The Most Expensive Mistake You’re Making Right Now
This may be the most important thing anyone ever tells you about fundraising. The post The Most Expensive Mistake You’re Making Right Now appeared first on Keela.
This may be the most important thing anyone ever tells you about fundraising.
The cost to acquire a new donor is 10 times higher than the investment required to retain an existing donor’s support year over year.
Yep. 10 times as expensive. No joke.
The statistic that is at the heart of this research is your donor retention rate . That’s the figure that points to how many of your donors are continuing to give year-over-year compared to the ones who are dropping off.
In their most recent Fundraising Effectiveness Report, Bloomerang reported that donor retention is only 46% in recent years. Even more unfortunate? This represents an 8% decrease in donor retention since 2008.
Do you know your donor retention rate from the past three years?
If you haven’t made donor retention or stewardship a priority in recent years, then you’re probably (unfortunately) going to find that your donor retention rate is about the same as what Bloomerang is reporting.
Otherwise stated: every year you’re replacing more than half of your donors.
What does this mean?
It means that this year, if you can slow the flow of donor attrition from your organization, you’re going to save on acquisition costs, raise more money and build a more vibrant community of support.
In the next few months, we’re excited to take you on a blog adventure about the reasons donors leave organizations, the antidote to donor attrition and how you can leverage tools like Keela to make surprising, delighting and retaining your donors easy.
Janet + Leigh