CoolData blog

13 November 2014

How to measure the rate of increasing giving for major donors

Filed under: John Sammis, Major Giving, Peter Wylie, RFM — Tags: , , , , , , — kevinmacdonell @ 12:35 pm

Not long ago, this question came up on the Prospect-DMM list, generating some discussion: How do you measure the rate of increasing giving for donors, i.e. their “velocity”? Can this be used to find significant donors who are poised to give more? This question got Peter Wylie thinking, and he came up with a simple way to calculate an index that is a variation on the concept of “recency” — like the ‘R’ in an RFM score, only much better.

This index should let you see that two donors whose lifetime giving is the same can differ markedly in terms of the recency of their giving. That will help you decide how to go after donors who are really on a roll.

You can download a printer-friendly PDF of Peter’s discussion paper here: An Index of Increasing Giving for Major Donors



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