results

Where are you spending your marketing dollars?

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.

If your organization has 10,000 active donors, it’s very likely they’ll be categorized as follows:

  • A small number will generate 80-90 percent of the revenue.
  • Mid-level donors will have a lot of potential for major giving.
  • Low-capacity donors will be much less likely to make impact gifts but they’ll make up the largest quantity of donations (not the most revenue).
  • All of the above could make legacy gifts but 80 percent of the dollars from those gifts will likely come from just 20 percent of your legacy donors.
  • Newly acquired low-dollar donors will not repeat and if they do, they won’t do so at a very high rate.

So all that begs the question: Where are you spending most of your marketing dollars?
donor list pareto principle

Related Posts:

>>The single worst way to evaluate your planned giving marketing program
>>3 reasons to focus on major gifts (including major legacy gifts)

Leave a Reply

Your email address will not be published. Required fields are marked *

Get smarter!
Get smarter with the SmartIdeas blog

Subscribe to our blog today and get actionable fundraising ideas delivered straight to your inbox!