A Realistic Look at Annual Funds

4. Understand the average size of gift not as a question of money. Rather, it is a question of loyalty and engagement. Not everyone can or will increase his or her giving every year. In fact, if someone just made a significant increase last year, you risk sending him a message of ingratitude by asking for another this year. The donor might not hear you are grateful for that increase, but that you consider it to have been too small. In a typical annual fund, about a third of returning donors increase annually — loosely translated that means it takes about three years to grow into a giving level psychologically. Until the donor gets comfortable with this new giving level, you run a risk of pushing her out, rather than up, when you push. Build your segments and target your messages accordingly.