Donor Lifetime Value Calculator: Is your donor acquisition worth it?
Response shows year one. Lifetime value shows whether the acquisition paid off. Compare two audiences or two channels, with repeat giving, attrition and mortality.
Donor lifetime value (DLV) is the sum of all gifts a donor gives over the whole relationship. Set against the cost of acquiring them, it shows the ROI of the acquisition after one, three and five years. In the example below the order flips: the audience with the higher response is ahead after year one, the audience with the most repeat gifts from year 2.
At a glance
- Donor lifetime value = the sum of all gifts a donor gives over the whole relationship.
- ROI of acquisition = (sum of gifts − cost) ÷ cost, measured after one, three or five years.
- Response shows year one. Lifetime value shows whether the acquisition paid off.
- Payback is the point at which the cost of a new donor has been earned back.
ROI over the years
Cumulative, relative to cost. Zero means the cost is paid back.
What if you split the budget?
You need quick income and a long-term view. Move the slider to see what a compromise brings.
All starting values are freely chosen examples, not real data, not industry benchmarks and not a forecast. Your result depends on your numbers, and you know them best.
Worked example: when does the order flip?
Example with freely chosen values, not real data: 20,000 addresses, €700 per 1,000 addresses, so €14,000 in cost. Audience “High response”: 1.4% response, avg. first gift €25, 15% give again in year two, 40% attrition per year. Audience “Regular donors”: 0.8% response, avg. first gift €30, 45% give again in year two, 15% attrition per year. Average age at acquisition 70, 60% women.
| Metric | High response | Regular donors |
|---|---|---|
| New donors | 280 | 160 |
| Cost per new donor | 50.00 € | 87.50 € |
| Lifetime value per new donor after 5 years | 44.23 € | 155.69 € |
| ROI after 1 year | −50 % | −66 % |
| ROI after 3 years | −21 % | +19 % |
| ROI after 5 years | −12 % | +78 % |
After year 1, “High response” is ahead. From year 2 on, “Regular donors” is ahead. Looking only at first-year response leads you to the audience that earns less in the long run.
How to calculate donor lifetime value
- New donors = addresses × response. For online acquisition: budget ÷ cost per community member × share who become regular donors.
- Cost = mailing size ÷ 1,000 × cost per 1,000 addresses. For online acquisition it is the budget.
- Year 1: every new donor gives the avg. first gift. For regular giving that is 12 × the monthly amount.
- From year 2: a share gives again (giving in year two). Of those, (1 − attrition) × (1 − mortality) remain each further year. Mortality rises with the age of the group.
- Lifetime value per new donor after N years is the sum of all gifts up to year N, divided by the number of new donors.
- ROI after N years is the sum of all gifts up to year N minus the cost, divided by the cost.
ROI(N) = (Σ gifts up to year N − cost) ÷ cost
Mortality rates come from the life tables of the German Federal Statistical Office (Germany 2021/2023, mixed by share of women). Not included: bequests, upgrades, win-back after a pause and discounting. That keeps the calculator simple and the result on the cautious side.
When is donor acquisition worth it?
It depends on the time horizon. Ask for the payback: after how many months or years is the cost covered, and what is left after that?
Response only measures the first year. Repeat giving, attrition and the age of the audience decide whether a new donor becomes a reliable supporter over the years.
Compare channels and audiences over the same period and with the same costs. Postal acquisition and online acquisition with regular giving follow different curves: in direct mail repeat giving and mortality matter, online it is mostly attrition.
Frequently asked questions about donor lifetime value
What is donor lifetime value?
Donor lifetime value (DLV) is the sum of all gifts a donor gives over the whole relationship. In the calculator you look at it over 1 to 10 years.
How do I calculate donor lifetime value?
You combine the first gift, the share who give again the next year, the average annual gift of those who stay and the yearly attrition. Added up over the years, that gives the value per new donor. The steps and the formula are above.
Why is response not enough to judge donor acquisition?
Response only shows how many people give in the first step. How long they stay and how much they give later is not in it. Two audiences with different response can swap places after a few years.
How long should I look at lifetime value?
Pick the horizon you need for planning and compare both audiences over the same period. The calculator shows 1 to 10 years and marks when the order changes.
How does donor age come in?
Through the mortality rate. It rises with each year of age of the group and comes from the German Federal Statistical Office life table. The older the audience at acquisition, the faster the group of retained donors shrinks.
What is the difference between mail mode and online mode?
In mail mode you enter mailing size, response, gifts, repeat giving, attrition and age. In online mode you work with budget, cost per community member, the share who become regular donors, the monthly amount and yearly attrition. You also see the payback in months.
How accurate is the calculator?
It calculates scenarios from your own assumptions, not a forecast. The starting values are freely chosen examples. How your donors actually behave only shows in your own donation data.
How do I calculate lifetime value with my real data?
With a backtest, a look back at your own donation data. flyraising’s Tailwind Check recalculates the past with your data and shows how much more income would have been possible at the same volume. You need two exports and about 15 minutes.
What does this look like for your organization?
The calculator works with example values. The Tailwind Check recalculates the past with your donation data (backtest) and shows how much more income would have been possible at the same volume.
Find your potential in 3 days →Tailwind Check: 2 exports, 15 minutes, report in 3 days