Share of Wallet

Share of Wallet

As a follow-up to my recent blog on Donor Penetration (how MANY households give), I wanted to share some recent analysis for the same group of local human service non-profits. This analysis looks at HOW MUCH households in their communities give compared to overall IRS giving, in other words, their Share of Wallet. For the 17 local nonprofits overall, I looked at every $1,000 in giving as reported to the IRS. I found that on average, $1.12 of that $1,000 goes to these nonprofits. Similar to the donor penetration numbers, there’s a wide range within that. It goes from a low Share of Wallet of only $0.31 in one geographic area to a high of $2.60 in another area. There doesn’t seem to be any correlation between Donor Penetration – the percent of donors giving in an area – to Share of Wallet. Both the area with the lowest Share of Wallet and the area with the highest Share of Wallet have a higher than average Donor Penetration. So, we can’t say that if a smaller percentage of households are giving to you, that those donors are each giving LESS to you. And we can’t say that if a higher percentage of households are giving to you that they are giving you MORE. This speaks to two challenging parts of fundraising: Convincing the donors that you need their gift Getting them to give to you in the first place (the WIN part of the equation) and Getting them to KEEP giving Then once they have given that first gift, convincing them that you are deserving of a significant amount...