1. Winning the War of Attrition: Keeping & Building Your
Donor Base for Annual Giving Success Jason Fisher, CFRE
RuffaloCODY
2. Understanding the Landscape 1) Understanding the Landscape
and Challenge 2) Planning and Forecasting for Success 3)
Stewardship and Marketing Arent Add-ons 4) Investing in Data
Resources 5) Channel FundraisingHow Does Your Pie Look?
#AligningExperts
3. Understanding the Landscape #AligningExperts
4. The Uphill Battle Alumni Participation (VSE)
#AligningExperts
5. Nonprofit Competition The Rise of the Internet Age
Philanthropic Priority List Maintaining Relationships Donor Fatigue
FACT: Higher education is in tremendous competition with other
non-profits for discretionary, charitable spending.
6. The Philanthropic Priority List Competition for the
Charitable Dollar Has Never Been Greater Constituents consider many
organizations before deciding where to give. Factors include: Best
or most worthy charities Loyalty Nostalgia Impact of potential gift
Responsibility to give back Recognition Education on subject
Previous giving and investment #AligningExperts At the beginning of
the internet revolution in 1995, there were 1.1 million U.S. based
nonprofits. In 2008, that number was 1.5 million*- a 35% increase.
Higher education must state their case emphatically! Stats courtesy
of the National Center for Charitable Statistics (NCCS).
7. The Gen Y Impact A Look Inside Why Young Alumni Do Not Give
Phonathons Must Address and Prepare for Student Loans / Rising
Tuition Objections *Sample Size- 700 students from 36 institutions
*Information courtesy The Gen Y Impact - Josh Robertson, Director
of Operations at RuffaloCODY.
8. The Gen Y Impact Why Young Alumni Do Give Loyalty,
Appreciation, and Self-Interest Stand Out for Reasons to Give.
These Should Be Reflected In Phonathon Scripts and Training
Materials *Information courtesy The Gen Y Impact - Josh Robertson,
Director of Operations at RuffaloCODY.
9. Changes to our Industry Five Certainties in Future Years 1)
The smallest details matter now more than ever. A failure in
planning and strategy will greatly reduce the chances for success.
2) Institutions that do not identify and gather cell phones and
improve overall demographic quality will fall behind and ultimately
fail. 3) Communication must be focused on relationship building
before, during, and after the solicitation. Start early- before
they graduate. 4) Personal, two-way communication will continue to
drive successful annual funds, particularly as it relates to
leadership and major gift cultivation. 5) Donor education must be a
top priority to move your institution higher up on the
Philanthropic Priority List. Use social media and other new
technologies as a marketing and alumni relations tool.
10. The Major Gift Influence The Focus in Todays Development
Offices Increased Funding Needs at Institution Tighter Budgets and
Fiscal Restraint Fewer Staff/Resources Increased Annual Goals
Institutions must take caution not too focus too heavily on major
gifts at the expense of annual giving resources. Eventually, the
forest must be replanted before new trees can be harvested. During
the economic challenge of the past 5 years, the trend to focus
heavily on the upper level donors who can contribute significantly
is increasing. Alumni participation is important and should not be
overlooked, but cultivating leadership gifts is an undeniable
primary outcome of annual giving.
11. The Origin of Leadership Giving Cultivation Cannot Be
Skipped Results from an actual institution. This clearly shows that
leadership gifts take time to cultivate. A recent University
reported it took an average of 26 gifts over 17 years to reach the
lifetime giving threshold needed to be classified as a major gift.
Annual giving program s are judged annually, while the true benefit
takes much longer to materialize.
12. Why Cultivation Matters A Snapshot of One Institutions Top
7 Donors #AligningExperts
13. Planning and Forecasting #AligningExperts Focus on the
cone, not the geographic middle of your data. There is always some
forecasting error. Learn from mistakes and refine your assumptions
over time. But, always have a plan.
14. What Forecasting Isnt #AligningExperts Forecasting is an
art form and a science. There is little guesswork involved,
particularly for the established program.
15. Details Matter in Forecasting The value in forecasting isnt
being 100% accurate, its measuring the variance from your educated
decision-making. All forms of solicitation should be mapped
outphonathon, direct mail, etc. Leave nothing to chance.
#AligningExperts
16. Dig Deeper Analyze Data In a Different Way #AligningExperts
This graph shows how long it took for a direct mail gift to be
receipted vs. the actual send date. Knowing this level of detail
helps you more effectively time your pieces within the solicitation
calendar for maximum impact.
17. Statistical Analysis Grad Year Analysis #AligningExperts If
youre not analyzing your previous results at a granular level, you
cannot properly strategize about where to allocate your
resources.
18. Proximity Comparison Participation- Overall Database
Example 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 2006 2007
2008 In-State Out of State 479 Area Code This analysis from the
University of Arkansas several years ago (Sybunt population) shows
a definitive difference in how out-of-state alumni view the UA
experience.
19. Visual Data Example Donor Growth Charts #AligningExperts
Fiscal Year 2013 TOTAL LIVING ALUMNI: 14,706 Objectives to improve
current donor volume and alumni participation: 1) Identify lost
alumni and develop a research plan to increase solicitable pool. 2)
Concentrate donor education most heavily on recent graduates and
current students. 3) Continue stewardship and alumni relations
efforts, especially the last 15 class years. 4) Analyze donor
retention figures and develop a plan to maximize those efforts.
Good news/bad news: 5) Continue current efforts to introduce new
technologies into annual giving. Good: A full two-thirds (67%) of
living alumni have given in their lifetime. 6) Concentrate on
pipeline cultivation efforts to increase leadership gift
opportunties. Bad: 33% last gave 6+ years ago, nearly half the
total living donors. 7) Review current "dashboard" statistics and
benchmark reporting to conform with critical areas. *We need to
identify areas of opportunity for long-lapsed reaquisition. 8)
Identify areas of reconnection within long lasped population. Key
Figure-- 67% (2/3) of total alumni have given in their lifetime.
*Recent graduates (1-10 years) make up 20% of total alumni, but 30%
of all nondonors. NOTE: This is an estimate based on typical
industry figures. Lost= No valid telephone, e-mail, or mailing
address *All 3 must be missing to qualify as lost and "not
solicitable". **Finding lost alumni is key to increasing volume of
donors pre-campaign. XYZ University Donor Cycle Report 50% is a
respectable figure for senior class giving. However, to improve
alumni participation rate, we will need to increase this figure by
introducing philanthropy immediately as students step foot on
campus. *15% is not a poor figure if the long lapsed rate wasn't so
high. Too many sybunts are dropping to a longer lapse of giving.
Reacquisition of one-year lapsed will be an important component in
improving donor volume. Nondonors Sybunts Long Lapsed Donors
NewGrads Nondonors Lybunts Donor Aquisition Retention% LL
Reaqusition % Reacquisition% Sr. Class Nons Lost Records 4,882
?,??? 2,168 4,898 160 2,758 SeniorClass Donors 154 Sr.ClassDonors
33% 49% 19% 33% 15% 51% 15-20% ? Visually understand the flow of
donors in and out of your database. Know precisely what it takes to
move your program up a notch or two.
20. Planning and Forecasting Donor Growth Matrix Fiscal Year
Total Alumni 18.75% 19.00% 19.50% 20.00% 20.50% 21.00% 21.50%
22.00% 22.50% 23.00% 23.50% 24.0% 24.50% 25.00% FY'13 14,706 2,758
2,794 2,868 2,941 3,015 3,088 3,162 3,235 3,309 3,382 3,456 3,529
3,603 3,677 FY'14 15,001 2,813 2,850 2,925 3,000 3,075 3,150 3,225
3,300 3,375 3,450 3,525 3,600 3,675 3,750 FY'15 15,301 2,869 2,907
2,984 3,060 3,137 3,213 3,290 3,366 3,443 3,519 3,596 3,672 3,749
3,825 FY'16 15,616 2,928 2,967 3,045 3,123 3,201 3,279 3,357 3,436
3,514 3,592 3,670 3,748 3,826 3,904 FY'17 15,931 2,987 3,027 3,107
3,186 3,266 3,346 3,425 3,505 3,584 3,664 3,744 3,823 3,903 3,983
FY'18 16,256 3,048 3,089 3,170 3,251 3,332 3,414 3,495 3,576 3,658
3,739 3,820 3,901 3,983 4,064 FY'19 16,600 3,113 3,154 3,237 3,320
3,403 3,486 3,569 3,652 3,735 3,818 3,901 3,984 4,067 4,150
#AligningExperts Calculate anticipated growth in the solicitable
base and factor that into your charts. How much does 1% represent?
How many donors over time will it take to achieve that
increase?
21. Understanding the Database Know the profile of key segments
or constituencies Build plans with the details that are often
overlooked Challenge Assumptions #AligningExperts
22. The Purposeful Jigsaw Puzzle Building a Comprehensive
Solicitation Calendar #AligningExperts Multichannel Master
Calendar- FY'14 XYZ University Project Title Category Medium
Audience Quantity Frequency Target Launch/Drop Date Fiscal Year
2014 Kickoff E-Solicitation Solicitation E-mail All Alumni with
e-mail addresses 5,000 Once Online Survey- Alumni Online Survey
E-mail All non-young alumni donors with e-mail address 10,000 Once
Online Survey- Young Alumni Online Survey E-mail All young alumni
donors will e-mail address 15,000 Once Bad Phone Letters
Solicitation Direct Mail Letter All alumni with coded response of
DIS, RN, and WU 17,000 Daily CYE E-Solicitation- Alumni
Solicitation E-mail All alumni with prior gift history that have
not yet made FY'14 gift 21,000 Once CYE Direct Mail Letter
Solicitation Direct Mail Letter All alumni with prior gift history
that have not yet made FY'14 gift 30,000 Once CYE E-Solicitation-
School of Business Solicitation E-mail All School of Business
graduates with valid e-mail address 12,000 Once CYE Direct Mail
Letter- Parents Solicitation Direct Mail Letter All parents with
valid physical mailing address 7,500 Once Parent New Year
E-Solicitation Solicitation E-mail All parents with valid e-mail
address 4,000 Once Project Information
23. Stewardship and Marketing Start with Constituent Education
Build a Brand Identity Think Like a Small Nonprofit; Execute Like a
Successful Business Donors Want Transparency and Tangibility, Not
Simply Just a Thank You #AligningExperts
24. Changing Personal Communication More channels, less direct
conversation Two-way dialogue has been altered Affects ability to
have conversation and negotiate Relationships must be developed
first! People are choosing large networks with shorter, more
to-the-point conversation, rather than smaller network with longer
conversations. Soren Gordhamer, Changing Communication as We Know
It: Twitter. Social media such as Twitter has altered how people
communicate
25. Top 5 Social Media Websites #AligningExperts
26. Facebook Its Marketing 101 #AligningExperts
27. Twitter Example #AligningExperts
28. LinkedIn #AligningExperts
29. Speak Their Language Using Cell Phones in Alumni Relations
and Stewardship #AligningExperts Text Messaging Drive participation
at events Reunion activities Class updates Institutional
announcements Cost effective and instantaneous Coordinate
solicitation calendar using all contact methods Integrate text
messaging into a comprehensive annual planned calendar of
stewardship and solicitation Use technology to communicate with
alumni using their preferred method Recent graduates in particular
Start early (when theyre students) for maximum effectiveness Using
text messages to solicit alumni for contributions is not a best
practice in higher education fundraising. However, it has been used
successfully in alumni relations and donor education. Start by
using it as a marketing and informational tool. Be sure to have
them opt in to receiving texts for legal compliance.
30. Investing in Data Resources 45+% of college graduates move
home 130K USPS Address Changes Daily 17% Create New Email address
every 6 months Todays data will be old tomorrow! Cell Phones E-mail
Mailing Addresses Employer Information Matching Gift Info
Increasing donor volume has to begin with strategies to increase
the solicitable base. #AligningExperts *Stats courtesy Josh
Robertson
31. Changing Communication Investing in Data Research
#AligningExperts*Graph courtesy of CDC wireless report 2012
32. Overall Telephone Database Breakdown Verified or Appended
Telephones Total Prospect Quantity- 2,691,144 (13 Universities)
Cell Cell Phone Only- 581,206 Business Business Only- 112,289
Landline Landline Only- 1,306,573 307,462 56,359 259,916 67,339
Line Type Number Percentage Cell Only 581,206 21.6% Landline Only
1,306,573 48.6% Business Only 112,289 4.2% Cell and Landline
307,462 11.4% Cell and Business 56,359 2.1% Business and Landline
259,916 9.6% Cell, Landline, & Business 67,339 2.5% TOTAL
2,691,144 100%
33. The Blueprint for Cell Phones in Phonathon 3 Steps Every
Program Should Take STEP 1 Data Integrity Identify Cell Phones From
Existing Database Obtain Cell Numbers from Emergency Records Use
Student Callers to Verify and Capture Cell Phones Send Numbers to
Cell Append Research (Lost, Landline Only, Non-contacts) STEP 2
Managerial Tactics and Strategy Segment Cell Phones into Separate
Calling Pools Scripting Adjustments and Objection Techniques Text
Messaging in Alumni Relations and Stewardship The Alumni
Participation Problem- Cell Phones Can Help STEP 3 Statistical
Analysis Measuring Cell Phones vs. Landline Results Graduation Year
Region/Area Code Contact Rates All Relevant Statistics
(Participation, Average Pledge, etc.) #AligningExperts
34. Data Integrity Determine Opportunity How much money is your
program leaving on the table?
35. Channel Fundraising A Changing Landscape? Phone Direct Mail
E-solicitation Leadership/Personal Solicitations Crowdfunding
#AligningExperts The Demise of Personal Solicitation Has Been
Greatly Exaggerated. Still, embrace the new methods and technology.
It will take a comprehensive approach to be successful.
36. The Death of Phonathon? Phonathon at the Margins Contacts
have decreased, but have not stopped. Communication is changing,
but not stopping. Diversify your portfolio of solicitations. Be
smarter and more efficient with your resources. Have a plan. You
must know precisely what you want your phone program to accomplish.
Be realistic. Phonathon remains the dominant donor acquisition and
retention tool on campus. Annual giving always requires
investmentphone is no different. Phonathon is harder today than it
was 10 years ago. It takes more expertise to extract the
productivity potential of a program. The fish are not jumping in
the boat. Be strategic.
37. Crowdfunding #AligningExperts *Info courtesy ScaleFunder
and UTSA
38. Online Giving Strategies What Works in Higher Education?
#AligningExperts
39. Thank you! For more information contact: Jason Fisher, CFRE
| [email protected]| (251) 422-2335 Please complete the
session evaluation at: insert web address here