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Where does fundraising growth come from?

Often, I come across fundraising programs that fail to grow. When the question of "why not" needs to be answered, various responses surface. The supporter base is too old. The systems can't handle it. The propositions are not strong enough. Campaigns need further optimization. The once-successful concept no longer works. The brand doesn't resonate with the desired audience. Mailings suffer due to poor economic outlooks. Conversion declines due to the Facebook algorithm. And so on. None of these answers is conclusive.

The lack of growth is often a lack of understanding of fundraising (and the investment dynamics behind individual giving). Many organizations, therefore, lack the fundamentals and are constantly dealing with overdue maintenance. How can you grow when you need to renovate? For instance, a flawed structure. Or, insufficient fundraisers to perform the necessary tasks. Or, even when the hands are available, insights and vision at the management level are often lacking. This way, we create our own barriers.

Where does income growth come from? This question can be answered in several ways, but technically, income growth is directly related to the number of active donors. The number of active donors is influenced by the number of new donors you acquire and the number of existing donors you manage to retain. Acquisition and loyalty are intertwined. Acquisition is a prerequisite for retention. Retention is crucial for the profitability of your investment in acquisition. They are the two sides of the coveted euro you seek for your mission.

The four major focus areas I have encountered in my work to achieve growth are:

  1. Loyalty of existing donors: Retain what you have. Your future income is hidden in your existing donors. Cherish them!

  2. Increased ambition in acquisition: More new donors. Hit the accelerator where possible and grow.

  3. Diversification of acquisition: More recruitment channels not only reduce dependence but also bring in more and higher-quality donors. Harder than you think, but oh so important.

  4. Quality during acquisition: Better first-year retention, linked to the recruitment of older donors.

You can categorize these topics as general themes, but how closely do you look at them? How honest are you with yourselves about the results? You can focus very specifically on these four areas: you can measure and visualize them in different ways. So, when there is too little result, you know you're not there yet, and something needs to happen. Make it as concrete as possible!

With few exceptions, most charities struggle with the recruitment of new donors. It's not as it used to be. It requires significantly more effort. Over time, much has changed in individual giving: more segments, more products, more messages, more propositions, more meetings (!), more technology, more insights, etc. This not only makes it more challenging but also creates new opportunities.

But the foundation must be in place. Take the time to get the basics right. After that, you will grow much faster.


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