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What’s different over there...? Part 3

Fundraising | Jonathon Grapsas | 23 Dec 2008

I’ve forgotten to mention in the past the bleeding obvious.  The weather.

Typically at this time of the year the only thing I’m wrapped up in are the upcoming Boxing Day test match at the MCG and whether I’ll be cooking rib eye or rump steak on the barbie. At the moment as I am about to brave the 20cm of snow that’s just dumped on Toronto I’m wrapped up in four layers, scarves, gloves and wait for it.. thermals!

But that aside, things in Canada look and feel pretty much the same as most other places I’ve worked. In fact wherever I‘ve worked, I have seen fundraisers often fall into the traps of not using all of the right measures to assess the true value of certain fundraising activities.

Let’s look at Acquisition specifically.

Cost per recruit is important. So too is volume (the sheer numbers you are bringing in). Of course there is retention. And let’s not forget average gift values.

But frankly, for me one of the most key measures is the value to date (VTD) of a donor over a period of time. In other words, how much a donor (or group of donors) is giving to you in total over a fixed period, taking into account their subsequent giving behavior. This becomes even more powerful if you can work out the net value, taking into account all costs.

This – VTD - is more important than ever. Research undertaken recently by the guys at bluefrog showed that a chunk (40%) of those surveyed said they were unlikely to start support a new charity in the current climate.

Does this mean stop all acquisition efforts now? No. But it does mean we have to be smarter about those groups we reach out to.

I suggest that as well as looking at VTD that you should consider some donor profile analysis looking at the behavioral insights of your best donors – whether that’s regular donors or onetime cash givers– overlaid with some basic geo-demographic profiling (where they live, age etc) that enables you to look at who really is giving to you and where did they come from. Again this will enable you to identify those channels that will allow you to target like for like donors based on who you already have on file that have historically performed well in terms of their overall VTD.

Sound like a bit of work? It is! But in terms of the long term impact this can have on your recruitment efforts now and post-recession, it will be worth it.

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Who's Who: Jonathon Grapsas