Look up now: Your donor is leaving!

20 Jan

161142__icebop_lYour donor is walking out of the door. And you’re so busy turning cartwheels for a potential donor that you don’t even notice.

In the absence of donor attrition studies in India (if anyone is doing them, I’d love to hear all about it), here are some findings from the 2013 Fundraising Effectiveness Survey conducted by the Association of Fundraising Professionals and The Urban Institute in the US:

  1. Every $100 gained in 2012 was offset by $96 in losses due to donation attrition.
    This means that for every Rs 100 raised, not-for-profits lost Rs 96 because of a drop in other donations. In other words, you think you have Rs 196 in the pot, but you have only Rs 4!
  2. Every 100 donors gained in 2012 was offset by 105 in lost donors through attrition.
    This is even more shocking. For every 100 new donors recruited, 105 donors were lost because they just stopped giving.

Last week we talked about how donor retention had finally jumped ahead of acquisition as a priority for not-for-profits. This is in the US. At home, it’s business as usual.

While not-for-profits are willing to earmark budgets for donor acquisition, very few see donor retention as a priority. It’s time to wake up to the stampede of the departing donors’ feet.

Plan for donor retention, the very minute that you make plans to acquire the donor, and not long after the donor has been acquired.

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