Donor Lifetime Value Calculator
Donor Lifetime Value, or LTV, is a prediction of how much money you can expect to receive from a donor during the lifetime of their giving to your organization (from first donation to last donation, acquisition to lapse). This information can help you make important decisions about your fundraising budget.
Monthly donors often have the largest donor LTV. Make it an easy and obvious option for your donors to choose “monthly” when donating. Donorbox has one of the easiest ways to collect recurring donations
How to use this calculator
A donor’s lifetime value calculation is relatively simple, but it relies on a few other metrics that can be tricky to calculate. To calculate your LTV you’ll need to know how long your donor has been giving to your organization, their average donation amount, and frequency of donations (the number of gifts a donor makes in one year).
Calculating donor lifetime value helps your organization determine what return to expect from supporters in the short-term. This informs how much you’re willing to spend to acquire them and how much you can spend to retain them. Each donor will have a different donor lifetime value and will require a unique strategy.
Frequently Asked Questions
Do larger donors have a higher lifetime value?
Not necessarily. If a donor has regularly given smaller gifts for many years, you may be shocked to see the lifetime value amounting to a significant amount. This can be the chance to strengthen relationships with that donor and increase their participation with your organization. One of the best ways to do this is by thanking them for their years of support and introducing them to your recurring or membership programs.
What does Donor Lifetime Value mean to my organization?
If your lifetime donor value is high, it indicates that you are not only raising substantial gifts, but you are also bringing back your donors to your organization for repeat gifts. A low lifetime donor value indicates problems like too many small gift donations and infrequent engagement with donors.