An Introduction to Direct Marketing and Legacy Fundraising
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Transcript of An Introduction to Direct Marketing and Legacy Fundraising
An Introduction to Direct Marketing and Legacy
Fundraising
NICVA Member Event – 7th October 2014
Karen Gallagher Consulting
Introdution
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A. It is talking to your supporters so they end up responding with a donation
B. It might not be immediate but it has to happen for it to be direct marketing.
C. 3 Main areas of activity1. Acquisition/Recruitment2. Retention3. Development
What is Direct Marketing?
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helps a relationship develop between the supporter and the charity
gives enormous pleasure to the supporter generates an income for the charity For Example:
◦ 100,000 supporters who each give £200 in the time they support a charity = £20 Million
◦ Reduce this down for a local charity and it makes sense
◦ And£200 is a low Lifetime Value for a supporter
Good Direct Marketing….
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The supporter will be happy to leave a gift in their will when they die
The average legacy gift nowadays is around £18,000
Huge benefit in getting Direct Marketing right
When it’s really good….
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Legacies
Pledgers
Major Donors
Mid Value Donors
Committed Donors
Regular Donors
Donors
Responders
Incidental Donors
Donor Journey
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Supporter Acquisition◦ Recruiting new supporters◦ Enquirers, members etc
Supporter Retention◦ Welcome to the cause◦ Keep them interested◦ Inspire and engage them further
Supporter Development ◦ More engaged◦ Increase the commitment of supporters by
increasing or broadening their support
Direct Marketing to Individuals
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Supporter Acquisition
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Most challenging part of developing an Individuals Giving programme◦ Perceived as a business risk◦ Rarely breaks even in 1st year◦ Viewed as a long term investment
Developing your recruitment strategy◦ Current supporters◦ What do you know about them◦ Male or Female◦ Younger adults, middle-aged or mature
Use this as the basic criteria when choosing audiences for further recruitment
Recruiting New Donors
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Cold Direct Mail◦Lifestyle Lists◦Reciprocals◦Rented Lists◦Compiled Lists
Unaddressed Mail◦Door Drops◦Inserts
Recruitment Methods
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Take ones ◦Leaflets◦Postcards
Press Ads Telephone Statement Stuffers
Payroll Giving Face to Face Door to Door Electronic
◦Website & Email
◦SMS Product
Despatches
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Recruitment Methods
Ticket Media Social Media Events TV Radio
Foundations for developing a direct marketing programme◦ Can be simple and inexpensive◦ Spreadsheet holding names,
addresses and gift history◦ Be-spoke tailored to meet
organisational needs Raiser’s Edge Alms Donor Strategy Thank You Microsoft Dynamics
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Storing Data
Supporter Retention
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A focus on donor retention will raise lots of money
Everyone knows that it’s a lot more expensive to acquire a new donor than to retain an existing donor
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Retention
Doing everything possible to keep a donor interested in your cause after their first gift
To develop their support you must
◦Inspire
◦Engage them further
◦Welcome them to your cause
◦Thank them for their supportKaren Gallagher Consulting
RetentionRetention is about….
Systems and Processes:◦ Fast & Accurate Gift Set Up
◦ Fantastic Donor Care
As well as being:◦ Thoughtful
◦ friendly
◦ kind to our supporters.
◦ putting ourselves in their shoes
◦ Understand what they want from us
Learn everything you can about your supporters
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RetentionRetention is about….
Personally Promptly Creatively Often Is the single most
important tool you have in your fundraising toolbox
Include a BRE
Saying
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‘Speed and content of the first Thank You defines the future relationship with your donor’
Giles Pegram CBE
Supporter Development
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Is fundamental in enabling charities to differentiate themselves
You need to provide a ◦ high quality and efficient service to develop
loyalty and ◦ increase overall lifetime value
Simply – maintain a meaningful dialogue Reassure them that they have
◦ done the right thing supporting your cause, your charity
◦ and that they have made a positive impact
Developing Relationships
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Welcome Pack
• Thank them for the gift• Provide more information about
your organistion• Your Vision• Examples of your work• How the cause will benefit
• It should inspire• Other ways to support,
committed gift, legacy, event etc
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Reminds donors of benefits of supporting the cause
Informs them of success of projects supported
Helps promote other charity services◦Legacies◦Events◦Volunteering Opportunities
Dispatched 2 – 4 times / year
Newsletters
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Special Events◦Seminars◦Talks◦Tours of facilities
Open Days Make donors feel valued Good way to reward higher value donors
Special Invitations
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Should aim to increase donor’s level of involvement with your organisation
Should offer regular opportunities to increase their level of involvement
Using your newsletter to cross sell other methods of giving without the donor feeling pressurised
Selecting frequent cash donors to receive a regular giving ask
Exiting Regular Givers could be asked to upgrade
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Donor Development Programme
Regular monthly giving through direct debit or standing order – very cost effective
Typical values of between £2 - £10 per month◦ Helps charity to plan (RGs stay for an average 4
years)◦ Saves administration costs◦ Spreads the risk, relying on large number of small
gifts◦ Supports donor recruitment, easier to commit to
lower value ask◦ Helps build a secure and sustainable income base
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Committed Giving
Recruiting new supporters straight to Regular Gift◦Face to face ◦Inserts◦Mail◦DRTV
Cash to Committed Gift Conversion◦Telephone, Mail or Email once per year◦Welcome packs or Newsletters
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Methods of Committed Giving
Powerful fundraising tool◦ Recruitment◦ Regular Gift Upgrade◦ Cash to RG conversion◦ Lapsed RG Reactivation
Outsourced to professional telephone fundraising agencies (though some charities moving to in house)
Donors should be supporters for at least 1 year
Plan for year 2 of IG programme
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Telemarketing
Letters to existing supporters to ask for gifts to support specific projects
Donors recruited through traditional methods respond better
4 x cash appeals per year (seasonal) When building a donor base – important to
get the balance of ◦ Committed givers-who will provide restricted
regular income◦ Cash supporters – who will fund specific project
appeals
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Direct Mail
Direct Mail Packs
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Key – good copy – great stories
Stories of NEED and how the charity is providing the perfect SOLUTION
‘Your donation can help more people like…’
Client facing staff – don’t like providing stories/case studies – MAKE THEM – explain why
Good Copy
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1. Use I and You, especially YOU
2. Use simple English
3. Use short sentences & vary the length (Plenty of white spaces)
4. Use short paragraphs (max 7 lines)
5. Avoid Jargon
Top 10 Tips for Copywriting 1 - 5
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6. Make sure it sounds like someone is talking
7. Ask for money not support
8. Make it Urgent – Repeat It, Use the PS (90% recipients read the PS first)
9. Be concise and to the point – but as long as it needs be to convince the reader (Tests have proven long copy outperforms short copy
10. Use emphasis – underline and bold key messages
Top 10 Tips for Copywriting 6 - 10
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What it should look like
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Do size and shape matter?
Can size and shape break through the noise and achieve “doorstep dominance”?
Problems with unusual formats:◦ Cost◦ Printers◦ Media outlets
Format
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Tall
Long
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Concern sandwich insert:
triangle folding out to square
Smart use of formats can achieve stand out from the noise
But more complex and costly
Can divert attention from other matters
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Formats
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Timing
Often rated as 2nd most important consideration after your audienceDepends on the circumstance of each charity
• Is this the right time for this appeal?• How often should we communicate?• When was last communication and
response?• Seasonality is important• Over or under-mailing people
Response Forms
All of the above drive people to make a response at the time of reading Response mechanism is vital –
and should be planned first Easy to read and understand Make forms bigger Make boxes bigger Plenty of room on the forms Easy to complete and donate Provide options–phone, mail, web
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Measuring Success
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Analysis and Results ROI NET income Short Term• Response Rates• Campaign Break Even• Donations Received
Long Term• Donor Acquisition Cost• Attrition Rates• Lifetime Values• Net Income Potential
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Measuring Success
Number mailed Cost per donor mailed Number of donations % Response Rate Cost per response Gross Income Net Income Return on investment
Response Analysis
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Other Really Important Stuff
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Test Stuff – lots of stuff◦Ask Amounts◦Additions Leaflets Stickers Address Labels Postcards
◦Stamp vs PPI◦Cash vs Direct Debit◦New Pack vs Control (Banker)◦Plain envelopes vs teaser or photo
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Testing
Ensure donation option is available on website Email your donors
◦Primer and reminder emails Use video in emails Use Twitter & Facebook to engage
supporters and donors Website front page should reflect the appeal
◦Make sure Donate Now button is obvious
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Technology
Legislation
Data Protection◦Permission to hold
3rd party information◦Store Information
correctly◦Check whether you
need to register with the Information Commissioner
◦Check Code of DM Practice
Gift Aid
◦Make the most of tax effective giving
◦Ask for declarations at every opportunity
◦Variable tax copy
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Think about the Pack!◦ Size & Weight◦ Can create excessive postage costs and◦ Beware of VAT on postage – work arounds!◦ Ruin a mailing’s ROI◦ Obtain a weight from supplier before production
Avoid mis-prints◦ Send existing print samples◦ Be specific re stock, weight and size etc◦ Quantity-accurate◦ Ask for Paper Samples
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Choose your Printer Wisely
Prevent Disastrous Data and Personalisation errors◦Work with clearly defined data fields◦Add For Position Only data field in a non
printing colour◦Request Data dumps for all key fields◦Review data fields◦Request ‘live’ Proofs◦Ensure address block fits window
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Check and Double Check
Sign it off Mail It Be conscious of the day it will land Sit back and wait for the response Make sure Donor Care/Supporter Services are briefed and ready to take the calls
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Then what?
LEGACY FUNDRAISING
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A charitable legacy is a gift to charity made in an individuals will and paid by their executor when they are dead.
What is it?
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After providing for your loved ones and once all debts have been cleared, you can leave a share of the remainder of your estate.
‘The residue of my estate to be divided in equal shares between XY charity and AB Charity’
A share of your estate or Residuary gift
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This is a gift of a specific amount. ‘I give XY Charity £2,000- for general charitable purposes’.
A cash gift or Pecuniary gift
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Any item you leave, such as a house, a piece of jewellery or shares
‘‘I give XY Charity my house (etc) for general charitable purposes’.
A specific gift -
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Is a variant of the residuary legacy where the gift only takes place after the death of (most commonly) the legator’s spouse.
A Reversionary Gift
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UK Legacy Foresight Research • Legacy Income currently £1.6 Billion• Estimated to be worth £5.3 Bn by mid century
• Legacies account for 12% of sector’s voluntary income
• Set to grow significantly
Legacies and Giving UK
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NfP Synergy Research (2014)• 37% of the public have made a will (down slightly from 2006)
• Overwhelming majority of over 65 year olds have made a will
• Last 2 years – an increase in the number of people who have included charities as beneficiaries in their wills
• Timing of ask vital – most important group to target is 45-54s
Legacies and Giving UK
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2013 - 1,570 charitable gifts in 510 wills 65% left by women Down from 1,816 charitable gifts in 662
wills in 1997 (59.7% left by women) In 2013 the top 4 causes are as follows:
Dying to Give NI
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Cause 2013 1997
Religion 36.88% 53.4%
Health/Saving Lives 25.92% 16.6%
Poverty & Relief of those in need 22.25% 5.8%
Animals 7.83% 4.5%
• Need to demystify legacies – they are simply another way of giving a gift to charities
• Legacy Giving is big gift fundraising• Organisations need to communicate the
legacy message both internally & externally
• Legacies are a normal, effective and appropriate way to support your organisation
Legacy Fundraising
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• Need to identify the handful of donors who will provide the bulk of legacy value and treat them in a manner which will motivate them to give their bequest to your organisation• Donors• Staff• Board of Trustees• Volunteers• Beneficiaries• Other Stakeholders
Identify Potential Legators
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• Needs to be done in such a way to avoid alienating donors
• Targeting and segmentation are critical in legacy fundraising
• Legacy messages need to be integrated in other communications (but don’t dominate them)
• Language is essential ‘donations in wills’ likely to be better received than ‘gifts in wills’ or ‘legacies’
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Legacy Communications
• Develop appropriate case studies which demonstrate how a legacy gift can contribute to the long term impact of your work
• Give legacy pledgers the opportunity to inform you of their intentions to support you in this way
• Post legacy pledge – relationship needs to be managed appropriately – maintaining & deepening the relationship to ensure it is fulfilled
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Legacy Communications
• Sign up for Will to Give • Produce legacy giving materials which
promote the benefits of doing so in a simple and accessible way
• Include Legacy messages within donor newsletters etc
• Test a solus legacy appeal• Legacy event or seminar• Offer receipt of legacy information on
donation and supporter reply forms
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RetentionTactics
• Educate staff, volunteers, trustees and patrons on legacies and their importance as a source of fundraising income
• Promote legacies to stakeholders, volunteers, staff and trustees
• Make some of these stakeholders advocates to promote legacies
• Ensure administration support exists to deal with legacy queries either internally or externally
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RetentionTactics
• Gifts over the inheritance tax threshold (currently £325,000) is taxed at 40%
• Gifts to a registered charity are not taxable• Means loved ones could have tax bill
reduced up to 40% of the amount bequeathed
• Since 6th April 2012 – if a donor leaves 10% of their estate to charity the tax due may be paid at 36%
• For more information go to HMRC website
www.hmrc.gov.ukKaren Gallagher Consulting
RetentionTax Effective Giving
‘I give to Charity A of Address, registered charity number, a share /the whole of my residuary estate/a sum of money/a specific item or property (delete as appropriate) for its general charitable purposes. I direct that the receipt of the Treasurer or duly authorised officers shall be a sufficient discharge for my executors.’
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RetentionSuggested wording for ‘Donations in Wills’
Will to Give
• A group of 37+ of NI charities working together to promote charitable gifts in wills
• Wills Notification Service established in 2012 in partnership with Sector Matters (NICVA)
• Aim to provide WTG member charities with advance notice of legacies when probate is granted
• Probate Office forward copies to DSD who send them to Sector Matters
• WTG Members receive notification• £250 & £495 per year• www.willtogive.org
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Will to Give – Snapshot April 2014
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Number of Gifts 124
No of Residuary Gifts 39 (31%)
No. of Pecuniary Gifts 58 (47%)
No. of Specific Gifts 7 (6%)
Other Gifts 20 (16%)
No. of Gifts to Faith based Organisations
78 (63%)
No. of Gifts to Other Charities 46 (37%)
www.karengallagherconsulting.co.uk07765251098
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Thank you for your time!