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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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Presentation Transcript
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

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
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 donationsAre 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
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%
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Age

54.3% are between 45 and 64 years of age

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
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

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
slide41
Will the 24% of respondents committed to multi-year gifts alter their terms due to the economic downturn?
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

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
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
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

communication that matters to donors
Communication that Matters to Donors

Measurable Results

News

Communication from the Right Person

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)
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)
donors are in control
Donors Are In Control

Fundraisers Who Evolve from Gatekeeper to

Customer Service Agent Will Reap the Rewards

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CYGNUS APPLIED RESEARCH, INC.

CHICAGO / TORONTO / YORK, UK

(800) 263.0267

WWW.CYGRESEARCH.COM