the donor pyramid or lifecycle map evaluating strategic models for development success:
TRANSCRIPT
the donor pyramid or lifecycle map
Evaluating Strategic Models for Development Success:
Deborah Kaplan Polivy, Ph.D.
Some questions about your development process
1. Do you have a development committee?
2. What is its primary role?
3. What is its secondary role?
4. Do you have a strategic fund development plan?
5. What is the primary goal of the plan?
6. What is its secondary goal?
7. Is endowment development part of the plan?
8. What is the basis or model upon which the plan is created?
9. What is the biggest challenge to implementing the plan?
© 2015 Deborah Kaplan Polivy
The Donor Pyramid
Major DonorsMid
Level Donors
Low Level Donors
Smallest Gift Donors© 2015 Deborah Kaplan Polivy
First gift
Second gift
Second-year active
Multi-year active
Major or “stretch”giving
Ultimate giving
* "Donor Lifecycle Map" was published prior on 101fundraising.org by Sarah Clifton.
© 2015 Deborah Kaplan Polivy
The Donor Lifecycle Map*
Moves in a circular fashion from first gift to last or “ultimate”
Focuses on keeping contributors
Primary measure of staff success is “moving” the donor
Focus is on long term
Donor Pyramid vs. Donor Lifecycle Map
Moves upwards from small gift to large
Concentrates on major donors and bringing people to the major gifts level
Measurement is money
Focus is on short term
© 2015 Deborah Kaplan Polivy
© 2013 Deborah Kaplan Polivy
An Interesting Illustration
Donor Lifecycle Map Example #1
© 2015 Deborah Kaplan Polivy
First gift (7%)
Second gift (3%)
Second-year active (1%)
Multi-year active (60%)
Major or “stretch”Giving (24%)
Ultimate giving (5%)
Donor Lifecycle Map Example #1 with Lapsed
Donors
© 2015 Deborah Kaplan Polivy
Second gift (2%)
Second-year active (1%)
Multi-year active (46%)Major or “stretch”Giving (18%)
Ultimate giving (3%)
First gift (6%)
Lapsed giving (24%)
Day School Donor Lifecycle Map
Example #2
© 2015 Deborah Kaplan Polivy
First gift (39%)
Second gift (16%)
Second-year active (3%)
Multi-year active (26%)
Major or “stretch”Giving (16%)
Ultimate giving (0%)
Day School Donor Lifecycle Map
Example #2 with Lapsed Donors
© 2015 Deborah Kaplan Polivy
Second gift (10%)
Second-year active (2%)
Multi-year active (17%)
Major or “stretch”Giving (10%)
Ultimate giving (0%)
First gift (24%)
Lapsed giving (37%)
How does this model change thinking?
Leads directly to a long range strategic development plan
Makes goal not more money but more stability in donor base which leads to more money
Changes focus from major gift donors to all donors
Moves away from events and towards more long term cultivation, i.e. strategic interaction with donors and prospects for ultimate gifts
Clarifies areas for concentration, e.g. lapsed donors
Encourages trust among staff and with staff and donor
© 2015 Deborah Kaplan Polivy
But before you can even begin, there needs to be …
a good case for giving which emphasizes accomplishments
a strategic plan for entire organization
an outstanding “back room”
a CEO who understands a culture of philanthropy
a board that has a long term vision
© 2015 Deborah Kaplan Polivy
Deborah Kaplan Polivy, [email protected]
Donor Cultivation and the Donor Life Cycle Map: A New Framework for Fundraising
Available for purchase at www.wiley.com
© 2015 Deborah Kaplan Polivy