Annual Giving Programs & Direct Response Flashcards

What is the concept of 'donor upgrading' in annual giving programs?

Answer: Encouraging existing donors to increase their gift amount over their prior year's contribution

Donor upgrading refers to strategies designed to encourage existing annual fund donors to increase their gift size beyond their previous year's gift.

Which of the following is the best practice for determining the 'ask amount' when soliciting a renewing annual donor?

Answer: Ask for 10–20% more than the donor's last gift to encourage a modest upgrade

Best practice is to ask for a modest upgrade of 10–20% above the donor's last gift, which is psychologically achievable and gradually moves donors toward higher giving levels.

What is a 'mid-level giving' program in the context of annual fund management?

Answer: A bridge program for donors giving between the general annual fund floor and the major gift threshold

A mid-level giving program bridges the gap between the general annual fund and the major gifts program, typically targeting donors giving $1,000–$25,000 annually with more personalized attention.

Which of the following is the most effective method to reactivate lapsed annual donors?

Answer: Send a personalized appeal acknowledging their past support and inviting them to reconnect

A personalized reactivation appeal that acknowledges the donor's past support and shares impact stories is the most effective strategy for reengaging lapsed donors.

What is 'acquisition cost per donor' and why is it significant?

Answer: The total cost to recruit one new donor, used to evaluate acquisition campaign ROI against lifetime donor value

Acquisition cost per donor is the total cost of an acquisition campaign divided by new donors gained, and is critical for evaluating whether the long-term value of those donors justifies the investment.

In annual giving, what does 'attrition' refer to?

Answer: The loss of donors from one year to the next who do not renew their gifts

Attrition in annual giving refers to the rate at which donors stop giving from one year to the next, and reducing attrition is one of the most impactful levers for growing an annual fund.

Which of the following best describes a 'peer-to-peer' fundraising campaign?

Answer: A strategy where existing supporters are empowered to solicit their personal networks on behalf of the organization

Peer-to-peer fundraising empowers supporters to create personal fundraising pages and solicit gifts from their own networks, extending the organization's reach beyond its existing donor base.