From peril to profit what donors say will turn fundraising around in this economy
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FROM PERIL TO PROFIT WHAT DONORS SAY WILL TURN FUNDRAISING AROUND IN THIS ECONOMY PowerPoint PPT Presentation


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FROM PERIL TO PROFIT WHAT DONORS SAY WILL TURN FUNDRAISING AROUND IN THIS ECONOMY. This Seminar Draws From…. Donor-Centered Fundraising Philanthropy in a Turbulent Economy Communication Is the Ask. How Profit Is Made in Fundraising. Not-for-Profits can only spend fundraising profit .

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FROM PERIL TO PROFIT WHAT DONORS SAY WILL TURN FUNDRAISING AROUND IN THIS ECONOMY

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From peril to profit what donors say will turn fundraising around in this economy

FROM PERIL TO PROFITWHAT DONORS SAY WILL TURN FUNDRAISING AROUND IN THIS ECONOMY


This seminar draws from

This Seminar Draws From…

Donor-Centered Fundraising

Philanthropy in a Turbulent Economy

Communication Is the Ask


How profit is made in fundraising

How Profit Is Made in Fundraising

Not-for-Profits can only spend fundraising profit.

Profit is the remainder between the value of the gift and the cost to get it

The profit margin widens the longer a donor gives; therefore, extending donor retention equals earning higher profit

a manageable number of donors, encouraged to stay loyal and inspired to give generously makes more money for a NFP than does a volume of donors which is so large that it has to be handled through mass marketing


How fundraising actually works

How Fundraising Actually Works

large-volume fundraising is the norm

donor attrition is over 90%, with 65% of contributors never making a second gift

constant, high volume acquisition is deployed to make up for the loss of large numbers of unprofitable or barely profitable donors

this drains the fundraising budget, leaving too few resources for donor retention strategies


Fundraising cost

Fundraising Cost


An intriguing question

Why is the norm in fundraising actually the less profitable option?

An Intriguing Question…


From peril to profit what donors say will turn fundraising around in this economy

DONORS ARE ON THE MOVE


Changes in giving 2008 to 2009

Changes in Giving: 2008 to 2009

  • # donors contributing: down 5.8% (continuing a 3-year decline)

  • Donor Retention: down 1% (continuing a 5-year decline)

  • Donor acquisition: down 12.9% (3-year decline)

  • Reactivation of lapsed donors: down 6.5% (3-year decline)

  • Average gift value: down 2.1% (first time this has declined in 5 years of measuring)

  • 2009 Index of National Fundraising Performance; Target Analytics; performance of 35 million donors compared between 2008 and 2009


From peril to profit what donors say will turn fundraising around in this economy

DONORS’ CHANGING GIVING BEHAVIOR

2002 TO 2007


How respondents giving philosophy has changed in the five years prior to economic decline

How respondents’ giving philosophy has changed in the five years prior to economic decline


From peril to profit what donors say will turn fundraising around in this economy

THE DONOR-CENTERED SOLUTION


What inspires donor loyalty and increasing gift values

What inspires donor loyalty and increasing gift values?

  • prompt, meaningful gift acknowledgment

  • reassurance that gifts will be used for a specific end purpose

  • measurable results on the impact of donors’ contributions


Are donors noticing the shift to a donor centered model

A March/09 review of NFP websites found that only 43% stated their mission & goals and only 4% identified how they use charitable donations

Are Donors Noticing the Shift to a Donor-Centered Model?


Getting donors and keeping donors not the same thing

Getting Donors and Keeping Donors – Not the Same Thing

UNIQUE SELLING PROPOSITIONS FOR PROSPECTS AND DONORS


Why donors stop giving from donor centered fundraising 2003

Why Donors Stop Giving(from Donor-Centered Fundraising, 2003)

  • 46% of study donors stop giving for reasons connected to a ‘failure to communicate’

  • 41% stop giving because of over-solicitation


What are measurable results

What Are Measurable Results?

  • progress that can be quantified – for instance, increase in volume of service or enhanced quality of programs

  • only specific programs and services can be measured


Why are measurable results so important to donors

Why Are Measurable Results So Important to Donors?

  • they allow donors to evaluate whether their gifts are being used effectively

  • they justify donors’ assessment of themselves as contributing members of society


Case study

RESTRICTED vs UNRESTRICTED GIVING

Case Study


From peril to profit what donors say will turn fundraising around in this economy

PHILANTHROPY in a TURBULENT ECONOMY


How the study philanthropy in a turbulent economy was conducted

How the Study, Philanthropy in a Turbulent Economy, Was Conducted

  • Online survey conducted between January 12 and February 3, 2009

  • Cygnus reached out to 963,458 donors by partnering with 69 not-for-profits

  • 21,947 respondents started the survey; 17,365 answered all questions for a completion rate of 79.1%


From peril to profit what donors say will turn fundraising around in this economy

PROFILE OF SURVEY RESPONDENTS


Gender

Gender


From peril to profit what donors say will turn fundraising around in this economy

Age

54.3% are between 45 and 64 years of age


Annual household income

Annual Household Income


Has responsibility for financially supporting children or other family members

Has Responsibility for Financially Supporting Children or Other Family Members


Occupation

Occupation


Highest level of education

Highest Level of Education


Religious practice

Religious Practice


Volunteer positions held by the 68 of respondents with volunteer experience in last 12 months

Volunteer positions held by the 68% of respondents with volunteer experience in last 12 months


From peril to profit what donors say will turn fundraising around in this economy

GIVING PROFILE OF RESPONDENTS


Number of charitable causes supported in 2008

Number of charitable causes supported in 2008

43.7% support 3-5 causes


Average value of gifts made by respondents in 2008

Average Value of Gifts Made by Respondents in 2008

all respondents and top 5% by total giving


From peril to profit what donors say will turn fundraising around in this economy

HOW THE ECONOMY HAS AFFECTED RESPONDENTS AND THEIR PHILANTHROPY


How the economic downturn has affected respondents

How the economic downturn has affected respondents


When respondents expect the economy to recover

When respondents expect the economy to recover


Short term vs long term expectations for recovery

Short-term vs Long-term Expectations for Recovery

  • Respondents between 75 and 84 years of age are slightly more optimistic about the time it will take for the economy to recover

  • Respondents earning over $200,000 are somewhat more optimistic

  • Respondents who are more pessimistic about the timeframe for economic recovery gave, on average, 40% more money to charitable causes in 2008


Anticipated giving in 2009

Anticipated giving in 2009


Reasons for planning to maintain or increase giving

Reasons for planning to maintain or increase giving


Why some respondents will decrease charitable giving in 2009

Why some respondents will decrease charitable giving in 2009


How respondents will decrease their giving in 2009

How respondents will decrease their giving in 2009


From peril to profit what donors say will turn fundraising around in this economy

Will the 24% of respondents committed to multi-year gifts alter their terms due to the economic downturn?


Case study1

“But I Did Everything Right”

Case Study


From peril to profit what donors say will turn fundraising around in this economy

FUNDRAISING OPPORTUNITIES


Donor acquisition

Donor Acquisition


To what degree would the following scenarios motivate you to give to a not for profit organization

To what degree would the following scenarios motivate you to give to a not-for-profit organization?

1=not at all motivating 7=highly motivating


Double gift value

Double Gift Value

1=definitely would not 7=definitely would


How the economic slowdown will influence respondents to alter their methods of giving in 2009

How the economic slowdown will influence respondentsto alter their methods of giving in 2009

Respondents under 35 years of age


How the economic slowdown will influence respondents to alter their methods of giving in 20091

How the economic slowdown will influence respondentsto alter their methods of giving in 2009

Respondents 35 years of age and older


Gender and income

Gender and Income


Gender and the likelihood of doubling gift values

Gender and the likelihood of doubling gift values


Recession giving by america s most generous donors

Recession Giving by America’s Most Generous Donors

  • more likely than other donors to have increased their giving in 2008

  • three times more likely to be interested in giving that preserves principal / planned gifts

  • more sure about how they will give in 2009

  • 53% more likely to award larger gifts to fewer not-for-profits

  • 47% more likely to decrease giving this year


Generosity and religious practice

Generosity and religious practice


Religiosity and its impact on giving in this recession

actively religious Americans are more generous donors and more active volunteers

they are also more likely to maintain or increase their giving during the recession

Religious conviction decreases with age which may have implications on giving and volunteering in the future

Religiosity and Its Impact on Giving in this Recession


Younger donors a hidden fundraising gem

69% of donors under the age of 35 are professionals, academics, owners, managers or entrepreneurs

47% earn over $70,000 (52% of donors between 25 and 34, who are less likely to still be in school)

70% are not supporting dependents

more open to giving to causes for the first time

more likely to give through technology-driven appeals

Younger Donors: A Hidden Fundraising Gem


The relationship between gift value and age

The relationship between gift value and age


Giving comparison by age group among employed donors earning between 40k and 129k

Giving comparison by age group among employed donors earning between $40K and $129K


Volunteer activities of survey respondents based on their age

Volunteer activities of survey respondents based on their age


Age comparison of respondents planning to maintain or increase their giving in 2009

Age comparison of respondents planning to maintain or increase their giving in 2009


From peril to profit what donors say will turn fundraising around in this economy

How to Communicate With Your Donors


Drowning in a sea of information

Drowning in a Sea of Information


Communication in an age of information overload

Communication in an Age of Information Overload

THE LESS INFORMATION YOU GIVE YOUR DONORS AT ANY ONE TIME, THE MORE THEY WILL ABSORB AND RETAIN


Memorable communication materials according to donors of a social service nfp

Memorable Communication Materials According to Donors of a Social Service NFP


Most commonly recalled communications vehicles for an arts client

Most Commonly-Recalled Communications Vehicles for an Arts Client


Assessment of key report by donors of an ivy league university

Assessment of Key Report by Donors of an Ivy League University


From peril to profit what donors say will turn fundraising around in this economy

FROM EIGHT PAGES TO ONE PAGE TO…


From peril to profit what donors say will turn fundraising around in this economy

BULLET-PROOF VESTS ARE HOT AND SWEATY IN JULY


Communication that matters to donors

Communication that Matters to Donors

Measurable Results

News

Communication from the Right Person


From peril to profit what donors say will turn fundraising around in this economy

ANYTHING CAN BE MADE INTERESTING


Typical board meeting agenda

Typical Board Meeting Agenda

  • Call to Order, Welcome from the Chair

  • Regrets

  • Minutes of the Previous Meeting

  • Treasurer’s Report

  • Report from the CEO

  • Report from the Chair of the Fundraising committee

  • New Business

  • Next Meeting: April 17th, 2009

  • Adjournment


Call to order welcome from the chair

Call to Order, Welcome from the Chair

  • Chair, Bob White, will recite the Periodic Table from memory at precisely 6:30 pm (latecomers will not be admitted!!!)


Regrets

Regrets

  • Why Jean Albertson, Frank DiAngelo and Tom Hathaway can’t come to the board meeting (personal excuses written in Haiku)


Minutes of the previous meeting

Minutes of the Previous Meeting

  • Approval of minutes of the previous meeting (sung by the Chair to the tune of Row, Row, Row Your Boat)


Treasurer s report

Treasurer’s Report

  • Treasurer’s Report (this meeting’s winner of “stump the treasurer” will get first pick of donuts at the break)


Report from the ceo

Report from the CEO

  • Report from the CEO:

    • Highlight – measurable results of the two year pilot project on the impact of alternative health remedies on recovery from lung cancer. Board to vote on extending project for five more years.


Report from the chair of the fundraising committee

Report from the Chair of the Fundraising Committee

  • Fundraising Committee Report (Andrew Coyne, Chair)

    • Highlight – Net revenue up 13% over same quarter last year. (Andrew is bringing a dead crow to the meeting for Bob to eat.)


New business

New Business

  • New Business (Surprise us, we can take it!)


Next meeting april 17 2009

Next Meeting, April 17, 2009

  • Next meeting: April 17th, 2009 (whoever comes to the meeting with the most interesting fact about the historical significance of April 17th, wins the mystery prize of the evening)


Adjournment

Adjournment

  • Adjournment (let’s maintain our perfect record of never going past 8:00pm)

    • Maintenance wishes to remind everyone that the building must be vacated by 11:00 pm (party can resume at the Chair’s house, if necessary)


From peril to profit what donors say will turn fundraising around in this economy

BEING DIFFERENT IS THE FIRST STEP TO BEING BETTER


From peril to profit what donors say will turn fundraising around in this economy

Even Annual Reports Can Be Enticing


How respondents giving philosophy has changed in the five years prior to economic decline1

How respondents’ giving philosophy has changed in the five years prior to economic decline


How donors research nfps

How Donors Research NFPs

on NFP websites

through Guidestar and other sites that rate NFP performance

by reading print brochures, newsletters

by perusing fundraising solicitation materials


Content disconnect

Content Disconnect

What donors get:

What donors want:

  • Mission statement

  • Organizational history

  • Description of programs and services

  • Unsubstantiated and anecdotal information

  • What you’re raising money for, specifically

  • Track record with past contributions

  • How to make a gift

  • Anticipated outcomes


Being donor centered in an electronic age

Being Donor-Centered in an Electronic Age

COMMUNICATION IN A WORLD OF INDEPENDENTLY-MINDED DONORS


Print vs electronic communication

Print vs Electronic Communication

IN ELECTRONIC COMMUNICATION, MORE THAN EVER YOUR JOB IS TO GET TO THE POINT!


E newsletters

E-Newsletters

  • 51 seconds

  • skimming, scanning, glancing

  • forget introductory copy

  • the “15-word rule” is essential…but the bonus is the technology and how people think and read when at their computers


Key recommendations

Key Recommendations

  • Integrate all media

  • Build and maintain your email list, but don’t let the volume of emails be the only measure of your success

  • Drive traffic to your website

  • Give donors choices and respect them

  • Enhance feelings of security and trust


Online giving or online communication

Online Giving orOnline Communication?

ONLINE COMMUNICATION IS MUCH MORE IMPORTANT THAN ONLINE GIVING


Online giving vs online communication

Online Giving vs Online Communication

  • both donors and prospects travel to your website primarily to get information

    • 40% of donors consult online information sources prior to transacting gifts on or off-line

    • and 60% of them go directly to specific NFPs’ websites (as opposed to watchdog organization)

    • focusing on your own website is more important than enhancing your rating at Guidestar, for example


Great copy does not push it pulls

Great Copy Does Not “Push”; It “Pulls”

  • 75% of users are in content gathering mode, while only 25% are searching for something specific

  • “pull” and “push” are marketing terms for how information is transmitted from an organization to its constituents

  • Pull: user is in control and actively making decisions regarding where they will go

  • Push: the user is inactive and is being fed content

  • Images can also have pull and push qualities


Donate now

DONATE NOW

THE ULTIMATE “PUSH” COPY

IN FUNDRAISING


Transaction abandonment on donations pages

Transaction Abandonment on Donations Pages

  • lack of or different design/graphics

  • 2-page donation forms

  • surveys and other extraneous requests (get the gift first)


From peril to profit what donors say will turn fundraising around in this economy

It’s OK for donors to have second thoughts about donating online…just not about donating


Donors are in control

Donors Are In Control

Fundraisers Who Evolve from Gatekeeper to

Customer Service Agent Will Reap the Rewards


From peril to profit what donors say will turn fundraising around in this economy

CYGNUS APPLIED RESEARCH, INC.

CHICAGO / TORONTO / YORK, UK

(800) 263.0267

WWW.CYGRESEARCH.COM


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