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2013 Fundraising Effectiveness Survey done by the AFPInfographic by [email protected]
2013 Fundraising Effectiveness Survey done by the AFPInfographic by [email protected]
2013 Fundraising Effectiveness Survey done by the AFPInfographic by [email protected]
Fundraising Effectiveness Survey done by the AFP
Taking positive steps to reduce gift and donor losses
is the least expensive strategy for increasing
net fundraising gains.
• Typically anchored by a one-time annual contribution
• Supplemented by one or two additional gifts within a 12-month time period
• Predetermined end date is usually within a fiscal year or 12 months after the initial gift
• Contribute by credit card, bank account (EFT or debits) or check.
• Use of channels/technology is not integrated
Traditional Giving
• It’s referred to as monthly, recurring, evergreen, perpetual
• Donors make a fixed monthly gift that recurs without a predetermined end date
• Gift is incurred by automatic bank account withdrawal (electronics fund transfer – EFT – or debits) or credit card
• Continues until the donor opts out • Think “no more renewals” or “annual” or “12
months”
Monthly Giving
Sustaining Our Sustainers Program
Survey Question: Do you ask your
members to become sustainers? Yes or
No?
On average, a donor will make monthly gifts to
three organizations.
Why Monthly Giving Matters
Higher Retention Rates2 to 3 times the retention rate of new single-gift donors
Higher retention rate of multi-year donors too
Higher Revenue per Donor
Median Revenue per New Single Gift Donor - $73
Median Revenue per New Monthly Donor - $104
Data from Target Analytics donorCentrics Sustainer Benchmarking Report
Why Monthly Giving Matters
Why Monthly Giving Matters
Monthly Giving is so powerful because of the combined effect of:
Higher Retention X Higher Revenue per Donor
=Higher Lifetime Value
MONTHLY DONOR COMPARED TO ANNUAL DONOR - RETENTION & REVENUE DIFFERENCE
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
500Retention Rate 75% 75% 85% 85% 90%
Monthly Donors # of Donors 375 281 239 203 183 # of Donors
Average Gift $60 $100 $120 $120 $180 Five Year Total
TOTALS $22,500 $28,125 $28,688 $24,384 $32,919 $136,616
500Retention Rate 23% 50% 61% 61% 61%
Annual Donors # of Donors 115 58 35 21 13 # of Donors
Average Gift $60 $70 $100 $100 $120 Five Year Total
TOTALS $6,900 $4,025 $3,508 $2,140 $1,566 $18,138
• Predictable Revenue• Long-term Financial Stability • Incredible Donor Loyalty • Great Upgrade and Additional Gift Potential • Fabulous Planned Giving Prospects • Focused Fundraising Resources on Revenue • Increased Net Income
Benefits
Sustaining Our Sustainers Program
Survey Question: What is your biggest hurdle that stops you from recruiting more
sustainers?
Creating a Robust Monthly Giving Program at WDVX
East Tennessee’s Own
WDVX is a 200 watt station licensed to Clinton, TN
We are a music station with a diverse playlist – bluegrass, blues, local and emerging artists, early jazz, gospel, Celtic, swing, live performance
WDVX serves East Tennessee and parts of southeast Kentucky
Our cume is 39,300
We produce about 31 live radio shows each month
We had a little over 600 donors during our last on-air fund drive. Of those donors 11% opted to become “WDVX Sustainers”
Made a Donation in 2012
Made a Donation in 2013
Made a Donation in 2014
Made a Donation in 2015
0
100
200
300
400
First Donation Made 2012 First Donation Made 2013First Donation Made 2014
Average new donor retention rate is 20.5%Repeat donor retention rate is 68%
WDVX Donor Retention Rates
The Transition to Monthly Giving
Making the option available
– PayPal– Bank Draft
Explaining the concept– Benefits to donors– Benefits to the station
Simplifying the donation process
– One-click donations– Donate button on main
page
Sustaining Our Sustainers Program
Anyone involved should be an expertOne message across
the board Make monthly giving
the first or most prominent option
Troubleshoot everything
Sustaining Our Sustainers Program
Survey Question: What percentage of your members are
sustainers?
Some create tremendous results with a monthly giving program while
others don’t.
Question
Willing to adopt new best practices and use of technologies.
Willing to dump old outdated best practices and old technology uses.
To succeed…
New Best Practices – #1
Implement monthly giving as the primary fundraising model
within your individual giving program.
This….
This….
Close but not quite…
Not this…
New Best Practices – #2 & #3
• Make “monthly” the standard frequency of donations.
• Each donor’s monthly gift should be set up as recurring without a predetermined end date.
This….
Close but…
Close but…
Not This….
Not This….
Not This….
• Make monthly the default giving option
• Offer a concise explanation
• Simplify the ask string
• Eliminate landing pages
• Monitor conversion rates
• TEST, TEST, TEST
Optimize the Online Giving Experience
New Best Practice #4
Take a Multi-Channel Approach
Monthly Giving is not just a payment option –it’s a new way of doing business.
New Best Practice #5
Create a new back end for processing monthly gifts and adapt your technology to
accommodate this new program.
• Target conversion efforts at recent givers
• Rate of conversion falls longer donor is on file
• Test Timing (30 days after gift, 60 days, 90 days)
• Telefundraising: most effective channel for conversion
• Email Conversion: link donor to a donation form optimized for monthly giving
Start with a Solid Conversion Program
• Timely
• Short & Sweet
• Engage staff, board members, volunteers or call center
• Great opportunity to educate
donors about monthly giving
and ask them to convert
Thank You Calling
Research shows… Thank You Calling increases
BOTH:Donor Retention
Average GiftSource: Penelope Burk
Donor-Centered Fundraising
Be Prepared
The MILLION DOLLAR
Question
How do we stay on top of all these Credit Card Declines???
LOST OR STOLEN
Do Not Honor
Expiration Dates
Target Data Breach
INSUFFICIENT FUNDS
Recapture Strategies
• Account Updater Services
• Get ahead of expiration dates
• Multi-Channel Recapture Series
Credit Card Account Updater Service
Get ahead of Expiration Dates
Multi-Channel Recapture Series
• Email• Mail• Phone
– Get My Attention – Subject Lines and Teasers
– Ask Monthly Donors if they want to make “catch-up” payments for missed installments.
But Wait, There’s More…
Upgrades: The Gift that Keeps on Giving
• Utilize Multiple Channels
• Monthly Donor Branding
• Swag—increase response & loyalty
• Modest upgrade ask string
• Reinforce impact of monthly gift
• Test, test, test
Upgrades: Let’s Do the Math
500 Monthly Givers
20% Upgrade = 100 givers
Average upgrade: $5/month
100 x $60 = $6,000
$6,000 $12,000 $18,000 $24,000 $30,000 Year 1 Year 2 Year 3 Year 4 Year 5
Monthly Donors Are Special...
Your communication with them has to be special as well
Two cardinal mistakes:
• Sending them everything
• Sending them nothing
Create a special communications plan for them.
