We’re taking another deep dive into the 2024 Virtuous Benchmark Reportโthis time with a focus on boosting fundraising in education nonprofits. Together with SJ Consulting, we’re narrowing in on the metrics, trends, and strategies essential for fundraising success in education-based nonprofits.
This inaugural report provides benchmarks based on data from mid-sized U.S.-based education nonprofits, focusing on helping organizations allocate resources effectively, enhance donor retention, and foster long-term financial sustainability.
Join us as we take a detailed look at some of the key metrics included in this report.
Key Metrics to Boost Fundraising in Education Nonprofits
- Donor Expansion: A critical measure of growth, donor expansion represents the year-over-year increase in donor giving. By focusing on increasing donations from existing donors, nonprofits can leverage donor loyalty, making it a cost-effective strategy compared to acquiring new supporters.
- Tactics: Consider special gift requests during off-cycle periods and implement dynamic gift arrays to encourage more generous contributions.
- Tactics: Consider special gift requests during off-cycle periods and implement dynamic gift arrays to encourage more generous contributions.
- Gross Donor Retention: The report highlights a 2.5% year-over-year improvement in donor retention, underscoring the importance of keeping existing donors engaged. Why does this matter? Because retaining donors is typically more economical than acquiring new ones.
- Tactics: Leverage pre-lapsed campaigns, focus on recurring giving programs, and invest in high-performing acquisition channels to boost retention rates.
- Tactics: Leverage pre-lapsed campaigns, focus on recurring giving programs, and invest in high-performing acquisition channels to boost retention rates.
- Portfolio Balance: This involves maintaining a balanced giving portfolio to maximize generosity while reducing financial risk.
- Tactics: Use wealth scoring tools to shift potential mid-tier donors to higher giving levels and experiment with direct response acquisition on diverse channels like mail or phone to reach smaller donors.
- Tactics: Use wealth scoring tools to shift potential mid-tier donors to higher giving levels and experiment with direct response acquisition on diverse channels like mail or phone to reach smaller donors.
- Average and Median Gift Amounts: Education nonprofits outperform other sectors with an average donation of $304 and a median of $90. Increasing these figures from existing donors can significantly impact long-term revenue.
- Tactics: Use dynamic gift ask arrays and consider upgrading one-time donors to recurring contributors.
- Tactics: Use dynamic gift ask arrays and consider upgrading one-time donors to recurring contributors.
- Recurring Giving: Currently, only 5% of revenue comes from recurring donations, signaling a missed opportunity for stable revenue streams.
- Tactics: Implement a branded monthly giving program, and focus on converting new donors and small gift contributors to recurring donors.
- Tactics: Implement a branded monthly giving program, and focus on converting new donors and small gift contributors to recurring donors.
- New Donor Acquisition: This metric sheds light on how effectively an organization attracts fresh supporters.
- Tactics: Know the acquisition cost across different channels and aim to shorten the payback period. Prioritize high-retention channels to improve long-term donor value.
- Tactics: Know the acquisition cost across different channels and aim to shorten the payback period. Prioritize high-retention channels to improve long-term donor value.
- Donor Lifetime Value (LTV): Calculating LTV helps nonprofits make informed decisions about where to focus efforts to maximize revenue and engagement.
- Tactics: Increase gift frequency, upgrade one-time gifts, and offer avenues for donors to engage through advocacy.
Tracking these key metrics can significantly elevate fundraising effectiveness, boost donor loyalty, and strengthen long-term financial health. This allows education nonprofits like you to take concrete steps to optimize fundraising efforts and engage supporters in a more personalized and meaningful way.
Getting Started:
Ready to start taking action? Here are a few starting points to focus on:
- Review Gift Asks Across Channels: Tailor ask amounts across digital and offline channels to align with donor capacity.
- Promote Recurring Giving: Encourage new and younger alumni to adopt recurring giving options, a sustainable revenue model.
- Manage Portfolio Goals: Set targets across different giving tiers to build a balanced and resilient donation portfolio.
Ready to Deepen Your Impact?
For more detailed benchmarks, additional metrics, and actionable insights, download the full 2024 Education Nonprofit Benchmark Report.
Watch the Full Webinar
If you missed this webinar, you can watch the full video on-demand here.
