Its And not Or

THE PRINCIPLE OF AND, NOT OR BY DANIELLE JOHNSON VERMENTON

SR INTERACTIVE CONSULTANT, BLACKBAUD

“CAUTIOUSLY  OPTIMISTIC”

Nearly 6 out of 10 charities raised more in 2012 than 2011

(first time since 2006 that more than ½ showed such positive results)

2012 NRC Report of US & Canadian Charities

In the NRC Canadian Study: about 70-80% of responding organizations use 8 of the 10 different fundraising methods. Only online & events increased at half of the responding organizations and at 51 and 50%, BUT direct response only rose 39% (and declined at 20%)

THE STATE OF ONLINE FUNDRAISING ONLINE MARKETING BENCHMARK STUDY 2013

CANADIAN HIGHLIGHTS • Organizations total email file growth

was almost 17%

• Average online donation $85

• Revenue per usable email $15 (higher than the median)

• Sustainer growth 30%

• Repeat fundraising growth 20% The source for fundraising most likely to increase continues to be online according to the 2012 NRC Study. 57% of respondents saw an increase in 2012 compared to 2011.

Almost SIX out of every ten donors from the previous  year  DID  NOT  renew  by  year’s  end! Based on the FEP Study from 2012

Key Reasons They Leave o No longer able to afford support o No memory of ever supporting o Did not feel connected to the organization o Not asked to give again o Other causes are more deserving o Never heard how donation was used

A 10% CHANGE IN RETENTION CAN INCREASE THE LIFE TIME VALUE OF A DONOR BASE UP TO 200%.

Donors want to be seen as partners and are looking for more meaningful ways of expressing their support than just giving.

“With  the  goal  of  building  donor  loyalty  and  maybe  even  creating  a  donor  for  life,  what  do  you  want  the  donor  experience  to  be?”

Sources: Dr. Adrian Sargeant and Woodliffe, 2007 and Growing Philanthropy in the US 2011 Study

WHO IS THE NEW NONPROFIT?

What characterizes these organizations?

nimble multichannel technology driven

Key Take-Aways Double digit growth in online revenue and housefiles (housefiles = # of emails) Increasingly preferred method of communication – website, email & social media Retention is a universal challenge for all organizations Competition for supporters is increasing

WHAT ARE YOU DOING TODAY?

Major Gifts

Events

Budget Goal

Grants

Planned Giving

Direct Mail

Board Gifts

HOW DIVERSIFIED ARE YOU?

Online • What does your budget

look like?

• Are you dependent on one or two main sources?

• Is your strategy multichannel?

TODAY VS TOMORROW

Direct Mail

Grants

Events

Board

Major Gifts

Online

So  what’s  your  plan  for  next  year?    What about 5 years? How will you grow while adjusting to the changes? Where will you find new support? And how will you keep it?

IT’S  AND*  NOT  OR? ePhilanthropy doesn’t  replace  direct  mail.

It  doesn’t  cannibalize  major  gifts.

Online is about acquisition and retention. It opens doors and deepens engagement.

*it means smarter work

ONLINE PHILANTHROPY IS YOUR ANNUAL FUND PIPELINE

Online & Social

Middle & Major Gifts

Direct Mail

Planned Giving

Corporate Giving

Special Events

Grants & Foundation

Sustained Giving

So  what’s  the  big  picture? It fuels major gifts, events, sustained giving, direct mail even corporate giving. Online provides deeper, personalized engagement and is the final piece in a multichannel strategy.

Lifetime Donor Value Donor Value 12 Months New Donor Renewal Rate

THERE IS PROVEN VALUE IN MULTI-CHANNEL ENGAGEMENT

Sources:  Study  entitled  “Integrating  Online  Marketing  (eCRM)  with  Direct  Mail  Fundraising”  by  Convio  and  StrategicOne Traditional defined as offline use. Internet Enabled defined as both offline and eCRM use.

34.4%

50.9%

Mail

+48%

Multi-Channel

$96

$187

Mail

+95%

Multi-Channel

$314

$694

Mail

+121%

Multi-Channel

WHAT DO CANADIAN DONORS WANT?

AFP Foundation / Ipos Reid Survey 2012

43% report giving to 2-3 charities and 18% to 4-5

6 in 10 do research before donating

79% want to know how their gift made a

difference

74% believe charities should spend $ on more

innovative ways to fundraise

THE GENERATIONS – HOW ARE YOU REACHING THEM? Gen Y & X: increase in mobile – research, giving, listening

Civics give to more charities, Gen Y & X are choosier and Boomers

will outpace everyone (but have a strategy for X)

Social still has a low impact on fundraising, BUT high engagement

All ages are multichannel and open to a mix of channels

SO HOW DO YOU GET THERE?

EMAIL IS KING!

Timely Dynamic Personalized Actionable

$15!

LET’S  TALK  ABOUT  THE  VALUE  OF  EMAIL

As your housefile (# of emails) grows so does the impact to your annual fund in revenue and reach.

LET’S  GET  STARTED!

Think like a supporter

Capture emails

Provide multiple touch points

Say welcome

Have the right tools

THINK LIKE YOUR SUPPORTERS

ABOVE THE FOLD Reduced 4x

Who would you give your email to?

HAVE MULTIPLE TOUCH POINTS

NOW WHAT DO YOU DO?

(You have the email address)

How many people do you think are thanked when they subscribe? What does their journey look like?

What do you think that first impression is like for the new subscriber (potential donor)?

Email is an agreement between you and the subscriber. Start that relationship with trust and appreciation.

PUT OUT THE WELCOME MAT

ENGAGE THOUGHTFULLY FROM DAY 1

Relevance Curve

0%

10%

20%

30%

40%

50%

60%

1 month 2 to 3months

4 to 6months

7 to 12months

Year 2 Year 3

Time on Housefile

Em

ail O

pen

Rat

e

Org #1Org #2Org #3

The honeymoon period to engage new subscribers is greatest in the first 45 days.

Key Take-Aways Email has economic value

Think like a customer/supporter

An online relationship often starts with just an email

Engage subscribers immediately

Say thank you and stay relevant

WHAT ARE YOU WAITING FOR?

GETTING STARTED

Evaluate your resources and tools. Is your donor database in order? Is your website user friendly & responsive? Is your online marketing and fundraising software doing the job? Are you capturing emails in multiple places? Is there a welcome mat?

Online & Social

Middle & Major Gifts

Direct Mail

Planned Giving

Corporate Giving

Special Events

Grants & Foundation

Sustained Giving

RESOURCES The Next Generation of Canadian Giving https://www.blackbaud.com/nonprofit-resources/generational-giving-report-canada

What Canadian Donors Want: AFP Foundation / Ipsos Reid Survey http://www.afpnet.org/Audiences/ReportsResearchDetail.cfm?itemnumber=11841

NRC 2012 Study of Canadian & US Charities http://www.afpnet.org/Audiences/ReportsResearchDetail.cfm?ItemNumber=16703

2013 Luminate Online Benchmark Study https://www.blackbaud.com/nonprofit-resources/onlinemarketingstudy

Integrating Online Marketing (eCRM) with Direct Mail Fundraising Whitepaper http://www.strategic-one.com/Integrated_Marketing_White_Paper.pdf

Landing Page Optimization (Is your donation form working?) http://www.optimizeandprophesize.com/jonathan_mendezs_blog/2007/02/7_rules_for_lan.html

What is Luminate Online? https://www.blackbaud.com/online-marketing/luminate-online