The donor pyramid is a fundraising model that groups potential donors into sections, from the base of all types of givers to the top of lifelong benefactors. Other models, like the kite model, focus on targeting high-dollar past and regular donors. Both models help organizations target their efforts to reach people in all segments of the donor pool.
The donor pyramid, or donor development pyramid, is a standard method for generating fundraising dollars in the 21st century. It’s a straightforward way of looking at the giving public, from the base of the pyramid where all types of givers reside to the tip where only the most generous lifelong benefactors can reside. While the pyramid is one way to analyze an organization’s pool of potential donors, other methods take a top-down approach to cultivating the largest number of donors who are able to give more than once.
When an organization looks to attract more attention to build its wealth, it looks anywhere and everywhere. This approach can be exemplified by the donor pyramid, which groups all potential donors into the base section of the pyramid. As the pyramid rises and falls, these sections represent a dwindling number of repeat donors, one-time generous donations, and what are known as legacy donors at the top. These benefactors represent the smallest number of total donors to an organization.
For more diverse but targeted fundraising, an organization can consult its donor pyramid. This will allow reps to focus their efforts on repeat donors who have demonstrated they are most connected to the mission. An organization can also use the pyramid to conduct a universal mailing that goes to a cross-sample of families who may not know the cause. In this way, fundraisers can try to connect with donors from all economic means – from small one-time donations to donations from people who will continue to become legacy donors. The model helps the organization target its efforts to reach people in all segments of the pyramid.
This is just a model used by fundraising professionals who only have so much time to raise as much money as possible. Another model, called the kite model, takes on this iconic shape – wide at the top with high-dollar past and regular donors, and thin at the bottom with prospective, once-or-twice donors. Using this model instead of the donor pyramid, fundraisers can target their efforts to attract donors who have contributed the most to the organization over time, being those who are most likely to donate again.
This kite structure is supported by what is referred to in academic circles as the Pareto principle, an 80:20 ratio that exists in fundraising efforts, with 80% of an organization’s money coming from the top echelon of donors. Using this method to visualize the donor pool, as opposed to the donor pyramid, allows fundraisers to spend more time nurturing the right relationships. More often than not, organizations quantify revenue using both models to visualize which marketing efforts are working and which are not.
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