1
How to Set Up an Annual Giving Campaign Presented by Shona Nicholson
The Association of Business Schools - June 2011
2
Back to basics
Senior management commitment Database Alumni Relations Programme Case for Support Make it easy to give! Donations Processing Stewardship Procedures Disbursements Policies
3
The Famous Pyramid of Giving
Annual GivingSpecial Events & Benefit Events
Annual Giving/Direct Mail, E-mail & Tele-fundraisingAll Public Awareness Activities
Major GivingEndowment CampaignsCapital and Special Gifts
Major Gifts from Individuals/Corporations
Estate or Planned GivingLegacies
Planned Gifts
EventsPublicationsStewardship
Website
4
The Giving Pipeline
Involving and identifying the types of donors who can truly make a difference to your organisation
Demonstrating everyone is doing their bit
Cultivating and stewarding them with:– Your Ethos and Mission– Your Success– Your Commitment
Education Acquisition Retention Upgrades Major Gift Legacy
5
Hi value - active donors
Hi value - lapsed donors
Mid value - active donors
Mid value - lapsed donors
Low value - active donors
Low value - lapsed donors
Non donors
Am
ou
nt o
f effort to
be e
xpe
nd
ed
6
A Possible Strategy?
Establish a Culture of GivingKPI: Annual Participation Rate
Provide regular income
KPI: Annual Fund£s raised per year
Major gift pipelineKPI: Number andgiving potential of
identified Prospects
7
Donor-centred
Direct marketing-
driven
Regular
World-wide
Repeatable
What is an Annual Giving Programme?
A FUNDRAISING
PROGRAMME
THAT IS…
8
Donor-centred
Donors are now in control of their ownphilanthropy and they want:
Prompt, personal gift acknowledgement
Confirmation of gifts being set towork as intended
Measurable results
9
Direct Marketing-driven
Send messages directly to donors/potential donors
Specific "call-to-action“, with an emphasis on trackable and measurable responses
10
Regular
Ask them each year…
Ask them more than once a year…
Ask them in a variety of ways…
11
Repeatable
That you’ve asked before shouldn’t impact your asking again
That they’ve given before shouldn’t impact their giving again
Link their support to your organisation’s ongoing needs
12
World-wide
Ask everyone
Donors and non-donors
Major prospects
Younger and older people
UK and overseas
13
Put These Together And…
The secret to Annual Giving is?
14
Sustainable Fundraising
A well-structured Annual Fund that raises £500,000 this year is likely to raise at least £500,000 next year, whatever the climate
This is equivalent to a £12.5 million endowment*
15
Acquire new donors Build donor loyalty Establish pattern of giving Increase participation rate Cultivate donors Prospect research Identify potential legators Raise restricted funds Introduce students Build base of supporters Inform your constituency ...
What Are Your Goals?
Raise unrestricted funds Renew donor support Support alumni relations Generate success stories Involve prospects Information gathering Accountability through
annual reports Enroll volunteers … …
The trinity … monetary, recency, frequency.
16
Target Audiences
C u rren t S tu d en ts
N ew G rad s
P as t G rad s
S tu d en ts
R etirees
S u p p ort
F acu lty
M g m t C om m ittee
S ta ff
Tru s ts
C orp ora te P artn e rs
P aren ts
F rien d s
A n n u a l G ivin g F u n d P rog ram m e
17
Annual Fund Tools
Annual Fund
Direct Mail
Telethon Email / Online
One-to-One
18
Relatively cheap
Opportunity to enclose Case for Support
In-House/Outside Expertise
High volume
Less responsive
Direct Mail
19
Direct Mail Uses
Annual fund acquisition Donor renewal/upgrade Reminders Special or emergency projects (St. John’s College Organ Appeal) High-end monthly donor packages (Greenpeace Frontline) High-end donor packages Advance and/or Follow-up to telethons Parents Community (My Ashmolean, My Museum) Major donors Legacies
20
High response
Personalised
Student contact
In-House/Outside Expertise
Requires significant resource
Telethon
21
Very inexpensive
Quick delivery of message and high volume
Opportunity for multiple asks / follow-ups
Address and formatting issues – less guarantee they’ll receive or read it
Easy to opt-out
22
Online
You need to be where your donors are ...
23
Online Young charity supporters
‘are enthusiastic Facebook users’, Third Sector, 8 September 2009.
“nfpSynergy study found that 79% of 11 to 25-year-olds who were regularly involved with charities, through activities such as giving or volunteering, used Facebook.”
24
High response
Medium-sized Gifts(£1,000 to £24,999)
Very personalised
High staff time
Low volume
One-to-one
25
Constructing the Whole
January to December or August to July – doesn’t matter, but stick to it and educate your alumni with it!
You can’t create a culture of annual giving if you don’t ask annually! Keep momentum up all year round
The best Annual Giving programmes incorporate all four types of approach and take advantage of other activities going on within the institution
Segment your constituencies – treat your donors, prospects, recent graduates, renewals, special anniversaries, tax-efficient countries separately
26
Your Programme
Every communication you do – fundraising or information – impacts on your programme.
Map out the programme. Watch spacing between activities. Are you taking advantage of all possible
points of activity?
27
Seasonality
Most donors think in calendar year timeframes (January to December), not academic years or your fiscal year end.
Annual appeals versus episodic appeals. Spring and Autumn are traditionally good times for direct mail.
Avoid June, July, August and December, if possible. Balance your fundraising with other communications. Canadian/American tax year end. International Foundations for tax efficiency.
28
Other Pieces to Ponder Reporting back to Donors
Capital Campaigns and Annual Funds
Apply learning from the Charitable Sector
CASE motto: “Copy And Steal Everything”
Consultancy
Student involvement
29
What Should You Do Today?1. Write a mission statement for your
Programme. What is its key aim?
2. Produce a month-by-month calendar for your Annual Giving Programme
3. Add three new elements to your programme this year
4. Get out and meet some alumni!
5. Benchmark your performance
30
Questions?
Contact details: