What Is a Lapsed Donor?
Every ministry and charity has a point at which donors are considered to be lapsed donors. For most, it’s at 13 months. That’s usually when the communication stream changes, with an emphasis on re-engaging those who have lapsed. Essentially, at that point, the organization sees them differently than active donors.
But how do these lapsed donors see themselves?
The new Lapsed Ministry Donor Research Report is a partnership between Grey Matter Research and BBS & Associates.
Do They Even Know They’re Lapsed?
Just because your organization considers a donor to be lapsed does not mean that’s how the donor sees himself/herself. On one side of the spectrum, 18% who were considered to be lapsed donors did not even remember having made a gift to the organization .
On the other side of the spectrum, 25% claim with certainty they actually have given to the ministry in the last 12 months. Another 25% think it has been in the last 12 months.
Just a third of all lapsed donors remember having supported the organization and know it has been more than 12 months since their last gift.
A Further Complication
Lapsed donors also vary in how they perceive their own situation. Two out of ten still consider themselves to be active donors to that ministry. Some say they give annually, some give sporadically, and some believe they gave recently. But all of them see themselves very differently than the ministry sees them.
A clear majority (60%) call their giving to the ministry “paused,” with the expectation that they will give again in the future. Life changes, financial challenges, forgetfulness, a desire to spread their money around, and/or a short-term desire to focus their giving in other areas all play a part in this. Will they really give again? That’s a different story altogether.
This leaves only two out of ten lapsed donors who see themselves the same way ministries generally see them: they tell us they have stopped supporting the ministry.
Exploding Two Myths
When we consult with individual organizations, we commonly hear two explanations for why donors lapse:
- 1. We did something to displease them
- 2. They are having financial challenges/the economy is difficult
We Displeased Them
We asked lapsed donors to rate their satisfaction with the ministry in 21 different areas. This ranged from whether the ministry thanks them appropriately to how well they do informing donors how their money was spent.
Just 9% of all lapsed donors are completely dissatisfied with the ministry in even one of the 21 areas. In fact, 46% are completely or mostly satisfied with the ministry in every one of the 21 areas we explored. Yet they haven’t given in over a year. Most donors don’t lapse because they are upset.
It’s the Economy/Their Finances
Three out of four lapsed donors say they are donating at least as much now as they were two years ago. This includes nearly three out of ten who say their overall giving to charities and ministries has actually increased.
Yes, 26% have decreased their overall giving outside of church. We did hear of various financial problems (lost jobs, tanked investments, huge medical bills, etc.). But for three out of four lapsed donors, their overall giving is still going strong – just not to this specific ministry. They haven’t cut down their giving. They’ve just reallocated it.
Lack of Connection to the Ministry
Lapsed donors generally feel they understand the mission of the ministry from which they lapsed. They also feel passionate about that mission. But they are only about half as likely to say they feel close to the ministry. They’re even less likely to feel involved with helping the ministry accomplish their goals.
In other words, they understand and are passionate about the cause. But they are far less likely to feel a real connection to the organization that supposedly is helping them put their passion into action.
So, in many cases, it’s not a matter of anything the ministry did wrong. It’s not the economy. It is not that the ministry failed to build a real connection between the donor and the organization. It’s the lack of a relationship.
There’s a lot more detail and nuance in the full report. For a free copy of the Lapsed Ministry Donor Research Report, simply e-mail ron@greymatterresearch.com.
How Can We Help You?
Grey Matter has helped scores of ministries understand their donors: active, lapsed, and potential. We have served a wide variety of donor-supported organizations (faith-based and non-faith-based), denominations and individual churches, marketing/advertising/fundraising agencies, and for-profit companies.
We’ve learned why donors favor certain organizations, helped rebrand a variety of ministries, tested messaging, measured donor satisfaction, and explored dozens of other critical topics for our clients.
How can we help you?
We have A Passion for Research That Makes a Difference. Talk to us about how we can make a difference for you – and help you make a greater difference for others.