Monthly Giving and The Next Generation of Giving

MONTHLY GIVING

Copyright Harvey McKinnon Associates 2013

What’s a Monthly Donor?

• Someone who agrees to give every month via small gifts transferred straight from their bank account or credit card

• Benefits Include: • Donor longevity (10-12 years)

• Predictable revenue

• Lower costs

• Income growth over time

• Convenience

Who are they? - Single Gift

Donors, converted by phone or mail or online

- Recruited straight to monthly via site or street fundraisers or TV, or mail


What’s a Monthly Donor?

The two most important reasons to recruit monthly donors:

1. About 3-4 times the value of a Single Gift Donor

2. Fantastic source of charitable bequests (gifts to a charity in donors’ will)


Greenpeace

63% of income comes from monthlies

# Annual value Average Annual value

Number of single gift donors

190,000 $3,500,000 $ 18

Number of monthly donors

52,500 $6,000,000 $ 114


HAVE MADE A MONTHLY DONATION IN LAST 2 YEARS


CURRENTLY ACTIVE IN A MONTHLY GIVING PROGRAM


What can we do?

• Still room to grow: • 20% of Canadians say they give monthly

• 18% of Americans

• 36% in the UK

• Target Boomers and Civics for higher retention

• Work to do to embed monthly giving deeper in our culture of philanthropy


Monthly Donor recruitment channels – what do donors prefer?


What’s okay?

Generally acceptable to all donors:

A friend approaching you about a cause or a charity

A friend’s child or grandchild approaching you

A direct mail appeal from a charity you know personally

An email from a charity you know personally

TV, radio ads

check-out “add a donation” option


What’s not okay?

Not popular:

X DM and email from an unfamiliar cause

X Telemarketing and robotic calls

X Text or SMS solicitations unacceptable to most generations, even if the donor has subscribed to get text updates

X Street and door-to-door disliked across all generations. REALLY disliked by Boomers and Civics


What can we do?

• How can we use friends and family more creatively? • As channels? • As askers in existing channels? • Indspire example

• How can we make our charity familiar before we ask?

• How can we age profile our donors to keep them out of ‘highly unacceptable’ methods of fundraising?


PUBLIC RECOGNITION FOR DONATION

Boomers

0%

Mature

2%


What data do we have on donor behaviour?


First, a word on retention ….

# Monthly Donors

Net Cost per Donor

Total Net cost

Gross Year One Income at $15/mo

Profit or Loss at the end of Year 1

Attrition Rate over Year 1

# donors going into Year 2

Annual value of remaining donors

Profit or Loss at end of Year 2

1,000 $250 $250,000 $180,000 ($70,000) 24% 760 $136,800 $66,800

1,000 $250 $250,000 $180,000 ($70,000) 50% 500 $90,000 $20,000

1,000 $250 $250,000 $180,000 ($70,000) 70% 300 $54,000 $(16,000)

Case study Direct Mail acquired TM acquired* Online acquired

% of donors whose first gift was Monthly

5.70% 43 % 8.30%

% of donors whose 1st gift was OTG but converted to Monthly later

9.80% 15.50% 11.70%


Case study Direct Mail acquired TM acquired* Online acquired

% of donors whose first gift was Monthly

5.70% 43 % 8.30%

% of donors whose 1st gift was OTG but converted to Monthly later

9.80% 15.50% 11.70%

Number of monthly donors currently 2,428 842 102

Value of monthly gifts over last 7 years $7.5 million $1.2 million $675,000


Conversion channel

63%

35%

Conversion channel

35%

63%


Conversion channel


Monthly Giving and The Next Generation of Giving

Business

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