Donor Drain and Churn???

February 4, 2008 at 10:15 pm Leave a comment

An article in the recent issue of Contribute Magazine quoted two stunning statistics:

“Raising money for a cause these days has become much like trying to walk up a “down” escalator while it is accelerating. It’s getting tougher just to break even and much easier to fall behind. “The problem is not that [charities are] not getting new money; the problem is that they’re losing an enormous amount of money,” says Bill Levis, the author of a new pilot survey by the Urban Institute that documents the trend. Levis’ survey shows that most nonprofits post an average gain of just 10 percent each year: they lose 52 percent of their donations, which is then offset by a 62 percent gain in new or upgraded donations. In short, says Levis, nonprofits are losing almost as much as they’re gaining, pouring a river of money into a nearly open drain.


“Of the donors who withdrew support, 47 percent did so because they felt uninformed or unappreciated.”

Click here If you want to read the full article.

I have several questions for you to ponder upon:

• As a nonprofit, what are you doing to keep your current donors engaged and spreading the word? Request for money letters do not count.
• How open are your books? Do you show your donors where their money is going? Donors want transparency. If you do not give it to them, they will go elsewhere.
• Do you send thank you letters and emails for all donations? Even the ones as low as $25? Recently, I made small donations to numerous nonprofits. About a third did not send even an email thank you note.
• What are you doing to reward the small donors? T-shirts, DVDs, and trinkets are somewhat effective; but are boring. Think outside the box. (I’m biased. I know cash rewards always get people of all income brackets interested. They can keep the cash rewards or give them away to the charity.)
• What are you doing to make your organization different that the other 1.3 million 501(c)3 other nonprofits? For example, did you know that there are over 7,000 501(c)3 nonprofits in Cincinnati, OH?

There is an old business maxim that states to do whatever it takes to keep an existing customer………as the cost of keeping one is cheaper that the cost of getting a replacement.

Over two years ago, we started a nonprofit with a new idea…create an incentive for donors to give more to their favorite charities. After extensive listening to donors about what they wanted from their nonprofits….we created™

We are here to help you. Let us know how we can help.


Entry filed under: Cincinnati, Nonprofit Community, Social Media. Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , .

The Street Market “If you think you are too small to be effective, you have never been in bed with a mosquito.” – Betty Reese

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