Tuesday, December 22, 2015

We Really DID Get 'Young' People Donating*!

* If you consider 'young' as being over 40.

Do young people actually donate? We want them to...

Not only would it bring us fresh new supporters, and supporters with potentially longer lives to donate - but perhaps we can even make social change through them.

Until the 90s there were NO strategic volumes of people below about 60 donation to charity. Probably about 90% of donors giving repeat gifts were over 60.  This is still the case in countries that have not embraced face to face (direct dialogue).

For some countries, face to face changed the paradigm - and more recently SMS followed by phone call.  The former revolutionised fundraising in many countries, and the latter is trying.  

Here in Australia, nearly 50% of individual donations to the major charities comes from face to face acquisition of regular/monthly/sustainer donors.

And the average age of these new donors is really young - actually around 43.
GiftClassification
Channel
Income
Donors (age known)
Age at recruitment
Regular Gift
Street/Mall
Face to Face
$165,216,714
   620,857
43
Cash
Direct Mail
$78,436,142
   612,500
70
Regular Gift
Phone
$24,150,667
   100,655
54
Regular Gift
Other
$25,153,095
     72,101
54
Child Sponsorship
Street/Mall
Face to Face
$36,042,920
     68,052
44
Regular Gift
Direct Mail
$21,022,016
     64,000
61
Child Sponsorship
TV
$26,524,368
     42,876
47
Child Sponsorship
Other
$27,903,102
     43,071
47
Gift To Child
Direct Mail
$7,091,384
     82,601
52
Regular Gift
Online
$11,190,781
     30,828
44
Regular Gift
Door to Door Face to Face
$4,931,672
     19,558
44
Child Sponsorship
Online
$8,977,320
     15,126
41
Child Sponsorship
Phone
$7,064,422
     12,601
48
Child Sponsorship
Direct Mail
$7,722,054
     11,543
54
Child Sponsorship
Door to Door Face to Face
$5,488,382
       8,830
45
But even in this 'young people' fundraising mechanism, we see those below 45 have a much, much lower life time value than their older counterparts.

You can see this in the chart below looking at attrition by age (higher attrition = more people stopping giving).



Face to face is still by far and away the largest volume method to get 'younger' people on board.  But note from the chart the huge attrition rates of those under 35.  It is hard to imagine how a charity could recover its costs of acquisition of under 35s in face to face.

Really, the big bucks kick in after 40.

But should we look at even younger donors? There are so many articles about fundraising from millennials, Gen Y and even Gen X.  But should we bother?

I am scouring the data to find out the answer to that question for you - a blog will be up about it soon.

Sean 


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