Donor Retention Mathematics for Non-Profit Organizations

This document is a technical report that discusses the impact of donor retention on non-profit organizations, based on research conducted by Dr. Adrian Sargeant. It outlines how a 10% improvement in donor retention can significantly increase the lifetime value of a donor database. The report presents data indicating that the average donor retention rate is 41%, and it provides a mathematical analysis of how increasing this rate to 51% can lead to substantial increases in total donations. The report details a scenario using a sample set of 5,000 donors, illustrating the financial outcomes over several years with both retention rates. It emphasizes that higher donor retention reduces the need for donor acquisition efforts and allows organizations to focus on upgrading existing donors and securing legacy gifts. The report also mentions the role of donor management systems in reinforcing best practices for donor retention.