Glossary
Analytics & Forecasting

Donor Lifetime Value

By: Alec Hollingsworth
Updated:  
July 16, 2025

Definition:

Donor Lifetime Value is the total amount a donor is projected to give to your nonprofit throughout their entire relationship with your organization.
Donor Lifetime Value (DLV) is a metric that estimates the total contribution a donor is expected to make to your nonprofit over the course of their entire relationship with your organization. This value takes into account factors such as donation frequency, average gift size, and donor retention rates. By calculating DLV, nonprofits can better understand the long-term financial impact of individual supporters and prioritize stewardship strategies. DLV helps organizations focus on building lasting relationships, rather than just one-time donations, which can lead to more sustainable fundraising and mission success.

Key Takeaways

  • Helps forecast long-term donor revenue
  • Informs targeted stewardship strategies
  • Improves fundraising efficiency
  • Encourages relationship-focused fundraising

Why It Matters

DLV guides nonprofits in making informed fundraising and stewardship decisions.

Real World Example

A local animal rescue uses Keela to analyze donor data and discovers that recurring donors have a Donor Lifetime Value nearly four times higher than one-time donors. With this insight, the nonprofit invests in a monthly giving program and personalized communications to nurture these long-term relationships. As a result, they see an increase in donor retention and overall revenue, allowing them to rescue and care for more animals. Calculating DLV guided their decision to prioritize stewardship efforts and allocate resources effectively.

Frequently Asked Questions

How is Donor Lifetime Value calculated?

DLV is typically calculated by multiplying the average donation amount by the number of donations per year and the average donor lifespan.

Why should nonprofits focus on Donor Lifetime Value?

Focusing on DLV helps nonprofits build lasting donor relationships, leading to more sustainable fundraising and mission impact.

How does Keela support tracking Donor Lifetime Value?

Keela provides analytics and donor management tools to help nonprofits calculate, monitor, and act on Donor Lifetime Value insights.

Can Donor Lifetime Value help with donor segmentation?

Yes, understanding DLV enables nonprofits to segment donors and tailor engagement strategies for high-potential supporters.

Related Terms

Accessibility Compliance
Automation Trigger in a Nonprofit CRM
Average Gift Size
Board Member Profile
Bounce Rate
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