Easy Steps to Calculate Donor Diversity in Your Database

You may have heard that your donors should follow the 90/10 rule: 90% of your donated revenue should come from 10% of your donors. For more on why that’s true, sign up to receive this week’s #FundraisingFriday video.

How do you know if you have the right mix of donors and that 90% of your funds come from 10% of your donors? Watch this short video to see how quickly and easily you can answer this question using just an Excel file and a few simple steps.

If you find that you have more than 90% of your revenue coming from the top 10% of your donors, you want to think of ways to broaden your base of support. Can you send another mailing? Host an open house to introduce more people to your mission? Send an email or online solicitation. The threat is that if too many of your major donors stop giving to you – which may occur through no fault of your own – it could have a serious impact on your bottom line without enough other potential donors sufficiently cultivated to take their place.

If you find that you have less than 90% of your revenue coming from the top 10% of your donors, you have room to expand your major donor campaign. Don’t have a major gift program? You might consider starting one. You have more potential among your donors than you have realized. That is, statistically, you likely have donors who giving to you through the mail or online who, if you properly cultivated them by making personal visits and explaining your mission in person, would give you more.

Not sure where to start? Check out my blog posts and #FundraisingFriday videos on major gift fundraising.