8 steps to fundraising success
DESCRIPTION
There’s a lot more to fundraising than just asking for the gift! There are 8 steps you can take to ensure a more stable future for your organization. Join Kirsten Bullock and Jay Love for a discussion on fundraising and donor retention. Kirsten will draw on her years of experience to present a high level view of the eight steps to fundraising success, and Jay will offer best practices in donor retention to make sure you hold onto those donors!TRANSCRIPT
8 Steps to Fundraising Success
July 16, 2013
Kirsten Bullock, CFRE| Jay Love
About Kirsten
• Camp• Brother• Theater• Social Work• Business• Nonprofits
STEP ONE: Understand Your Environment
FUNDRAISING MODEL
STEP TWO:Crystalize Your Vision
STEP THREE:Communicating Your Vision
(or the case for support)
Case Statement
• The Need• The Program• The Cost• Why You?
STEP FOUR:Who to Ask
• Linkage • Ability• Interest
STEP FIVE:Get the Word Out
Raising AwarenessHigh Engagement
Recruit friends/familyUpgrade monthly donationSignup for monthly givingRenew single donationMake single donationMake a phone callWrite a letterAttend a "real world" eventSign petitionViral / Tell a friendSend an e-postcardSubscribe to e-Alerts / Issue AlertsSubscribe to eNewsletterVisit website
Low Engagement Source: http://groundwire.org
STEP SIX: Ask
Asking for a Gift
Fundraising Cycle
STEP 7: YOUR PLAN
Used with permission.
STEP EIGHT: Build Your Team
Visit www.HelpforSmallNonProfits.com/goldmine to request your Fundraising Training Gold-Mine!
*Just $19.95 for shipping
Double the Lifetime Value of Your Database!
Jay B. Love CEO & Co-Founder Bloomerang
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“The total net contribution that a customer/donor generates during his/her lifetime in your database”
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Defining Lifetime Value »
“Active donor commitment is the enduring passion for your nonprofit. Inspiring donors is key for loyalty.”
- 101 Fundraising
Lifetime Value = Donor Commitment
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What does a 10% increase in donor retention rates mean in terms of LIFETIME dollars raised?• 50%• 100%• 150-200%
Do you know your Retention %? »
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Improving donor retention rates by 10% can improve LIFETIME dollars raised by?
• 150-200%!
(Do we have your attention yet?)
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Is Retention important for NPO’s? »
Let’s dig even deeper into “actual” NPO data . . .
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This scares most NPO Board Members » Donor Attrition Over Five Years
# of Donors Attrition Rate
Donors Remaining After 1 Year
Donors Remaining
After 2 Years
Donors Remaining
After 3 Years
Donors Remaining
After 4 Years
Donors Remaining
After 5 Years
1,000 20% 800 640 512 410 328
1,000 40% 600 360 216 130 78
1,000 60% 400 160 64 26 10
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Addressing the Retention Problem!Is it a Donor Relationship Problem?
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CUE THE EXPERTS:
Dr. Adrian SargeantBloomerang Chief Scientist Professor of Fundraising at the Center on Philanthropy at Indiana University holding what is presently the world’s only endowed chair in that discipline.Top 10 Most Influential People in FundraisingRenowned expert on Donor Retention and Donor Loyalty
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Mr. Tom AhernBloomerang Donor Communications Head Coach One of the world’s top authorities on donor communicationsAuthor of 4 books on Donor CommunicationsWinner of 3 prestigious international IABC Gold Quill awards
DONOR RETENTION BEST PRACTICES
Dr. Adrian SargeantBloomerang Chief Scientist
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“A 10% improvement in retention can double the LIFETIME value of your donor database!”
# of Donors in Current 12 Months(from the previous years pool)
Divided by # of Donors in Previous 12 Months
Calculating Your Retention Rate »
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Donor Retention Made Simple
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$1000 +
$500 - $1000
$100 - $500
$25 and under annually
$25 - $100
Value
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Value Segments »
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Why Do Customers Leave? (can this apply to donors . . .)
• Death 1%• Relocation 3%• Won by Competitor 5%• Bad Complaint Handling 14% • Lack of Interest from Us 77%
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Key Reasons For Donors Leaving
• No longer able to afford support • No memory of ever supporting!• Organization asked for inappropriate sums• Feeling that other causes are more deserving• Not reminded to give again• Organization did not inform how monies were
used• Did not feel connected!
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Automatic Engagement Factors
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• Recency and pattern of giving
• Cash donors vs. sustaining donors
• # of years giving +• Upgrade /
Downgrade + -• Lapsed -• Event attendance +• Opens email +• Click links in emails +
• Unsubscribes from email -
• Has stated communication preferences +
• Has inbound interactions +
• Has soft credits +• Volunteers +• Social Media
(coming soon)• …and a whole lot more!
6 Key Retention Drivers(That can double lifetime value)
• Drip feed mission performance data • Connect often• Be personal (SEGMENT)• Develop like a good personal friendship• Find & use numerous human connectors• Always communicate what monies are doing!
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Conclusion:So Strive For:
• Donor Satisfaction• Donor Commitment/Engagement (which . . .)
• Donor Trust• Donor Loyalty (close your eyes)
Doubling Your Lifetime Value = ?
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Questions?
