Swap or Die (2005)

1(c) Pareto Fundraising February 2005

Swap or Die…

Pareto Fundraising Masterclasses


Swap or die -overview

1. Introduction

2. What is swapping?

3. Benefits of reciprocal mailings

4. Problems and barriers

5. How it works

6. Your next steps

7. Questions and Answers

8. A useful spreadsheet & questions


1. Introduction



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


Why do people give?

Personal 1%

Response 1%

Asked 98%


strings


Why do people give?

Even when they are asked, most people still don’t give

Targeting people more likely to give, and asking them is obviously better


What we know about donors

Older people more likely to respond to mail

Donors are promiscuous…but generous

Reciprocals identify people who already give via mail who are not on your database


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?


Key donor identifiers

Affinity to cause

Similar profile

Similar profile & affinity tocause

Donated (differentmethod)

Gave to other charity(same method)

Gave to you > 13 monthsago

Gave to you <13 monthsago

Proportional chance of someone donating to a

mail appeal



2. What is swapping?



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


What is swapping?

Donor Data

CharityA

Data

CharityB

Data

Promiscuity report

Opportunity Report

Mail appeals

Respondentdata

captured

Respondentdata

captured


3. The Benefits



The benefits…

1 yr net income

-$35,000

-$30,000

-$25,000

-$20,000

-$15,000

-$10,000

-$5,000

$0

$5,000

$10,000

$15,000

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Based on a charity with 10k donors, 10.6k lapsed donors, swapping 70% of its donors and mailing 54,000 cold.

A total of 1,000 new donors are recruited (50% from cold, 50% from reciprocals). Donors then receive an average of 3 appeals per year.

This graph shows net income after the recruitment activities and then the net income from the three appeals.


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


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


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


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


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


4. Problems and barriers



Why wouldn’t you swap?

Tell me!!!


Why wouldn’t you swap?

Detrimental effect on database?

Not legal?

Current database is too small?

Wrong ‘type’ of donors?

My donors are not ‘natural’ fits…


Why Wouldn’t you swap?

Just don’t like it…


Why Wouldn’t you swap?

Just don’t 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…


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


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


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 don’t want to be the first charity

test case


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

won’t

Privacy Statements & policies should be used wisely


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


Legalities

If you said would not ‘sell’ the list Good – you are not

selling the list Be more explicit in future


Privacy policy statements

Often on web and referred to in printed materials. But hardly anyone looks.

Fundraising teams often not consulted


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 importance of providing you with the choices by giving you an easy means to “Opt Out” from receiving these offers. Let us know if you do not want to receive these offers by contacting us on 131955 at anytime or by visiting an RACV Shop during business hours.


Privacy statementsEye Research Australia Foundation (On Web)

“…The University will only use or disclose information: for the purpose for which it was collected (the primary purpose); for a secondary purpose that: is related to the primary purpose and, if the personal information is sensitive information, or health information directly related to the primary purpose; and the individual would reasonably expect; where there is consent of the individual concerned to the use or disclosure; or as otherwise allowed under the Acts, or required or authorised by or under law.

When a University department collects information, the purposes for which the information is collected will usually be made clear on any forms that are to be completed, or will be apparent from the circumstances. When required, we will seek your consent to use your information in a particular way. If you require more specific information about the way in which your information is used or disclosed, please contact the relevant University department or the University’s Privacy Officer..”


Privacy statementsEye Research Australia Foundation (On Web)

“…The University will only use or disclose information: for the purpose for which it was collected (the primary purpose); for a secondary purpose that: is related to the primary purpose and, if the personal information is sensitive information, or health information directly related to the primary purpose; and the individual would reasonably expect; where there is consent of the individual concerned to the use or disclosure; or as otherwise allowed under the Acts, or required or authorised by or under law.

When a University department collects information, the purposes for which the information is collected will usually be made clear on any forms that are to be completed, or will be apparent from the circumstances. When required, we will seek your consent to use your information in a particular way. If you require more specific information about the way in which your information is used or disclosed, please contact the relevant University department or the University’s Privacy Officer..”


Privacy statements

Jewish Care (on web)

“All information collected will be used only for the primary purpose intended and where the intention includes confidentiality, information will be retained as such unless otherwise required by law.”


Privacy statements

Jewish Care (on web)

“All information collected will be used only for the primary purpose intended and where the intention includes confidentiality, information will be retained as such unless otherwise required by law.”


Privacy statements – no info

Child and Family Care Network INC

Australian Ballet

Peter McCallum

Australian Breastfeeding Association


Privacy statements

The Alfred Foundation (on web)

“Bayside Health supports and complies with the Department of Human Services' Information Privacy Principles. Bayside Health supports and complies with the Department of Human Services' Information Privacy Principles. .”


Privacy statements

The Alfred Foundation (on web)

“Bayside Health supports and complies with the Department of Human Services' Information Privacy Principles. Bayside Health supports and complies with the Department of Human Services' Information Privacy Principles. .”


Privacy Statements

MS Society


Getting ready to swap

If you are saying you won’t swap your data –

Stop saying it.

It does not help recruitment It does not commit you to making the list available Many fundraisers are unsure of their own privacy

policies, but get the opt-outs on forms correct


Privacy policy / statement

Review all your statements

Take out potentially harmful statements – think about the implications of the policy

You do not need to guarantee data will not be swapped to be within the National Privacy Principles


Developing a statement

Respect the donor

You don’t want them to opt out

Explain what you do, and why. They care about you and most will be happy.

3-30% will opt out – but a good statement will lower that number


Recommended statement

“Occasionally we may organise mailings from third parties to our mailing list with information that we

believe may be of interest to you. These organisations usually allow us to do the same,

and by collaborating like this we can reach more people with vital information. We do not give

these organisations your details and we do not sell our mailing list.

If you would prefer not to receive such third party mailings, please tick here and we will change

your record to reflect this.”


Getting ready to swap

On current mailings: All donors who have not received such a

statement previously must receive an opt-out on future communications

Once they respond to the communication you can swap their data

Unless they have opted out


Reciprocal database field

No reciprocal - have opted out Reciprocal OK - have responded to a mailing

but not ticked opt-out Reciprocal opt-in - have opted out

(probably won’t be enough to worry about)

Never been asked Unknown – have been mailed opt out but no

response


Current database is too small

If you have only 3,000 donors…

Struggle to find direct partners

Change your privacy statements to allow swaps of newly recruited donors

As market develops, pools will develop


Pooled data

Pool of donors

Heart Foundation

The Fred HollowsFoundation

WesleyMission

AmnestyInternational

Australia

Heart ResearchInstitute

LeukaemiaFoundation

Children’s Hospital

Westmead


Wrong type of donors

Should swap like with like

Swapping 10,000 warm donors with 10,000 lottery purchasers not right But consider 4,000 warm with 10,000 lottery…

Only swap mail responsive (this is the point)

Don’t swap face to face donors


Natural Fit

Heart

Foundation

The Fred HollowsFoundation

WesleyMission

AmnestyInternational

Australia

Heart ResearchInstitute

LeukaemiaFoundation

Children’s Hospital

Westmead

?


Natural Fit

Same sector do best. Medical and medical, environment and environment

Supporters of certain sectors overlap Eg Aged and Medical. Third World and Human rights

BUT the biggest indicator is people who donate to charity through the post


Natural Fit

Very small number of Australian charities able, or willing to swap

Pool is very small

Swap with whoever you can will be the only option early on


5. How it works



How it works

Swap partners agree in principle

Third party takes both databases De-dupes Matches like with like (using scoring system) Evaluates ‘mailable’ data Produces report and recommendations

Swap ‘windows’ agreed


How it works

Third party arranges data from both clients to mail-houses This ensures fairness and protects privacy

Swap data is not given to each charity. respondents are added to their database

Respondents should be coded to know which charity they came from


The third party

Most data agencies can handle the logistics

With excellent reputation

Must have understanding of fundraising (eg they would need to know not to swap event participants or face to face donors)


The third party

Ability to match the data

You cannot use your definitions of ‘donor’, ‘lapsed’ etc the swap data needs to be selected from all the data. It should include transactional history and the third party must understand the appeal codes to match fairly


6. Your next steps



Next steps

Evaluate current privacy procedures Ensure that your org can swap in future, even if

you don’t intend to now

Add the opt-out to all communications Do your sums

Use the spreadsheet to work out how much better your acquisition is going to be

Convince the board or your boss


Next steps

Find out who else wants to swap We have built up a list of interested parties

Agree the principle and approximate mail dates

Get data / opportunity report

Produce appeal


Next steps

Your source codes should link to the name of the charity you swap with

Start with non-regular donors


Getting ready to swap…

On future mailings

Ensure an opt out statement is provided on future acquisition materials

Ensure this statement is on all welcome

communication for donors recruited via telemarketing


7. Questions


8. The spreadsheet discussion



Future Masterclasses

March 23rd Regular Giving VIC March 31st Charity Challenges NSW

April 18th/19th Pragmatic Bequests NSW/VIC

May 11th /13th How to raise $1,000 by mail

Are you getting your money’s worth from your Fundraising Staff/ Consultant

Mal Warwick


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Swap or Die (2005)