Thanks to AFP’s Growth-In-Giving Initiative, you now have a very simple way to evaluate your organization’s year-over-year results for gains and losses. On their web page you can also find free downloadable Excel files to help you dump your numbers in so you can review and analyze your results.
Once you’ve done that you’ll need to determine the 80/20 for both your gains and losses. You can do that using Pareto Charting in Excel. Here’s how to do it.
The chart below shows that a small number of donors delivered the biggest donations (shown with red dots connected by red lines). An analysis of most nonprofits’ revenues will result in a chart like this. Although, nowadays, many are seeing it become a 90/10 chart instead of 80/20.
Majorgivingnow.org is an initiative funded by the Corporation for Public Broadcasting. They created an Excel file you can use too. You can get it here at the top of the page.
I believe, if you monitor your gains vs. losses and focus on the 80/20, you can’t lose. Let me know if you agree.
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As major donors are the most loyal, it would be interesting to see the percentage of those loyal, major donors as planned gifters. How many of your most loyal major donors ALSO are including a gift in their will??? questions…questions….
Is there more explanation available about what the graphics represent? I’m looking for the combination of numbers that’s supposed to add up to 100 percent. Tier? New/recapture/lapse status?
Here’s a link to the original report from AFP.
Tim, see page 11.