The donor pyramid is a standard method for raising money in the 21st century. It is a way of looking at the giving public from the perspective of the individuals who are potential donors, from the base of the pyramid to the tip where the most generous individuals can live. However, other methods also use a top-down approach to cultivating the most giving individuals.
The goal of an organization is to attract the most attention by building its wealth based on the people who are potential donors. This strategy can get shown through the pyramid, which places every potential donor into a base section. As the pyramid grows, it narrows and divides into various sections, representing the dwindling number of repeat donors, one-time donations, and legacy donors.
What Is A Donor Pyramid?
The donor pyramid represents all your different types of donors, either all of them or a segment of them, broken down by giving level. It means that the top donors will have a more significant number of dollars, while the bottom donors will have a smaller number. This article will discuss the donor pyramid’s various advantages and how it can get used for your non-profit’s development program.
What Is The Use Of A Donor Pyramid?
In addition to being incredibly useful for fundraising, donor pyramids also play an essential role in the planning process of various campaigns. A clear goal for each campaign should be included in the plan so that all donors can easily access it. Multiple goals can get set for each campaign, such as a donor pyramid or a gift range chart.
One of the essential factors you need to consider when planning a campaign is the number of donors you need at each giving level. A clear goal and a gift range chart are two of the essential tools to help raise funds for a successful campaign. Most executive directors and board members don’t realize that large gifts are crucial to a successful campaign. Having a gift range chart and donor pyramids can help show the other organization members that an extensive campaign is not feasible without the support of large donors.
There have been talks about the potential of the donor pyramid to be useless for a non-profit. It doesn’t make sense to take all the donations to your organization and map out a pyramid for everyone, as every non-profit has its distribution. Creating a pyramid for your organization can help you segment your donors. In addition to having a clear view of how many individuals give to your organization, a pyramid can also help you show how you can improve your fundraising efficiency. On the other hand, it could also help with strategically choosing how you recognize your donors from each level. For example, you might consider recognizing your major donors by including them on a donor wall.
As an intelligent non-profit, you know that you have to focus on the fundraising ROI of your organization, but you also don’t have the time and resources to cultivate every single donor the same way. A donor pyramid can help you segment your donors and visualize how much energy you have to spend developing each level.
