Lifetime Value Starts With the Second Gift

According to the latest Fundraising Effectiveness Survey results, U.S. nonprofits only retain about 43% of their donors year over year. The numbers become more troubling for first-time donors as only 19% go on to make further donations.

A recent study at the University of Chicago took note of some of the initial motivations for charitable giving. The top motivator was social pressure. 75% of the dollars given in this study were because the donor did not want to disappoint the person standing at their door.

This finding partially explains why first-time donor retention rates on average are only 19% but social fundraising initiatives lead to a much bigger 30% retention rate.