Donor Lifetime Value (DLV)
Estimated total giving from a donor over their entire relationship with the organisation
What is Donor Lifetime Value (DLV)?
Donor lifetime value is the total amount a donor is expected to give over the whole time they support a charity. It shows what a supporter is worth.
Knowing it helps decide how much it is worth spending to win and keep donors.
How this KPI is measured
- Function
- Fundraising & Income
- Sub-function
- Donor Retention
- Industry
- Not-for-Profit / Charity
- Type
- Lagging
- Impact
- Revenue
- Unit
- $
- Measurement frequency
- Annual
- Formula
- Average annual gift × Average donor lifespan in years
How to calculate it
Multiply the average annual gift by the average donor lifespan in years.
For example, with an average annual gift of 60 and an average lifespan of 5 years, lifetime value is 300.
Use realistic figures from your own data, calculate by donor type and channel, and consider discounting for future years for a more prudent estimate.
Where it is used
Setting acquisition budgets
Decide what to pay for new donors.
Comparing donor groups
Find the most valuable.
Investing in retention
See the value of keeping donors.
How to improve it
Tips and common mistakes
- It is an estimate that changes with retention.
- Segment by channel, since values differ.
- Use with cost per new donor.
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