How to Create a Great Fundraising Plan

Transcription

1 Building a Well-Rounded Portfolio: How to Create a Great Fundraising Plan Presented by Karen Hollish, Kim Klein and Judi Urquhart July 14, 2016 Direct Marketing as a Fundraising Channel July 14, 2016 Judi Urquhart July 14-17,

2 The Fundraising Landscape In 2014, the total amount of private giving in the United States was $358 billion (a rise of 7.1 percent over 2013). Of that amount, $258.1 billion (72%) was given by individual donors. Of that $10.5 billion was in the Environmental & Animal Welfare sector ($10,500,000,000) Source: Giving USA, Blackbaud Charitable Giving Report Page 3 Why Direct Mail? It works It s cost effective in the long term It builds a group of individuals who are dedicated to your mission It builds a base of individuals that can support other aspects of your fundraising: Bequests Monthly Giving Major Donor Giving Volunteers But startup can be expensive so brace yourself! Page 4 July 14-17,

3 Why ? It s inexpensive/low barriers to entry You can see immediate results Easily integrated with other channels Helps reinforce your brand Reach people on multiple devices Drive traffic to your website Page 5 The Basics: Know Your Audience Who s most likely to support my organization? Consider the following types of criteria: Geographic location Gender Age Giving to similar types of organizations Other interactions with your own organization Page 6 July 14-17,

4 The Basics: Determine Your Offer What am I offering to supporters that will motivate them? Services offered Emotional connection Community ties The opportunity to help animals Chance to join with others in a common purpose All of the above Page 7 The Basics: Always Reinforce Your Brand You Can Use Direct Marketing to Reinforce Who You Are and What You Do. Typical Branding Strategies Consistent message/taglines Use of logo Use of colors and fonts Use of graphics Organizational personality Page 8 July 14-17,

5 The Basics: Personalize Your Message Speak to your supporters one-on-one so that they feel like you re talking directly to them Use their name: Dear [First Name] Reference their last gift (I appreciate your last gift of $25) Reference where they live: Our [City name] campaign is under way! Any other data you have to support personalization Page 9 The Basics: Test, Test and Test Again Your fundraising should be in a constant state of testing. Your objective should be continuous improvement in your fundraising metrics. Some things to test include: Direct Mail Letter Copy & Length Use of Graphics Gift Asks Format Use of Premiums Timing/Seasonality Postage Subject Line length Graphics Position of Graphics Donation Buttons Integration of Video Page 10 July 14-17,

6 The Basics: Measure for Success After each round of tests, figure out what works and what doesn t. Some of the key metrics for performance include: Response Rate: Total # of Gifts Total Mail Quantity Average Gift: Total Income Total # of Gifts Cost Per Dollar Raised: Total Cost Total Income Open Rate: # of opens # of s delivered Click Thru Rate: # of click thrus # of s opened Conversion Rate: # of actions taken # of s delivered Page 11 Direct Mail: Acquisition What is Acquisition? Mailings that are designed to acquire the most number of donors who support the mission of your organization. Considered the Investment Phase of your direct mail fund raising program. Page 12 July 14-17,

7 Direct Mail: Acquisition Getting Started: Know your numbers: How much am I willing to invest How much do I want to raise How aggressive/conservative do I want to be Page 13 Direct Mail: Acquisition Getting Started: Develop a plan for: Acquiring acquisition lists (who) Writing a fundraising letter (why) Timing of your mailing (when The graphics and creative (how) Page 14 July 14-17,

8 Direct Mail: Acquisition Typical Acquisition Metrics: Response Rate:.85% 1.25% Average Gift: $15 - $35 Cost Per Dollar Raised: $ $2.00 Page 15 Direct Mail: Acquisition What to Expect in Acquisition: Mail Avg. # of Cost Quantity RR% Gift Gifts $.55 ea. Net CPR Scenario 1: 10, % $ $1,500 $5,500 -$4,000 $3.67 Scenario 2: 10, % $ $4,375 $5,500 -$1,125 $1.26 Scenario 3: 25, % $ $3,750 $13,750 -$10,000 $3.67 Scenario 4: 25, % $ $10,938 $13,750 -$2,813 $1.26 Page 16 July 14-17,

9 Direct Mail: Acquisition Page 17 Direct Mail: Donor Renewal What is Donor Renewal? Mailings that cultivate the relationship between the donor and your organization with the objective of motivating your donors to give additional gifts. The Dividend Phase of your direct mail fund raising program. Page 18 July 14-17,

10 Direct Mail: Donor Renewal In the case of Renewal your donor file is your list Accuracy is vital to long-term success Keep it clean and up-to-date Find a database application to house your names and all of the gift information Remove duplicate names on a regular basis Update address information on a regular basis Page 19 Direct Mail: Donor Renewal Your strategic advantage is in properly segmenting your donor file Recognize that your donors are not a homogenous group of people. Everyone has a different motivation for giving. Look at different pockets or segments of your donor file. Key factors for segmenting your file are: Recency of giving: When did they last give? Frequency of giving: How many times have they giving? Amount of giving: How big was their gift? Other Demographics: age, gender, location, etc. Page 20 July 14-17,

11 Direct Mail: Donor Renewal Typical Donor Renewal Metrics: RR% Avg. Gift New 5% - 7% $15 - $25 Multi-Year 8% - 11% $25 - $50 Lapsed 2% - 4% $10 - $20 Page 21 Direct Mail: Donor Renewal What to Expect in Donor Renewal Mail Avg. # of Cost Quantity RR% Gift Gifts $.50 ea. Net CPR New 5, % $ $6,000 $2,500 $3,500 $0.42 Multi-Year 5, % $ $16,625 $2,500 $14,125 $0.15 Lapsed 5, % $ $2,250 $2,500 -$250 $1.11 Mail Avg. # of Cost Quantity RR% Gift Gifts $.50 ea. Net CPR New 1, % $20 60 $1,200 $500 $700 $0.42 Multi-Year 2, % $ $8,313 $1,250 $7,063 $0.15 Lapsed 1, % $15 45 $675 $750 -$75 $1.11 5, % $ $10,188 $2,500 $7,688 $0.25 x5 mailings 25, % $30 1,713 $50,938 $12,500 $38,438 $0.25 Page 22 July 14-17,

12 Direct Mail: Donor Renewal Page 23 Direct Mail: Donor Renewal Page 24 July 14-17,

13 Direct Mail: Donor Renewal Page 25 Annual Direct Mail Plan Typical Annual Direct Mail Plan 4 to 6 Direct Mail Appeals (every 2 nd or 3 rd month) 1 to 3 Prospect Appeals Helpful to change the theme and look of the appeals throughout the year in order to resonate with as many of your donors as possible: Membership/Supporter Premium-Based Seasonal Themes Year End/Holiday Page 26 July 14-17,

14 Making E-Fundraising Work Create an E-Fundraising Plan Wrap-Around s (channel integration: mail and ) # of Stand-Alone E-Appeals specific animal story (these perform the best) campaign theme (i.e. protect your pet from hot cars) advocacy message (i.e. animal abuse legislation) Page 27 Making E-Fundraising Work Find the right e-communications tool Constant Contact Mail Chimp Vertical Response What Counts.com Salsa Labs Exact Target Raisers Edge (Net Community) Page 28 July 14-17,

15 E-Fundraising Plan Fundraising Plan: E-Appeals Determine your e-metric assumptions Open Rates Click Through Rates Conversion to giving Quantity Open Rate Click Through Rate Conversion Rate # of Gifts Average Gift Projected Income #1 50, % 15.00% 12.00% 180 $35.00 $6, #2 50, % 15.00% 12.00% 180 $35.00 $6, #3 50, % 15.00% 12.00% 180 $35.00 $6, #4 50, % 15.00% 12.00% 180 $35.00 $6, #5 50, % 15.00% 12.00% 180 $35.00 $6, #6 50, % 15.00% 12.00% 180 $35.00 $6, Annual E-Solicitation Revenue $37, Page 29 Fundraising Plan: E-Appeals Ways to build your file Prominent e-registration button that promises ongoing communication Ask people for their (adopters, event attendees, etc.) Hi-jack pages with a call to action that requires Downloadable information that requires , name and address Page 30 July 14-17,

16 Fundraising Plan: E-Appeals Prominent E-Registration Buttons Page 31 Fundraising Plan: E-Appeals Hi-Jack Packages Page 32 July 14-17,

17 Fundraising Plan: E-Appeals Downloadable Content Page 33 Fundraising Plan: E-Appeals WRAP AROUND SAMPLE Watch Your Mailbox PR Direct Mail Appeal Page 34 July 14-17,

18 Fundraising Plan: E-Appeals WRAP AROUND SAMPLE-Reminder Direct Mail Appeal Reminder Page 35 Fundraising Plan: E-Appeals STAND-ALONE SAMPLE Animal Story Key Components Impactful Photo Prominent Donate Button Call to Action with specific ask amount Page 36 July 14-17,

19 STAND-ALONE SAMPLE: Targeted Campaign Key Components Defined Campaign Theme Limited text encourages click through to learn more. Prominent Donate Buttons Call to Action Join the Movement Fundraising Plan: E-Appeals Page 37 STAND-ALONE SAMPLE: Advocacy Fundraising Plan: E-Appeals Page 38 July 14-17,

20 Integrated Mail and Schedule Creative Concept/Package Positioning Supporter Appeal Stand Alone Preliminary Package Specs Date Mail Date Pr Post #10 Window OE, Front End Personalized Supporter Card; Double Buckslip 1/9/2014 1/10/2014 Animal-Specific Story /14/2014 Supporter Appeal Follow-up Testimonial #10 Window OE, Front End Personalized Supporter Card; Double Buckslip 2/20/2014 3/6/2014 #10 Window OE, 8-1/2" x 14" Letter/Reply; 8-1/2" x 11" Testimonial Insert, #9 RE 3/23/2014 3/24/2014 4/14/2014 Animal-Specific Story /24/ /2" x 7-1/2" Window OE; 7" x 10" letter; notepad & bookmark premiums 5/14/2014 5/15/2014 6/5/2014 Multi-Premium Animal-Specific Story /19/2014 A7 Window OE, 7" x 14" Form with perfed reply, A6 RE, Localization, Target Income 7/9/2014 7/10/2014 7/31/2014 Annual Fund Package Circle of Friends 6" x 9" OE with 8-1/2" x 11" Ivory Laid; Photo Journal insert 8/6/2014 8/7/2014 8/28/2014 Animal-Specific Story /21/2014 #10 Window OE, 14" Name Label Form, #9 Closed return envelope 9/7/2014 9/8/2014 9/29/2014 Label Appeal Animal-Specific Story /23/ /2" X 7-1/4" Window OE with Holiday Card, Gift Tags and return envelope 11/5/ /6/ /27/2014 Holiday Greeting Card Package 5-1/2" x 7-1/2" Personalized OE with handwritten laser font; 4-3/4" x 7" Greeting Card with personalized copy; 3-1/2" x 5-3/4" pocket calendar 12/3/ /4/ /25/2014 Year End Mail Appeal Year End Appeal /27/2014 Page 39 Thank you! Doggone Easy Fundraising x22 doggoneeasy@wakebyfire.com doggone-easy-fundraising.com Page 40 July 14-17,

21 Asking for Money in Person Sponsored by: Best Friends Presenter: Kim Klein KLEIN & ROTH CONSULTING Real money. Real people. Real change. About the Presenter Kim Klein is the author of five books, including Reliable Fundraising in Unreliable Times, which won the McAdam Book Award. Her classic text, Fundraising for Social Change, recently released in a 7 th edition, is widely used in the field and in university degree programs. She has provided training and consultation in all 50 United States, five Canadian provinces and 21 other countries. She is a lecturer at the School of Social Welfare at the University of California, Berkeley. July 14-17,

22 Most people: 70% of adults give away $$ 80% of African Americans give away $$ 80% of Millenials give away $$ Give to 5-10 organizations each year which are fairly similar Equal numbers of men and women # 1 reason people give: someone asked them Go from this: Please, please, please To this: I think you would be interested. July 14-17,

23 Invite a legacy gift (bequest): information repeated over time in various ways. Invite the donor to give thoughtfully: (personal calls, visits, personal asking) Invite the donor to give over and over: mail, phone, e-alerts, signature events, personal notes on letters, thank you notes Invite the first gift: (mail, on-line, special events, thank yous) TIME IN Strategy In person asking Personal Phone Call Personal Letter Phone-a-Thon Direct Mail (Acquisition) On-line Special Events MONEY OUT Response Rate 50% 25% 10-15% 5%.5-1% Varies Varies July 14-17,

24 GOAL: $XX,000 # gifts Size # prospects % each 4: % each 4: % each 3:1 30% of prospects Rest more less 3:1 July 14-17,

25 GOAL: $50,000 # gifts Size # prospects 1-2 $ 5, , , Rest Varies Quite a few Best Strategy Personal face to face asking Nothing takes the place of face to face asking July 14-17,

26 Tips on asking 1. Success is asking 2. Be OK with no or not now July 14-17,

27 3. Believe in your cause 4. Don t ask everyone July 14-17,

28 Ability: Gives away money Belief: Cares about this cause or something similar Contact: How you know A and B is that you or someone you trust knows the prospect. You have access to this person. Gift Range Chart Relationship with organization 1 st gift? 7 th? 20 th? Who s asking? Close friend? Friend of friend? Pick an amount or a range. You need to name something specific. July 14-17,

29 Example: $10,000 Need: 10 at $1,000 Or 1 at $5,000 1 at 2,000 3 at 1,000 Need 3X as many prospects as gifts. Create a chart of possible prospects: Name Relationship Gives $ Cares? Ask for: July 14-17,

30 Create a chart of possible prospects: Name Relationship Gives? Cares? Ask for: 1 Max Ex-boyfriend Never Hardly Time of day 2 Mary Cousin Yes Yes $150 3 Jose Friend Yes Lobbyist Houseparty 4 Susan Colleague?? Sort of Comedy night 5 Georgia Book club Yes Probably not Milagro Neighbor Yes Definitely $500 7 Tiffany Best friend Yes Already gives $1,000 8 Sujin Colleague Yes Yes, recently Intro to other health professionals Use a combination of letter/ , phone call and face to face to face meeting July 14-17,

31 KLEIN & ROTH CONSULTING Kim Klein x306 Fundraising from the Shelter Trenches: How to Work What You ve Got! Karen Hollish Director of Development and Marketing July 14-17,

32 Asking for Money IS Hard, But This is Why We Do It Each Organization Has Its Own Strengths Nonprofit shelter Government shelter Foster-based rescue group July 14-17,

33 Top 5 Tactics to Try (and What to Avoid, Too) #5: Aggressively Market Your Successes Spot the story, and engage the media #5: Aggressively Market Your Successes Involve your supporters in the save process Compile these stories for a Top 10 year-end e-campaign (And use your Amazon Wish List!) July 14-17,

34 #5: Aggressively Market Your Successes #4: Double Your Donations with a Match July 14-17,

35 #4: Double Your Donations with a Match Your investment will be doubled by You will have twice the impact for pets like Sunny Every single dollar you give will turn into two for our pets! Please, won t you help us meet this match? #3: Offer Your Donors Behind-the-Scenes Tours And curate them carefully July 14-17,

36 #2: Be Very Selective With Events Consider what YOU will get from the arrangement Negotiate terms that work for you #2: Be Very Selective With Events Try small house parties instead of galas July 14-17,

37 #1: Rock Your Thank-you Notes Make them short, sweet and different #1: Rock Your Thank-you Notes July 14-17,

38 Go Easy On Yourself -- and Remember Why You re Here Look for mentors Search for skilled volunteers to share the work Celebrate the lives that have been saved by your fundraising (520) July 14-17,