Effective Use of Technology In

Fundraising

Jay B. Love

• 30 Years of Technology Leadership• Over 20,000 Database Installations• Former Founder & CEO of eTapestry• Former CEO of Master Software/Fund-Master•Conner Prairie Museum Board Member• AFP Ethics Committee Chairman• Center on Philanthropy at IU Board Member• Innovation Fund at Butler University Board Member• Gleaners Food Bank Board Member• Co-Chair of Indianapolis YMCA Capital Campaign

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Your presenter »

Agenda »

• Technology = Donor Retention = Success

• Data Management 101

• Segmenting 101

• Appeals

• Acknowledgements

• Social Media 101

What is the key purpose of technologyin fundraising?

What is the key purpose of technologyin fundraising?

“To enable and insure the proper funding of your organization’s mission

with the least cost possible.”

(Is there a secret to achieving this purpose?)

“To enable and insure the proper funding of your organization’s mission

with the least cost possible.”

What is the key purpose of technologyin fundraising?

Calculating Your Retention Rate »

# of Donors in Current 12 Months(from the previous years pool)

divided by

# of Donors in Previous 12 Months

The 2014 results are in »

Nearly 6 out of every 10 donors do not give again!

Gift retention isn’t much better »

New donor retention is even worse »

Who to focus on »

Donor Attrition Over Five Years

# of Donors Attrition Rate

Donors Remaining

After 1 Year

Donors Remaining

After 2 Years

Donors Remaining

After 3 Years

Donors Remaining

After 4 Years

Donors Remaining

After 5 Years

1,000 20% 800 640 512 410 328

1,000 40% 600 360 216 130 78

1,000 60% 400 160 64 26 10

So what?

from the ageless wisdom of

“The total net contribution that a customer/donor generates during his/her lifetime in your database”

Defining Lifetime Value »

”Proper technology usage is the key to donor retention and lifetime value!”

- Dr. Adrian Sergeant,Bloomerang Chief Scientist

Why technology? »

The 3-Legged Stool »

1. Record keeping2. Outbound communications3. Interactions

1. Record Keeping »

• The original reason to replace 3x5 cards in the 1980s!

• Everyone in the organization should use the database

• Everyone in the organization should benefit from data

2. Outbound Communications »

• Offline• Appeals

• Acknowledgements

• Newsletters

• Handwritten notes (magical!)

• Online• Email

• Website interactions

The “secret sauce” of retention success!

All must be integrated!

3. Interactions »• Types

• Phone calls

• Texts

• Meetings

• Emails

• Chat

• Social media

Highlight vital “retention” information---

@bloomerangtech | 21

Interaction Record Keeping »Notes

• The institutional memory of your organization

• Enables the highest levels of engagement

• Absolute necessity beyond 50 prospects

Data Management »

Can you have too many names in your database?

0 / 10 / 90 Rule »

• 0% of your funding

• 10% of your funding

• 90% of your funding

0 / 10 / 90 Rule »

• 0% of your funding

• 10% of your funding

• 90% of your funding

What should you do with each segment?

0 / 10 / 90 Rule »

• 0% of your funding

• remove all but after 24 months:

• previous above-average donors

• previous board members

• previous top volunteers

• 10% of your funding

• handle in an automatic manner, but research

• 90% of your funding

• focus the majority of your efforts here

Appeal segmenting »

Appeal principles »

• Design a “style” for each segment

• Consider calling and mailing segments 2, 4 and 6

• Handwritten notes and/or P.S. are powerful

• Test, test, test!

• Personalize as much as possible (database fields)

• More than once a year

• Always aim for monthly donors!

Acknowledgement segmenting »

• 48 hour rule

• Call ALL first-time donors

• Handwritten notes

• Be different than the rest

• State exactly how donation will be used

• Fully map a track for each segment

• Respond on social media if you receive a message on social media (use the channel they use)

Acknowledgement principles »

Goal of social media: build community!

Followers are your online supporters:

foster them like anyone else in your database

Twitter followers expect different messaging than your Facebook followers, just like your direct mail list expects different messaging than does your email newsletter list

Social Media »

Integrate with your fundraising efforts:

• Promote events

• Follow/interact with supporters

• Share success stories (how funds are used)

• Thank donors

• Recruit and thank volunteers

Social Media »

Promote »

Interact »

Integrate with your fundraising efforts:

• Encourage organization employees to be active on social media (brand ambassadors!)

• Do something different on each network (Facebook vs Twitter vs Pinterest vs LinkedIn)

Social Media »

Playful vs. Professional

Example: LinkedIn vs. Facebook

Social Media

Follow the rule of thirds:

• 1/3 your content

• 1/3 other people’s content

• 1/3 interaction/conversation

It’s not all about you!

Mix It Up!

Social Media Knowledge

Stay on Top of the Latest News:

• HubSpot Blog/Newsletter http://blog.hubspot.com/

• Moz.com Blog http://moz.com/blog

• Social Media Examiner http://www.socialmediaexaminer.com/

• KISSmetrics http://blog.kissmetrics.com/

• Bloomerang Blog https://bloomerang.co/blog/

Try and Experiment Often• Daily if possible• Content is vital• Engage and converse

Questions?Jay B. Love

jay.love@bloomerang.co@JayBarclayLove