Upgrade ROI

Upgrade ROI

Since The Great Recession, two of the macro trends in fundraising are: 1) Organizations’ active donor counts are declining; and, 2) The donors who stay active have been giving more. Thus far, the increase in individual donor value has mitigated the decline in the donor counts. So, organizations are raising more money. As the top end of the donor pyramid has become a greater portion of an organizations’ overall giving, it has become more important for all organizations to efficiently identify donors on the file that have the potential to upgrade to major donor status. At Analytical Ones, we have seen our major donor identification models become one of our most popular products. To see why, check out the table. This table shows the 12-month donor values “before and after” Analytical Ones created a major donor identification model for a client. On the left side of the table in blue are the model scores (1-6+, the higher the score the higher the probability for conversion) and the number of donors who were identified with that score. The next column, in yellow, shows the retention rate by model score. All of the donors identified have better than average retention. In the green columns are the percent of donors who upgraded (gave more than they did the previous 12-months) and the percent that converted to major donor status that year. Note, as their score increases, so does the percent of conversions. In the orange columns we show three metrics. The 12-month value of the donors who did upgrade before the client received our major donor identification model, and the 12-month value...
A Fall of Concern

A Fall of Concern

Here we are again in the midst of the big fundraising season. As I type, nonprofit organizations’ direct mail packages are landing in our mailboxes – with dances of response rates dancing in their heads. This is always an anxiety filled time. Usually, election cycles don’t have a big impact on nonprofit giving. And though this is no usual year, a donor survey we conducted last week indicates that political giving is not siphoning money away from charities. Still, the divisions and heated national discourse we all have been experiencing this past year isn’t exactly creating the peace on earth and goodwill toward men moment we hope for in the giving season. We are not the most charitable environment. But the truth is that we’ve been here before. As I look back at my 25-years in the business, fundraising made it through the fall of the dot.com bust. We made through 9/11 and the anthrax scare. And we survived the Great Recession. It’s not to say we don’t all have some bumps and bruises from these events, but the generosity of the American people seems to have a way of shining through and saving the day. I’m optimistic that we will have a good fundraising season, and can’t wait to dig into all the donor databases next January to see just how good you all...
Planned Giving – The Age Ceiling

Planned Giving – The Age Ceiling

  Recently, we did a large sample national survey of donors in the United States. We asked a wide variety of questions and we will be blogging about some of the donors’ responses. This is our third blog on planned gifts. One question that is often debated in developing a model for identifying planned giving prospects is whether there is an age ceiling. The results from our survey seems to suggest there is. Once a donor reaches the age of 75, their likelihood to consider adding a charity is half of what a donor under 75 years is. Of course, you may have to wait longer to realize the gift. But your likelihood of securing the gift will be higher if you target donors under...
Planned Giving – Lowering the Bar

Planned Giving – Lowering the Bar

As I mentioned in my last blog, we recently did a large sample national survey of donors in the United States. We asked a wide variety of questions and we will be blogging about some of their answers over the next few weeks. This is our second blog on planned gifts. Check out this graph: Not surprisingly, the higher the annual income of the donor, the higher the probability they have already included a charity in their estate plan (blue bar). But what’s surprising is that the biggest opportunity for winning new estate gifts (orange bars) are from donors in the $75,000-$250,000 annual income group. Usually, most charities go after their most wealthy donors when prioritizing estate gifts prospects. Our survey data shows that if we lower the income bar we will close more estate...
Planned Giving – An Untapped Resource

Planned Giving – An Untapped Resource

Recently, we did a large-sample national survey of donors in the United States. We asked a wide variety of questions and we will be blogging about some of their answers over the next few weeks. The first blog is on the untapped resource for planned gifts. In our survey, over one-third of respondents indicated that they currently do not have a charitable gift in their will or estate but would consider adding one. Strikingly, that was twice as many people as those who indicated they have already included a charity in their estate. Think about that. That means potentially for every planned gift you have already secured, there are two more out there just waiting on you to ask them. If you don’t already have a plan to land more planned gifts from your donors, you really need to make that a...