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Acquiring, Renewing, and Upgrading Donors Annual Giving Campaigns: Chris LeBrun, MBA Andrews University Berrien Springs, MI Detroit Fundraising Summit Sponsored by Center for NonProfit Success September 10, 2008
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Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Nov 01, 2014

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This presentation looks at the basics of an annual giving fundraising campaign, specifically how to acquire new donors, retain them year to year, and increase their annual giving.

I gave this presentation on September 10, 2008 at the Detroit Fundraising Summit (Wayne State University), sponsored by Center for Non-Profit Success.
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Page 1: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Acquiring, Renewing, and Upgrading Donors

Annual Giving Campaigns:

Chris LeBrun, MBAAndrews UniversityBerrien Springs, MI

Detroit Fundraising SummitSponsored by Center for

NonProfit SuccessSeptember 10, 2008

Page 2: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Just for Fun

Page 3: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Donor Gift Cycle

First Gift

Repeat Gift

Regular Giving

Upgrade

Major Gift

Legacy Gift

Page 4: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Acquiring DonorsSeparating the Best from the Rest

Page 5: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Acquiring Donors

First Gift

Acquiring donors may be the most important function in fundraising process Lays the foundation for all fundraising Brings greater depth to organization Replaces donors lost in attrition New major donor prospects in the

pipeline

Page 6: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Two Types of Donor Acquisition

First Gift

New constituent-donors Hardest type of donor acquisition Introduce constituents to the

organization Don’t focus on gift amount

Existing constituent-donors Already in your database Natural connection with organization Focus on participation

Page 7: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

ROI for Donor Acquisition

First Gift

Keep expectations low Response rates of 1 – 2% are GREAT! Costs $1.00 – $1.25 to raise $1.00 Place an emphasis on introductory gifts

Page 8: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Acquisition Intangibles

First Gift

Consider the intangibles during acquisition Age and/or reputation of the

organization The perceived importance of the cause Make-up of your list can effect results

Page 9: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Activities for Donor Acquisition

First Gift

Acquisition uses impersonal methods Acquisition mailings Online giving Special Events Word of mouth

What doesn’t work as well Phone solicitation Personal visits

Page 10: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Soliciting Repeat GiftsThey Did it Once, Now Get Them to Do It Again

Page 11: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Repeat Donors Educate Us

Repeat

Gifts

Repeat gifts provide a multitude of info Separate donors from occasional/event

gifts Identify a connection to “The Cause” Affirm solicitation methods Identifies donors who can give more

Page 12: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Recognition Fuels Renewal

Repeat

Gifts

Only one chance to make a first impression Processing time of first gift Donors watch how gift is received and

used Thank yous are natural renewal

solicitations Recognition can lead to personal visits

Page 13: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Activities for Donor Renewal

Repeat

Gifts

Renewal often impersonal but not generic Phone solicitation Renewal Mailings Special Events Automatic giving Recovering lapsed donors

Other methods Personal Visits Gift clubs (emphasis on consecutive

giving)

Page 14: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

ROI for Repeat Gifts

Repeat

Gifts

ROI is greater for repeat than acquisition Response rates up to 20 – 30% Cost to raise a dollar only about 20

cents Gift amounts are higher

Page 15: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Upgrading DonorsEnsuring the Future of the Organization

Page 16: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Upgrade Gifts

Upgrade Gifts

Securing upgrade gifts helps to fulfill the goal of annual giving campaigns Identify major gift prospects Increase annual support for

organization Insure the future goals of the

organization are met

Page 17: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Activities for Upgrade Gifts

Upgrade Gifts

Upgrade gifts are often the result of being able to engage donors Strong stewardship program Personal solicitations Phone solicitations Volunteering Gift clubs Segmented mailings

Page 18: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Tips and TricksDirect Advice for Direct Mail

Page 19: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Get them to Open the Envelope

Tips &

Tricks

Response rates are higher Increased competition

Other charities For-profit direct mail marketing

How can you get them inside? Tease them “Handwritten” addresses Pictures Odd shape envelopes Bulky mail

Page 20: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Segment, Segment, Segment!

Tips &

Tricks

Segmenting takes time but it’s worth it Increases your response rate Solicit for several projects in one

mailing Ask for an appropriate gift amount Allows an impersonal medium to feel

personal Reminds each donor of their connection

to the organization

Page 21: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Variable Data Printing

Tips &

Tricks

Variable Data Printing (VDP) allows each donor to receive customized mailings Personalized letters/envelopes Demographics (age, region, history,

etc.) Target projects / areas of interest Reminds them of their giving history Solicit the right gift amount

Page 22: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

ROI for Variable Data Printing

Tips &

Tricks

Higher costs with VDP but also higher ROI 5.35 % response for fundraising

acquisition* Compare with 1-2% for acquisition

VDP increases response rate: +44% with one area of variable info** +45% with color (no variable)** +135% with color and one variable** +500% with color and multiple variables**Sources* The Direct Marketing Association** Romano & Broudy

Page 23: Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

Using Email

Tips &

Tricks

Email allows segmentation and VDP Cost is minimal and reduces over

time Response rates aren’t as high but

response times are faster Online acquisition gift amounts are

typically higher Multi-channel donors renew at

much higher rates than single-channel donors