We’re finding them. But we’re looking hard for them and that hard work is paying off for many of our clients. Here’s one example…
The list universe of prospective donors from nonprofit list owners has been declining for some time, and added to that, most of the list owners withhold the names and addresses of their better donors (some do not rent or exchange donors of $50 or more, some might go up to $99 but will restrict you from the $100 or more donors).
The point is… if you want to find households willing and able to give YOU $100 or more, you’re not going to find many of them from the traditional donor response lists.
First, you need to maximize the use of response lists and cooperative lists of responsive donor households such as the Target List Co-op. They’ve increased the upper limit on whom you’re able to rent/exchange.
Second, understand which lists produce the higher average gifts so they can be evaluated for mailing a second time.
But most important for finding new opportunities… we follow the money. We work with our modeling partners to identify households not found from traditional list sources that are above average in wealth.
Does this really matter?
Here’s an example of a recent new donor prospecting campaign that generated about 5,000 new donors and $240,000 in gross income… that equates to an average initial gift of $48. How did they do that?
We’re talking about prospects here, not long-standing loyal donors. So you’re not going to see the 80/20 rule apply to their giving. Being able to inspire 15% of your new friends to generate more than 50% of your new income (50/15) is a good benchmark.
Renewing the income attributed to the higher-level new donors will be more reliable and you’ll enjoy a higher ROI from the entire investment in new donors.
These 5,000 new donors will generate a lot of subsequent giving for this client, especially because of these 700 new friends at $100+.
Why do we know this? Look at what happened this year from the total yield of new donors from the year before…
And this is what prospecting for new donors all about… finding donors who will help again and again… at significant levels of annual support.