What Is Donor Lifetime Value and Why It Matters

Published July 2025

Acquiring new donors is important—but retaining and growing value from existing ones is critical for long-term success. That's where Donor Lifetime Value (DLV) comes in. It's a powerful metric that helps nonprofits measure how much a single donor is worth over the course of their relationship with your organization.

What Is Donor Lifetime Value?

Donor Lifetime Value (DLV) is the total amount a donor is expected to contribute over their entire relationship with your nonprofit. It's a core metric for strategic fundraising and resource planning.

Formula:
Average Donation × Donations Per Year × Average Years Retained

Example: If a donor gives $100, twice a year, and stays engaged for 5 years, their lifetime value is $1,000.

Why DLV Matters

1. Smarter Donor Acquisition

Knowing your average DLV helps you determine how much it's worth spending to acquire a new donor. If your DLV is $600, a $100 acquisition cost may be entirely justified.

2. Better Retention Strategies

Use DLV data to identify your highest-value donors and invest in deeper, more personalized engagement strategies that increase retention and ROI.

3. Forecasting and Growth Planning

DLV makes long-term revenue planning more predictable. It gives you insight into how fundraising performance today translates into sustained mission impact tomorrow.

How to Improve Donor Lifetime Value

• Send timely, personal thank-you messages
• Share real impact stories to build emotional connection
• Use segmentation to tailor communications
• Encourage recurring monthly giving
• Ask for and act on donor feedback

How AirDonor Helps

With AirDonor, you can track donor lifetime value by segment, automate engagement workflows, and forecast future giving with confidence. DLV becomes not just a metric—but a growth lever.

Start tracking Donor Lifetime Value today to unlock smarter, more sustainable fundraising for your mission.