76/10, not 80/20!
Last year the Congressional Budget Office released a report about wealth in the United States. Here are some points to consider:
This backs up another report that found that 44% of Americans live in “asset poverty” with just 3 months worth of savings. In other words, you can stop targeting almost half of the people in America with your fundraising efforts.
It also means that the 80-20 Rule is dead. I guess now it should be called the 76-10 Rule.
Where are you focusing your acquisition and retention efforts?
If your plan is to move people up the pyramid, you’ll have a hell of a hard time doing that with people in the bottom 50% (with no liquidity or assets).
Here’s an idea: Aim to acquire people with wealth!
Then, once you acquire those new WEALTHY donors, survey them to determine:
It ain’t rocket science.
The amazing thing is that the wealthy want to build a relationship with you and your organization. They want to give. But you have to understand who they are and what motivates them first. Then you need to cultivate the relationship with personalized, relevant, highly contextual communications.
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