As we start the new year, many organizations are looking at their year end results to see if they made their "goal".
What that means for many of you is, "did we raise more money than last year", or "did we hit our $$$ goal". Hitting your financial target is good; very very good. It means that you can keep doing more amazing life-changing work on behalf of those you serve.
But did you know . . . termites are keeping you from doing even more life-changing working?
A recent article "Attrition is Your Enemy" by Panas, Linzy & Partners drives home a very important point about what happens when we ignore donor attrition.
Donor attrition is the number of donors who gave last year (or some year) and who don't give again.
The average donor attrition rate ranges from 40-60% (or more).
That means that every year you will lose at least 40% of your donors . . . and the revenue they bring to your organization.
Let's say your organization brought in 1,000 new donors last year. If your attrition rate is 40%, only 78 of those donors will still be with you in 5 years.
Think about how much lost revenue that is. Think about how much less goes to your mission and those you serve.
"Donor attrition is the equivalent of termites eating away at your home. Many home owners are unaware that the support system of their flooring is being destroyed."
How many of you are slowly losing the foundation of your organizations due to termites . . . donor attrition?
"It costs 4 1/2 times as much in staff, time, and resources to secure a new donor as it does to keep one who has already shown he loves you."
Remember, getting the first gift is the easy part. Getting the second, third and subsequent gifts, is where your job really begins. This is where you do your magic to keep the termites away.
This is where you shower your donors with gratitude. This is where you let them know that you couldn't do it without them.
Don't neglect your donors. Don't be afraid to talk to them. Share the impact. Share the joy.
Send the termites packing.
Did you know . . . . many nonprofits saw December income drop by as much as 25%?
We can speculate on the reasons, but that doesn't change the results.
Did you experience a similar shortfall?
Are you worried about the termites eating away at the foundation of your organization?
If so, J. Milito & Associates can prepare a custom analysis and plan as a solution to your year-end shortfall.
The plan includes:
- Fundraising Fitness Test and Performance Report to assess donor retention and revenue gaps.
- Recommended strategies to bring lapsed donors back; ask donors for monthly sustaining gifts; or acquire new donors from your pool of supporters and friends.
- Recommended strategies for donor stewardship and gratitude.
- Recommend strategies to avoid future shortfalls.
J. Milito & Associates can help you get 2019 off on the right foot and keep the termites away.