The Schoch Museum is embarking on a five-year fundraising campaign. As a nonprofit institution, the museum finds it challenging to acquire new donors, as many donors do not contribute every year. Suppose that the museum has identified a pool of 10,000 potential donors. The actual number of donors in the first year of the campaign is estimated to be 65% of this pool. For each subsequent year, the museum expects that 25% of current donors will discontinue their contributions. In addition, the museum expects to attract some percentage of new donors. This is assumed to be 8% of the pool. The average contribution in the first year is assumed to be $60, and will increase at a rate of 3.5%. Develop a model to predict the total funds that will be raised over the five-year period. Schoch Museum Donor pool First year percentage Annual percentage leaving Annual percentage new Annual contribution increase 10000 65% 25% 8% 3.5% 1 2 3 4 5 Year Number of donors Average contribution Total donation Cumulative funds raised
