The Fundraising Landscape, Circa 2005

There have been some recent nudges in the industry to get organizations to increase their exchange cap to as much as $999.99. Why? Because exchanging these more valuable donors will lead to a greater pool of younger donors who tend to give much larger first-time gifts.

Another strategic question to ask at the beginning of this new year is whether you want to acquire more valuable donors by lifting your exchange cap. When you think about it, there’s really no reason not to. As one consultant told me recently, “this could be the million-dollar idea for 2005.”