Nonprofit fundraisers, meet your new best friend in donor data analysis: the Median average.
When it comes to understanding your donor base, using the right type of average is crucial.
Outlier donations can skew your results, making your donor base appear more or less stable than it actually is. Enter the Median average, which provides a more transparent, more realistic picture of your donor data.
Quick math review:
- Mean: The sum of all values divided by the number of values.
- Median: The middle value within a range of numbers, meaning 50% of donors give less, and 50% give more.
Here’s an example.
Why Median matters for nonprofits
Unlike the Mean, the Median cuts through the noise of outliers—those extra-large or extra-small donations—and gives you a true middle ground. Look at what happens to the two averages if our example set loses its biggest donor:
That’s a pretty big difference, right? Using the Median is a much more reliable tool for:
- Understanding your donor base’s typical giving level
- Setting realistic fundraising goals
- Accurately forecasting future revenue
Using the mean can create an overly optimistic picture, leading to unrealistic fundraising targets. That’s why we love the Median—it ensures you’re basing decisions on data that truly reflects your donor community.
Take your data analysis to the next level
Want to see proof? Check out this video from Sari McConnell, CFRE & Founder of a strategic fundraising firm for nonprofits called Donor Boom.
If you want to learn more about making the most of your data, check out this Forecasting 101 Webinar and learn how to forecast your nonprofit’s revenue with confidence.
And remember… don’t be Mean. Be Median.
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