Nerd Alert: RFM + stop leaving $$$ on the table.

April Week 4

Your eyes are already glazing over, I know. What a terrible title. But there’s only so much you can do with some of the AWFUL terminologies the fundraising world comes up with. I threw in some eye candy $$$ to hopefully make you want to read.

FUN FACT: For MOST organizations (that are not start-ups), 80% of increased donation revenues needed can be found in their existing database. You should be both shocked and encouraged! The lack of attention to boring, nerdy reporting and analytics like RFM (I’ll tell you soon what it is) results in so much in unrealized potential donations from people who already love you.

Regularly analyzing your donor database is like panning for gold. You are BOUND to find nuggets that will inform your strategy with that particular donor, or even with a group of donors. It’s an acquired taste, though, I get it.

The answer to the perceived drudgery is regularity—make reporting and data cleansing a regular part of your routine — don’t leave it until campaign time. To that end, for my paid subscriber crew, you will notice that April Week 4 has multiple reporting tasks.

Data mining and analytics can uncover the best prospective donors who are hiding in plain sight in your prospect/donor list. By understanding the factors that pinpoint those prospects, you can identify your top prospects and use your development resources most efficiently. 

And now, I will reveal Recency, Frequency, and Monetary Value (RFM).

(R)ecency: How recently someone has donated to your organization (more recent is better)

(F)requency: How frequently someone donates to your organization

(M)onetary Value: How much someone donates to your organization

Loyal donors tend to remain loyal donors, unless you neglect them, your organization changes significantly, or their circumstances change. As an aside, according to a study by Lawyers.com, 78% of planned giving donors gave 15 or more gifts to the nonprofits named in their will during their lifetimes. In many cases, these were such small gifts that gift officers hadn’t even noticed the donor: USA Giving noted that 40% of all planned giving donors were unknown to the organization. - excerpt from the blog linked below

I’ll be honest — I have come to LOVE nerding out on reporting because I find the most fascinating things. I can’t say it enough, or loud enough: Know your donors.

With Joy!

Resources

Check out this GREAT BLOG published by one of my absolute favorite fundraising software providers, BLOOMERANG

APRIL WEEK FOUR SMART PLAN BELOW 👇🏻👇🏻👇🏻