Donor LTV Calculator for Nonprofits
What is donor LTV and why is it important? How do I calculate donor LTV for my organization?
Here’s a free tool that makes it simple and easy to improve your fundraising strategy.
How to use Keela’s Donor LTV Calculator
Step 1: Pick a segment
Before using this calculator, choose a segment of donors that you want to work with. The information from this group of donors is what will be most important.
Step 2: Make a copy
You’ll have to make a copy of this document to be able to make changes.
Step 3: Fill out the yellow boxes
Next, open up the calculator. You will see an empty table with blank yellow cells. Here’s what you should enter into each of those yellow cells:
Total Donations ($): In this section, place the total dollar amount of donations for the corresponding year. For example: If we raised $200, 596 in this year, I would put 200596 in this cell.
Total Number of Donations: In this section, place the total number of donations/transactions for the corresponding year. For example: If it took 1408 donations to raise all of the money we raised in a single year, I would put 1408 in this cell.
Total Number of Donors: In this section, place the total number of individuals who donated for the corresponding year. For example: If all of your donations for a single year came from 423 total donors, I would put 423 in this cell.
Average Number of years a Donor is Retained: In this section, calculate the average amount of years a donor will continue to give to your organization before they lapse. For example: If donors who donated 10 years ago stayed engaged with the organization, on average, for 4 years after their first gift, I would put the number 4 in this cell.
Once you fill out the boxes, the Donor LTV calculation found at the bottom of the page will automatically complete. What you are left with is the Average Gross Donor LTV for that segment, in dollars.