Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors
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Transcript of Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors
Acquiring, Renewing, and Upgrading Donors
Annual Giving Campaigns:
Chris LeBrun, MBAAndrews UniversityBerrien Springs, MI
Detroit Fundraising SummitSponsored by Center for
NonProfit SuccessSeptember 10, 2008
Just for Fun
Donor Gift Cycle
First Gift
Repeat Gift
Regular Giving
Upgrade
Major Gift
Legacy Gift
Acquiring DonorsSeparating the Best from the Rest
Acquiring Donors
First Gift
Acquiring donors may be the most important function in fundraising process Lays the foundation for all fundraising Brings greater depth to organization Replaces donors lost in attrition New major donor prospects in the
pipeline
Two Types of Donor Acquisition
First Gift
New constituent-donors Hardest type of donor acquisition Introduce constituents to the
organization Don’t focus on gift amount
Existing constituent-donors Already in your database Natural connection with organization Focus on participation
ROI for Donor Acquisition
First Gift
Keep expectations low Response rates of 1 – 2% are GREAT! Costs $1.00 – $1.25 to raise $1.00 Place an emphasis on introductory gifts
Acquisition Intangibles
First Gift
Consider the intangibles during acquisition Age and/or reputation of the
organization The perceived importance of the cause Make-up of your list can effect results
Activities for Donor Acquisition
First Gift
Acquisition uses impersonal methods Acquisition mailings Online giving Special Events Word of mouth
What doesn’t work as well Phone solicitation Personal visits
Soliciting Repeat GiftsThey Did it Once, Now Get Them to Do It Again
Repeat Donors Educate Us
Repeat
Gifts
Repeat gifts provide a multitude of info Separate donors from occasional/event
gifts Identify a connection to “The Cause” Affirm solicitation methods Identifies donors who can give more
Recognition Fuels Renewal
Repeat
Gifts
Only one chance to make a first impression Processing time of first gift Donors watch how gift is received and
used Thank yous are natural renewal
solicitations Recognition can lead to personal visits
Activities for Donor Renewal
Repeat
Gifts
Renewal often impersonal but not generic Phone solicitation Renewal Mailings Special Events Automatic giving Recovering lapsed donors
Other methods Personal Visits Gift clubs (emphasis on consecutive
giving)
ROI for Repeat Gifts
Repeat
Gifts
ROI is greater for repeat than acquisition Response rates up to 20 – 30% Cost to raise a dollar only about 20
cents Gift amounts are higher
Upgrading DonorsEnsuring the Future of the Organization
Upgrade Gifts
Upgrade Gifts
Securing upgrade gifts helps to fulfill the goal of annual giving campaigns Identify major gift prospects Increase annual support for
organization Insure the future goals of the
organization are met
Activities for Upgrade Gifts
Upgrade Gifts
Upgrade gifts are often the result of being able to engage donors Strong stewardship program Personal solicitations Phone solicitations Volunteering Gift clubs Segmented mailings
Tips and TricksDirect Advice for Direct Mail
Get them to Open the Envelope
Tips &
Tricks
Response rates are higher Increased competition
Other charities For-profit direct mail marketing
How can you get them inside? Tease them “Handwritten” addresses Pictures Odd shape envelopes Bulky mail
Segment, Segment, Segment!
Tips &
Tricks
Segmenting takes time but it’s worth it Increases your response rate Solicit for several projects in one
mailing Ask for an appropriate gift amount Allows an impersonal medium to feel
personal Reminds each donor of their connection
to the organization
Variable Data Printing
Tips &
Tricks
Variable Data Printing (VDP) allows each donor to receive customized mailings Personalized letters/envelopes Demographics (age, region, history,
etc.) Target projects / areas of interest Reminds them of their giving history Solicit the right gift amount
ROI for Variable Data Printing
Tips &
Tricks
Higher costs with VDP but also higher ROI 5.35 % response for fundraising
acquisition* Compare with 1-2% for acquisition
VDP increases response rate: +44% with one area of variable info** +45% with color (no variable)** +135% with color and one variable** +500% with color and multiple variables**Sources* The Direct Marketing Association** Romano & Broudy
Using Email
Tips &
Tricks
Email allows segmentation and VDP Cost is minimal and reduces over
time Response rates aren’t as high but
response times are faster Online acquisition gift amounts are
typically higher Multi-channel donors renew at
much higher rates than single-channel donors