Achieving Sustainability Through Annual Giving Special Thanks to Common Good Vermont People’s United Bank © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100 October 11, 2012
Sep 08, 2014
Achieving SustainabilityThrough Annual Giving
Special Thanks toCommon Good Vermont
People’s United Bank
© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
October 11, 2012
Agenda
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Agenda
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• Introduction
• Understanding the key indicators of annual giving success
• Break
• Strategies to maximize performance indicators
• Luncheon & funders panel
• Hands-on clinic – turning ideas into actions
• Final Q&A
What Is Annual Giving?
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What Is Annual Giving?
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• Donations that are renewable from year to year
• Fund annual operations budget
• Can be unrestricted or restricted
• Typically from individuals
• Annual should mean EVERY year … NOT just ONCE a year
Show of hands:
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Show of hands:
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• How many of you have an annual giving program?
Show of hands:
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• How many of you have an annual giving program?
• How many solicit their donors only once per year? … 2 times? … 3+ times?
Show of hands:
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• How many of you have an annual giving program?
• How many solicit their donors only once per year? … 2 times? … 3+ times?
• Who feels that their annual giving program is achieving its full potential?
Feedback:
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Feedback:
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• What are main obstacles preventing you from reaching full potential?
Feedback:
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• What are main obstacles preventing you from reaching full potential?
• What do you think are the biggest opportunities to raise more money on an annual basis?
Understanding theKey Indicators
of Annual Giving Success
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Annual Giving Comparisonof 9 Organizations
in Chittenden County
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Leadership
Giving
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3%
7%
14%
LOW MEDIAN HIGH
$1000+ Donors as % of All Donors
Leadership
Giving
© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
3%
7%
14%
LOW MEDIAN HIGH
$1000+ Donors as % of All Donors
16%
52%
88%
LOW MEDIAN HIGH
$1000+ Gifts as % of All Revenue
Leadership
Giving
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75%
46%
63%
78%
TARGET LOW MEDIAN HIGH
Renewal Rate of $1000+ Donors
Leadership
Giving
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75%
46%
63%
78%
TARGET LOW MEDIAN HIGH
Renewal Rate of $1000+ Donors
$2,600 $1,079 $2,677
$8,172
TARGET LOW MEDIAN HIGH
Average Gift of $1000+ Donors
ActiveDonor
Retention
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35%
14%
22%
27%
TARGET LOW MEDIAN HIGH
Renewal Rate of 1st-Time Donors
ActiveDonor
Retention
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35%
14%
22%
27%
TARGET LOW MEDIAN HIGH
Renewal Rate of 1st-Time Donors
70%
25%
62%69%
TARGET LOW MEDIAN HIGH
Renewal Rate of Multi-Year Donors
LapsedDonor
Recapture
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25%
8%
23%
33%
TARGET LOW MEDIAN HIGH
Recapture Rate - Lapsed 1 Year
LapsedDonor
Recapture
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25%
8%
23%
33%
TARGET LOW MEDIAN HIGH
Recapture Rate - Lapsed 1 Year
15%
0%
9%
15%
TARGET LOW MEDIAN HIGH
Recapture Rate - Lapsed 2 Years
LapsedDonor
Recapture
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5%
0%
2%
5%
TARGET LOW MEDIAN HIGH
Recapture Rate - Lapsed 3+ Years
A Profile of aTypical Donorbaseand the Impact of
Key Indicators
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Giving Pyramid Goal
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Donors Revenue
Champions 6 $60,000$25,000 1 $25,000$10,000 2 $20,000$5,000 3 $15,000
Leaders 35 $47,500$2,500 5 $12,500$1,500 10 $15,000$1,000 20 $20,000
Advocates 100 $40,000$250-$999
Supporters 359 $28,720$1-$249
TOTALS 500 $176,220
Supporter$28,720
Advocate$40,000
Leader$47,500
Champion$60,000
Revenue Pyramid
Supporter359
Advocate100
Leader35
Champion6
Donor Pyramid
Donor Growth Trends
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Donors Median TargetActive Donor Retention & New Donors 70 80Lapsed Donor Recapture Active 1st Year 70 22% 35%Rates ----------------------------> Active Multi-Year 280 62% 70%
Lapsed 1 Year 155 23% 25%Lapsed 2 Years 310 9% 15%Lapsed 3+ Years 800 2% 5%
Total Donorbase 1,615Active Donors 350
Donor Growth Trends
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Donors Median TargetActive Donor Retention & New Donors 70 80Lapsed Donor Recapture Active 1st Year 70 22% 35%Rates ----------------------------> Active Multi-Year 280 62% 70%
Lapsed 1 Year 155 23% 25%Lapsed 2 Years 310 9% 15%Lapsed 3+ Years 800 2% 5%
Total Donorbase 1,615Active Donors 350
350 339 321 311 305 302350
426 451 475 498 519
Current Year 1 Year 2 Year 3 Year 4 Year 5
5-Year Donor Growth Trends
Current Target
New Donor Acquisition
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Mail Performance Indicators Target Scenario 2 Scenario 3
Annual Mail Quantity 10,000 10,000 10,000
Response Rate 1.0% 0.5% 1.0%
Average Gift $50 $50 $35
Cost per Name $0.60 $0.60 $0.60
New Donor Acquisition
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Mail Performance Indicators Target Scenario 2 Scenario 3
Annual Mail Quantity 10,000 10,000 10,000
Response Rate 1.0% 0.5% 1.0%
Average Gift $50 $50 $35
Cost per Name $0.60 $0.60 $0.60
100
50
100
Target Scenario 2 Scenario 3
New Donors
New Donor Acquisition
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Mail Performance Indicators Target Scenario 2 Scenario 3
Annual Mail Quantity 10,000 10,000 10,000
Response Rate 1.0% 0.5% 1.0%
Average Gift $50 $50 $35
Cost per Name $0.60 $0.60 $0.60
-$1,000
-$3,500
-$2,500
Target Scenario 2 Scenario 3
Net Revenue
New Donor Acquisition
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Mail Performance Indicators Target Scenario 2 Scenario 3
Annual Mail Quantity 10,000 10,000 10,000
Response Rate 1.0% 0.5% 1.0%
Average Gift $50 $50 $35
Cost per Name $0.60 $0.60 $0.60
$10
$70
$25
Target Scenario 2 Scenario 3
Cost to Acquire A Donor
Feedback:
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• What are main obstacles preventing you from reaching full potential?
Feedback:
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• What are main obstacles preventing you from reaching full potential?
• Attracting the attention and support of new leadership donors/funders
• Maintaining consistent support from leadership donors/funders
• Acquiring other new donors
• Lack of resources
Feedback:
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• What do you think are the biggest opportunities to raise more money on an annual basis?
Feedback:
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• What do you think are the biggest opportunities to raise more money on an annual basis?
• Strengthening leadership relationships
• Increasing donor retention and value
• Recapturing lapsed donors
• PLANNED GIVING!
Break
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Strategies to Maximize Performance
How lessons of dating can be appliedto a successful annual fund
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5 Lessons:
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5 Lessons:
#1 – Who to Ask
#2 – How to Communicate
#3 – Dating Tips
#4 – Learn from Friends
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5 Lessons:
#1 – Who to Ask
#2 – How to Communicate
#3 – Dating Tips
#4 – Learn from Friends
#5 – The Big Proposal
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Lesson 1: Who to Ask
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Lesson 1: Who to Ask
a) Hot stranger
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Lesson 1: Who to Ask
a) Hot stranger
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Lesson 1: Who to Ask
a) Hot stranger
b) Good friend
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Lesson 1: Who to Ask
a) Hot stranger
b) Good friend c) Angry Ex
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Lesson 1: Who to Ask
a) Hot stranger
b) Good friend c) Angry Ex
0.5%-3.0%
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Lesson 1: Who to Ask
a) Hot stranger
b) Good friend c) Angry Ex
0.5%-3.0% 50%-80%
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Lesson 1: Who to Ask
a) Hot stranger
b) Good friend c) Angry Ex
0.5%-3.0% 50%-80% 5%-30%
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Lesson 1: Who to Ask
Special Treatment:
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Lesson 1: Who to Ask
Special Treatment:
• Super Donors (incl. Loyals!)
• Major Donor Downgrades
• Major Donor Upgrades
• Remaining Major Donors
• Lapsed Major Donors
• First-time Donors
• Lapsed Donors© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
Lesson 1: Who to Ask
Lapsed Donors … Rekindling Old Flames
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Lesson 1: Who to Ask
Lapsed Donors … Rekindling Old Flames
Chance of getting back together:5%-30%
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Lesson 1: Who to Ask
Lapsed Donors … Rekindling Old Flames
Chance of getting back together:5%-30%
Chance of finding someone new:.5%-3.0%
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Lesson 1: Who to Ask
Lapsed Donors … Rekindling Old Flames
• It’s easier to get back together than to find someone new.
• Usually it just takes a little TLC.
• A handwritten note or phone call makes a big difference!
Chance of getting back together:5%-30%
Chance of finding someone new:.5%-3.0%
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Lesson 2: How to Communicate
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Lesson 2: How to Communicate
• One-on-One: nothing beats it – if you’re good at it
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Lesson 2: How to Communicate
• One-on-One: nothing beats it – if you’re good at it
• Events: great for meeting and mingling
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Lesson 2: How to Communicate
• One-on-One: nothing beats it – if you’re good at it
• Events: great for meeting and mingling
• Direct Mail: effective way to ask many people
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Lesson 2: How to Communicate
• One-on-One: nothing beats it – if you’re good at it
• Events: great for meeting and mingling
• Direct Mail: effective way to ask many people
• Phone: good for follow-up
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Lesson 2: How to Communicate
• One-on-One: nothing beats it – if you’re good at it
• Events: great for meeting and mingling
• Direct Mail: effective way to ask many people
• Phone: good for follow-up• Email: efficient for
keeping in touch
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Lesson 2: How to Communicate
• One-on-One: nothing beats it – if you’re good at it
• Events: great for meeting and mingling
• Direct Mail: effective way to ask many people
• Phone: good for follow-up• Email: efficient for
keeping in touch• Social Media: opportunity
to spread the word© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
Lesson 3: Dating Tips
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Lesson 3: Dating Tips
• Have an engaging conversation.
• Tell a compelling story.
• Make a good case for a second date.
• Don’t be too desperate … or aggressive.
• Follow up with a note and/or phone call.
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Lesson 3: Dating Tips
• Be personal.
• Show appreciation.
• Give good reasons to stay in the relationship.
• Keep it simple.
• Stay in touch.
• Make someone feel good!
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Lesson 4: Learn from Friends
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Lesson 4: Learn from Friends
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LiveStamp
G I F T R E P L Y F O R M
Yes, I support the puppets! E nclosed is my gift to he lp reach the $30,000 goa l by D ec. 31, 2011 at the C om m un ity S po nsor leve l checked below:
o $2,500 for fu ll-day p rogram reach ing 200+ kids o $1,250 for half-day program reaching 100+ kids o $500 for workshop of 40+ kids o $250 for c la ss of 20+ kids o $120 for 10 kids o $60 for 5 kids o k ids a t $12 each = $
Puppets in E ducation Kids on the Block - VT • F riend 2 F riend P rogram s - VT
Jane Sample 130 South Willard Street Burlington, VT 05401 o I am interested in learning about Planned Giving options. o Please keep me informed via the email address below:
Please return with your gift to: P u pp e ts in Education 294 No.W inooski Avenue , Suite 125 - Burlington, VT 05401
You may also give online at
www.P uppetsInE ducation .org Design and pr inting donated by S pencer G roup Inc .
Lesson 5: The Big Proposal
PG Conversion Rates Based On Loyal Giving Patterns
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Lesson 5: The Big Proposal
• A planned gift is the ultimate commitment in a donor relationship
PG Conversion Rates Based On Loyal Giving Patterns
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Lesson 5: The Big Proposal
• A planned gift is the ultimate commitment in a donor relationship
• Loyalty is the biggest key to a “YES”
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Lesson 5: The Big Proposal
• A planned gift is the ultimate commitment in a donor relationship
• Loyalty is the biggest key to a “YES”
7.6%
3.0%
1.3% 1.3%0.7%
15+ Consec.Years
10-14 Consec.Years
9 of Last 10Years
8 of Last 10Years
6-7 of Last 10Years
PG Conversion Rates Based On Loyal Giving Patterns
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Luncheon with
Funders
Hands-on ClinicTurning Ideas into Action
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• 3 challenges – 15 minutes each
• 5 minute time limit for response
• 10 minute follow-up discussion
Challenge #1:Establish a Case for Support
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• The “Elevator Speech”
• A story of someone who benefited
• Compelling statistics
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Challenge #2:Assess Opportunities
& Resources
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• List of opportunities
• Prioritize each one (scale of 1 to 5)
• Grade the resources you have to pursue each opportunity (A-F)
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Challenge #3:Create a To-Do List
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• Task
• What is the purpose/objective?
• Who/what can help?
• Deadline date
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Annual Giving Resource Kit
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Annual Giving Resource Kit
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• Affordable option to add resources without adding staff
• Provides essential deliverables for a successful annual fund
• By joining forces, participating organizations can benefit from significant cost-savings
Annual Giving Resource Kit
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Includes:• Annual Fund template design
• Web-based donor management system
• Analytic reports
• Donor demographic overlay
• Custom ask amounts based on past giving
• VIP target lists and solicitation forms
Annual Giving Resource Kit
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Includes:• Copywriting for 2 appeal letters &
follow-up appeals
• Direct mail production and coordination for 2 appeals and follow-ups
• Strategic guidance
Q & A
Thank you for your participation!© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100