Calculate Your Nonprofit’s Market Penetration

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market penetration

 

I recently did some analysis for a group of local Human Service non-profits to see how many of the households in their different communities give. In other words, what is their Donor Penetration?

Overall, for the 17 local nonprofits, 2.3% of the local households are Active (0-12 month) Donors. That doesn’t sound too bad until you consider that 97.7% of the local households are NOT donors.

And, out of those 17 organizations, the percent of households who are giving ranges from a low of 0.9% for one local organization to a high of 4.3% for an organization in a different area. That’s an extremely wide range.

I think this shows that for these very well-known organizations there is still a lot of opportunity in their communities to acquire or reactivate donors.

But, it begs the question – Why aren’t people giving?

In my experience it’s often been because most of the community just doesn’t realize there’s a need.

I’ve been involved in several research studies where prospective donors say, “Yes, we know your organization”, and “Yes, we believe that you do good work”. But then they say “We just didn’t realize that you needed us to give.”

They thought that the organization had it all covered.

What percentage of those in your community or target audience are giving? Do they know that you need them to support your mission?

Have you asked?

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