"If we merely aim for the industry standard, then our goal is mediocrity. Emulating the average nonprofit, we are destined to live with all the problems the average nonprofit faces. So, we suggest you aim to be exceptional in your approach to fund development." (Dr. Eddie Thompson, Founder & CEO/Thompson & Asscoiates)
Mike Cowart & Associates partners with nonprofits to achieve exceptional results in donor acquisition, donor retention, and maximizing donor lifetime value, which culminates in planned gifts.
Obstacles for Fundraisers
This information applies to most nonprofit organizations.
A new donor usually makes a second gift via the channel from which the donor was acquired. For example, a donor obtained via an event will typically give to the same event a year later. Unfortunately, the donor does not remember their first gift or has shifted their affinity to another nonprofit organization.
Memorial donors are extremely difficult to renew.
90% of donations are given offline.
Donor attrition ranges from 60%-70%.
First-time donor attrition averages 70%.
"Small organizations suffer most-On average, charities raising $100, 000 or less lost $110 for every $100 raised. Those raising between $100,000 and $500,000 lost as much as they gained.
On average, charities raising more than $500,000 lost $90 for every $100 raised. The average nonprofit has a 60-70% chance of obtaining additional contributions from existing donors; a 20-40% probability of securing gifts from a recently lapsed donor; but less than a 2% chance of receiving a gift from a prospect."
- (Roger Craver Retention Fundraising)