Charting a Course for Upgrading

Using Upgrade Models to Increase Donor Revenue

Donor participation in organizations and new donor acquisition both declined in 2024, according to a benchmark study. As it becomes increasingly difficult to acquire new donors, fundraising organizations are looking for more ways to maximize giving from donors they already have on file. That includes increased efforts to reengage lapsed donors and multi-channel strategies to upgrade the value of current donors by increasing their frequency and amount of donations.

Upgrading efforts can be especially effective during challenging new donor acquisition markets because they help the organization’s revenue maintain a consistent level despite fewer donors in the active file. This strategy is most beneficial when targeted toward donors with a high income. In fact, 38% of all individual giving come from donors with a net worth of $30 million. This chart shows that Major and Supersize donors were the only groups that grew in 2024.

IDM has a proven track record of helping clients with their upgrade strategy using custom direct mail response models. One client saw a 6% increase in annual revenue, even as the annual donor count decreased by 5%.

Below are examples of successful custom models developed by IDM:

Mid-Level Feeder Track

This model is designed to find the donors most likely to increase their giving enough to qualify for the mid-level giving program. Donors in the client’s active file were ranked based on their likelihood of upgrading based on their past behavior. In this case, it was an upgrade to $500, the entry point into their mid-level program. Donors scored high in the model who had not previously given at that level before were asked to upgrade in each mailed appeal. Both a blanket $500 ask and elevated ask strings were tested. This rollout resulted in more than 1,400 donors in a year upgrading their most recent gift, 25% of those upgrading to $500 or above.

Feeder Track Low Dollar

After the success of the Feeder Track, a new test was constructed to ask the client’s donors ranked lower in the Mid-Level Feeder Track model to upgrade. This group of donors was less likely to upgrade to $500, but they still matched the Mid-Level Feeder Track model’s upgrade rate and generated nearly $30,000 in upgrade revenue across seven campaigns.

Direct Mail Renewal Upgrade

Another client was looking to generate more income from their direct mail renewal donors, who already had a high average gift. The donors who were targeted for the upgrade offer were receiving their first renewal in the series. A model was created using common giving traits among donors who had upgraded organically. These scored donors were first tested with an elevated ask string across their first three renewals. After the testing proved successful, the upgrade model was rolled out across every renewal effort. These upgrade efforts have helped the renewal average gift, revenue per thousand, and net per donor exceed projections in the past year.

Like multi-channel giving, upgrade modeling deepens the donor’s relationship with the organization through multiple gifts, often at a high value. Partner with us today, to solidify your donor base through upgrading and retention better suited to weather times when the acquisition market is tough.