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How to calculate how much revenue you could have with a mid-level donor migration plan to inspire major gifts

Greg Warner is CEO and Founder of MarketSmart, a revolutionary marketing software and services firm that helps nonprofits raise more for less. In 2012 Greg coined the phrase “Engagement Fundraising” to encapsulate his breakthrough fundraising formula for achieving extraordinary results. Using their own innovative strategies and technologies, MarketSmart helps fundraisers around the world zero in on the donors most ready to support their organizations and institutions with major and legacy gifts.

Recently, my friends at Veritus Group (led by two industry icons— Richard Perry and Jeff Schreifels) determined the following:
– Organizations WITHOUT a mid-level giving program migrate only .2%-1.2% of their donors to major gifts

– Organizations WITH a mid-level giving program migrate 3%-3.5% of their donors to major gifts

 
Use this worksheet to see what that means for you:
_____________________ # of donors in your database
_____________________ X 2.55% or .0255 which is the average migration you should realize with a mid-level program (To arrive at this figure I simply took the average between .2% and 1.2% = .7% and subtracted it from 3.25%, the average of 3% and 3.5%)
= ____________________
Next, take the number you just got and multiply it by your average major gift amount ($).
= ____________________ $ you could realize by implementing a mid-level migration plan
 
mid-level donor migration
 

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2 responses to “How to calculate how much revenue you could have with a mid-level donor migration plan to inspire major gifts”

  1. Susan Brumley says:

    Can you put some framework around # of donors in your database? Active, lapsed, long-lapsed?

  2. marketsmart says:

    Great question Susan. I recommend using ACTIVE donors only. Veritus believes the recent donors with capacity are most likely to upgrade.

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