Advertisement

Lifetime Value

  • Robinson RoeEmail author
  • Peter Dalton
Chapter
  • 209 Downloads

Abstract

This chapter proposes that Sargeant’s Donor Lifetime Value (DLV) formula, a key performance indicator (KPI) measure taken from the For-Profit world and applied to the For-Purpose world, adds value to a For-Purpose organisation way beyond the transactional value of a donation. We highlight how every interaction a For-Purpose organisation makes with a donor contributes to their Life Time Value to the organisation.

The chapter describes how cross-functional Fundraising Teams create positive framings for decision-making because the teams are naturally guided to make ternary decisions as opposed to binary decisions, and how this breaks down fundraising practice silos and aligns everyone to drive DLV across all interactions with donors. And we examine how a reframing of KPI priorities with DLV can have an immediate and positive impact on our Fundraisers’ Dilemmas.

The chapter also explains how fundraisers use a donor pyramid paradigm to frame the ideal starting and end point of a donor’s relationship with a For-Purpose organisation, applying DLV at each step up the donor pyramid.

References

  1. Bitran, G., & Monsschein, S., 1997. A comparative analysis of decision making procedures in the catalog sales industry. European Management Journal, [Online]. Vol. 15, Issue 2, pp. 105–116. Available at: https://www.sciencedirect.com/science/article/pii/S0263237396000801. [Accessed 4 December 2017].
  2. Burnett, K., 1992. Relationship Fundraising: A Donor-based Approach to the Business of Raising Money. 1st ed. London, UK: The White Lion Press Limited.Google Scholar
  3. Sargeant, A. 2003. Using Donor Lifetime Value to Inform Fundraising Strategy. Nonprofit Management & Leadership, [Online]. Vol. 12, Issue 1, pp. 25–38. Available at:  https://doi.org/10.1002/nml.12103. [Accessed 15 January 2018].
  4. Sargeant, A., & Shang, J., 2013. What Makes Fundraising Truly Great? A UK based report commissioned by Clayton Burnett & Associates, Available [Online], Available at http://studyfundraising.com/wp-content/uploads/2016/07/Great-Fundraising.pdf. [Accessed 3 December 2017].

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Managing Director, OneTrust Australia & New ZealandMelbourneAustralia
  2. 2.Director, Fundraising FuturesMelbourneAustralia

Personalised recommendations