Virtuous took another deep dive into the 2024 Benchmark Report with a specific emphasis on healthcare nonprofit growth and how to boost their fundraising efforts. Teaming up with Accordant’s Betsy Chapin Taylor, and DonorSearch’s Nathan Chappell, this report provides an in-depth look into the current trends, challenges, and opportunities in healthcare philanthropy.
With insights geared toward optimizing donor engagement and improving fundraising ROI, this report highlights key metrics, actionable tactics, and data-driven strategies for healthcare fundraisers.
We invite you to join us as we take a look at each metric and see how it can be applied to your healthcare organization.
Key Metrics for Healthcare Nonprofit Growth
- Donor Expansion: Measures the growth of donor contributions year over year. Engaging existing donors proves more efficient than acquiring new ones. Suggested tactics include using special, targeted asks and creating dynamic giving arrays.
- Gross Donor Retention: Tracks the number of returning donors from the previous year. Retention is crucial, as attracting new donors is costlier. Effective tactics are pre-lapsed campaigns and emphasizing recurring giving.
- Portfolio Balance: Ensures a diversified giving portfolio, reducing dependence on large donors and mitigating revenue risks. It suggests focusing on mid-to-major donor movements and diversifying acquisition channels.
- Average and Median Gift Amount: Highlights the importance of increasing donation sizes from existing donors. Tactics include upgrading one-time gifts and personalized giving arrays to maximize individual contributions.
- Recurring Giving: Represents the share of revenue from repeat contributions, providing a steady income stream. Encouraging smaller donors to become recurring donors can bolster long-term financial stability.
- New Donor Acquisition: Indicates the effectiveness of drawing new supporters relative to the current donor base. It advises understanding acquisition costs, minimizing payback periods, and selecting retention-friendly channels.
- Donor Lifetime Value (LTV): Calculated by multiplying average donation size, frequency, and years of giving, LTV identifies high-yield donor segments. Increasing gift frequency and implementing donor engagement initiatives can drive up LTV.
Healthcare Fundraising Needs Based on Current Trends
- Donor Retention Rates: The healthcare sector trails behind the general non-profit sector in donor retention, revealing a need for strategies that can elevate engagement and retention.
- Gift Size Opportunity: With the median healthcare gift at $47.47, thereโs potential to raise donation amounts by using strategic ask arrays and highlighting specific impact stories.
- Recurring Giving Potential: While recurring revenue in healthcare is only 1.68% of total giving (versus 13.81% across all sectors), thereโs significant opportunity to grow by developing branded monthly giving programs.
- Reliance on Major Gifts: Healthcare organizations depend on major gifts for about 43.4% of donations, highlighting the importance of balancing portfolios to safeguard against fluctuations in major donor contributions.
Recommended Tactics for Healthcare Nonprofit Growth
- Advanced Audience Selection with AI: Leveraging AI to identify generosity trends enables more focused and strategic outreach.
- Personalized Engagement for Retention: Using tailored messages, especially for pre-lapsed donors, can foster stronger relationships and improve retention.
- Optimizing Donation Asks: Starting with median gift sizes in ask arrays and using impactful stories can help raise average gift amounts.
Strategic Path to Fundraising Success
- Evaluate Key Areas: Identify priority areas based on organizational needs and compare against benchmarked data.
- Leverage Responsive Dashboards: Use data visualization tools to track progress on metrics like retention, average gift sizes, and new donor acquisition.
- Test and Adapt: Implement new tactics iteratively, tracking impact and adjusting approaches for optimal results.
Ready to Deepen Your Impact?
Download the full 2024 Healthcare Nonprofit Benchmark Report for more detailed benchmarks, metrics, and actionable insights. Discovering and implementing these key metrics can go a long way toward your healthcare nonprofit’s fundraising effortsโand with Virtuous as your preferred CRM platform, you can get started on your growth journey today.
Schedule a demo today to see how you can begin implementing strategies that will help you boost your fundraising efforts, develop personalized relationships with your donors, ramp up your recurring giving to provide stability to your organization, and more!
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