Is the Check Still in the Mail? Fundraising Best Practices for 2013 and Beyond

Fundraising  Best  Prac0ces  for  2012  and  Beyond  

Is  The  Check  Still  In  The  Mail?  

Chip  Grizzard  September,  2012   Join  the  Conversa.on  on  Twi1er!  

           #fgwebinars  

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Thanks  for  joining  us  today!  

chip@grizzard.com  @chipgrizzard  678.427.9716  www.grizzard.com  

Chip  Grizzard  CEO  

chip@grizzard.com  @chipgrizzard  678.427.9716  www.grizzard.com  

•  Partnerships  with  more  than  1,400  nonprofits  in  North  America    

• Raised  $4  billion      •  200  associates  na0onwide  • We  help  clients  improve  results  by  building  passionate  and  loyal  donors.    We  do  that  through  beWer  messaging,  digital  integra0on,  and  mul0-­‐channel  fundraising  strategies  

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Grizzard  Communications  Group  

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 $-­‐        

 $50    

 $100    

 $150    

 $200    

 $250    

 $300    

 $350    

2001   2002   2003   2004   2005   2006   2007   2008   2009   2010  

Offline  Revenue  Trend  

0  

5  

10  

15  

20  

25  

2001   2002   2003   2004   2005   2006   2007   2008   2009   2010  

Online  Revenue  Trend  

In  billions  

In  billions  

What  Does  the  Future  Hold?  

Nega0ve  Trends  

•  Response  rates    are  declining    

•  Compe00on  is  increasing  

•  Costs  are  increasing  •  Donor  confidence    is  eroding  

•  Acquisi0on  of  new  donors  gets  harder  and    more  expensive  

Posi0ve  Trends  

•  More  people  in  the    giving  age  groups  

•  They  have  more  money  

•  Overall  consumer  confidence  is  high  

•  Total  giving  is  up  •  Average  gibs  are  up  

“There's  just  not  that  many  videos        I  want  to  watch.”      Steve  Chen,  Co-­‐Founder  YouTube  

“Apple  is  dead.”        Nathan  Myhrvold,  former  CTO  of  Microsob      

Neglix  vs.  Blockbuster  (2004  -­‐2010)  

$4  Billion  

$6  Billion  

$2  Billion  

$0  

2004   2005   2006   2007   2008   2009   2010  

$2.2  Billion  

bankrupt  

CHANGING  LANDSCAPE  

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Characteris0cs  of  Boomers  •  They  want  control  over  what  their  giving  does    

•  They  give  larger  amounts  less  frequently  and  to  fewer  chari0es  

than  older  donors  

•  They  are  slightly  less  responsive  to  direct  mail,  which  means  we  

need  to  get  our  act  together  online    

•  They  cross  channel  lines      

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Five-­‐Year  Overall  Index  New  Donor  Trends  

Cumula0ve  Rolling  12-­‐Month  Median  Change  from  Q3  2006  

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 Mail  Volumes  Shi6ing  to  a  Less  Profitable  Mix  

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The  Digital  Connec0on  

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Senior Donors

Boomer Donors

Funding Gap

2016

ACQUISITION  

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             Short  Term:      

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Short  Term  vs.  Long  Term  Strategy  

 Long  Term:  

TRANSACTION  FOCUS:  point  of  

acquisi0on  

Average  Gib  

Response  Rate  

Cost  

DONOR  FOCUS:  life0me  value  

Cul0va0on  Poten0al  

Engagement  

VS.    

Actual  Long  Term  Value  

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$1,635,000  projected  five  year  revenue  from  all  donors  acquired  

5,000  donors  acquired  

$48.00  ini0al  

average  gib  

$327  projected  five  year  

revenue  per  donor  

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Ques0ons???  

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ENHANCE  QUALITY  OF  DONOR  RELATIONSHIPS  

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Timeliness  of  Thank  You’s  

•  24  Hours    20%  Response  •  72  Hours    15%  Response  •  5  Days    7%  Response      •  7  Days    4%  Response  •  14  Days    1%  Response    

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2011  Thank  You  Study  (Direct  Mail)  

•  15  gibs  made  on  11/24/11  •  73%  sent  a  thank  you  •  Fastest  turnaround  –  6  days  •  Average  turnaround  –  6  weeks  •  3  name  changes  not  made  

2011  Thank  You  Study  (Online)  

•  10  organiza0ons  supported  11/24/11  •  Average  clicks  to  donate  –  4  •  Most  clicks  to  donate  –  9  •  Duplicate  records  –  4  •  Emails  sent  since  gib  

  4    orgs.  sent  no  emails  

  1  org.  sent  11  emails  

  Average  –  3  emails    

A  Personal  Message  from  Jimmy  Carter  

Thank  You  Video  

Hold  a  Donor  Conference  Call  

•  5,097  calls  made  •  823  accepted  •  102  listened  for  en0re  25  minutes  

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IMPACT:  

       13.4%  Increase  in  Net  Revenue  over  next  6  months      

Thank  You  Calls  

Are  thank  you  calls  effec0ve:  •  Donors  will  give  40%  more  •  Reten0on  increases  by  20%  •  Average  gib  increases  by  20%    

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INTEGRATION  

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32%  of  online  donors  switch  channels  and  give  offline  the  next  year  

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The  Crea0ve  

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Billboard  

Banner  Ads  

Space  Ad  

FSI  and  Q-­‐zip  

Direct    Mail  

Landing  Page  

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Integrated  Engagement  Increases  Loyalty  

New  Donor  Renewal  Rate  

Legacy   Internet  Enabled  

34.4%  

50.9%  

Legacy   Internet  Enabled  

$96  

$187  

Legacy   Internet  Enabled  

$314  

$694  

Donor  Value    12  Months  

Life0me  Donor  Value  

+48%   +95%   +121%  

PLANNED  GIVING  

The  Texas  Division  ini0al  pilot  Survey  was  mailed  in  September/October  2010.    

Planned  Giving  Survey  Project  

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Planned  Giving  Survey  Project    •  3,983  responses  •  44  new  planned  gibs  iden0fied  -­‐  $13  million  •  Investment  -­‐  $83,593  

Year-­‐End  Strategy  –    What  to  do  right  now!  

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20%  of  Online  Giving  in  December  

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Engage  Website  Visitors  

• Keep  Content  Fresh  • Clear  call  to  ac0on  • Prominent  Donate  Now  BuWon  

• Use  images/video  to  tell  a  story  

• Include  address,  phone  and  email  contact  informa0on    

• Simple/Effec0ve  Dona0on  Process  

• Strong  Thank  You  Process  • Op0mize  for  Mobile  

• Improve  SEO  

• Mul0ple  list  building  areas  (newsleWers,  alerts,  pe00ons,  store,  etc)    

LYBUNT  

3,095  Donors    

$400,442  

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The  Match  

Iden0fy  a  Matching  Gib  NOW    

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Video  Strategy  •  Videos  on  a  pace  to  account  for  half  of  all  web  

traffic  by  2014.  

•  Video  in  an  email  can  drive  a  24%  higher  average  gib.  

•  Include  dona0on  and  registra0on  links  in  video.  

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SeaWle  Children’s  Hospital  

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“They  may  forget  what  you  said,  but  they  will  never  forget  how  you  made  them  feel."  

THANK  YOU!  

chip@grizzard.com  @chipgrizzard  678.427.9716  www.grizzard.com  

Chip  Grizzard  CEO  chip@grizzard.com  @chipgrizzard  678.427.9716  www.grizzard.com  

Oct.  30  Grizzard  Webinar:  “Turning  Silver  into  Gold:  Onboarding  New  Donors”  Register  at  grizzard.com    

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