Nonprofits are facing a growing challenge to retain donors. At a time when acquiring a new donor is three times as expensive as retaining an existing donor and donor attrition stands at an all-time high, nonprofits are looking to increase the lifetime value of their donors. This case presents a new means by which nonprofits can induce donors to give today and commit to giving in the future. The positive results of a low-cost, high-yield experiment conducted at GlobalGiving, one of the largest nonprofit organizations in the United States, demonstrate how seemingly small increases in the numbers of recurring donors can have a significant impact on revenue, allowing nonprofits to have an even greater philanthropic impact.
This case allows for discussions on how field experimentation on crowdfunding platforms can help with the development of new business approaches and how those novel approaches can be implemented in a way that would satisfy multiple stakeholders, ranging from donors to large and small charity partners.