New statistics from a comprehensive study reported on in the Chronicle of Philanthropy by Holly Hall confirm what Gabriel Group has been telling clients all along: you can't afford to lose the new donor you've spent so much time and money acquiring! Aggressive donor retention and relationship-building strategies work. Yet, they're often the first programs nixed when budgets get tight. Think about it...one lost donor costs your organization a lot more than "a gift." It also strips you of the cumulative value of that benefactor's future revenue potential.
Hall says the study of over 2,000 nonprofits shows that organizations aren’t raising enough money from new and repeat donors to keep up with donor attrition. For every $5.35 organizations received in donations, they lost $5.54 from donors who gave less or stopped giving altogether, causing contributions to fall by an average of 1.9 percent.
The good news, according to the study, is that the findings show improvements over the previous two years, where the organizations in the study lost an average of 17.7 percent in contributions during 2009 after flat returns the year before. The organizations also saw an increase in supporters compared to a 2.2-percent loss in 2009.
Hall goes on to say that organizations that raised at least $500,000 last year had an 8 percent gain in donations, and those that raised $100,000 to $499,999 had a 2.3 percent gain. However, groups that raised less than $100,000 reported a loss of 12.2 percent.
Gabriel Group continues its leadership role in creating custom donor retention and upgrade programs that maximize your fundraising dollar. Let us show you how to keep your donors active, engaged and giving! Call or write today for a free consultation.