In the Trenches: Donor Attrition: The Insidious Statistic

If an organization suffers from high attrition, two temporary effects might actually appear to be good news: Average gifts rise, and net revenue can increase as loyal donors continue to give at increased rates even as the donor file continues to shrink.

A recent benchmarking study by the Target Analysis Group, a Cambridge, Mass.-based market-research firm, confirms this trend. According to the study, 37 national fundraising organizations that raised more than $1 billion from 25 million donors in 2003 reported a 2.8 percent increase in revenue, while the total number of donors dropped by .07 percent in 2003 and 2.2 percent in 2002.