luckily, folks like the Fundraising Effectiveness Project take time to dig into the nonprofit fundraising data over time and pull out insights that help the nonprofit sector continue to evolve their fundraising efforts.
Focus on Keeping the Donors You Already Have (Donor Retention)
Since 2005 donor acquisition has been tough.
The number of donors that a nonprofit has continues to decline, but the light at the end fo the tunnel is the fact that yearly giving per donor is on the rise. Yearly giving by donor isn’t growing like Apple stock, but it’s enough to help us understand that donor retention is critical to long term fundraising effectiveness.
We all know that it’s cheaper to keep an existing donor than it is to find and cultivate a new one (i.e. donor retention).
Key point: Keep your donor retention strategies laser focused and do every thing you possible can to keep current donors happy.
Focus on People, Not Companies (Donor Acquisition)
Corporate Giving took a big dive recently, but individual giving to nonprofit organizations continues to steadily increase.
I’m no economist, but my guess is that the tough economic times over the past few years is a fairly big contributing factor to why companies all of a sudden started pulling back.
Key point: Take the time to get to know your individual donors and their networks. That’s where long term fundraising effectiveness lies. And use the Internet to aid in your efforts.
- Why Online Donors are Worth More than Offline Donors
- Online Donors vs. Offline Donors
- Online Donors and Offline Fundraising
Data based on a recent nonprofit study by the 2012 Fundraising Effectiveness Project. Get the full Fundraising Effectiveness Report here.
So, now that you know what the data says, would you agree? Are you seeing similar trends at your nonprofit? What are you doing to grow fundraising results year after year?
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