| Abstract: | The donor bases of many charities suffer high lapse rates that both restrict growth and carry a heavy cost in recruitment needed to replace the lost donors. This paper argues that it should be possible to reduce these high lapse rates, based on the experience of businesses that have reduced their lapse rates by giving customers better value. Giving customers good value gives them good reason to come back for more. The paper looks at evidence that donors, like customers, want satisfaction in return for their money. The paper proposes a model of donor value to identify how charities can give donors more for their money, providing a route to reduce lapsing and so improve charity profitability and growth. |
