Our Abila experts have researched and crafted Key Fundraising Predictions for 2015 to help you gain a clear understanding of the challenges facing your sector in the coming year, and how you can turn them into real advantages for your organization.
Below is a deep dive into Fundraising Prediction #3 – Donor Loyalty and Lifetime Value.
Prediction – Donor Loyalty and Lifetime Value
With the competition for donors increasing, it’s vital that nonprofits begin to really focus on donor loyalty and the lifetime value of the donor. It’s no longer enough to get individuals to donate. You must now focus on engaging with them over the long term to create loyal donors who continue to support your cause for years to come, much like you do with major donors.
Nonprofits will find themselves spending more time analyzing characteristics and behaviors of all constituents – not just major donors – to better understand what drives their giving behavior.
What sets apart a great major gifts fundraiser from an okay major gifts fundraiser? Detailed knowledge of your donors’ giving behaviors and motivations.
Sure. It’s good to know that Donor Dan gives $5,000 every July. However, it’s even better to know that Dan gives that $5,000 every July in honor of his only daughter’s birthday. And even better if you’re aware his daughter is a graduate of your program and a current volunteer.
Information like this often lives in the brains of major gifts fundraisers. But that isn’t scalable or easily transferable. When your fundraisers move on to new organizations or retire, this valuable, detailed knowledge goes out the door with them.
Successful organizations have processes for capturing important donor information and making it the intellectual property of the organization, not the individual. To do this successfully, your fundraising database should enable you to:
- Run reports to show patterns and trends among individuals and groups.
- Connect constituent profiles in a way that demonstrates relationships, such as households and circles of influence.
- Document meeting, call, and email notes for information sharing across the department.