Your Acquisition Program and Today’s List Services

Your Acquisition Program and Today’s List Services

Part I: IntroductionCELCO ABOUT US

• List Brokerage and List Management Company for non-profit community

• I joined CELCO in 1991 and purchased the firm in 2001.

• Kelly Leech is the AI List Broker and has been with CELCO since 2007.

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Part I: Introduction Our Clients Fall Across Many Market Sectors

Relief: Action Against Hunger, Bread for the World, City Meals on Wheels, Coalition for the Homeless, Oxfam America, SOS Children’s Villages, Technoserve, National Urban League, Volunteers of America

Advocacy: ACLU, Amnesty International, Alliance for Retired Americans, International Planned Parenthood, Gay Men’s Health Crisis, Friends Committee on National Legislation, LAMBDA

Environmental and Animal Protection: Greenpeace, Natural Resources Defense Council, ASPCA, Best Friends, Chesapeake Bay Foundation, Red Rover, San Diego Zoo, Save the Bay

Arts & Culture: WETA, Kennedy Center, Wolf Trap Foundation, New York Landmark Conservancy, Jazz at Lincoln Center

Health: amfAR, Lupus Foundation, Michael J Fox Foundation, Helen Keller International, National Osteoporosis Foundations, USC Norris Cancer Center

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Part I: IntroductionAMNESTY INTERNATIONAL & YOUTH VILLAGES

Lori O'Brien Tricia HartDirector of National Development Director of Direct Response

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Fundraising List Brokers

In our sector, List Brokers can be heavily involved in the following functions, as

well as planning your mailings, clearing and ordering lists and tracking results:

• Analysis and Reporting– Front end, back end, long term value

• Creative – packages, messaging offer and format

• Strategy – When to mail, what to mail, how to split tests and packages

• Modeling – vast experience with many mailers and modelers

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Fundraising List Brokers

• Exchange Relationships- 2 for 1, $100+

• LTV– long term planning

• Match Back Analysis- using cross channel markets to improve acquisition performance

• Budgeting – per mailing, annual and beyond

• Price Negotiations – Net names, reduced rates, test rates, volume rates

Fundraising List Brokers

• Research – uncovering the best lists, markets and techniques by fundraising

venue

• Industry tends – what they are, what they mean for you

• Selecting a broker…find a broker that knows the marketplace and that you work

well with. Check references and pricing.

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REPORTING: Industry Trends

In the first half of 2013, corrections occurred in Relief Market (post-emergencies,

i.e., Haiti) and Social Benefit groups saw marked improvement. Other markets

saw little change and overall, revenue was generally flat with total index at -.6%.

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Index of Revenue Change by Market Sector

Source: Q2 2013 Index of National Fundraising Performance, Target Analytics, September 2013.Source: Q2 2013 Index of National Fundraising Performance, Target Analytics, September 2013.72 organizations and 35 million donors, $2.3 billion in revenue.

REPORTING: Industry Trends

Higher revenue per donor has masked the fact that new donor numbers have been

declining now for almost 10 years. In the most recent period, the relief sector had

the smallest median change in new donors.

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Index of New Donor Change by Sector

Source: Q2 2013 Index of National Fundraising Performance, Target Analytics, September 2013.72 organizations and 35 million donors, $2.3 billion in revenue.

REPORTING: CELCO Clients

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CELCO Clients saw flat or a small improvement in results in the Advocacy,

Gay & AIDS, Health, Relief and Senior Markets.

12 Month results for completed mailings at end of each quarter.

REPORTING: CELCO Clients

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12 Month Completed Results – Fall 2012-Fall 2013

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6,000,000youth come into contact with state child protection systems each year

3,500,000youth are screened into the system each year

423,000youth are in state foster care and residential custody each year

86,000youth are in juvenile justice residential treatment each year

$23 billionevery year

The Case for Youth Villages

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Founded in 1986

Helps 22,000 children and families a year

Offices in 11 states and Washington, DC

Helps children from 20 states and Washington, DC

Home-based model works with the child and family80% success rate at 1/3 costProgram is 6 months vs 1 year or moreEven two years after completion, success rate > 80%

Youth Villages helps children and families live successfully.

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National Recognition

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The Case for National Development

National crisis: 3.5 million children in “the system” today

Proven national service provider with successful model

Geographically diverse

Need for fundraising portfolio diversification

Foundations 84% Individuals 12% (primarily major gifts > $10k) Corporations 3% United Way 1%

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First Year Highlights Finding a control package

Finding continuation lists

Establishing a threshold for usable donors ($10+ donors)

Successeso Modeled listso Welcome package serieso Vendor partners who became stakeholders

Challengeso Astounding (for the wrong reason) average gifto Lack of national name recognitiono Shaky economic recovery

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Usable Donors ($10+)

71%83%

67%

0%

20%

40%

60%

80%

100%

Models Multibuyers Outside Lists

Percentage of Usable Donorsby List Type

% of Usable Donors

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35%

25%29%

55%62% 59%

9% 13% 12%0%

10%

20%

30%

40%

50%

60%

70%

% Mail Quantity % of Lifetime Revenue % of Lifetime Transactions

Youth Villages LTV Summary

Outside Lists Model Lists Multibuyers

LTV by List Type

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14%

42%

31%

13%11%

41%

30%

17%

0%5%

10%15%20%25%30%35%40%45%

FY11 FY12 FY13 FY14

% of Quantity Mailed vs. % of Donors Acquired by Fiscal Year

% Mail Quantity % Donors Acquired

Improved Performance YOY

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CTRAD Improvement

$5.86

$4.68

$4.08

$2.89

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

FY11 FY12 FY13 FY14

Cost To Raise A Dollar by Fiscal Year

CTRAD

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Lessons Learned: 7 Requirements to Launch a Program

1. Passionate internal champion2. Realistic projections with costs, break even and pay back dates

• Conservative assumptions and best/worse case scenarios• Re-projections after 12 months of data• Speak to but don’t budget planned giving and major gift upgrades

3. CEO and Board buy in4. Clear source of multi-year funding5. Savvy vendor partners committed to your success (but brutally honest)6. Absolute adherence to schedules, basic sound DM principles, results

reporting, “go/no-go” touchpoints and continuous improvement7. Nerves of steel, strong inner compass, ability to walk in the desert and

navigate rough waters*Bonus if you also have*

8. Hand up and off strategy for high value prospects ($25 to $5K in 2 wks)

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The Case for Amnesty InternationalExposing and Preventing Human Rights Abuses

*Protecting people wherever justice, freedom, truth and dignity are denied.

*Currently the world’s largest grassroots human rights organization, with more than 3 million supporters, activists and volunteers in more than 150 countries.

*Investigate and expose abuses, educate and mobilize the public, and help transform societies to create a safer, more just world.

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in 1980’s

Amnesty InternationalWhere We Began

• Founded in the UK 1961

• Represented in more than 68 countries

• Amnesty International USA is the largest section in terms of members and donations

• US Direct mail program prior to recession was a $30 million program and represented over 70% of the US budget

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Amnesty InternationalRecent Realities

• Declining response, decreased renewal rates and decreased investment led to shrinking of donor file and revenue

• Program finished 2013 just under $19 million, Represents 51% of US budget

• Focus on bringing in high lifetime value donors and maximizing return on investment

• Acquisition budget decrease required shifts in strategy

• New acquisition control package rolled out in 2012, replacing a 15 year control

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AMNESTY INTERNATIONALLTV Study

• Purpose – To study and review subsequent giving based on the acquisition gift, (new or reinstated)

• Parameters – February 2008 through July 2012.

• Gross Value per Donor (GVD) – Our analysis, evaluations and recommendations are based on the GVD.

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AMNESTY INTERNATIONALSeasonality

• Fall – September/October/November

• Winter – December/January/February

• Spring – March/April/May

• Summer – June/July/August

To analyze giving trends in relation to mailing seasons we broke the calendar down into four mailing periods.

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AMNESTY INTERNATIONALSeasonality

SeasonTotal

Mailed% of Total

Mailed # Donors % Donors Initial $ %Initial $Subsequent

$ % Sub $Fall 5,152,025 23% 28,705 20% $964,869 22% $1,350,565 22%Spring 8,275,113 37% 46,483 32% $1,455,642 32% $2,085,204 33%Summer 6,072,775 27% 39,553 28% $1,207,826 27% $1,822,041 29%Winter 2,981,310 13% 28,642 20% $852,078 19% $1,003,642 16%Grand Total 22,481,223 100% 143,383 100% $4,480,415 100% $6,261,451 100%

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AMNESTY INTERNATIONALSeasonality

Season # Donors Initial $0-6 Month Revenue

0-6 Month GVD

7-12 Month Revenue

7-12 Month GVD

13-24 Month Revenue

13-24 Month GVD

25-36 Month Revenue

25-36 Month GVD

37+ Month Revenue

37+ Month GVD

Fall 28,705 $964,869 $188,711 $7 $328,730 $11 $466,930 $16 $252,075 $9 $114,117 $4Spring 46,483 $1,455,642 $368,494 $8 $379,825 $8 $709,264 $15 $372,787 $8 $254,834 $5Summer 39,553 $1,207,826 $323,644 $8 $380,808 $10 $599,461 $15 $317,202 $8 $200,925 $5Winter 28,642 $852,078 $178,974 $6 $225,386 $8 $335,301 $12 $192,442 $7 $71,539 $2Grand Total 143,383 $4,480,415 $1,059,823 $7 $1,314,749 $9 $2,110,956 $15 $1,134,507 $8 $641,416 $4

First Gift Information Subsequent Giving

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AMNESTY INTERNATIONALHouse vs. Outside

List Type # Donors Initial $0-6 Month Revenue

0-6 Month GVD

7-12 Month Revenue

7-12 Month GVD

13-24 Month Revenue

13-24 Month GVD

25-36 Month Revenue

25-36 Month GVD

37+ Month Revenue

37+ Month GVD

House 29,661 $937,546 $225,624 $8 $175,748 $6 $212,267 $7 $103,123 $3 $69,225 $2Multis 20,287 $605,476 $139,765 $7 $181,144 $9 $303,012 $15 $198,745 $10 $129,599 $6Outside 93,387 $2,934,380 $693,780 $7 $956,677 $10 $1,593,891 $17 $831,609 $9 $442,327 $5Unknown 48 $3,013 $655 $14 $1,180 $25 $1,787 $37 $1,030 $21 $265 $6Grand Total 143,383 $4,480,415 $1,059,823 $7 $1,314,749 $9 $2,110,956 $15 $1,134,507 $8 $641,416 $4

First Gift Information Subsequent Giving

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AMNESTY INTERNATIONALLIST PERFORMANCE

Market # Donors Initial $0-6 Month Revenue

0-6 Month GVD

7-12 Month Revenue

7-12 Month GVD

13-24 Month Revenue

13-24 Month GVD

25-36 Month Revenue

25-36 Month GVD

37+ Month Revenue

37+ Month GVD

Advocacy 24,114 $751,614 $147,584 $6 $249,304 $10 $458,738 $19 $200,274 $8 $109,460 $5Arts & Culture 1,520 $53,821 $10,281 $7 $19,815 $13 $31,566 $21 $22,894 $15 $19,067 $13Buyers 2,328 $73,923 $16,918 $7 $27,800 $12 $56,146 $24 $37,389 $16 $20,560 $9Children 672 $17,262 $3,547 $5 $5,475 $8 $9,684 $14 $7,159 $11 $5,587 $8Compiled 383 $17,950 $4,940 $13 $9,536 $25 $12,021 $31 $9,588 $25 $3,664 $10Environmental 3,828 $98,268 $22,714 $6 $29,595 $8 $51,311 $13 $34,250 $9 $21,278 $6GLBT 862 $22,895 $5,167 $6 $8,030 $9 $15,552 $18 $10,438 $12 $4,996 $6Health 294 $8,137 $1,979 $7 $3,623 $12 $5,655 $19 $4,848 $16 $2,899 $10House 6,589 $185,851 $95,396 $14 $46,339 $7 $68,529 $10 $38,813 $6 $21,925 $3House Model 11,800 $381,304 $57,398 $5 $65,927 $6 $68,192 $6 $18,886 $2 $12,428 $1Human Services 3,078 $98,227 $24,866 $8 $39,785 $13 $78,704 $26 $51,340 $17 $26,279 $9Jewish 644 $19,629 $5,180 $8 $6,772 $11 $10,321 $16 $9,999 $16 $10,614 $16Lapsed 9,471 $301,280 $52,699 $6 $41,784 $4 $28,524 $3 $13,636 $1 $9,613 $1Model 21,021 $708,655 $151,479 $7 $196,035 $9 $299,582 $14 $120,093 $6 $67,622 $3Multibuyers 20,287 $605,476 $139,765 $7 $181,144 $9 $303,012 $15 $198,745 $10 $129,599 $6Political 2,920 $82,216 $10,536 $4 $14,810 $5 $29,895 $10 $10,873 $4 $5,053 $2Relief 21,123 $638,409 $194,205 $9 $209,484 $10 $329,928 $16 $169,771 $8 $73,905 $3Subscriber 12,401 $412,485 $114,515 $9 $158,310 $13 $251,810 $20 $174,479 $14 $96,603 $8Unknown 48 $3,013 $655 $14 $1,180 $25 $1,787 $37 $1,030 $21 $265 $6Grand Total 143,383 $4,480,415 $1,059,823 $7 $1,314,749 $9 $2,110,956 $15 $1,134,507 $8 $641,416 $4

First Gift Information Subsequent Giving

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AMNESTY INTERNATIONALLIST PERFORMANCE

Market # Donors# Donors Joined Monthly Giving

% of Donors Joined Monthly Giving

# Donors Upgraded

% of Donors Upgraded

Advocacy 24,114 449 2% 3,716 15%Arts & Culture 1,520 51 3% 322 21%Buyers 2,328 59 3% 477 20%Children 672 24 4% 129 19%Compiled 383 10 3% 89 23%Environmental 3,828 97 3% 660 17%GLBT 862 25 3% 132 15%Health 294 15 5% 74 25%House 6,589 141 2% 838 13%House Model 11,800 132 1% 1,210 10%Human Services 3,078 87 3% 635 21%Jewish 644 11 2% 143 22%Lapsed 9,471 97 1% 864 9%Model 21,021 405 2% 2,499 12%Multibuyers 20,287 440 2% 3,467 17%Political 2,920 34 1% 219 8%Relief 21,123 369 2% 3,212 15%Subscriber 12,401 307 2% 2,176 18%Unknown 48 2 4% 8 17%Grand Total 143,383 2,755 2% 20,870 15%

First Gift Information Additional Subsequent Giving

AMNESTY INTERNATIONALLIST PERFORMANCE

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List performance can identify other concerns for mail file:

*Identified poor renewal among house donors

*Showed longer-term impact of new control package

List strategy part of overall program goals:

*Focused on long-term value of donors to support sustainer strategy

*Analysis of seasonality to increase efficiency of scarce acquisition $$

OVERALL TAKE AWAYS

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Modeling applications -- response, value, backfill and modeled list

selections – have provided new life – both as a means of improving

response and gift levels.

Maximizing exchanges, net arrangements, bulk pricing, negotiated

rates, and other cost savings measures play a large role in success.

House names continue to be integral part of successful prospecting

programs. Modeling applications have greatly improved targeting

ability for deep lapsed, non money survey responses, online activists

and other warm prospects.

OVERALL TAKE AWAYS

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Subsequent giving analysis by package and list is key to solidifying best

strategies for acquisition. If you can not do it – get it done!

Matchback analysis of direct mail impact on online giving proves

beneficial in determining overall program health.

Look for non core markets where your program can thrive.

TEST, TEST, TEST, TEST!!!

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Thank you for your time. Contact us any time:

Barbara [email protected]

Kelly Leech [email protected]

Lori O’[email protected]

Tricia [email protected]