Author: Julie Knight, Ph.D.
Data doesn’t lie. Nonprofits that actively use fundraising analytics raise 30% more than those that don’t. That’s a huge difference. But here’s the catch: too many organizations are either intimidated by data or don’t know how to make the most of it. The good news? Understanding the numbers is easier than you think, and today, we’ll break it all down. Whether you’re just getting started or looking to enhance your strategies, this guide will show you how nonprofit fundraising analytics can fuel your organization’s success.
1. What Are Fundraising Analytics, and Why Should You Care?
Fundraising analytics is more than just a collection of numbers—it’s about extracting actionable insights from data. For nonprofits, this means understanding donor behavior, improving campaign effectiveness, and optimizing overall fundraising performance. Here's why fundraising analytics are vital:
Better decision-making: You can make informed decisions rather than relying on guesswork.
Personalized outreach: Tailor your engagement efforts based on donor preferences and history.
Improved donor retention: Data reveals which donors are likely to stay and which are at risk of lapsing.
Increased revenue: By analyzing patterns, you can identify new fundraising opportunities.
Remember, using analytics is about enhancing relationships, not replacing them. Numbers tell a story. The key is knowing how to read them.
2. Key Metrics That Drive Fundraising Success
So, what metrics should you track? There’s a lot of data out there, but not all of it is created equal. Below are the most impactful fundraising metrics that your nonprofit needs to monitor.
A. Donor Retention Rate
Your donor retention rate measures how many donors continue to support your organization year after year. The higher this number, the better. If your retention rate is low, it’s a sign that donors aren’t feeling engaged or connected to your mission.
How to calculate it:
A typical retention rate in the nonprofit sector hovers around 45%, but top-performing organizations aim for 60% or higher. The great part about the retention rate is that once you have it, you also have the churn rate (100% - retention rate) to determine how many donors are not being retained.
B. Average Gift Size and the Most Frequent Gift Amount
Commonly referred to as the mean and the mode, these metrics help you understand the value of each donation. You can significantly boost revenue by increasing the average gift size and strategically using the mode amounts. For example, if the three largest modes in the gift data are $25, $75, and $250, a strategy could be to ask donors who gave last between $25 and $74 to give $75 to move them up the donor pipeline.
Tip: Use segmented outreach. For example, mid-tier donors should receive different appeals and stewardship than major donors. Tailor the ask accordingly.
For more about how donor retention and other key metrics affect nonprofit growth, visit Bloomerang’s Fundraising Metrics Guide, which provides additional in-depth examples and tools.
C. Donor Lifetime Value (LTV)
Donor Lifetime Value helps predict how much a donor will contribute over their entire relationship with your nonprofit. This is a powerful way to assess a donor's long-term value beyond just one-time gifts.
LTV is calculated by multiplying the average donation amount by the average donor lifespan.
Why it matters: Focusing on LTV helps prioritize relationships with donors who provide long-term support.
3. Choosing the Right Tools for You
Many nonprofits shy away from analytics because they think the tools are too complicated or expensive. But the reality is that there is a wide range of solutions tailored for nonprofits of all sizes and budgets.
Let’s take a look at some of the most accessible and powerful options:
A. Google Analytics
While not specific to fundraising, Google Analytics, referred to in short form as GA4, is invaluable for understanding your website’s traffic. By tracking how donors interact with your site, you can optimize donation pages, improve user experience, and track the effectiveness of campaigns.
B. DonorViz
DonorViz™ provides nonprofits with a data visualization tool that turn complex metrics into clear, actionable insights. You can monitor live data, customize dashboards to fit your goals, and optimize your strategies in real-time—all within an intuitive, user-friendly platform designed specifically for fundraising professionals.
C. Social Media Analytics
It is likely that you have at least one social media platform. But how you leverage the analysis of your reach, impressions, engagement rate against your targeted audience, let alone the conversion of your call-to-action is how you should be measuring your impact and success. It also should be assisting you in creating your content calendar. Not sure where to start? Sprout Social’s Social Media Guide is a great starting point.
Actionable Tip: No matter which tool you use, ensure you can easily generate reports and dashboards that track your key metrics in real-time.
4. How to Use Data to Improve Your Donor Engagement
Once you’ve gathered data, the next step is to put it to use! Here’s how you can leverage your insights to drive deeper engagement with donors.
A. Segment Your Donors
Segmentation means grouping donors based on certain characteristics, such as giving history, frequency of donations, or preferred communication channels.
For example:
First-time donors: These donors need a personalized thank you and a follow-up showing the impact of their gift.
Consecutive email donors: These donors need solicitations and communications through email, including a digital receipt from their online gift.
Lapsed donors: Create a re-engagement campaign to win them back with tailored messaging.
Major donors: Offer them VIP treatment—invite them to special events and give them a personalized report on how their donations are making a difference.
By creating tailored messaging for each group, you can significantly boost engagement and retention.
To take segmentation a step further, segmentation can be based on donor personas that help you create a deeper understanding of your donor base. Start by analyzing your donor data and segmenting it into different types of supporters.
For example:
The Loyalist: This donor gives consistently but at a moderate level. They want to feel appreciated and to know their donations are making a tangible impact.
The Newcomer: This person is new to your organization. They’re excited about your cause, but need nurturing to become a long-term supporter.
By creating personas, you can tailor your outreach more effectively and speak to each group’s specific needs and motivations.
B. Automate Your Reporting
You don’t need to manually crunch the numbers every time you want to check how you’re doing. Use automation tools to generate regular reports on your key metrics, and set up real-time dashboards that allow you to monitor progress at a glance.
C. Focus on Stewardship
Remember, data isn’t just for identifying problems—it’s also for recognizing successes. Use your data to identify your most loyal donors and show them you care. Personalized thank-yous, handwritten notes, and phone calls from leadership go a long way in making donors feel valued. Segmentation is still vital. Your stewardship for a major gift donor will be significantly more than your stewardship for an upgraded donor or a first-time donor.
Conclusion
In today’s digital age, ignoring data is like driving blindfolded. Nonprofit fundraising analytics is your roadmap to more innovative, more efficient, and more impactful fundraising. By tracking the right metrics, using the right tools, and implementing personalized engagement strategies, your nonprofit can drive real growth. And that 30% increase? It's closer than you think.
Key takeaway: Start small. Focus on understanding the basics—like donor retention and average gift size—and build from there. The more comfortable you become with your data, the more opportunities you’ll uncover for driving long-term donor relationships and revenue growth.
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Shaff Fundraising Group is a consulting firm specializing in fundraising, marketing, and analytics. We take pride in our independent approach, free from technology affiliations with SaaS and other companies. This allows us to provide objective, solutions-oriented support to our client partners and the broader fundraising and engagement community.