Louise Bellingham & Dale Tomlinson - From Dating to Commitment: Online Fundraising at its Best

From Dating to Commitment: Online Fundraising at its Best

June 8, 2010

Louise Bellingham, VP Marketing, United Way Toronto

Dale Tomlinson, Director, Donor Relationship Management, United Way Toronto

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Workshop Agenda

• Introduction

• Online Fundraising: A Decade of Growth

• Online Philanthropy: Where Relationship Building and Technology meet

• 5 Fundamental Strategies for Success

• Case Study: ABC Company United Way Campaign

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Online Fundraising: A Decade of Growth

• 1995-2000: Initial websites – “Brochure-ware”

• Sept. 11th 2001 : A turning point for Online giving

• www.libertyunites.org

• United Way of New York, Tribute to Heroes Telethon (United Way Toronto sets up 800 number with web based credit card processing and raises over $500,000)

http://www.libertyunites.org/

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UnitedWay@work

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Website

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

1999

2001

2003

2005

2007

2009

Website

CN Tower

ClimbRat Race

United Way Toronto Online Revenue Growth

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• 2009 Direct Mail Stats:

– Rev/Donor: $60.05

– 4 year growth rate:

• Number of gifts: -6%

• Revenue: -7.5%

• 2009 Web Stats:

– Rev/Donor: $109.93

– 4 year growth rate:

• Number of gifts: +29.9%

• Revenue: +4%

Overall Revenue By Channel

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

2005 2006 2007 2008 2009

Direct Mail Revenue Telemarketing Revenue

WEB Revenue Direct Dialog RevenueDRTV Revenue Other/Unknown Revenue

Source: 3rd Annual Cornerstone Global File Audit (www.cstonecanada.com)

Channel Analysis 2005-2009

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• Direct Mail is Still King

– 63% of revenue generated through DM activities

• But what about online?

– One of the few channels that experienced growth in 2009

– Much higher average gift than DM ($50 vs. $30)

– Important channel but doesn’t replace DM or other channels


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0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

1st Year 2nd Year 3rd Year 4th Year

Direct Mail

Telemarketing

Web

Direct Dialogue

DM acquired donors have the highest retention rates year over year

Donor Retention Rates by Acquisition Channel:


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Giving Channels Overall

5%

8%

14%

14%

20%

26%

27%

31%

32%

49%

52%

Social Network Site

Mobile/Text

Monthly Debit

Phone

Third Party Vendor

Honour/Tribute Gift

Fundraising Event

Website

Gift Shop

Cheque by Mail

Checkout Donation

(% who say they have donated in this way in last 2 yrs) Gen Y Gen X Boomer Mature

48% 57% 52% 48%

26% 43% 54% 77%

28% 35% 32% 30%

29% 35% 31% 25%

22% 28% 28% 31%

22% 22% 27% 35%

25% 27% 17% 12%

8% 10% 16% 25%

11% 17% 14% 11%

14% 13% 4% 2%

9% 6% 4% 2%

Source: Convio & Edge Research: “The Next Decade in Online Marketing”, US Study

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Online Philanthropy: Where Relationship Building and Technology Meet

Public Audiences

Housefiles / Site Registrants

Events/Promotions

Annual Giving

Leadership Giving

Major

Giving

High tech,

High touch,

Many people,

Few people,

small gifts

high gifts

low touch

lower tech

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5 Fundamental Strategies for Success

Strategy #1 : Don’t Send Mixed Signals

• Integrate all your supporter messages to synchronize and coordinate your online and offline activities.

• This requires an investment in CRM:

Integrate technologies, systems, organizations, and processes

Integrate data from all over your organization

Synchronize information across various channels

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Strategy #2 : Make Them Want To Come Back For More

• Give supporters a reason to visit you online. Identify value of the online experience for your supporters.

• Why and how do they use the internet? What online information and opportunities could they use that would deepen the relationship?

• 4 categories of value:

1. Access to info regarding organization mission and services

2. Increase convenience/time savings in transactions (donating, volunteering or advocacy)

3. Tools that increase the network of support

4. Online stewardship and information on accountability

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Strategy #2 : Make Them Want To Come Back For More

• Consider the stimulus for campaigns:

• Degree of urgency?

• Time-limit?

• Connection to the donor/prospect?

• Degree of personalization (interests, giving amount, impact of their gift)?

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Strategy #3 : Get Up Close and Personal

• Interact with your supporters – don’t just send messages. Communications must be interactive and enhance relationships.

• Provide easy, useful tools and content that allow your supporters to accomplish their interests and to share their support of your work with their own networks.

• Segment your audience by interest and type of affinity to your organization.

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Strategy #4 : Connect Every Way You Can

• Communicate using multiple methods – think about your offline and online presence as a series of brand experiences.

• How should the donor/prospect experience your organization?

• What is the appropriate mix of communications and what channels will you use (email, website, direct mail, telephone, print)?

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Strategy #5 : Assess and Improve Performance

• Continuously measure and improve results for your organization and experiences for your supporters.

• Critical measure is “return on supporter time” –how well you enable supporters to get what they want.

• Build ways to measure, analyze and adjust into every program and be sure to look at how you acquired supporters that have long term value.

• Try to measure performance on an integrated basis not in channel silos. Real optimization comes from understanding supporter activity across channels.

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Case Study:

Commitment Corporation

Employee Workplace Campaign

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Case Study: Commitment Corporation, Workplace Campaign

Meet Commitment Corporation

• Commitment Corporation and United Way work together to support the local community.

• Commitment Corporation’s United Way campaign:

– Rallies team spirit

– gives everyone the opportunity to get involved

– Is an established part of the workplace culture,

– allows United Way to build on existing relationships and create new ones.

• How did Commitment Corp use best practices to make the most of their campaign?

• How can you translate these ideas into your relationship management program?

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Employees Donated Donation %2008

Giving 2009 Giving 2008 Avg Gift 2009 Avg Gift

Previous

Donors5,695 4,359 77% 3,605,177 3,628,128 633 832

Prospects 9,929 1,301 13% - 425,233 - 327

Total 15,624 5,660 36% 3,605,177 4,053,361 716


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Online vs. Offline Donations (excluding Special Events)

Gift Range Online Donors Online $ Offline Donors Offline $

$1 - $99 2,038 87,253 32 1,225

$100-$199 1,425 181,019 26 2,952

$200-$999 1,158 427,435 11 4,671

$1000-$4999 897 1,298,105 24 34,658

$5000-$9999 50 299,804 8 44,211

$10,000+ 31 535,526 33 1,136,502

5,599 2,829,142 134 1,224,219

% of Total 98% 70% 2% 30%


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The Five Steps to a Successful Relationship

• Don’t send mixed signals

• Make them want to come back for more

• Get up close and personal

• Connect every way you can

• Assess and Improve Performance

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Don’t send mixed signals

• All online and offline materials were developed using Company themes and United Way key messaging

• Videos from President and Heads of Business Units inserted in all emails

• Messages were clear, consistent and repeated often

• Integration is critical:

– offline and online communications

– Contact strategies – maintain ‘high touch’

– Database integration is key

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Make them want to

come back for more

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25

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Make them want to come back for more, cont’d:

• News and Events information posted online

• Facebook cause page

• Twitter

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Get up Close and Personal:

• Grab their attention

– Customized Emails sent to targeted groups

– pay attention to sender name

– entice them with good subject lines

– give a deadline for response

• Use information to personalize the experience

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Connect every way you can:

• Pre-campaign communication through workplace email, posters, intranet

• Highly publicized campaign kick-off, breakfast served by senior management

• Days of Caring /volunteer opportunities

• Leadership breakfasts with United Way speakers

• Peer-to-peer in-person canvassing throughout campaign

• Reminder emails are very effective

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•1st email

Customized by sender with accompanying video.

Leaders and potential Leaders receive Challenge

Grant message.

•2nd email

Gift of Securities deadline reminder and

Campaign Update.

•3rd email

Reminder of online auction and

focus on Challenge Grant. •4th email

Reminder of deadline to make

donation for tax receipt.

•5th email

Final reminder of deadline,

best wishes for holiday season.


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Connect every way you can:

• Online auction and other special events

• Opportunities to give online of offline

• Recanvass phone calls to past donors who have not renewed

• United Way newsletter

• United Way’s main website updated year-round

• Personal stewardship/cultivation for high-end donors

• Opportunity to opt-in for further communication

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Assess and Improve Performance:

• Results evaluated during campaign to allow for change in communication plans, if required.

• Seek feedback: Why do they love you? What don’t they love you?

• Why did they reject you? Learn from your ‘opt-outs’

• Helpdesk tracking of calls

• Program assessed annually

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Recap: The Five Steps to a Successful Relationship

• Don’t send mixed signals

• Make them want to come back for more

• Get up close and personal

• Connect every way you can

• Assess and Improve Performance