The Predictions tool includes a Donations Forecasting tool as well as several donor Insights. This article will explore the Donations Forecasting component of the Predictions tool. The ability to forecast donation totals will allow your organization to more accurately estimate your expected income, allocate resources, and make strategic decisions about how and when to engage your donors.
To navigate to the Donations Forecasting tool, click on the 'Predictions' tool on the left sidebar. When scrolling through the Insight widgets, you will see a section labeled Donations Forecasting. This section includes a blue chart that provides an overview of your donations over a specified period of time.
The charts Y-Axis shows the cumulative amounts of your donations in the current fiscal year. You can cross-reference this axis with the X-Axis 'Date' to see total cumulative donations at any point in the year.
- Blue-dotted line - shows the cumulative history of donations; this line ends at the current date.
- Dark blue - shows the lower range of donation totals you can expect.
- Light blue - shows the higher range of donation totals you can expect.
To adjust the types of donation represented in the chart, as well as the time-frame displayed, use the drop-down settings found in the top left of the chart.
To adjust Projection Factors, click on the 'Projection Factors' button in the header bar.
You can use this slide bar to determine how a specific percentage of churned or lapsed donors will impact your forecasted income.
To calculate your churn rate: use KIT's 'Donor Retention Rate' KPI and subtract the retention rate percentage from 100% to determine the percentage of donors who are not retained (i.e. churned).
For example: if the Donor Retention Rate is 89%, it can be assumed that the churn rate is 11%. You can then add this to the 'Churn Rate' Projection Factor.
There may be extraneous variables that will increase or decrease your donations. The correction factor supports your organization in understanding how a decrease or increase in donation percentages will affect your forecast. The Correction Factor begins at 100%, you can either dial it down or dial it up to adjust your forecast.