The donor-centric fundraising framework used at COHORT3 describes the elements required to deliver a targeted, seamless, personalized experience to your donors and prospects. It's a blueprint for engaging with today's donors recognizing that cultural changes and technological innovation have empowered consumers, and nonprofit brands who evolve their fundraising accordingly are likely to grow faster. Serving our donors better translates to higher donor affinity, which leads to greater donor loyalty and value. Importantly, it also leads to greater donor advocacy - donors who actively speak out in support of our brand. That active loyalty helps recruit the next 'class' of donor prospects, which in turn builds a more efficient and cost-effective prospecting program.
In our day-to-day work with nonprofits, we have the opportunity to dispel some of the common myths about donor-centric fundraising, including the following:
MYTH #1: We give our high-value donors everything they want
REALITY: The Donor-centric Framework prioritizes your high-value donors (i.e. those with highest Future Lifetime Value), and endeavors to deliver an ideal donor experience to them. That said, even for your highest value donors, it's unlikely you can give them everything they want. But you can give them MORE than lower value donors, and give them enough to satisfy them, grow their loyalty, and still generate ample net revenue for your organization.
MYTH #2: We segment donors using RFM for our Donor-centric fundraising program and it works great.
REALITY: HOW you segment is the key, and the real point of departure for Donor-centric Fundraising. Segmenting on donor value - specifically on predicted future lifetime value ensures you focus resources on the right donors, across the full lifecycle and recruiting all appropriate fundraising programs seamlessly around the donor.
MYTH #3: I can ignore donors that have lower value.
REALITY: Think of lower value donors as lower priority donors. Treat some donors better than others. Invest less when there is less opportunity to grow the value of a donor. And remember, some lower value donors become higher value donors, and we've invested in them, so just focus on them less.
Contact us to learn more about Donor-centric Fundraising.