This was once thought-about a powerfully illustrative image of a typical donor file:
It’s fairly correct of most information, although if it have been formed just like the precise numbers of donors, it might look extra like a facet view of a sombrero.
A donor pyramid tells you a really fundamental fact: You may have extra donors who give decrease quantities than who give increased quantities.
Duh.
Generally that’s useful, particularly when you present a companion pyramid of how a lot income is coming from which donors. That one will likely be an upside-down pyramid. It will possibly awaken individuals to the lopsided nature of donor information, and assist them be smarter about how they spend their money and time on which donors.
The issue that always comes together with the donor pyramid is the impression that it exhibits a typical donor journey: That donors begin on the backside and work their option to the highest. In reality, I’ve been to shows that implied “climbing” is precisely what occurs, and that our job is to encourage all donors on their upward climb.
It’s considerably true. However when you assume climbing the pyramid is a typical donor journey, it’s possible you’ll goal and domesticate donors in expensively ineffective methods.
Right here’s how donors behave on most actual donor pyramids:
- Most donors keep precisely the place they’re on the pyramid for his or her total stick with a corporation.
- Some transfer up, most of them by one or two ranges.
- Some donors transfer down the pyramid — largely by a stage or two.
- There are donors who be part of your file close to the underside and finally attain the highest. Their quantity is tiny, however their monetary impression is essential.
- Bequest donors, who are sometimes positioned on the high of the pyramid due to their outsized impression, can come from any stage of the pyramid.
- The pyramid is a snapshot of the way in which your file appears — from a number-of-donors perspective — at any given second.
An actual donor file is just not very like an enormous historical edifice of stone. It’s extra of a seething, natural factor that may develop, shrink, and even die. Like this:
(Created years in the past on the Area Group by the good Mark Oehlschlaeger.)
Pondering of your file like this makes it clearer what’s happening. It captures the significance of the way in which donors transfer round — not simply climbing upward:
You see that you might want to have as many coming in as are leaving — or higher but, extra coming in. You additionally see how essential it’s to cut back donor lapsing — simply as essential than new donor acquisition — if no more so.
And it captures the reality that there are a number of “upward” journeys for donors:
- Many donors will keep in that giant group of normal donors. For them, the journey you need is for them to stick with you so long as attainable.
- Just a few will change into main donors, however much more will change into mid-value donors — which will be an especially essential supply of earnings.
- The most typical type of upgrading, out there to nearly any donor, is month-to-month giving.
- Some will depart you of their will. And their impression will likely be extraordinarily excessive. (And these donors come from each giving stage, not simply the highest.)
This image tells us extra about what’s actually happening with a donor file. The pyramid is okay … however solely tells you a few issues you’ll be able to act on.
(This publish first appeared on February 13, 2019.)