ADVANCED ANNUAL GIVING TECHNIQUES: Taking Your Program to the Next Level

1. ADVANCED ANNUAL GIVING TECHNIQUES:Taking Your Program to the Next Level Presented by Kathleen E. Pavelka, CFRE, President Telecomp, Inc.

2. Formula for Success There are only TWO ways to Increase your Success: #1 Increase the number of people giving #2 Increase the average level of support Do BOTH

3. Your Foundation for Success

4. #1 Increase the Number of Donors • Ask More • Expand your solicitation pool (Ask More People) • Increase the number of times you ask (Ask More Often) • Ask Smarter • Increase response rates (A Higher Percentage of your prospects become donors)

5. #2 Increase the Average Gift • Ask More • Increase your Expectations (Ask people to give more) • Ask Smarter • Determine most capable and willing donors (Ask the right people) • Method (Ask the right way)

6. Embrace the Power of Math • You are smarter than a 5th Grader • There is no test at the end • This isn’t Rocket Science • Numbers tell a story – get into your comfort zone

7. The Power of Math Client A 9,305 Donors $114 Average Gift Increase Average Gift by $10 = $93,050 (8.7% increase) Client B 6,406 Donors $226 Average Gift 75,000 Patients Increase Response Rate by ½ point = 75,000 x .005 = 375 new donors x $226 = $84,750 (5.9% increase)

8. Expand yourPyramid Increase your Success

9. #1 Increase the Number of DonorsMaximize Renewal Rate Know what it is or . . . . . . You’ll spend a lot of time running in place

10. #1 Increase the Number of DonorsMaximize Renewal Rate • How to calculate Number of Prior Year Donors = 1,000 Number of Prior Year Donors who also have made a gift in the current year = 600 Renewal Rate = 60% (600/1,000) Benchmark Renewal Rate = 70% - 85%* *Depending on type of institution

11. #1 Increase the Number of DonorsMaximize Renewal Rate • Most cost-effective donor • Most likely to increase giving • Most likely to become long-term consistent donors • Prospective leadership donor pool

12. Relationship to Institution/Organization Group prospect/donors based on their relationship to you Establish hierarchy and dual relationships Unique Case for Support Segment should require a unique message Unique Objective Segment should have a specific objective #1 Increase the Number of DonorsSegmentation

13. #1 Increase the Number of DonorsSegmentation Sample Donor Objectives Leadership: Increased giving/Major gift cultivation Potential Leadership: Increase gift to Leadership Level Renewing Donors: Increase gift by 30% or more Lapsed Donors: Reactivate giving; increasing is secondary Long Lapsed/Sybunts: Reactivate giving (even if decrease) Special Event/Telethon/ Memorial-only Donors: Convert to unrestricted Annual Donors Employee Donors: Renew and increase gift; good example of unique message

14. Segmentation versus Fragmentation If it doesn’t require a unique message and/or have a unique objective then it is likely a waste of resources Segmentation versus Tracking Codes Track all you want; just make sure group is large enough for meaningful result #1 Increase the Number of DonorsSegmentation

15. Segmentation versus Restricted Giving Build rapport/case based on their interest, but does not mean that you have to restrict their gift -- two separate and distinct issues #1 Increase the Number of DonorsSegmentation

16. #1 Increase the Number of DonorsSolicitation Opportunities Must provide multiple opportunities to give throughout the year • Solicit as long as each successive effort is cost effective • In direct mail, expect the successive effort to cut in half • Suggested Opportunities per year: Leadership: 3-5 Long-Lapsed/Non-Donors: 1-2 Potential Leadership: 5-8 Second Gift Appeal: 1-2 Renewals: 5-8 Lapsed Donors: 3-5

17. #1 Increase the Number of Donors Solicitation OpportunitiesRenewals Different objective as you move through the year Increasing→ Renewal

18. #1 Increase the Number of Donors Solicitation Opportunities

19. Talk about the Future The “What If” is almost always more powerful that the “What Was” or “What Is” Tell a Story Giving comes from the heart; the head is a regulator Peer-to-Peer is Best A major gift rule that applies to all giving #1 Increase the Number of DonorsCase for Support

20. #1 Increase the Number of DonorsCase for Support • Focus on the Donor • What is important to him/her? • Impact of Gift • Not what the money will buy; what it will mean • Vary the Case for Support • People give for different reasons

21. #2 Increasing the Average GiftObjective for Renewals Increase giving from renewing donors to equal the “loss” from those who do not renew

22. #2 Increasing the Average GiftObjective Illustration Number Average of DonorsGift IncomeGift Prior Year Results 1,000 $100,000 $100 Average Gift needed to generate the same $100,000 gift income at different Renewal Rates: @ 70% 700 $143 @ 65% 650 $154 @ 60% 600 $167

23. #2 Increasing the Average GiftCreate New Leadership Donors • Establish a “Chair” of your leadership society for communication purposes • Benefits that reinforce your case for giving • On-campus activities • AFP Leadership Society – great example • Leadership Emails • Target mid-range donors and ask for a leadership gift ONLY

24. #2 Increasing the Average GiftCreate New Leadership Donors • Treat them like a leadership donor • Communications, invitations, etc. • Quality solicitation materials • Must match to the significance of the gift • Be specific – ask for a specific amount

25. #1 Increase the Average GiftCreating Leadership DonorsInvitation-Style Leadership Package

26. Gannon UniversityTargeted Leadership Solicitation

27. Rochester Philharmonic OrchestraTargeted Leadership Solicitation

28. McDaniel CollegeTargeted Leadership Solicitation

29. #1 Increase the Average GiftCreating Leadership DonorsLeadership Lead Letter Series: Letter #1

30. #1 Increase the Average GiftCreating Leadership DonorsLeadership Lead Letter Series: Brochure

31. #1 Increase the Average GiftCreating Leadership DonorsLeadership Lead Letter Series: Letter #2

32. New York Presbyterian HospitalTargeted Leadership Solicitation

33. New York Presbyterian Hospital Targeted Leadership Solicitation

34. New York Presbyterian HospitalSource of $1,000+ Donors

35. #2 Increasing the Average GiftSecond Gift Program • Solicit current year donors for a second gift • The old adage applies: Your best donor prospect is a current donor • Vary case for support; “special appeal” • Combined annual giving determines giving society level

36. #2 Increasing the Average GiftSecond Gift Program

37. #2 Increasing the Average GiftSecond Gift Program

38. #1 Increase the Number of DonorsAcquisition Investing in new donors to generate a future return

39. #1 Increase the Number of DonorsAcquisition • Set reasonable to high expectations for giving • New low-end donors generally DO NOT serve your organization

40. Children’s Memorial HospitalResults by Donor Giving Level

41. Acquisition Minimizing your loss and achieving your goal as effectively as possible RESULTS

42. Children’s Memorial Hospital Acquisition Response RatesTelephone Outreach and Direct Mail

43. Children’s Memorial HospitalCost of AcquisitionTelephone Outreach and Direct Mail

44. New York Presbyterian HospitalComparative Results of Rated Prospects in an AcquisitionEffort

45. Morristown Memorial HospitalTarget America Comparative Results

46. MEASURE EVERYTHING After all, you must Know Your Math

47. Barriers to Getting It Done • Budget Restrictions • Short-Staffed • Management Approval • Board Approval • Philosophy • IT

48. Show them The Power of Math

49. And take your institution to new heights!