This was thought of a powerfully illustrative image of a typical donor file:

It’s fairly correct of most information, although if it had been formed just like the precise numbers of donors, it might look extra like a aspect view of a sombrero.

A donor pyramid tells you a really fundamental fact: You might have extra donors who give decrease quantities than who give increased quantities.

Duh.

Typically that’s useful, particularly when you present a companion pyramid of how a lot income is coming from which donors. That one will likely be an upside-down pyramid. It will possibly awaken folks to the lopsided nature of donor information, and assist them be smarter about how they spend their money and time on which donors.

The issue that usually comes together with the donor pyramid is the impression that it exhibits a typical donor journey: That donors begin on the backside and work their solution to the highest. In truth, I’ve been to displays that implied “climbing” is precisely what occurs, and that our job is to encourage all donors on their upward climb.

It’s considerably true. However when you assume climbing the pyramid is a typical donor journey, chances are you’ll goal and domesticate donors in expensively ineffective methods.

Right here’s how donors behave on most actual donor pyramids:

• Most donors keep precisely the place they’re on the pyramid for his or her complete stick with a company.
• Some transfer up, most of them by one or two ranges.
• Some donors transfer down the pyramid — largely by a stage or two.
• There are donors who be part of your file close to the underside and finally attain the highest. Their quantity is tiny, however their monetary influence is necessary.
• Bequest donors, who are sometimes positioned on the high of the pyramid due to their outsized influence, can come from any stage of the pyramid.
• The pyramid is a snapshot of the best way your file seems to be — from a number-of-donors perspective — at any given second.

An actual donor file will not be very like an enormous historic edifice of stone. It’s extra of a seething, natural factor that may develop, shrink, and even die. Like this:

(Created years in the past on the Area Group by the nice Mark Oehlschlaeger.)

Considering of your file like this makes it clearer what’s happening. It captures the significance of the best way donors transfer round — not simply climbing upward:

You see that it’s essential have as many coming in as are leaving — or higher but, extra coming in. You additionally see how necessary it’s to scale back donor lapsing — simply as necessary than new donor acquisition — if no more so.

And it captures the reality that there are a number of “upward” journeys for donors:

• Many donors will keep in that giant group of basic donors. For them, the journey you need is for them to stick with you so long as attainable.
• A couple of will turn out to be main donors, however much more will turn out to be mid-value donors — which might be a particularly necessary supply of revenue.
• The commonest type of upgrading, accessible to virtually any donor, is month-to-month giving.
• Some will go away you of their will. And their influence will likely be extraordinarily excessive. (And these donors come from each giving stage, not simply the highest.)

This image tells us extra about what’s actually happening with a donor file. The pyramid is okay … however solely tells you a few issues you’ll be able to act on.

(This publish first appeared on February 13, 2019.)