How to use the Second to Third Gift Retention analysis
This analysis examines how effectively you retain donors between their second and third gifts, a crucial stage in deepening donor relationships and fostering long-term support. It follows each donor from their first through third gift, including gift dates and amounts, over the past three years, focusing on donors who have already made a second gift. By segmenting donors into value tiers (Top, Middle, Bottom) based on the combined amount of their first two gifts, and aligning results by the fiscal year of their second gift, you gain a nuanced view of retention and value progression across your donor base.
You can use this analysis to see not only the percentage of donors who make a third gift after their second, but also key behaviors like how quickly donors move from first to second and second to third gift, whether they upgrade their giving on the third donation, and the average and median amounts given at each stage. These insights help you identify which segments are most at risk for attrition and who is most likely to increase their support. For example, by tracking the 3rd Gift Conversion Rate, you can see where your stewardship efforts are most effective and where they need strengthening. The upgrade rate and median gift amounts help you spot donors whose giving potential is growing.
Fundraisers should pay close attention to the value segments and time between gifts, as these reveal which donors are likely to move up the giving ladder and which may need more personalized engagement. If you review the underlying donor-level data, you'll find supporting details-such as the specific timing and amounts of each donor's first three gifts-that can be used to tailor outreach, acknowledge milestones, or re-engage lapsed donors in a more personalized way.
You should have annual fund managers, major gift officers, and donor relations staff review this analysis, especially those responsible for donor retention and upgrade strategies. Use the findings to prioritize follow-up with second-gift donors who have not yet made a third gift, develop targeted upgrade campaigns for those showing upward trends, and refine your welcome and stewardship series for new donors. This analysis is recommended to be reviewed periodically as part of your Constituent Intelligence routines to ensure you catch trends early and adapt your approach accordingly.
Measure your success by tracking increases in your third-gift conversion rate, higher average and median gift amounts at each stage, and improvement in the percentage of donors upgrading on their third gift. Over time, these improvements should translate into stronger donor retention, greater lifetime value, and a more robust base of committed supporters.