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!

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[email protected] @chipgrizzard 678.427.9716 www.grizzard.com

Chip Grizzard CEO


•  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%


$96

$187


$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 CEO [email protected] @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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Is the Check Still in the Mail? Fundraising Best Practices for 2013 and Beyond