Rent Smarter, Not Harder

While the option of list exchange is alluring because it saves on costs, the down side is that it creates a "churn and burn strategy," Baker says. It's difficult to create loyalty when your donors are getting inundated with appeals from competitors and other nonprofits.

"You know, people only have the capacity to give so much to charity, and so if your list is out there being sold or given away multiple times a year, you're just lowering your chance to build a loyal relationship with that donor," he adds.