Presented by. Tim Crum HOW TO USE TO TRACK YOUR SUCCESS

Transcription

1 Presented by Tim Crum HOW TO USE TO TRACK YOUR SUCCESS

2 About Tim Winner of the 2016 International Business Excellence Award for Best Animal Welfare Fundraising Organization in the U.S.A. 20+ years professional experience in animal sheltering More than $200,000,000 raised for national and local animal groups Eight years as CEO of Animal Shelter Fundraising, LLC Worked with 200 partner-clients across the United States Co-founded Animal Shelter Services, LLC in 2012 Author of three books

3 Tim Crum Founder & CEO Animal Shelter Fundraising Animal Shelter Services West Bell Road Suite Surprise, AZ

4 My Pets Daisy Kibbles Pebbles Pendeleton

5 CONNECT WITH US TEXT FUNDRAISING TO LIKE US ON FACEBOOK CONNECT WITH TIM ON LINKED IN

6 #1 Reason Why Someone Gives? Someone asked them to give #1 Reason Why Someone Gives Again? Someone thanked them for their gift

7 IF IT S WORTH DOING, IT S WORTH MEASURING WHAT S THE BIGGEST PROBLEM FOR MOST SMALL-TO-MEDIUM SIZED ANIMAL SHELTERS & RESCUE GROUPS THAT DO FUNDRAISING?

8 WHAT YOU LL LEARN TODAY Giving in the United States Who Gives What Spotlight on the Animal Welfare Industry The Different Types of Fundraising Activity Metrics to Gauge Fundraising Performance

9 Giving in the United States Who Gives What

10 Private Sector Giving Charitable Giving in Billions $ 358,380,000, Source: Giving USA

11 Giving By Source 7% % 6% 71% Individual Corporate Foundations Bequests

12 Giving By Source Category Individual Bequests Corporate Foundations 74 % 71 % 71 % 72 % 7 % 7 % 7 % 8 % 5 % 6 % 6 % 5 % 14 % 16 % 16 % 15 %

13 Spotlight on the Animal Welfare Industry

14 Giving By Subsector Religion % Education Human Services Foundations Health Public Society Benefit Arts, Culture & Humanities International Affairs Environment & Animals % 11.7 % 11.6% 8.5 % 7.3 % 4.8 % 4.2 % 2.9 % Other = money to individuals, largely through in-kind donations of medicine via patient assistance programs.

15 Americans give, on average, about 3 percent of their income to charity, a figure that has not budged significantly for decades. Interesting Facts about Giving The average annual household contribution is $2,974. The average person donates to 5-10 organizations each year (most of which are fairly similar) SOURCE: The Center on Philanthropy at Indiana University & Charity Navigator

16 The Different Types of Fundraising Activity

17 Direct Mail On-line Special Events Grants

18 Direct Mail Metrics Average Gift Response Rate Revenue Expenses # of campaigns Cost to Raise a Dollar Attrition Rate Retention of First Time Donors

19 A=Acquisition Campaign Title Qty Expense Gifts Rec d % Response Avg. Gift Gross Rev Net Rev Cost per $1 raised A/March ,000 $ 14, % $ $ 10,000 - $ 4,000 $ 1.40 A/September ,000 $ 10, % $ $ 9,000 - $ 1,000 $ 1.11 A/2006 Total 125,000 $ 24,000 1, % $ $ 19,000 - $ 5,000 $ 1.26 D/February ,000 $ 3, % $ $ 6,000 $ 3, D/March ,000 $ 3, % $ $ 8,500 $ 5, D/May ,600 $ 3, % $ $ 9,500 $ 6, D/June ,600 $ 3, % $ $ 10,000 $ 6, D/October ,100 $ 4, % $ $ 12,000 $ 8, D/November ,100 $ 4, % $ $ 16,000 $ 12, D/2006 Total 39,400 $ 21,000 2, % $ $ 62,000 $ 41, D=Donor Mailing

20 Average Gift The gross revenue divided by the number of gifts = Average Gift Mailing Total Expenses Number of Gifts Quantity Sent % Response Avg. Gift Gross Revenue Net Revenue Donor Spring 2007 $ 11,805 1,580 22, % $20.08 $ 31,720 $ 19,915 $ 31,720 / 1,580 = $20.08

21 Percent Response Sometimes called Conversion Rate The number of gifts (received) divided by the quantity sent = Percent Response Mailing Total Expenses Number of Gifts Quantity Sent % Response Avg. Gift Gross Revenue Net Revenue Donor Spring 2007 $ 11,805 1,580 22, % $20.08 $ 31,720 $ 19,915 1,580 / 22,105 = 7.15%

22 Donor vs Acquisition Donor People who have contributed to your organization on at least one occasion of at least $1 5-10% response Acquisition People who have not previously contributed to your organization and may or may not have a connection to your mission ½-2% response

23 Revenue & Expenses Campaign Title Qty Expense Gifts Rec d % Response Avg. Gift Gross Rev Net Rev Cost to raise $1 A/March ,000 $ 14, % $ $ 10,000 - $ 4,000 $ 1.40 A/September ,000 $ 10, % $ $ 9,000 - $ 1,000 $ 1.11 A/2006 Total 125,000 $ 24,000 1, % $ $ 19,000 - $ 5,000 $ 1.26 D/February ,000 $ 3, % $ $ 6,000 $ 3, D/March ,000 $ 3, % $ $ 8,500 $ 5, D/May ,600 $ 3, % $ $ 9,500 $ 6, D/June ,600 $ 3, % $ $ 10,000 $ 6, D/October ,100 $ 4, % $ $ 12,000 $ 8, D/November ,100 $ 4, % $ $ 16,000 $ 12, D/2006 Total 39,400 $ 21,000 2, % $ $ 62,000 $ 41,

24 Cost to Raise a Dollar Activity / Method National CTRD Capital Campaign Grants.20 Direct Mail (Renewal).20 Planned Giving.25 Special Events.50 Direct Mail (Acquisition) Source: James Greenfield s, Fund-Raising: Evaluating and Managing the Fund Development Process (1999).

25 Cost to Raise $1 Campaign Title Qty Expense Gifts Rec d % Response Avg. Gift Gross Rev Net Rev Cost to raise $1 A/March ,000 $ 14, % $ $ 10,000 - $ 4,000 $ 1.40 A/September ,000 $ 10, % $ $ 9,000 - $ 1,000 $ 1.11 A/2006 Total 125,000 $ 24,000 1, % $ $ 19,000 - $ 5,000 $ 1.26 D/February ,000 $ 3, % $ $ 6,000 $ 3, D/March ,000 $ 3, % $ $ 8,500 $ 5, D/May ,600 $ 3, % $ $ 9,500 $ 6, D/June ,600 $ 3, % $ $ 10,000 $ 6, D/October ,100 $ 4, % $ $ 12,000 $ 8, D/November ,100 $ 4, % $ $ 16,000 $ 12, D/2006 Total 39,400 $ 21,000 2, % $ $ 62,000 $ 41,

26 Attrition Rate Your donor attrition rate is the rate at which donors do not renew their gifts each year, expressed as a percentage of all active donors in a given year. Attrition Rate 1 st to 2 nd donation - 50% 2 nd to 3 rd donation -30% 3 rd to 4 th donation -30% 4 th to 5 th donation -30% Source: Fundraising Management: Analysis, Planning and Practice (2004)

27 Attrition Rate & Retention of 1 st Time Donors Number of donors who gave a gift in 2014 X Y Z Number of donors from 2014 who gave again in 2015 Divide Y by X Subtract Z from 100 and express as a percentage 1, % Donor Attrition Rate is 75%

28 On-line ACTIVE vs PASSIVE solicitations Website Social Media

29 Metrics Open Rate Response Rate Opt-Out Rate Spam Reporting Rate Click Thru Rate Number of E-appeals Revenue Attrition Rate Retention of First Time Donors

30 Open Rate Open Rate = # of messages opened / # of messages delivered Nonprofit Open Rate M+R Benchmarking Study (2015)* 14.3% 2014 Constant Contact (Animal Services) 21.4% MailChimp (Nonprofit) 25.2% *All nonprofits fluctuates by nonprofit sector What can impact the open rate? Subject Line (>50), honest & direct

31 Response Rate Nonprofit Response Rate Response Rate to Fundraising Appeals.75 2% Source: IdealWare (2008)

32 Opt-Out Rate Sometimes called Unsubscribed Rate Opt-Out Rate Opt Out Rate for Fundraising Appeal % Source: IdealWare (2008) What can impact the opt-out rate? How names were acquired Frequency of campaigns Content

33 Spam Reporting Rate Open Rate = # of messages opened / # of messages delivered Nonprofit Response Rate Spam Reporting Rate.01 Source: icontact (2008) More than 1 in 1,000 is too many What are the ramifications of a high spam reporting rate? The originating IP address may be blacklisted. If the IP address is blacklisted, the majority of s sent using that IP address will be rejected by major IP providers (i.e. google, yahoo, hotmail, etc)

34 Click-Thru Rate Level of Interest in a Specific Subject Matter Animal Services Click Thru Rate* for Fundraising Appeals 9% Click Thru Rate Range^ 1-10% * Source: Constant Contact, ^ Source: Idealware (2008) Click Thru Rate = # of click thrus / # of messages delivered Adjusted Click Thru Rate = # of click thrus / # of messages opened

35 Number of E-appeals Animal Welfare # E-Appeals Per Year 18 * Source: M+R Benchmarking Study (2015)

36 Revenue Revenue per 1,000 Fundraising s delivered Revenue per 1,000 s Animal Welfare $40 Nonprofit $44 * Source: M+R Benchmarking Study (2015) Each fundraising that lands in an inbox raised an average of 4.4 cents.

37 * Source: M+R Benchmarking Study (2015) Website The average one-time online donation amount to a nonprofit was $68 in 2013.

38 Special Events Cost to Raise $1 # of events Revenue vs Expenses Indirect Expenses

39 Cost to Raise a Dollar Activity / Method National CTRD Capital Campaign Grants.20 Direct Mail (Renewal).20 Planned Giving.25 Special Events.50 Direct Mail (Acquisition) Source: James Greenfield s, Fund-Raising: Evaluating and Managing the Fund Development Process (1999).

40 Number of Events ACTIVITY JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Direct Mail E-Appeals Event I Pet Walk Event II Pet Art Auction Event III Putts for Pets Grants

41 Indirect Expenses Annual Gala Event Gross Revenue $ 25,000 Direct Expenses* $ 11,000 Net Revenue $ 14,000 * band, food, decorations, invitations, room rental, etc. Position Pro-rated Salary Annual Salary Development Coordinator ( 1/5) $6,000 $30,000 Executive Director (1/20) $ 3,750 $75,000 Committee Members (x8) 15 hrs/wk x 12 weeks $4,429 $23.07 per hour Indirect Expenses $14,179 Is this event the best use of organizational resources?

42 Grants Grants Qualified for Grant applications submitted Grant applications funded Grant as % of Total Funding

43 Grant Spreadsheet Grants Qualified For Grants Submitted Grants Funded Funded Amount % of Grants Funded

44 Grants as % of Funding Total Contribution Revenue Total Grant Funding Grant Funding as % of TCR 20% or less

45 Big Picture Fundraising ACTIVITY JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Direct Mail E-Appeals Events Grants

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48 Call or Text Tim at QUESTIONS?

49 Tim Crum Founder & CEO Animal Shelter Fundraising Animal Shelter Services West Bell Road Suite Surprise, AZ