Is the size of your donor-base shrinking, growing or stagnant? According to data in a recent study of numerous noncommercial Christian radio stations, executives report that while gift income is increasing, the number of active donors is decreasing. While this may look good on your station’s balance sheet today, it spells trouble in the long run.
Need a little proof? In two recent fiscal years, broadcasters on average reported…
Maybe that was just a one-year fluke. In another question, these executives were asked to estimate the change in gift income and the number of active donors in the past three years. Here’s what they said:
Notice the significant number of stations (74%) reporting a large or small increase in gift income (inside the green circle) in the last three years. That’s good news when many general market radio leaders say that “flat is the new up” when talking about revenue!
But notice that a significant number of stations (45%) report a decrease in the number of active donors (inside the red circle) in the last three years. Slightly more stations reported a decrease than an increase in active donors.
Christian broadcasters are not the only nonprofit organizations facing this problem. Recent research by an organization representing all types of nonprofits indicates this is a significant problem.
What difference does the number of active donors make? Lots. In this research study there was a strong positive relationship between the number of active donors and increases in gift income as well as budget surpluses.
Increasing Your Number of Active Donors
How can you increase the number of active donors to your station? By focusing relentlessly on three key strategies:
- Acquiring new names and converting as many as possible to new donors.
- Retaining as many donors as possible by deepening relationships with them using multiple media platforms.
- Identifying donors who have stopped giving and reactivating them before their passion for your ministry grows too cold.
Are you only tracking your gift income? Or, are you also keeping a watchful eye on the number of active donors, too? If the size of your donor-base is stagnant or shrinking, now is the time to act. As the competition for nonprofit dollars increases, this situation will only get worse.
Let’s talk about how we can help you increase the size and quality of your donor-base. Just schedule your free coaching call to start the conversation >>