Donor Acquisition Cost
Donor Acquisition, or DAC, is the price you pay to earn a first gift from a donor to your organization.
Donorbox Peer-to-peer fundraising is one of the best donor acquisition strategies since it encourages supporters to reach out to their peers, friends, coworkers, and family members for donations on your behalf
How to use this calculator
To calculate your DAC you will want to divide the amount of all fundraising expenses by the total number of acquired or new donors to your organization. This can include expenses to third party vendors, postage, staff salaries and other fundraising related costs.
Pro Tip
The cost to acquire a new donor and donor lifetime value go hand in hand. These two metrics combined can be used in analysis to determine if your fundraising program is sustainable. It is more expensive to acquire a new donor than to retain a current donor, so it’s good to keep that ratio in check!
Frequently Asked Questions
When should I use the donor acquisition cost calculator?
Donor acquisition cost calculators divide the total amount of all fundraising expenses by the number of new donors collected. This number will help you determine which fundraising campaigns and events are worth the trouble by showing you exactly how much you spent to acquire a new donor.
A donor acquisition cost calculator is most useful for larger events and campaigns that cost a lot to run. Third-party vendor costs, staff salaries, location costs, and more can add up. Nonprofits often assume events are best for fundraising, but the real goal of a major event is to reach a larger audience and bring in new donors. If your event is not doing that, you’ll want to adjust your strategies or potentially choose a different fundraising idea.
Are there fundraising tools that can help with donor acquisition?
Donor acquisition is vital for your nonprofit's long-term success. The best way to reach and inspire new donors is by showcasing your organization’s impact. You can do this with social media and email campaigns, events, and more.
Most people want to hear from real people before providing a donation - it's called social proof - and Donorbox makes it easy with crowdfunding and peer-to-peer campaigns that support donor walls, social sharing, and more.
I’ve used the donor acquisition cost calculator – now what?
Now that you’ve used the donor acquisition cost calculator, you have a better idea of which campaigns and events are working for your needs. Now is the time to analyze each event and campaign and come up with new goals that match your organization’s strategic fundraising plans.
Remember, fundraising is more than short-term financial solicitation. You must find ways to encourage new donors, build long-term relationships, and entice them to participate in your nonprofit’s fundraising and programs.
Do I include staff salaries in my overall fundraising expenses with calculating DAC?
If you are a small nonprofit, you are better off calculating your DAC without including salaries or overhead costs. If you are a large nonprofit - especially one with a staff of more than five - you should calculate DAC both ways: with and without salaries and overhead costs.
How should I consider donor acquisition costs as I implement various fundraising strategies?
When you acquire a donor, you want to know not only which channel they came through but also what the expense was to acquire them. Use separate Donorbox campaigns for each solicitation to more easily determine which fundraising activities are worth investing more in and which are worth moving away from.