I’ve got a job for you, if you haven’t done it already. By the end of January, calculate your donor LTV (Life Time Value or Long Term Value, I prefer the latter) and annual retention rates of your donor file over the past 4 years.
It doesn’t have to be as hard as it might sound.
Click here to download my Excel LTV worksheet. It includes a general query criteria that should give you a sense of how to start pulling the data yourself. I first saw this particular layout (see below) in a Cornerstone Global File Audit, and decided to replicate it with my own data. Here’s the layout:
25 More Donor LTV Tools, Articles, and Resources:
Fundraising101: The (almost) magic formula of Lifetime Value estimation (includes a free Excel template)
AFP Madison: Free LTV Excel Worksheet
Fundraising101/Kissmetrics: Crystal ball fundraising: Lifetime Value (includes an infographic)
Persuant: Lifetime Value Calculator (interactive tool)
Re:Charity: What is Lifetime Value? (includes free spreadsheet & calculator)
Direct Marketing Association: A 360 Degree View of Donor Value (PDF presentation)
Agitator: LTV … The GPS For Fundraisers
Harvard Business: Free Customer Lifetime Value Calculator
ThinkCS: ‘Quick and Dirty’ Lifetime Value
Retention Fundraising: See Appendix C
DBMarketing: LTV and RFM for Nonprofits (Powerpoint Presentation)
eJewish Philanthropy: The Value of a Lifetime
Charity Science: Donor Stewardship (PDF, see Section 1)
Clairification: Your Secret to Mindblowing Fundraising
FLS Fundraising: Donor Lifetime Value Part One (and Part two)
Blackbaud: 2011 donorCentrics Internet and Multichannel Giving Benchmarking Report (PDF)
Nonprofit Easy: The Long Term Value of a donor
Michael Rosen: Building Donor Loyalty: What’s New?
DonorVoice: A Dangerous Myth – Over-solicitation causes poor retention.
Bloomerang: How Do Giving Habits Impact Donor Lifetime Value?
Paradysz: Growing Long Term Value Through Gift Optimization Strategies (presentation)
NewSci: Time for New Thinking About Donor Retention
Analyticalones: The Age of Acquisition
ADRP: Why Retention Matters (PDF)