Nonprofit Modeling: Remaining Competitive and Successful

Today’s nonprofit organizations face a panoply of fundraising challenges, including an aging donor pool, increased donor expectations and a growing number of organizations asking prospects for support. To remain competitive and successful, nonprofit organizations with limited resources must use statistical methods, typically the standard regression model, to identify prospects and donors most likely willing to give. However, the regression model, although a tried-and-true fundraising technique, is reportedly not performing well due in great part to the newly increased complexity of today’s nonprofit data. The purpose of this article is to present a new nonprofit method – the GenIQ Model© – that can provide nonprofits with “boosted” predictive power to capture the valuable prospects. Specifically, GenIQ can: a) Maximizing Lifetime Donor Value – identifying the best prospects and their ultimate donations; b) Market Segmentation - understanding which prospects are good candidates for which marketing method and message; c) Donor Profile - identifying current prospect and donor profiles to help improve relationships and increase donor loyalty.