How can you use fundraising metrics to improve your major gifts program?

Think of this as keeping your friends close. It's the number of people who keep donating to your cause year after year. If this number is high, you're doing great at making your donors feel special and connected to your cause. But if it's low, it's like friends drifting away – you might be losing out on big gifts. To keep this number high, make sure you: . Talk to your donors often and make it personal. . Say 'thank you' a lot and mean it. . Tell them how their money is making a difference. . Invite them to be more involved in what you do.

Many organizations chase metrics that don't bear up under scrutiny. Total donors of 1000 or even 100,000 won't matter if your retention rate is abysmal. Helping to inspire a high retention rate is preceded by three things: - Supporters understanding your vision for the future. - Supporters seeing that they made a difference. - Supporters recognizing how their contribution helps them grow personally or reflect their core values. When organizations do these three well, more supporters stay with the organization year over year and can deepen their support over time. Major donor cultivation among repeat donors often looks like asking the question, "Where does our organization rank in your giving priorities?"

We know that donor retention rates are plummeting. 10-15 years ago we could expect upwards of half of donors renewing; today the number is around 40% and continuing to drop. But, do we measure donor retention rate correctly? Are we removing soft credits and other anomalies, not to mention the gifts that were never intended to be renewed. Yes, the relationship with the donor after the gift is critical - and it is what many donors are seeking, finding value, identity and belonging in their giving. But how many donors expect or think that their gift should be made annually? How do we convey that through our conversations and stewardship of their gift?

In my experience the key to successful donor retention is building a relationship that goes beyond the transactional aspect of donating. By building a annual stewardship calendar and donor appreciation event it’s shows your donors they are valued partners in your mission.

It's critical to comprehend and raise your donation retention rate. Strong donor relationships are indicated by a high rate, which also suggests successful engagement tactics. To keep this number rising, put an emphasis on meaningful interactions and tailored communication.

Fundraising is a mixture of art and science. The art being the nuances of humans (motivations to give, capacity and affinity to do so, etc) who you seek to partner with as investors, along with your creative design of converting those interested to invested allies. The science being the true data of your fundraising efforts. Designing your fundraising strategy (plan, team activities, goals and engagement activities) based on who is most aligned to the work is critical. Traditionally, fundraising requires a pool of prospects (minimum of four) to engage in order to secure true investment from one donor. These numbers are simply a baseline. Every year, audit the program to determine what works and where the ROI truly is.

Retain donors by getting to know them, sharing progress your organization is making on your mission and invite them to give more. Retain donors by relationship building and ask them for more. If a donor isn’t challenged to step up, they will get the message they aren’t needed. They will stay flat in giving likely because we’ve fallen flat in relationship management.

In addition to using the metrics to better understand your audience and trends, turn those metrics into public facing content that helps communicate the impact their donations have on the community/cause that your mission serves.

One thing I have found is to communicate with donors but also keep them engaged in future thinking. Innovation and responding to need is relatable and invites new ideas

This is like measuring how much a friend helps over a long time. It's all about how much a donor gives from the first time they donate to your cause until the end. A big number here means your donors really trust you and keep giving more. If it's small, you might not be showing them enough how much they matter. To improve this, you can: . Map out a plan showing how you’ll take someone from a first-time giver to a big-time supporter. . Make sure you recognize and thank your donors in different ways. . Give them options and chances to help in ways they prefer.

Donor relations techniques and long-term fundraising success can be predicted with the use of donor lifetime value calculations. To get maximum value out of high-potential donors, invest in their upkeep.

I believe working on major gifts equals to working long term relationships with donors. The key is to listen to your donors in their interests and needs. Therefore, is very important to offer your donors special projects, programs along their aspirations and vision. I have seen so many times in different organizations that fail in nurturing these relationships, since they focus on the wrong ideas, not at all in the interest of the particular donor, but on their own. Is important to listen carefully and focus on donors interest; know your timing on when to ask. These little details, may lead you to relationships that last a lifetime.

Donor metrics are like a game of 20 questions. Utilizing the information will generate a very personalized approach to each donor ask during a major gift campaign. So, in the end the donor feels better about the ask because you can make sure that they are giving to a cause that they are truly passionate about.

Getting longer with donors may lead to donor fatigue. We also need strategic views while dealing donors; measuring together magnitude and lifetime within the crisis, the collective response and engaged resources with gaps and mitigation measures, phasing out and operating modes... Some of the time, it is preventive to develop a strategy to recruit new donors, preferrably local donors in the private sector, and henceforth reduce impact on donor fatigue.

It's all about seeing the bigger picture and recognizing the long-term potential of each donor relationship. By mapping the donor journey and implementing a thoughtful stewardship plan, organizations can effectively nurture their donors, encouraging increased giving over time. This maximizes revenue and builds a strong foundation of trust and loyalty, which is invaluable for sustained support.

Stewardship is picking up the phone and thanking people, getting to know them as human beings, and it’s the key to raising more and more. Make time for it or you won’t have donors to take for granted anymore. They’ll leave.

To be donor-centric, this should be seen as an outcome, not a goal. For major gifts, the relationship is the goal from which all other benefits follow. Obviously, how much a major donor has contributed over the years is vital info for stewardship. But major gifts should be about partnership towards a shared mission, not only money. Major donors often give so much more - advocacy, networking, referrals, and volunteering. Stewardship needs all this info, even if donations end. I dislike with “maximization” as a goal for major gifts. Maybe “optimization” is a better word, as long as it's two-way. WRT “transitioning” major gift donors to higher levels of contribution, I can think of no better way to risk a major donor relationship.

I hope every single donor’s coming to help me I will be in touch with them and I will definitely let them rights to be allowed to take benefits and stay long term. This is not only I decide, we will together with our own people will make sure how we forward.

This one's like checking if the effort you're putting into fundraising is worth it. It's about how much you spend versus how much you get back. A high return on investment means you're using your resources wisely. A low one could mean you're spending too much without much to show for it. To get better at this: . Set clear goals that are realistic and track how you're doing. . Always check what's working and what's not. Change your plan if you need to. . Choose fundraising activities that your donors like and respond to.

The term "return on investment" (ROI) refers to the ratio of the money raised through fundraising efforts to the expenses spent. It is computed by dividing the activity's net profit by its entire cost. Finding the most effective fundraising tactics is made easier by doing a ROI analysis. High ROI initiatives make the most use of available resources and guarantee that the organization's money are allocated to projects that will provide the highest financial returns, which is essential for long-term viability.

To enhance your ROI, it is imperative to establish SMART fundraising goals—goals that are Specific, Measurable, Achievable, Relevant, and Time-bound. Tracking performance and progress, along with a rigorous evaluation of fundraising activities, will enable you to discern effective approaches, refine strategies, and ultimately elevate the overall success of your fundraising initiatives.

A majority of nonprofits rely on events as their main revenue stream. A good ROI ratio for nonprofit events varies depending on the specific event type and the organization's goals. However, a common benchmark is to aim for a ratio of at least 3:1 or higher. This means that for every dollar spent on the event, the nonprofit should ideally generate three dollars or more in revenue. It's important to note that while financial return is significant, nonprofits also measure success in terms of community engagement, awareness raised, and other non-financial impacts, which might not be directly reflected in the ROI ratio. Therefore, while evaluating the success of an event, both financial and non-financial outcomes should be accounted for.

Return on Investment (ROI) is a financial metric used to evaluate the profitability of an investment relative to its cost. It is calculated by dividing the net gain from the investment by the initial cost and expressing the result as a percentage. A positive ROI indicates a profitable venture, while a negative ROI suggests a loss. ROI is a crucial tool for businesses and investors to assess the efficiency and effectiveness of their financial decisions. By comparing returns to costs, organizations can make informed choices about allocating resources, optimizing strategies, and maximizing profitability.

Schedule time to reflect. You can’t make aMaZiNG plans to grow if you don’t know your results. How far have you come? Can you learn from success? Or do you listen mostly when you fail? Do you understand how you achieved success or do you think it was luck? If you lack wisdom to discern what makes you successful, it will be hard to double down on it. Get around folks wiser than you who can help you see success, failure and opportunities more clearly in order to make a great strategy moving forward.

Yes! Like any business you need to go ahead and determine if a "customer" in this case the "donor" is worth the "acquisition" ALSO need to determine if your "fundraising events" are effective for fundraising and actually "net" the nonprofit money for the mission.

As the global fund is decreasing year by year. And now most of the donor countries have limited donations for the countries where donations needed. But, the recent world is passing a critical time to channeling donations to the country where they need donation. Now a days, the donors want more accountability on their donations as well as they focus more results through their investments. And, they want more transparency in their donations and not only that they want to capture the country economy, politicics, geo location as well as a dominated characters are common in the donors country. Apart from , individual donor is also trying to visualize their image to the country where they are going to provide donations and provided donations.

This goes along with what I said priorly. The more you put into your fundraising, the more you will get out of it. Set goals, figure out what does & what does not work, & know your investors.

For me this is a major argument for major giving practices as large gift’s cultivation is in fact cheaper and co-relate to the lifetime value as well.

The donor pyramid tool can serve many purposes. You can chart your current donors into giving levels relevant and meaningful to your organization's size, budget, historical giving thresholds, etc. Or you can utilize this tool to determine a calculation for reaching a fundraising goal. For example, your org wants to reach $1M goal for a new project. You build the foundation of the pyramid by seeking 10 gifts of $10,000 totaling $100K, second level of 12 gifts of $25,000 totaling $300K, third level of 8 gifts of $50,000 totaling $400K and top level of 2 gifts of $100,000 totaling $200K. The total giving equals $1M. The pyramid model also demonstrates the quantity of asks to achieve the dollar goal. 4 asks per gift received is a wise ratio.

Beyond the essential indicators, this comprehensive analysis delves into a nuanced comprehension of donor behavior, incorporating elements such as donor engagement levels, giving trends, and direct feedback. By considering these additional factors, a more intricate depiction of the donor base emerges. This in-depth examination not only facilitates the identification of novel opportunities for donor cultivation and stewardship but also enables the implementation of tailored engagement strategies. Furthermore, it aligns fundraising endeavors with donor preferences, fostering a more strategic and effective approach to philanthropic initiatives.

The pyramid is the result of a process initiated with a creation of an evaluation committee, carefully selected (bankers, lawyers, investment consultant, etc.) to suggest an estimated donation according to their wealth. After having a CASE statement, you test it in your philanthropic market with a feasibility study to a carefully selected amount of donor prospects from the evaluation committee previously. In a Capital Campaign, which is my experience; the goal ( based on the needs to achieve the CASE) divides the pyramid in 3 segments. The top is the amount of donors to reach the larger donations, the second is the medium size and the bottom even the pocket money ones.

Nonprofits traditionally focus on the base of the donor pyramid, targeting smaller, one-time donors for broad fundraising. However, to maximize long-term sustainability, they should gradually shift focus up the pyramid, nurturing mid-level donors towards becoming major donors. These major donors, though fewer, contribute larger gifts and are essential for substantial revenue. The shift should occur as the organization develops stronger relationships with donors, understanding their motivations and capacity for giving. Balancing efforts across the pyramid—cultivating new donors at the base while deepening relationships with existing donors at higher levels—is key to sustained success.

It's very important to use frameworks or tools that allow you to customize your donor database; Just keep in mind that there are several strategies and you should discover what fits you best based on your resources and experience.

Obviously you should know how you are performing at each level of major gift-giving. But the level of giving may not be your most useful framework. At a high level, where do major gifts fit within your overall fundraising strategy? Everyone has a mix of revenue sources (individual giving, seasonal campaigns, events, third-party events, etc.) Which are you investing in, what are they contributing, and at what cost? Then look at major gifts. They come from a range of different places: corporations, foundations and service clubs, and wealthy individuals. Think of these as another framework for analysis. This approach informs planning. It can help you figure out whether and where to invest within your major gifts program.

In addition to the important indicators, this provides a thorough understanding of donor behavior by taking into account elements like donor engagement levels, giving trends, and direct feedback. A more complex picture of the donor base can be obtained by taking these extra factors into account. In addition to identifying new opportunities for donor cultivation and stewardship, it allows customized engagement methods and matches fundraising efforts with donor preferences.

We tend to measure what we can measure and not what's important because it's often a bit 'fluffy' and we don't have an accurate metric(s) for it. The way I do this is to be clear on what 'important' is and then ask myself what data/metrics would enable me to make better decisions. The other thing I focus on is that looking back at existing actual data can be useful but you can only make decisions about the future. Rather than focussing solely on this, I ask myself what insights it offers me or how an extrapolation, or how relevant external factors might impact the future - to ask myself, how might that inform our decision making. I can't change what happened last month, only what might happen next month.

I believe individual metrics are best used to encourage desired behavior. One can count anything, and what is counted tends to be the focus of activity, for better or worse. I believe in metrics that don't just count activity, but those that indicate the positive impact of the activity. For example, rising donor retentions rate may indicate effective stewardship. Metrics should show that gift officers are causing the right things to happen to move donors toward making gifts. In addition to hard metrics, I believe in soft metrics to encourage desired behavior. Are development officers demonstrating teamwork, are they sharing information appropriately, are they building internal relationships to enable them to be better partners for donors?

Keep in mind, if you use metrics to measure performance - keep your eye on the prize. Activity metrics typically track how good a fundraiser is at putting in call reports - not how effectively they fundraise. Focus on what you want to improve. This could be pipeline movement, dollars in the door, or secured commitments. The more metrics you measure, the more divided their focus.

It's important to remember that at the highest levels, one-on-one fundraising is about intimacy. It cannot be measured (you know it when you have it), and AI cannot produce it. It can only be created by close human relationships (the definition of intimacy) over time.

Prospect pool balancing. When I am doing annual territory rebalancing I find it helpful to ensure there is a average balance in an assigned prospect pool/territory. That means that each gift officer has a prospect pool weighted about equally in areas like capacity, average gift size, prospect volume, and annual fund lifetime giving totals. How many times do we walk into prospect hording programs and wonder how to solve it. By evaluating what percentage of the prospect pools capacity is actually giving. Give prospect pools personas by the geographically located industries and historic wealth centers. This helps you find/assign an MGO who resonates with the nuances of the prospect pool. This ensures equal opportunities for success

In the current economy, more attention must be dedicated to a more diversified donor development strategy. When donors’ incomes shrink and grants are less plentiful, leveraging a donor’s talent and time can be just as valuable as receiving their treasure. Integrating the “ask” for talent and time with the treasure campaign can boost the donor pyramid and the value of overall funds raised.

The toughest part about major gifts is getting the meeting. I like to track number of touch points, conversations and meetings with the donor to understand how engaged and passionate they are about our mission and organization. If you get a meeting, you’ll get a gift.

Use the talent & tools you have. Say a lecture from a curator or leading person, invite key opinion formers locally including all parliamentary candidates. Add good food & drink, say hire the local catering at college or use your venue. Ask in a thank you letter for a donation and to think of you in their Will or if they are a business a regular donation from a collection box near the front door. Be creative.

Fundraising metrics in terms of finding performance leverage for fundraising team is also important to leverage and motivate fundraisers at stages they need the most help and lift up the fundraising results as a team.