Little Dogs ... Big Tricks

A scenario that a data analyst I work with likes to present to small nonprofits considering donor acquisition is that a modest effort to gain 1,600 new donors every year will generate a net loss of $10,000 the first year. But continuing these same acquisition efforts, along with the addition of predictable renewal rates, this program will generate a net gain of more than $376,000 by year five. Sounds like a great investment to me. So great, in fact, that you may be able to interest one of your major donors to cover your acquisition costs.