A 5x5 Model Webinar Development-Stage 2 Presenters o Ginny Z. Berson o Maxie C Jackson III o June...

A 5x5 Model Webinar• Development-Stage 2

• Presenterso Ginny Z. Bersono Maxie C Jackson IIIo June Fox, DEIo Beverly Hacker,

KDHXo Brian Terhorst,

KCHOo Pearl Stark, KPOV

• December 14, 2012

• 1pm EST

Development - Stage 2


Stage 2• Revenue generation includes

foundations and/or grants

• 2 Development Officers (1 Full-time)

Stage 3• Multiple Revenue Streams

• Diversified Development Staffing

• Use Benchmark Data in planning Development Activity

• Short & Long Term Plans to increase revenues - on schedule

Development - Stage 2H. June Fox

DirectorDEI Station &

Business Relations

703.759.2221www.deiworksite.o

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Diversify Revenues

Continue Growing Membership

Decrease Reliance

Increase Financial Stability


Easier to get renewal

and/or larger donations

from current donors

Growing current donors critical to station's financial health &

stability


Additional Gifts

Program ServicesChallenge Appeal

Special NeedsEquipment

Record LibraryOther budget itemsEmergency - tower,

dues

Development - Stage 2Send at least 1 additional gift letter per year

Exclude anyone currently getting a renewal letter

Those giving additional gifts more likely to renew on their anniversary

Longevity Add Gift % Renewal Response

Rate

Average Gift

First Year No 36% $57.55

First Year Yes 63% $72.26

Multi Year No 65% $77.60

Multi Year Yes 75% $86.95

Development - Stage 2Timing of Add Gift Appeals• Prior to each on-air pledge drive

• End of calendar year

• End of fiscal year

Additional Gift LettersAsking for additional gifts is NOT greedy... it's giving your donors the opportunity to provide additional support for the great programming you provide!

Development - Stage 2Add Gift

Conservative

.5x renewal amount

Renewal amount1.5x renewal

amount

Ask Chart

Aggressive

Renewal amount1.5x renewal

amount2x renewal amount

Development - Stage 2Beverly Hacker

Executive Director

KDHX Community Media

[email protected]

Development - Stage 2KDHX Community Media

43,000 watt community station in Metro St. Louis, MO

21st largest market in US – Includes a major NPR station

and 4 college/university stations

25 years in the market

2.5 M population in coverage area

AAA Music Format

Volunteer programmed

$1.3 M annual revenues – 40% from individual gifts


Historically, 60-65% of revenue was from

individual donations

Overall membership growth slowed around 2003

Introduced sustaining memberships with EFT only in 2001 – not very

successful

Started sustainer program in Fall 2009

Currently 40% of revenue is from individual donations

Development - Stage 2Set up a

successful sustainer program

1. Have a compelling mission and convey it succinctly

2. Be sure that there are advantages for the donor to make the switch to sustaining membership and make that part of your communications

3. Have an efficient ‘back-end’ process that enables you to thank donors promptly and address any donor concerns

4. Develop an integrated approach with a well-planned communication plan

5. Make it “exclusive” and give it a name

Development - Stage 2Back-end system considerations

Will you do EFT and/or credit/debit cards?

Select a provider that makes it easy, interfaces with or reports easily to

your database system

Make sure your system can keep track of upcoming expiration dates

Set up internal systems and procedures for handling the initial sign up as well

as the on-going stewardship

Decide on your ‘price’ and ‘offer’ and get that into all of your communications

Modify your renewal efforts to remove sustainers

Don’t remove sustainers from add gift solicitations

Development - Stage 2Planning, Goals &

Expectations• Understand the effect a

sustaining program will have on your membership drives

• It will take one or more annual cycles to really see how much the program will take from single donations

• Plan for this both in how you set your drive goals and how you budget your annual revenue

• Keep accurate records on conversions, drop-offs, add gifts from sustainers to be able to really judge success

Development - Stage 2Education for programmers and

listeners

Train on-air staff to pitch the sustaining program and incorporate it into your pitching points

Use a limited number of very focused reasons to switch to sustaining membership

Head – No renewals, no need to call during drive, automatic premiums in spring & fall

Heart – Its better for the station, I can give more

Wallet – planned payments, annual tax letter

Set realistic goals for drives with consideration for the effect of sustainer conversions


Integrated marketing for

sustaining members

• On-air during drive• On-air between drives• Added to all direct mail

solicitations• Newsletter and brochures• Removal from renewal

mailings• Semi-annual premium

mailings• Annual tax letter• Annual add gift solicitation• Invitations to special events• On-line support layouts• On-line banner ads


Stewardship

• Initial gift confirmationo Acknowledgemento Amount / start date / draw date confirmationo Explanation of benefitso Welcome

• Spring/Fall premiums• Year-end add gift appeal• >$30/mo – Sound Investor welcome• Sound Investor party invitations• Annual tax letter


Results

• Prior to instituting sustaining membershipo 2 drives per year with the occasional

‘emergency’ drive• FYE 9/30/2009

o 2 drives - $125K eacho Sustaining gifts - $38K

• FYE 9/30/2012o 2 drives - $150 K eacho Sustaining gifts - $212K

Development - Stage 2Brian Terhorst

[email protected]

General ManagerNorthstate Public Radio

KCHO 91.7 FM, Chico & KFPR 88.9 FM, ReddingCalifornia State University, Chico, California


Who We Are:• KCHO-FM, Chico (signed on 1969)• KFPR-FM, Redding• Eight Translators• Licensed to CSU Chico Research

Foundation (non-profit auxiliary of CSU Chico).

• Annual budget of $1.6 Million.

Service Area:• 10-county area of Northeastern California.

• Compared in size to the State of Ohio.

• Coverage Area Population: 481,000

• Rural Station: Avg. 24 persons per square mile.

• Positioned first in Chico Metro weekday radio market during 7:00 and 8:00 am hours and 6:00 pm hour (i.e., morning and evening drive time). (RRC)


• Are supported by over 4,000 active members.

• Two 10-day drives per year, each preceded by a 4-week “Silent Drive.”

• Minimal reliance on thank-you gifts (i.e., premiums)o Use drawings and challenge

matches to motivate giving

• FY 12/13 Total Projected Membership Revenue: $426,466.

• Sustaining Gifts: $91,096o Sustainer Breakdown:

EFT: $76,209 Monthly CC Debits:

$7,266 (new and growing) University Payroll

Deductions: $7,621


Partnership with...

University Advancement

· As University Licensee, Membership Donations are University Gifts

· Gifts processed exclusively through University Advancement (UA) as part of Annual Fund

· CSU Chico uses Banner Gift Software. Database is segregated to prohibit solicitation of station members for other University campaigns.

· Station no longer maintains an in-house membership department

o All renewal and reminder letters, billings, gift processing and end-of-year tax statements handled by UAo UA Staff assigned to Member Stewardship, Major Donor Cultivation, and Planned Giving.o UA Staff participate in drive planning effort

· Northstate Public Radio is CSU Chico’s single largest gift recipient, exceeding Alumni Association.


Sustainer Benefits for Members:· No need to renew.· Annual investment distributed over

the year.· Automatically entered in Silent

Drive Incentive Drawings.· Symbolic “renewal” to receive

featured thank-you gifts during drives.

· Thanked en masse during Membership Drives

Sustainer Benefits for Station:· Provides steady and predictable

monthly revenue stream.· No need to renew.· Cancellation requires member

initiative.· Reduced costs for thank-you gifts.

Sustainer Challenges· Requires effective stewardship

o Thanking sustainers

o Incentives

o Custom mailers

o Exclusive benefits and events

· Making a case for ongoing monthly donations rather than annual donations

o NPR sustainer handoffs

· Initial reduction in annual donor revenue


Pearl StarkStation Manager

KPOV 88.9 fmHigh Desert Community Radio

www.kpov.org

[email protected]

Development - Stage 2Station background:KPOV, High Desert Community Radio

• Based in Bend, Oregon – a city of 80,000

• Staff size: 2 part time staff totaling 1.3 FTE (+ 2 UW reps paid on commission)

• 100 volunteers

• On the air 7 years, since June 2005

• Transition from LP to FP in summer 2011

• 2 big NPR translators air here

• We are a Pacifica affiliate

• Format: Mixed, news/talk/music

• We are not CPB funded

Development - Stage 2KPOV’s grant history: 2004 – 2008 we averaged $10,000/year 2009, 2010: $4000/year 2011: $36,0002012: $34,000 committed2013: $20,000 already committed Most years these numbers include some donor advised funds. Interesting correlations:

• 2004-2008 founding board member writing grants

• 2009, 2010 volunteers writing grants

• 2011->, staff writing grants

Development - Stage 2Who writes grants? Qualifications:

• knows the station well

• detail oriented… able to follow seemingly pointless directions

• strong writing skills

• willing to put time into it

• grant writing experience Mistakes:

• Commission based grant writers

• Volunteers walk in off the street and offer to write a grant

• Someone too busy to follow through with reviews and rewrites

Development - Stage 2How to find grants:• Look at other non-profits in your community/state and see who is

granting them

• Helpful to look at orgs with same size or same mission

• DEI and APTS grant center website

• Web search

• Donor advised funds

• Word of mouth

• Look at what they’ve granted in the past and how much

Ideas of special foundations to look for:• Arts foundations

• Social Justice foundations

• Community foundations

• City/county specific funds


Mistakes, Things that may not work:• Foundations or individuals with a lot of money

but no connection to your station in mission or geography

• Applying for grants for projects that are outside your mission

• Hard to budget for

• Grants whose main focus is basic needs

Development - Stage 2Things that often work:• Take advantage of relationships with grantors

• Start with smaller regional grants

• Have people review the grant and give suggestions.

• Make sure you follow all the rules of the grant and double check

• Talk to the granting organization

• Get feedback from the granting organization afterwards if they turn you down.

• Make sure you're prepared to follow through

• Grants that fund operating costs are really nice. Most don’t.

• Pick a few projects that you will write grants for.

• Write some standard pieces that can be used for multiple grants. Make the case.o Station history/missiono What problem are you addressingo How will you solve it


How to learn?

Take a class. Read a book.Read some grants that were funded.

Read some grants that were not funded. Write a grant & get feedback.

A 5x5 Model Webinar Development-Stage 2 Presenters o Ginny Z. Berson o Maxie C Jackson III o June...

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