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How to Set Up an Annual Giving Campaign Presented by Shona Nicholson

The Association of Business Schools - June 2011

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Back to basics

Senior management commitment Database Alumni Relations Programme Case for Support Make it easy to give! Donations Processing Stewardship Procedures Disbursements Policies

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The Famous Pyramid of Giving

Annual GivingSpecial Events & Benefit Events

Annual Giving/Direct Mail, E-mail & Tele-fundraisingAll Public Awareness Activities

Major GivingEndowment CampaignsCapital and Special Gifts

Major Gifts from Individuals/Corporations

Estate or Planned GivingLegacies

Planned Gifts

EventsPublicationsStewardship

Website

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The Giving Pipeline

Involving and identifying the types of donors who can truly make a difference to your organisation

Demonstrating everyone is doing their bit

Cultivating and stewarding them with:– Your Ethos and Mission– Your Success– Your Commitment

Education Acquisition Retention Upgrades Major Gift Legacy

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Hi value - active donors

Hi value - lapsed donors

Mid value - active donors

Mid value - lapsed donors

Low value - active donors

Low value - lapsed donors

Non donors

Am

ou

nt o

f effort to

be e

xpe

nd

ed

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A Possible Strategy?

Establish a Culture of GivingKPI: Annual Participation Rate

Provide regular income

KPI: Annual Fund£s raised per year

Major gift pipelineKPI: Number andgiving potential of

identified Prospects

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Donor-centred

Direct marketing-

driven

Regular

World-wide

Repeatable

What is an Annual Giving Programme?

A FUNDRAISING

PROGRAMME

THAT IS…

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Donor-centred

Donors are now in control of their ownphilanthropy and they want:

Prompt, personal gift acknowledgement

Confirmation of gifts being set towork as intended

Measurable results

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Direct Marketing-driven

Send messages directly to donors/potential donors

Specific "call-to-action“, with an emphasis on trackable and measurable responses

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Regular

Ask them each year…

Ask them more than once a year…

Ask them in a variety of ways…

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Repeatable

That you’ve asked before shouldn’t impact your asking again

That they’ve given before shouldn’t impact their giving again

Link their support to your organisation’s ongoing needs

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World-wide

Ask everyone

Donors and non-donors

Major prospects

Younger and older people

UK and overseas

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Put These Together And…

The secret to Annual Giving is?

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Sustainable Fundraising

A well-structured Annual Fund that raises £500,000 this year is likely to raise at least £500,000 next year, whatever the climate

This is equivalent to a £12.5 million endowment*

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Acquire new donors Build donor loyalty Establish pattern of giving Increase participation rate Cultivate donors Prospect research Identify potential legators Raise restricted funds Introduce students Build base of supporters Inform your constituency ...

What Are Your Goals?

Raise unrestricted funds Renew donor support Support alumni relations Generate success stories Involve prospects Information gathering Accountability through

annual reports Enroll volunteers … …

The trinity … monetary, recency, frequency.

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Target Audiences

C u rren t S tu d en ts

N ew G rad s

P as t G rad s

S tu d en ts

R etirees

S u p p ort

F acu lty

M g m t C om m ittee

S ta ff

Tru s ts

C orp ora te P artn e rs

P aren ts

F rien d s

A n n u a l G ivin g F u n d P rog ram m e

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Annual Fund Tools

Annual Fund

Direct Mail

Telethon Email / Online

One-to-One

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Relatively cheap

Opportunity to enclose Case for Support

In-House/Outside Expertise

High volume

Less responsive

Direct Mail

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Direct Mail Uses

Annual fund acquisition Donor renewal/upgrade Reminders Special or emergency projects (St. John’s College Organ Appeal) High-end monthly donor packages (Greenpeace Frontline) High-end donor packages Advance and/or Follow-up to telethons Parents Community (My Ashmolean, My Museum) Major donors Legacies

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High response

Personalised

Student contact

In-House/Outside Expertise

Requires significant resource

Telethon

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Very inexpensive

Quick delivery of message and high volume

Opportunity for multiple asks / follow-ups

Address and formatting issues – less guarantee they’ll receive or read it

Easy to opt-out

Email

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Online

You need to be where your donors are ...

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Online Young charity supporters

‘are enthusiastic Facebook users’, Third Sector, 8 September 2009.

“nfpSynergy study found that 79% of 11 to 25-year-olds who were regularly involved with charities, through activities such as giving or volunteering, used Facebook.”

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High response

Medium-sized Gifts(£1,000 to £24,999)

Very personalised

High staff time

Low volume

One-to-one

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Constructing the Whole

January to December or August to July – doesn’t matter, but stick to it and educate your alumni with it!

You can’t create a culture of annual giving if you don’t ask annually! Keep momentum up all year round

The best Annual Giving programmes incorporate all four types of approach and take advantage of other activities going on within the institution

Segment your constituencies – treat your donors, prospects, recent graduates, renewals, special anniversaries, tax-efficient countries separately

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Your Programme

Every communication you do – fundraising or information – impacts on your programme.

Map out the programme. Watch spacing between activities. Are you taking advantage of all possible

points of activity?

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Seasonality

Most donors think in calendar year timeframes (January to December), not academic years or your fiscal year end.

Annual appeals versus episodic appeals. Spring and Autumn are traditionally good times for direct mail.

Avoid June, July, August and December, if possible. Balance your fundraising with other communications. Canadian/American tax year end. International Foundations for tax efficiency.

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Other Pieces to Ponder Reporting back to Donors

Capital Campaigns and Annual Funds

Apply learning from the Charitable Sector

CASE motto: “Copy And Steal Everything”

Consultancy

Student involvement

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What Should You Do Today?1. Write a mission statement for your

Programme. What is its key aim?

2. Produce a month-by-month calendar for your Annual Giving Programme

3. Add three new elements to your programme this year

4. Get out and meet some alumni!

5. Benchmark your performance

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Questions?

Contact details: