“Everything You Need to Know about Increasing Donor and

Board Member Engagement ”presented by

Jay LoveBryan Orander

Premises• Better engaging Key Stakeholders, specifically donors

and board members, can dramatically increase mission impact and sustainability

• There are parallels between donor and board member engagement in:– Personal Giving, – Volunteering,– Attendance at functions and activities, and – Communications

• Tracking and making small changes can create a big difference

Donor or Board Member

Introduction

Education & Experience

Inspiration

Lifetime Supporter

Self-Directed Involvement

Presenters

• Jay Love, CEO and Co-founder Bloomerang• Bryan Orander, President, Charitable

Advisors and Publisher, Not-for-Profit News

Jay Love . . .

120+ Years of Staff Experience

FUND-MASTER

Bryan Orander…

Certified Governance Trainer

Are you tracking Donor and/or Board Engagement in Some Manner?

A. BothB. Donors only C. Board onlyD. NeitherE. Don’t know

“Donor Engagement” is a Direct Influence on “Donor Retention”

(What does Donor Retention really mean for your NPO?)

This scares most NPO Board Members

Let’s dig even deeper into “actual” NPO data . . .

Fundraising Effectiveness Project (FEP)A project to help nonprofit organizations measure and compare

The 2012 Fundraising Effectiveness Survey Report is based on 3,184 responses for 2010-2011, from nonprofit organizations in the United States. The 2010-2011 responses reflected a total amount raised of $2,049,794,709 .

2012 Fundraising Effectiveness Survey Report “FEP”

Participating Donor Software Firms

• Donor2/Campus Management Corporation* PhilanthrAppeal (FundTrack Software)*• DonorPerfect Fundraising Software* The Raiser’s Edge ® (Blackbaud)*• eTapestry* ROI Solutions• GiftWorks (Mission Research)* Sage Software*• MatchMaker FundRaising Software* Telosa Software (Exceed!)• Metafile*

• Charter member of the AFP Donor Software Workgroup

Project Sponsors

• Association of Fundraising Professionals (AFP)* Center on Nonprofits at the Urban Institute*• Association of Donor Relations Professionals (ADRP) Center on Philanthropy at IU• Council for Advancement and Support of Education (CASE) Council for Resource Development (CRD)• National Committee on Planned Giving (NCPG)

• * Founding partners, providing resources for the project.

Latest FEP Data on Donor Retention Rate is the 2011 Report

Donor Retention Rate was 41%which means

Donor Attrition was 59%!

Yes, your eyes read correctly . . .

Nearly SIX out of every TEN Donors from the previous year did NOT donate at all the next year!

“A mere 10% up in retention can increase the lifetime value of the fundraising database by 200%”

“70% of All New Donors Never Renew!”

Dr. Adrian Sargeant

Professor of Fundraising at the Center on Philanthropy at Indiana University holding what is presently the world’s only endowed chair in that discipline.

Professor of Nonprofit Marketing and Fundraising at Bristol Business School (U.K) and an Adjunct Professor of Fundraising at the Australian Centre for Philanthropy and Nonprofit Studies.

Top 10 Most Influential People in Fundraising

Key Reasons For Donors Leaving(in order of relevance)

• No longer able to afford support • No memory of ever supporting!• Does not feel organization needs my support• Not reminded to give again• Organization did not inform how monies were used• Did not feel connected! (ENGAGEMENT)

Donor Engagement Discussion

What ways are being used to track this key element of success?

A. Spreadsheet showing attendance, responses and gifts

B. Report(s) within database or CRM program

C. Gut feel of fundraiser(s)

D. Not considered doing yet?

Action steps?

Engagement Tracking Can be Easy if not Fairly Automatic

• Must be systematized in some manner• Will be common in systems in the future • The actual results will surprise you• Let’s explore how one new system achieves

Constituent Summary

Engagement Factors

• Donation in last 12 months +• Multiple donations +• Current recurring donation/pledge +• Full year or more of recurring giving +• Multiple channel giving +• Upgrade +• Downgrade -• Lapsed -

Engagement Factors (cont.)• Event attendance +• Multiple events +• Posting on NPO’s Facebook wall +• Post about NPO on Donor’s Facebook wall +• Tweet about NPO +• Donor replies to a tweet +• Has a phone number on file +• Has stated communication preferences + • Has indicated interests +

Engagement Factors (cont.)• Opens emails from NPO +• Clicks on links in emails +• Opted out of NPO emails -• Donor has called NPO +• Donor supplied updated address info +• Donor has logged into NPO web site +• Has responded to a survey +• Has volunteered + • Has indicated a bequest +

Now…Let’s Talk About Boards

Dysfunctional

Functional

Responsible

Exceptional

dramatic disengagement,

conflict

of no real consequence

compliant

anticipates, plans, sees

opportunities

Unconscious Conscious Enlightened

Where is Your Board?

The Benefits of an Engaged Board• Clearer vision and purpose• Better able to define priorities while developing and

allocating resources • Budget and spend money more effectively• Earn the confidence of community/donors• Stronger and deeper connection to the community• More sustainable fundraising efforts• Buffer board and/or key staff turnover

Low Engagement

• What does low engagement look like?• Is it just low meeting attendance?

Board Member Buy-In

Apathetic

Doesn’t Really Care

Infrequent Attender

Needs Frequent Reminders

Attentive

Listening Politely

Attending Most Meetings

Not Yet Engaged

Analyzing

Wanting to Understand

Where Do I Fit In?

Do I Believe in Cause, this Agency?

Assisting

Believer

Caught Vision

Act when Asked

Actively Participate

Activist

Advocate/ Evangelist

Sharing Vision

Initiating Action

Recruiting Others

Obligation << Motivated By >>>>>>>>>>>>> Vision/Mission

Charitable Advisors LLC © 2003

*New members usually start here*

The Board Member’s PerspectiveBoard Members want to:• Make a real difference• Give back• Make new connections• Develop new skills• Enjoy the experience

Board Change Research - Mary Hiland, Ph D• New vision for board - a “nudge” – from a facilitator or board member attendance at outside training.

• The Board Chair - critical in creating (or inhibiting) movement and building momentum for change, in partnership with the executive director.

• Intention - Study participants described a specific, articulated intention to develop the board: ”We were obsessed with board development.” “Status quo was not OK.”

Increasing Board Member Engagement• Recruitment criteria for new members; (time, financial skills,

knowledge of org, past volunteer exp)• A board culture that encourages members to influence the

board’s focus and agenda, not controlled by board chair and CEO or Executive Committee;

• Institutionalize a process for boards to monitor their own performance.

• Beware of boards slipping into an internal focushttp://www.urban.org/UploadedPDF/411659_midsize_nonprofits.pdf

Three Key Areas to Emphasize

• Board Purpose• Organization Impact• Relationships

How Might a Board Track Engagement?Giving• Gift in past 12 months• Multiple year giving• Recurring (monthly, quarterly) gifts• Employer gift• Identifying potential donors/supporters • Bequest indicated• ?

Participation• Board & Committee Meeting attendance• Presence at events• Volunteer• Active in leadership role• Active participation in board discussions• Recommending board member candidates• ?

Communications• Highlight agency on Facebook, LinkedIn, social media• Responsiveness to board work through e-mail or board portal• ?

What ideas do you have?

All Attendees who allow us to perform an Analysis of Your Needs within the next 30 days receive a Special 10% Discount Voucher that is valid in the 1st Quarter of 2013!

Please visit us at www.Bloomerang.co

Bryan Orander…Certified Governance Trainer

PLEASE:•Contact us about your CEO/Executive Director leaving/retiring•Subscribe to the FREE Not-for-Profit News•Use our free Central Indiana 2012 Nonprofit Salary Survey•Contact us for Board Training

Bryan@CharitableAdvisors.comwww.CharitableAdvisors.com 317-752-7153