Harvey McKinnon   

Do You Know Your Donor Attrition Rate?

by Harvey McKinnon on November 7th, 2012
Your donor attrition rate is the rate at which donors do not renew their gifts each year, expressed as a percentage of all active donors in a given year.
Why it’s important
Monitoring this number (especially for each channel) helps you know what percentage of your donor file you need to replace each year through donor acquisition, or hang on to through better donor stewardship. A high attrition rate indicates that you need to improve your program.
How to calculate
A. Count how many donors gave a gift in Year 1 (A).
B. Count how many of these donors gave a gift in the following year, Year 2 (B).
C. Divide B by A to get C.
D. Subtract C from 100 to get D, and express as a percentage.
Number of donors who gave a gift in Year 1 Number of donors from Year 1 who gave again in Year 2 Divide B by A Subtract C from 100 and express as a percentage
5,000 4,000 80 20%
Donor Attrition Rate 20%

If you’re interested in learning about how HMA can help you reduce your attrition rate please get in contact with us at info@harveymckinnon.com.

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