How Nonprofits Can Use RFM Analysis to Retain More Supporters (Without Losing Your Sanity)

Let’s face it: running a nonprofit is like spinning plates while juggling fire. You’re raising funds, managing campaigns, fighting with the latest Teams update… and now someone wants to talk about?RFM analysis? (Great. More work.)

But here’s the thing—RFM analysis might sound like extra effort, but it can be an important tool for nonprofits. It doesn’t just help you retain donors; it’s a secret weapon for figuring out who’s most likely to register for your events, too. So, whether you’re trying to boost fundraising or fill seats at your next gala, RFM is there to help. (And the best part? If you don’t want to dive into the data yourself, RLSG can handle the RFM analysis for you, so you can focus on what you do best: delivering on your organization’s mission.)

RFM stands for?Recency, Frequency, and Monetary Value:

1. Recency:?When was the last time a donor gave or registered for an event? (Hint: if it was before TikTok existed, we have a problem.)
2. Frequency:?How often do they donate or attend events? (Do they show up regularly, or was it just that one time for the free hors d'oeuvres?)
3. Monetary Value:?How much have they contributed or spent on tickets? (Are they your VIP gala table sponsor or more of a cocktail ticket kind of person?)

Put these together, and you can rank donors and attendees based on how engaged and valuable they are. Think of it as the nonprofit version of figuring out who’s in your inner circle vs. the folks who only show up for free pizza at your events.

Why Should You Bother with This?

I get it— “analyzing data”?might be right up there with filling out an expense sheet. But here’s the thing: nonprofits waste?so much?time and money chasing the wrong donors or registrants. RFM analysis helps you focus on the people who actually like you (and want to give you money or show up to your events).

Without RFM Analysis:?You’re like that restaurant that sends you daily specials even though you live in a different state now.

With RFM Analysis:?You’re sending heartfelt thank-yous to your biggest supporters and inviting them to your next gala. (Or just asking for more donations—whatever works.)

That said, let’s be clear—RFM isn’t the Beyoncé of data analysis. It’s more like a solid backup dancer: dependable, gets the job done, but is part of a team. That’s why RFM works best when paired with other tools, like donor surveys or predictive models, to give you the full picture.

How to Get Started Without Losing Your Mind

You’re probably thinking, “This sounds great, but I already spend 23 hours a day doing stuff. When am I supposed to do this?” Good news: it doesn’t have to be painful.

Keep It Simple:?Start with your donor and attendee data—when they donated, attended, how often, and how much. You can do this in a spreadsheet if you’re feeling brave or your donor management software may already have this function built into it.

Segment Your Donors and Attendees:?Group them into categories like:

• Loyalists: Donate or register often and generously. These are your VIPs.
• Potentials: Gave or attended recently but aren’t consistent. They just need a little TLC.
• Dormant: Haven’t given or registered in years. (Time to treat these like the sweaters in the back of your closet—time to say goodbye.)

Personalize Your Outreach:?Once you’ve created your segments, stop treating them like strangers. Send them relevant asks, personalized thank-yous, updates about their impact, or maybe even a cute dog photo if it makes sense. That’s the point.

(Note: there are actually 8 categories that we use.)

The Bottom Line

Here’s the truth: donor retention and event registration are hard, but RFM analysis makes it easier. It’s like having a map to find buried treasure—except the treasure is a list of donors and registrants who already support you. Why spend hours chasing cold leads when you could focus on the people who?actually?want to support your mission?

And remember, you don’t have to do this alone. If the idea of diving into donor data feels overwhelming, we can take it off your plate. RFM analysis is one of the many tools we can use to help nonprofits like yours thrive. It might not be the Queen Bee of data analysis, but it can be a star performer in your toolkit. Let us handle the spreadsheets so you can keep spinning plates, juggling fire—and making a difference.