Wednesday, October 24, 2012

Just $5/month

In which we answer the question... Is $5/month insignificant?

Well... first... no gift to any organization is insignificant, because each gift represents someone who cared enough to do something to support your work.  

However, there are gifts that are too small to be sustainable from a long-term financial standpoint.  That’s why, at the vast majority of organizations, the basic entry point to encourage first-time givers is somewhere between $25 and $39. It's the place where you can usually find more people willing to test the waters with you, while still maintaining financial health.

To bring a new donor into your organization, even with a small gift, is one of the most important things you can do because you’ve just identified someone who has a true interest in what you do. Now you can talk to them, and connect with them, and begin to move them up the ladder of giving.

Let's say you have a prospect ready to contribute $39 as the result of your appeal. Then they learn about the ease and convenience of making an ongoing gift of just $5/month. And they choose that instead. You’ve just increased your revenue from that donor by 50%, and greatly increased the odds that they’ll continue into the second year

Not insignificant.

Up next… how to make the most of this opportunity.

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