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...
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...
The Power of a Major Donor Model

The Power of a Major Donor Model

  Think about this and see if it doesn’t convince you of the value of a major donor model to identify prospects on your donor database. These are actual numbers from one of our clients. What are the odds of any donor reaching major donor status? About 1 in 1500 What are the odds of a donor with a net worth of $1 million becoming a major donor? About 1 in 900 What are the odds of a donor whose first gift is $100 or more becoming a major donor? About 1 in 400 What are the odds of a donor with an Analytical One’s top major donor prospect score becoming a major donor? About 1 in 4 Any...
Why Direct Mail Acquisition is Still Viable

Why Direct Mail Acquisition is Still Viable

What? I know, most of our blogs address the unsustainable trends in fundraising, particularly in the area of direct mail acquisition. However, recently I completed an analysis that was so surprising, that it might breathe some new life. The graph below shows the percentage of active FY14 large gift donors for a national organization whose first gift was attributed to a direct mail acquisition kit. About one-in-six of the Majors and more than one-in-four of the Mid/Major donors first gift was through traditional direct mail acquisition. Think of it another way, take away direct mail acquisition and a significant chunk of your future large donors will also go away. Obviously, this requires a different approach to cultivation. It’s imperative to identify these direct mail donors with potential and treat them differently. Fortunately, there are analytical tools that can help you do this. (Connect with us and we can tell you more about our mid and major donor modeling services). So the next time you are getting pressure from your board to chop your direct mail acquisition budget, show them this graph, and ask them if they are willing to write a check for the difference. Follow...