Investing In Your Impact (Part I of II)

Alpha Dog's top dog (Mike)  was recently asked by one of our partners why acquisition was so important when they already have a good donor list. You may very well be asking yourself the same question.

I told Mike I would share some insight with you all:


Why do I need new donors? Even if you have excellent retention rates, some donors are sure to drop off your list for any number of reasons. You need to replace those donors with new ones. With each donor you add to your list now, you are ensuring that there are fundraising opportunities in the future.
How much is a new donor worth? It’s all about the lifetime value of the donor you acquire. The future net financial value of each donor will depend upon how many times each year the donor is asked to give.  Once a household gives through an acquisition mailing, they will become a part of your donor file.  It is expected that 50% of all newly acquired donors will give an additional gift during the next year if asked on a regular basis.
How much does it cost to acquire new donors? While response rates might be lower when mailing to prospects rather than to donor already on your list, the future cost/benefit is what you should consider. The expectations when mailing to donors already acquired via direct mail are much higher. This is the true cash flow of a direct mail program. Generally, the ROI (return on investment) of a donor acquired is reached in 4-8 months.

When is the best time to do an acquisition program? It depends on your market and your current fundraising communications. We (Alpha Dog Marketing) typically do acquisition programs in the spring and fall. End-of-year holiday acquisition programs are successful for some, too.

Ok, that's all for this week, if you want to keep reading, Part II is here!

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