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"To sum it up, it is 3 times harder to acquire a new donor today than it was 10 years ago," writes Mathieu Stern in the Next Web.
Stern, who has worked with nearly 100 nonprofit organizations over the past decade, says they all want to do more good and need to generate new donors.
But "with the rise in customer acquisition costs," the future of digital fundraising is changing rapidly, forcing nonprofits to adapt and find new ways to engage donors.
Customer acquisition costs, or CAC, have been steadily increasing over the past decade, making it harder for nonprofits to reach their fundraising goals.
In 2012, the average CAC for nonprofits was $93; in 2018, it's $141, a 51% increase.
"Still, despite increased costs, nonprofits must continue to prioritize customer acquisition as a key component of their fundraising strategies," Stern writes.
There are a number of solutions to this problem, including crowdfunding and using psychological nudges such as social proof to get donors to give more.
But retention is another problem, with the average retention rate for new donors being 46%.
"By working harder to keep new donors more engaged, organizations can increase revenue without increasing expenses," writes Stern.
"This means that even as nonprofits are spending more money to acquire new donors, they are also
Selected Grant News Headlines
A customized collection of grant news from foundations and the federal government from around the Web.
If Mark Parker wins the Democratic primary for a Baltimore city council seat, he'll be the city's first openly gay lawmaker. The 42-year-old pastor, who says he's "personally and professionally...more
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The nation's second-largest for-profit education company is being bought by a private equity firm in a deal said to be worth more than $5 billion, the Wall Street Journal reports. Under the...more
Foundation: California Community Foundation, San Diego Foundation
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The new president of the International Storytelling Center in Jonesborough, Tenn., says he'll bring a "keen appreciation for the arts and Appalachian history" to the job, the Knoxville News Sentinel...more
It's not every day that a hospital is named the nation's top medical facility, but that's exactly what's happened at Alabama's Children's of Alabama. The Children's of Alabama Clinical Scholars...more
"Is there anything we can help you with today?" asks a text message, followed by a series of seven follow-up texts over 30 days. The idea is to make it as easy for patients to get in touch with...more
There's a growing market for digital diabetes management tools, but a new report from the Peterson Health Technology Institute (PHTI) is warning that these tools aren't helping people with type 2...more
Foundation: Gates Foundation
"The rapid pace of innovation in artificial intelligence, biotechnology, and more is opening new doors for progress in global health." That's the takeaway from the International Center for...more
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Social Entrepreneurship
Spotlight
Hugh Jackman: Fair Trade Entrepreneur
Renowned actor, Hugh Jackman, talks about how he started becoming a fair trade entrepreneur. Jackman is constantly building up ideas and solutions to help small coffee growers get good prices outside the massive coffee industry. His business, Laughing Man Worldwide, reinvests 100% of its profits in its partnerships with farmers.
