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© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 1
PART II Welcoming and retaining our donors
Too few donors retain loyalty to one or more charities. What are we doing wrong?
What can we do right?
WORKSHOP ON DONOR ACQUISITION AND RETENTION
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 2
Issues for Today’s Presentation
1. Why are our donors leaving us? 2. “The fault is in ourselves, not in the stars”3. What donors want and expect4. Not all donors are the same5. Welcoming our new donors6. Keeping them with us7. Re-activating them
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 3
What Donors are really wondering
Can I trust you with my money?If I give, what can you do?What did you do?Do you appreciate me?
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 4
Reasons why donors say they leftStudy conducted by Adrian Sargeant, Indiana University in 2001
Reason % in USA
Cannot afford to continue 54%
Other causes are more deserving 36%
Poor quality of service to donors 18% *
Death or relocation 16%
Did not acknowledge my support 13% *
Don’t remember supporting them 11%
Did not tell me how they used my support
8% *
No longer need my support 6%
Continuing support in other ways 3%* Factors we can do something about
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 5
Factors reducing Donor Loyalty
Recognition. Inappropriate or insufficient.Personal benefit vs. altruism. Donors looking for some benefit in return for their gifts.Peer pressure. Donors who made a gift under pressure from their peers.Service. Donors who felt service was poor.
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 6
What Donors Want
To be recognized and valued for the gifts they makeTo feel good about their givingTo understand how their money is being used and what difference it makesTo be inspiredTo feel involved – a part of somethingTo be impressed by the charityTo be asked their opinionTo know they are really listened to
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 7
What is Relationship Fundraising?
Textbook Definition:
“An approach to the process of donor exchange based on the long-term value that can accrue to both parties.”
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 8
Relationship Fundraising
If you use a Relationship Approach it affects:
How you will find a donor (Telefacing and F2F)How you get to know the donorHow you keep in touch with the donorHow you ensure they get what they wantEnsures that you keep checking that they are getting what was promised
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 9
Why care about Relationship Fundraising?
Long-term, it costs far less than transaction-based fundraisingIt costs ten times as much to acquire a new donor than to keep one.It leads to “donor churn and burn”It poisons the fundraising market for everyone.The uneducated donor is the donor who never returns.
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 10
Transaction-based vs. Relationship Fundraising
DifferencesTransaction-based
(India Today)Relationship-based (India Tomorrow)
Timescale Short Long
Focus Many Single donations Building Loyalty
Key indicatorsused
Response rate, Donation amount,
Immediate ROI
Long-Term Value
Orientation Stress urgency of the cause
Build relationship
Customer Service
Ignored Accentuated
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 11
NOT ALL DONORS ARE THE SAME!
11
So don’t treat them all the same way
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 12
New Donor
Someone who has just given, but only for the first time.We know very little about his/her future giving patterns.We do know there are Four groups….
Namaste!
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 13
1. Responders
People who have responded to an appeal, but have no intention of developing a relationship with the organization.These people have just been caught at the right moment, with the right appeal message.There is little we can do to persuade these people to donate again.This group represents about 60 per cent of all people who made a first donation.
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 14
2. Potential donors
Have a general interest in the causeCan be motivated to give againNeed to be renewed in the same way as they were recruited Can only be considered confirmed donors once they have given two or more timesRepresent about 40% of acquired donors
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 15
3. Passive donors
Satisfied to just give to the organization, without getting more actively involved.Can be very loyal but do not expect a lot of involvement or feedback.Do care passionately about the organization.Are also candidates for monthly giving.Represent about 25% of the total names acquired
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 16
4. Motivated donors
Want a deep commitment to the causeAre loyal donors, but have to receive excellent donor careWilling to advocate for the cause and maybe participate in other activities, e.g. volunteering, events, and even fundraisingRepresent about 15% of the total acquired donors
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 17
There are All kinds of donors!(Chart adapted From A. Sarjeant and E. Jay “Building Donor Loyalty”)
POTENTIAL DONORS(40%)
MOTIVATEDDONORS
(15%)
RESPONDERS(60%)
PASSIVE DONORS
(25%)
Strength of relationship
Investm
en
t p
ote
nti
al
Acquired Donors
Confirmed Donors
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 18
Donor communication
Make donor communication part of your appeal cycle. Build the relationship between donor and CEO.Design and package newsletters as appeals.Send at least 3-4 newsletter appeals per year.Send an annual report.Focus newsletters on themes that have been mentioned in appeals.Send occasional “special report letters”.
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 19
Types of Communications
• Welcome package• Newsletters, mailed and emailed• Renewal solicitations• Campaign updates• Annual reports• Greetings for holidays and birthdays• Invitations (think annual meeting, even a virtual
one)• Website (think video)• Special, exclusive offers and appeals• Social media (Facebook, Twitter...)
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 20
The New Donor WELCOME Process
Thanking and welcomingSending out the welcome pack and questionnaireFollow-up telephone callsFollow up with special welcome appealsIntegration of new donors into the House Renewal cycle
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 21
First Impressions Make All the Difference
Receiving DonationsThank first: Enter data second: Deposit money third (TED)Find out what each donor wantsDevelop the best possible welcome programme
Speed of responseContents and format of packageTelephone follow-up, when appropriate
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 22
The Welcome Pack
Thank you letter and tax receiptQuestionnaireSend a follow-up email and/or phone callDevelop a database to “flag” donors’ preferences
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 23
The Welcome Letter
Thank you letter from CEOThank and thank againIntroduce the CEODescribe the types of relationship being offeredMention occasional phone contact for updates and emergencies.Feedback on acquisition themeGive the letter a personal look.Include tax receipt
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 24
The Questionnaire
Explain its purpose: “To understand you, the donor, better and to be able to provide you with the best information available on: How your money was spent What is happening in our world (children,
animals, human rights) What you have empowered our organization
to do How we can help you do more in the future Your privacy preferences Your preferences on how we communicate
Introduce each question with an explanation.
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 25
Questionnaire topics 1
Personal statistics (assure privacy)Date of birth (both for age as well as to know the birthday)Telephone numbers (home and mobile) Email addressProfessionEducational levelMarital Status and number of childrenIncome range (Optional)
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 26
Questionnaire topics 2
Programme Interests, scoring 1-5, e.g. ImmunizationHungerEducationEmergency ProgrammesHealth IssuesProviding clean waterBetter nutritionHIV/AIDS prevention
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 27
Questionnaire topics 3
Contact PreferencesInterest in sustained giving (Automatic monthly) Email preferences. Email newsletter? (multiple, occasional or no email contact)Emails in emergencies?Willing to accept occasional telephone calls?
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 28
Questionnaire Topics 4
ReportingAnnual reports, Occasional publications.Field reportsNewsletters
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 29
Questionnaire Topics 5
Other Giving OpportunitiesLegaciesFriends get friendsInterest in committed giving (monthly)?
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 30
Questionnaire Topics 6
Giving BehaviourWhat other charities they support?What causes they are interested in supporting: children, health, animals, environment, religion, etcWhy they support us?
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 31
Follow-up telephone calls
Allow two weeks for receipt of questionnairesPlan telephone campaign to non-respondents eliminating those who have opted outTry to reach all new donors within 6 weeks of initial giftBased on Q. results, place each donor in a category for further contactsDevelop house renewal cycle
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 32
Donor communication
Make donor communication part of your appeal cycle. Build relationship between donor and CEO.Design and package newsletters as appeals.Send 3-4 newsletter appeals per year.Send an annual report.Focus newsletters on themes that have been mentioned in appeals.Send occasional “special report letters”.
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 33
Monthly Donor Cultivation Cycle
Welcome
Ask
Report
Ask
Report
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 34
Exercise
Imagine you are planning a Donor Contact Cycle (DM or other media)How often do you want to contact your donors?When do you want to contact them?When do you want to send them a newsletter? Before or after an appeal?Complete the forms in groups of two
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 35
Typical Mail/F2F cycle
2012
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
AcquisitionRep Day
ACQSpringACQ
SummerACQ
Diwali ACQ
Welcome W W W W
House Appeals MP NL REN NL REN NLDiwali REN NL
2013
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
AcquisitionRep Day
ACQSpringACQ
SummerACQ
Diwali ACQ
Welcome W W W W
House Appeals MP NL REN NL REN NL REN NL
© Richard M Pordes LLC
Master Class on Donor Acquisition and Retention - Part II Welcome/Retention23rd December 2011, India Islamic Cultural Centre, New Delhi 36
36
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