One of my favorite conferences of the year is the Bridge Conference. In 2006, the AFP DC and DMAW joined forces to build the bridge between traditional fundraisers and their direct marketing counterparts.
The last of the Five Vital Fundraising Benchmarks is Donor File Growth. But “last” sure doesn’t mean least important. In fact, it’s an essential metric for spotting trouble ahead.
The days of the seemingly infinite pool of new donors available to quickly and inexpensively replace those who’ve stopped their support are long gone.
Over the years working with hundreds of organizations, we’ve developed a genuine respect for what makes each organization a bit different in terms of culture and operational approach.
On average, half of a donor file is made up of new and reactivated donors. [the other half from existing donors that renew their support].
A couple of weeks ago, we talked about Cost and Profit centers. One practical solution offered was to separate the acquisition / reactivation budget into it's own cost center from the house file development budget which should become it's own profit center. Instead of looking at both of these together as a profit center. Today we are going to talk about the house file consisting of any donor that has made a donation over the last two years.
I was looking over a client’s budget recently, and something struck me as I was reviewing their acquisition numbers. It started with a relatively simple question. Why are you only budgeting to bring in 8,000 new donors?