What is donor capacity and how is it measured?
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What is donor capacity and how is it measured? so donor capacity is the ability of your donor to give a gift. and it’s important, you know, the difference between wealth versus income. someone can have a really high income, but if they spend all of that income on fancy cars and an expensive house, they may not have the wealth to be able to transfer and invest in your mission.
So the capacity of that donor is the ability to give a certain level of gift, typically over multiple years. usually in the nonprofit field, we look at 3 to 5 years. given the current changes in the environment, we’re really looking at 1 to 2 years.
So knowing your donors’ capacity is really important because here’s our most important rule of thumb: never, ever, ever walk into a meeting without understanding your donor’s capacity and having a dollar figure in your head.
You always make that ask for specific amount and then negotiate that afterwards. if you need help with that, we can run your donors through our iwave screening software and find out exactly how much you should target each individual donor for based on their capacity.