Despite being three years old, this presenation is still useful addressing some of the concerns abour charities swapping their data. It is aimed at Australia fundraisers, but useful beyond Australia. Some of the privacy statements quotes may have been changed by the relevant charities over the past three years.
Text of Swap or Die (2005)
Swap or Die Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
Swap or die -overview
Introduction
What is swapping?
Benefits of reciprocal mailings
Problems and barriers
How it works
Your next steps
Questions and Answers
A useful spreadsheet & questions
(c) Pareto Fundraising February 2005
1. Introduction Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
Charity Donors
Talking about charity to charity reciprocal mailings
Australia small market
Population 20 million 3 million give by mail or monthly donation
NSW 1.2 million
But is worth a lot
(c) Pareto Fundraising February 2005
Why do people give? (c) Pareto Fundraising February 2005
strings
(c) Pareto Fundraising February 2005
Why do people give?
Even when they are asked, most people still dont give
Targeting people more likely to give, and asking them is obviously better
(c) Pareto Fundraising February 2005
What we know about donors
Older people more likely to respond to mail
Donors are promiscuousbut generous
Reciprocals identify people who already give via mail who are not on your database
(c) Pareto Fundraising February 2005
Clues we use to find new donors
Age, demographics, read similar magazines
Say they will give to your cause (eg on a Geo Spend survey)
But best are charity givers already
How do we find these people?
(c) Pareto Fundraising February 2005
Key donor identifiers (c) Pareto Fundraising February 2005 Proportional chance of someone donating to a mail appeal
(c) Pareto Fundraising February 2005
2. What is swapping? Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
What is swapping?
Reciprocal mailings
Two charities mutually agree to mail each others like with like data
Selected by recency, frequency, value and type
Agree timeframes for the reciprocal
(c) Pareto Fundraising February 2005
What is swapping?
Donor Data
(c) Pareto Fundraising February 2005 Charity A Data Charity B Data Promiscuity report Opportunity Report Mail appeals Respondent data captured Respondent data captured
3. The Benefits Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
The benefits (c) Pareto Fundraising February 2005
The benefits
Previous chart says it all AND
Return On Investment can be 4 to 20 times that of cold mail
You can make a profit on reciprocal mailings
Can be cheaper because no rental fee
(c) Pareto Fundraising February 2005
The benefits an example
Cold mailings 0.9% from 50k @ 15
1.5% from top 5k @ 15
Reciprocals achieving 3.3% from 30k @ 15
8.0% from top 5k @ 15
(c) Pareto Fundraising February 2005
The benefits
Long-term effect on database is positive increases number of donors
Donors recruited by swaps are good swap prospects AND have excellent Life Time Values
Australian market quite virgin better results for those in there first
(c) Pareto Fundraising February 2005
The benefits.
Small charities can get involved
Cold is declining but this can supplement
Other good list sources very small
10+ years of UK data proves it works
(c) Pareto Fundraising February 2005
The benefits
Reciprocal mailings identify donors who are already charity mail responsive
Reciprocals with corporates can cut costs but do not have the key advantage mentioned above
(c) Pareto Fundraising February 2005
4. Problems and barriers Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
Why wouldnt you swap?
Tell me!!!
(c) Pareto Fundraising February 2005
Why wouldnt you swap?
Detrimental effect on database?
Not legal?
Current database is too small?
Wrong type of donors?
My donors are not natural fits
(c) Pareto Fundraising February 2005
Why Wouldnt you swap?
Just dont like it
(c) Pareto Fundraising February 2005
Why Wouldnt you swap?
Just dont like it
With all the evidence showing it raises more money, more quickly in the short term AND increases the number of donors, bequest prospects and regular givers in your pool for the long term
(c) Pareto Fundraising February 2005
Effect on your database
Your donors are already getting 10-50 cold mailings
These cold mails were less targeted by swapping we REDUCE the amount of mailings
Overall income from new donors > Potential income lost
(c) Pareto Fundraising February 2005
Effect on your database
UK data shows no long term negative impact from swapping 2 or 3 times per annum
No evidence to show any significant increase in attrition
Careful with swapping board members, major donors, internal stakeholders
(c) Pareto Fundraising February 2005
Legalities
This is not legal advice - always check with your lawyer
Our interpretations have been checked with ADMA lawyers but each situation is unique
Privacy laws are relatively new and there are few test cases
You dont want to be the first charity test case
(c) Pareto Fundraising February 2005
Legalities
Can charities swap data?
easier if primary purpose of original acquisition was fundraising and swap is with like-minded organisation
Many Australian charities are not able to swap NOW
Because they have told their donors that they wont
Privacy Statements & policies should be used wisely
(c) Pareto Fundraising February 2005
Legalities
If you have stated you will not make your list available to third parties
Stop stating it
You should mail an opt-in to those recruited with that promise
Only a tiny proportion will respond to this
Check with your lawyer to see if there is a way you can swap your data
(c) Pareto Fundraising February 2005
Legalities
If you said would not sell the list
Good you are not selling the list
Be more explicit in future
(c) Pareto Fundraising February 2005
Privacy policy statements
Often on web and referred to in printed materials. But hardly anyone looks.
Fundraising teams often not consulted
(c) Pareto Fundraising February 2005
Privacy statements
RACV (NOT THE FOUNDATION) (On Web)
From time to time, RACV may use your information to tell you about other products and services, discounts, , special offers, competitions and invitations to special events. However, we clearly recognize the import
