Unsustainable Trends

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Annual TrendsThese trends might sound familiar:

  • Your new donor acquisition counts are flat.
  • Your retention is slipping.
  • So, your active donor counts are shrinking.
  • However, you have seen big gains in average gift size.
  • So overall, your revenue is flat.

This has been the general trend in fundraising for the past couple of years.

And it’s unsustainable. We all know at some point the decreases in active donor counts will be too much for average gift sizes to mitigate.

The question is at what point will your revenue fall?

Here’s a simple equation that will tell you: (-1*%∆R) > (1*%∆RPD)
• Where R = retention, and,
• Where RPD = revenue per active donor per year

In English, when your percentage loss in retention is greater than your percentage gain in revenue per donor, your revenue will fall.

To read Part II of our unsustainable trends blog posts, click here.

Trackbacks/Pingbacks

  1. You Promised More Cash | The Agitator - Fundraising, Direct Marketing and Advocacy Strategies for Nonprofits - [...] by Jeff Brooks’ post, Invisible trouble in your donor file, which references this post, Unsustainable Trends, from Analytical Ones,…
  2. Help Isn’t On The Way | The Agitator - Fundraising, Direct Marketing and Advocacy Strategies for Nonprofits - [...] week The Agitator mentioned their article, Unsustainable Trends. There they were talking about the sad day when growth in…
  3. Don’t Talk To Me When I’m Not Listening | The Agitator - Fundraising, Direct Marketing and Advocacy Strategies for Nonprofits - [...] Tom’s Black Monday post Help Isn’t on the Way is the second of a one-two punch alerting us to…
  4. Don’t Talk To Me When I’m Not Listening | The Agitator - Fundraising, Direct Marketing and Advocacy Strategies for Nonprofits - […] Tom’s Black Monday post Help Isn’t on the Way is the second of a one-two punch alerting us to…

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