Virtuous Releases Nonprofit Fundraising Benchmark Report
Virtuous, a responsive fundraising platform, announced the release of its Nonprofit Fundraising Benchmark Report, providing crucial insights into the seven key performance indicators (KPIs) that drive the sustainability and growth of nonprofit organizations. This annual report delivers data-backed strategies and insights for mid-sized US-based nonprofits to understand, compare, and optimize their fundraising performance.
This report includes a comprehensive analysis of giving data from 370 nonprofits across the Human Services, Education, Faith, and Healthcare sectors. This year's findings underscore the significant role that donor retention, gift size growth, and recurring giving programs play in nonprofit resiliency and how even small changes in these areas can lead to exponential growth in fundraising outcomes.
Key Findings from the Report Include:
- Donor Retention as a Critical Driver: Organizations retaining 68.5% of their donors saw a noticeable reduction in the need for constant new donor acquisition, creating more stable and predictable revenue streams. Improving donor retention rates remains the most impactful strategy for long-term nonprofit success.
- Growth in Gift Size: Nonprofits that focus on upgrading gift amounts, especially from mid-level donors, saw considerable returns. Top-performing organizations in the report increased their average and median gift sizes, driving revenue growth without the need for expensive new donor acquisition campaigns.
- Recurring Giving for Stability: Organizations with robust recurring giving programs enjoyed smoother revenue flows and increased donor retention. The report reveals that, on average, 13% of revenue comes from recurring donors, positioning recurring giving as a game-changer for sustainable nonprofit funding.
- Balanced Donor Portfolios: Nonprofits that maintain a strategic balance across small, mid-level, and major donors reduce their financial risks. By diversifying their donor portfolio, these organizations achieved greater stability and future growth potential.
- Maximizing Donor Lifetime Value (LTV): The report highlights how top nonprofits successfully increase LTV through strategies prioritizing recurring giving, donor upgrades, and enhanced engagement tactics, fostering long-term donor loyalty and financial health.
- Improvement in Donor Acquisition: While retention is often the more cost-effective strategy, top-quartile organizations demonstrated excellence in new donor acquisition, with some achieving up to 64.23% new donors in 2023. These organizations strategically invested in acquisition channels with strong retention rates, yielding higher long-term returns.
"Nonprofits are navigating a complex fundraising landscape, and the insights in this year's benchmark report are designed to provide actionable steps to improve performance," says Gabe Cooper, CEO of Virtuous. "Our data shows that nonprofits focusing on retention, recurring giving, and donor engagement are best positioned for resilience and sustained growth in this challenging fundraising environment."
The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of the staff of NonProfit PRO.
