Using Donor Lifetime Value to Inform Fundraising Strategy

The successful quantification in monetary terms of the value of a donor to a voluntary organization can be a valuable aid to the subsequent development of fundraising strategy. Despite the significance of the concept of lifetime value (LTV), however, many nonprofits remain uncertain as to exactly how it might be calculated. This article reviews the contribution that LTV can make to fundraising and provides a conceptual framework within which it might be calculated.