Using Lifetime Value as a Management Tool

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Renewal and retention are always top of mind in fundraising, but calculating the lifetime value of donors has a great deal of additional value to you as a manager. By calculating the lifetime value of donors who join by different types and methods you can actually see where your investment is paying off – and whether the pay-off is immediate or more long-term. LTV can be used to model scenarios and to inform your decisions whether to move forward with a proposed initiative or not, or defend a budget line item that is at risk. Using LTV to show the impact of today’ decisions on tomorrows fundraising success is a skill you won’t want to be without.

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