originally posted: July, 2007

Ironically, all “not-for-profits” still have to realize a surplus. That’s what most people call profit. And, in fundraising, one of the most useful ways to monitor profit is at the level of the individual donor.

My interest—passion, as it has become—in donor-level profit began when I responded to a Swiss client who said, “You’ve done some great work for us, John. What do you want to tackle next?”

I said, “I want to look at some of the Big Questions. How about donor-level profitability?”

“Gehen Sie bitte so vor!” said the client (“Go right ahead!”). Carte blanche to dive into their data and examine profitability. And with pay!

What I found astonished me. Remember George Orwell and his famous book Animal Farm? In it, the pigs say, “All animals are equal, but some are more equal than others.” So it is with donors. But just how much so has been an eye-opener.

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