National Donor Commitment Study and proof of link between donor attitudes and behavior
Why We Embarked on This Project
Everyone acknowledges there are significant issues with acquisition; namely costs going up, yields going down. There are also significant issues with retention; namely there isn’t enough. This is really two sides of the same coin; the increasingly expensive-to-acquire donor coming in has little motivation to stay.
The financial argument for improving donor retention is well known – it can cost up to 10 times as much to bring in a new donor as tokeep an existing one (Sargeant & Lee) and it takes, on average, 18 months for a new donor to cover the cost of acquisition. Said another way, unless you have a specific plan to keep a newly acquired donor on the file for at least two years (assuming zero net income isn’t your goal and how can it be?) then your organization, its mission and programs would be better served by not taking their initial contribution.
If the problem of acquisition and retention are related and severe and the financial imperative to fix it so clear then why are the trend lines getting worse, not better? And why aren’t donors who give you one donation not more motivated to give you a second?
Our Retention Premise
Impacting donor attitudes is the key to retention because,
- These attitudes dictate donor behavior AND
- Donorattitudes are what an organization impacts with its actions.
Please enjoy, share and make use of the study results. Both the PowerPoint (first) and the Executive Summary (below) are available to view and download. (You can go full screen to view by clicking an icon in lower right of viewing screen). And do not hesitate to contact us with questions or comments, your feedback is always much appreciated.
4 responses to “National Donor Commitment Study and proof of link between donor attitudes and behavior”
Behavioral Science Q & A
Integrating an individual giving appeal with other communications from a charity can have both positive and negative effects, and the outcome largely depends on how it’s executed. Advantages of Integration Brand Consistency: Maintaining a consistent appearance and messaging across all communications can reinforce the org’s brand identity and strengthen brand recognition and trust among your […]
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I’m not aware of any in-market tests specifically comparing recurring vs. gift frequency language. I suspect the answer might not be the same with all gift frequencies, nor with all people. It sounds like a great opportunity for you to test and find out what works for your audience. Based on the literature, here’s a couple […]
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Based on what we know from existing data, those renewal notices can actually be pretty effective in getting people to donate. They tap into our psychology – creating a sense of urgency, reminding us of past support, and using personalization to make the message hit home. They’re playing on our natural tendencies to feel obligated […]
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Interesting question. I had a quick look at the testing done on this topic. On the positive side, in all cases, over half of donors decide to cover the fee. In some cases, it goes as high as 65%. Not a negligible percentage at all. Here’s another test from iRaiser showing consistent results (see point […]
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There’s just one thing to consider when designing a supporter journey: the supporter. More specifically, you need to take into account: Who the supporter is i.e. their identity, which is the reason they support this cause, and their personality, which describes the way they “see” and process the world. These will determine the kind of […]
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I’m not an expert in this but a quick search surfaced this article on the effect of tax reforms on 2019’s charitable giving. The researchers didn’t find a reduction. Actually, they observed an “increase in charitable contributions in 2019, even with the lower tax rates and the dramatically smaller number of taxpayers who itemize their […]
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This web site is really a walk-through for all of the info you wanted about this and didn
[…] infographic (click image to enlarge) distills the essence of the landmark National Donor Commitment Study conducted this fall. It identifies the seven key steps an organization (not the donor, but the […]
[…] satisfaction scores and Hi/Lo Leading Indicator scores (our measure for this is called Donor Commitment). This puts every donor into 1 of 4 segments ranging from truly
[…] Sidebar: Recognize this has NOTHING to do with loyalty of greater commitment to the product or brand, merely the power of what we