A few months ago I posted a blog critical of the donor pyramid and asking why it is still so widely used in the Netherlands (and undoubtedly also some other countries). So now I’d like to propose an alternative. The problem with the pyramid is that it is only useful to show one metric – donor financial value. But it doesn’t tell the larger story of engagement – how a donor interacts with and builds a relationship with an organisation over time: the lifecycle.
So what does your donors’ lifecycle look like? And more importantly, are your donors growing in value (whatever that means to your organisation – financial value, volunteerism, advocacy, etc.) over the duration of that lifespan? How can you visualise how your organisation is performing and how you want to be performing? A simple tool that I favour is the donor lifecycle map. The primary purpose of this tool is to show the correlation of donor value with engagement – both of which, of course, should be growing!