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Three Fundraising Metrics

Three metrics for forward-looking fundraising organization:

  1. Retention rate: How many donors you keep year over year
  2. Acquisition rate: How many new donors you bring into your organization
  3. Extraction rate: Percentage of your moderate to highly engaged constituents make an annual/major/planned/principal gift every year

Typical areas that should focus on these metrics:

  1. Retention: donor relations & stewardship, annual giving
  2. Acquisition: annual giving
  3. Extraction: leadership gift officers

All there are necessary for a growing, inclusive organization. If you focus on extraction, then you’re creating risk in the long term (not enough engaged donors), if you focus on acquisition, you’ll have a lot of arms-length donors and will have difficulty converting them into major donors. If you focus on retention, you’ll have a highly engaged community but your financial results will not be there.

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