Take Survey
MEDIA, JOBS & RESOURCES for the COMMON GOOD
NEWS  | 

Donor Loyalty! The Holy Grail of Fundraising


Monday, 21st May 2007 at 3:43 pm
Staff Reporter
A new US White Paper on donor retention considers the issues around what is perceived as the Holy Grail of fundraising - donor loyalty.

Monday, 21st May 2007
at 3:43 pm
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Donor Loyalty! The Holy Grail of Fundraising
Monday, 21st May 2007 at 3:43 pm

A new US White Paper on donor retention considers the issues around what is perceived as the Holy Grail of fundraising – donor loyalty.

The White Paper Donor Trends Project is a collaboration of US researchers Craver, Mathews, Smith (CMS) and The Prime Group.

The discussion paper says that most organisations manage to cultivate multi-year donors, some with giving histories stretching back ten years or more.

However, the problem seems to centre on retaining those fickle first time donors – the ones you just spent, say, $50 to acquire (with a net loss of $25 or so).

It says today’s typical profile for charities and advocacy groups looks more like a 30% renewal rate for first time givers and an overall retention rate of 70-75%.

The discussion says that obviously this puts more stress on prospecting programs, which fall into a nasty cycle of chasing less and less valuable new donors who renew less.

The Paper says that the good news is that many donors claim to be – and maybe want to be – loyal. In its survey of American adults, 59% of respondents claimed "High Loyalty" to a cause or charity they support.

This loyalty to charities it says is competitive with loyalty to "my doctor" across all generations, and surpasses loyalty to sports teams, make of automobile, beer/soft drink brands, and telephone service providers, by way of comparison.

And not surprisingly, loyalty translates into dollars: 81% of $1000 a year donors (total giving to all organisations) say they are "highly loyal" to their favourite charities.

Professed loyalty increases with income and education, which in turn correlate with most valuable donors.
The research indicates that for many donors, some sort of ‘comfortability’ with, if not loyalty to, a charity does develop.

The data suggest that loyalty increases with age – it is most evident with Pre-Boomers, (born before 1946) who are the traditional donors for many organisations, while Post-Boomers (born after 1964) are significantly less likely to report such a "brand preference."

Some 73% of Pre-Boomers claimed to have donated to their favourite charities for more than two years in a row.
But the research brings up a more surprising donor loyalty figure!
Online donors are significantly more likely to show loyalty than offline donors.

Some 72% of online donors say they have contributed tho their favourite charity for more than two years in a row compared to 52% of off-line donors.

As well, as many as 53% of online donors say they have urged someone to make a contribution to a specific charity, cause or campaign compared to an average of 35% of all other types of donors.

Perhaps the question for Australian Not for Profits is ‘how well your online donation service being promoted?’




Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers?

Get in touch at news@probonoaustralia.com.au

Tags : Fundraising,

 Print

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Write a Reply or Comment

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



YOU MAY ALSO LIKE

Rejected Donation Calls Fundraising Practices into Question

Maggie Coggan

Friday, 18th January 2019 at 4:37 pm

Your Time Starts Now at FIA Conference 2019

Contributor

Thursday, 17th January 2019 at 7:15 am

Crowdfunding – a Solution or a Problem?

Contributor

Thursday, 20th December 2018 at 7:30 am

What’s Your Fundraising New Year’s Resolution?

Contributor

Thursday, 13th December 2018 at 7:45 am

POPULAR

Australia’s 2018 Human Rights Performance Slammed

Luke Michael

Wednesday, 9th January 2019 at 3:24 pm

Labor Shake-Up to Jobactive Celebrated by Sector

Maggie Coggan

Wednesday, 9th January 2019 at 5:09 pm

Review Reveals Significant Failures in Disability Service Provision

Luke Michael

Tuesday, 8th January 2019 at 4:52 pm

Campaign to Free Aboriginal Women Raises Almost $300K

Luke Michael

Monday, 14th January 2019 at 5:19 pm

Take Survey
pba inverse logo
Subscribe Twitter Facebook

The social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!