“OK, So Now What?”

1. “OK, So Now What?” 5.15.13 Tom Gaffny tomgaffny@hotmail.com

2. 3 THINGS WE NEED TOSTOP THINKING,AND STOP DOING

3. You Don’t Have a Donor Base– In fact, the opposite is true.You Belong to the Donor

4. 3 Things We Need to Stop Thinking and Stop Doing We need to stop thinking we own the relationship with ‘our donors’ … because we don’t.

5. The Fundraising Dialogue SenderReceiver • What you send • When you send it • Which channel • Whether to open • When to open • Whether to read • Whether to respond • When to respond • How much to give • Which channel to use

6. You’re in Charge, Huh? • This month … the average donor is going to be awake 29,000 minutes • During that time she’ll get over 50,000 marketing messages • If she pays attention to your communication, she might give you 5 of those minutes • 17% of people even open their emails • Direct mail … oftentimes less

7. BUT WE INSIST ON THINKING IT’S ABOUT US • We ACQUIRE Donors …

8. BUT WE INSIST ON THINKING IT’S ABOUT US • We ACQUIRE Donors … ‘hostage-taking’ phase • We RECAPTURE them,if they lapse • ‘Why Have You Foresaken Us?’ letter • Put them through a CONVERSION program • Our language reflects our attitude

9. The American Donor Public Is Suffering From Battered Donor Syndrome Craving a relationship that’s more about them

10. The American Donor Public Is Suffering From Battered Donor Syndrome Craving a relationship that’s more about them (and unless we embrace their feelings, we’re screwed)

11. Proof the public craves a relationship that’s more about them? Introducing one of the hottest new acquisition offers in the past 5 years…

16. Interesting, huh? The Offer that explicitly promises We Don’t Want a Relationship, Is Very Successful at Starting a Relationship

17. Why Does This Work? • Because this offer tells the donor ‘you’re in charge of this relationship’ • The donor’s need for control is that deep

18. Proof the public craves a relationship that’s more about them?

25. Making it all About the Donor: Food for the Poor contacted thousands of donors in and around Boston area. But that’s nothing new… Hurricane Sandy: Called more than 11,000 donors – followed up with prayer option Sandy Hook in CT: Contacted more than 25,000 donors

26. Proof the public craves a relationship that’s more about them?

32. The Results: More than 25% of people responded Generated more that $171,000 Giving from 20 year+ donor core has been increasing for the first time in years

33. Yes, even this is Proof….

34. The one tactic that lifts response every time.

35. Three Recent Examples Charity A – Multiple stamps lifted net revenue 92% Charity B – Multiple stamps lifted net revenue 51% Charity C – Multiple stamps lifted net revenue 44%

36. This Isn’t Just About Tactics. • And It’s Not Just About Postage. • This works because it’s one of the few things we ever do for the donor • It’s about their convenience, their ease, their pocketbook • Outgoing 1st class = for us • Return 1st class = for the donor

37. The Nonprofits that Recognize the Donor OWNS THE RELATIONSHIP Will be the Biggest Winners in the Decade Ahead.

38. A PROFOUND ATTITUDINAL SHIFT: Identify the people who really matter Commit to a true donor-centric approach Focus on engagement and donor service A zealous commitment to nurturing the relationship

39. 3 Things We Need to Stop Thinking and Stop Doing We need to stop thinking we own the relationship with ‘our donors’… because we don’t We Need to stop relying on the same old one-dimensional pyramid

40. Transaction Pyramid High Value Low Value Giving Profile Recency Frequency Amount

41. Transaction and Action Pyramid Activity Profile • # of channels • Volunteer? • Special Events High Value Low Value Giving Profile Recency Frequency Amount

42. Transaction and Action and Attributes Pyramid Activity Profile • # of channels • Volunteer? • Special Events High Value Attributes • Age • Wealth • Health Low Value You Know How To Rank Her Giving Profile Recency Frequency Amount

43. But Do You Know How She Ranks You?

44. How Do You Rank in Her Pyramid? Are you a Priority in her life?… or just one of many? Does she give you more than she gives to other charities … or less? Is it unusual for her to support you?… or does she throw a few dollars at everyone?

45. How She Supports Other Charities Also Tells You How Much She Values You HowYouRank.

46. Passion Pyramid High Passion MRS. SMITH • Gives to only 2-3 charities • Gives you twice as much as she gives to others • Gives to lots of organizations • Gives more to others than you Low Passion MRS. JONES

47. Who’s More Passionate About You? High Passion MRS. SMITH • Gives to only 2-3 charities • Gives you twice as much as she gives to others Low Passion MRS. JONES Gives to lots of organizations Gives more to others than you

48. Real World Example #1 Value Pyramid Passion Pyramid • National organization launched a Planned Giving campaign • Selected ‘High Passion’ names who did NOT meet their longstanding planned giving select criteria % RESPONSE FROM THAT SEGMENT – 3 TIMES OVERALL CAMPAIGN Low Passion Low Value

49. Real World Example #2 MRS. SMITH MRS. JONES MRS. YOWZA $25 $25 $25 OVERLAY HISTORY WITH OTHER CHARITIES Gives once to others But never again Gives to others But never upgrades 2 times as much to you as other orgs 18 Times More Net 30 Times More Net

50. We Need to Have AData Dialogue with Donors CAMPAIGN VIEW How We Rank the Donor