The Exponential Importance of Second Gift Timing

The Exponential Importance of Second Gift Timing

Check this out! This graph shows the the five-year value of a donor based on how quickly an organization converts a new donor into a second gift donor. The correlation is astounding. New donors that give a second gift within the first 3-months have LTVs nearly twice as high as those who give at the 12-month mark. This demonstrates that it is worthwhile to spend money cultivating a second gift early in your relationship with a new donor. What’s also surprising is the value of donors who convert 13-24 months after their initial gift. This is encouraging. Don’t give up on a new donor than didn’t convert in their first year. However, less surprising, new donors who wait 25+ months to convert have much lower LTV rates. All this indicates the need to have strategies in place encouraging the second gift ASAP for your newest...
Simplicity Before Complexity

Simplicity Before Complexity

            This is the second blog post in a guest series by Steven Screen of The Better Fundraising Company. Last time we asked the question: is there a certain kind of story that leads to fundraising success? For the donor files that Analytical Ones showed were doing really well, were there any commonalities in the “stories” those organizations were telling their donors? What we found was that the organizations that outperformed their niche tended to follow a similar pattern. And it was so simple I could summarize it in just 4 words: Ask, Thank, Report, Repeat These organizations tended to do four things really well: 1. They were very good at the art of Asking their donors for gifts 2. They Thanked their donors promptly and emotionally 3. They Reported to their donors on what their gift had accomplished 4. They Repeated the Ask, Thank, Report rhythm multiple times each year, and they repeated the same ideas and offers throughout the year. Mastering the Basics Now, of course it’s more complex than that. If you read this blog you know that. But you also know that a LOT of nonprofits chase shiny things instead of mastering the basics. And I’m here to tell you that it’s the basics of Asking, Thanking and Reporting that seemed to propel the successful organizations. Whenever I or my co-founder, Jim Shapiro, speak at conferences we ask the audience if their organizations are good at Reporting to donors on what their gifts accomplish. Usually about 15% to 20% of the hands go up. That means 4 out of 5...