blue strike webinar five simple ways to upgrade your donors - june 16, 2015 final

April 15, 2023 Blue Strike Webinar: Donor Upgrade Strategies 1

Five Simple Ways to Upgrade Your Donors

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https://www.fuzemeeting.com/fuze/d95f8791/28568842




BLUE STRIKEFive Simple Ways to Upgrade Your Donors

June 16, 2015

1:15 pm ET

Presenter: Mary Dillon Kerwin


AGENDA

In this session, we will talk about techniques to increase giving among your current donors. The five techniques were chosen because they can be adopted quickly using existing resources.


WELCOME

• This is a 45-minute webinar to help organizations upgrade giving among current donors.

• It has been developed for organizations engaged in advocacy, civic engagement, policy work, and public interest law.

• The information and call to action are intended for fundraising staff and executive directors.


Blue Strike: Inspiring Support for Civic Engagement

Mary Dillon Kerwin

[email protected]

(703) 399-0855

mailto:[email protected]


Working Framework

Three parts to an individual giving program:

1. acquire new donors

2. recapture lapsed donors, and

3. renew & upgrade current donors.

Focus on current donors. Why?


Deepening the base

• Deepening the base (upgrading current donors) will produce the best overall returns.

• We take current donors for granted. It’s not as exciting as broadening the base (acquiring new donors).


We may face . . .

• Resistance about “going back” to same donors.

• Skepticism about the potential for growth.

• Lack of understanding about the upgrade strategies.


The challenge of building loyalty

• Sargeant and Jay (2004)

conclude that a typical

nonprofit will lose 50% of its

annual) donors between the

first and second donation

and up to 30% year on year

thereafter. In respect of

regular or sustained giving,

attrition rates of 20-30%,

year on year are common.

(Levis 2008).


FIVE UPGRADE TECHNIQUES


Quick look at five techniques

1. Conditional ask strings

2. Challenge/matching opportunities

3. List and recognition levels

4. Second-gift approaches

5. Sustainer program


Figure 1.1 Fundraising Practices

Giving clubs

Matching campaigns

Conditional ask string

Sustainer program

Donate button on website

Second gift ask

22%

20%

20%

39%

30%

45%

42%

45%

51%

54%

85%

89%

Figure 1.2 Prevalence of fundraising practices


Conditional ask strings

Ask for an incremental increase based on previous giving, typically highest previous contribution (HPC).

If HPC is $80, the ask string would be:

_ $80 _$120 _ $160 _ $200

1 1.5 2 2.5


Conditional ask strings

Conditions for Success:• Customized solicitation in every mode: online, mail, personal contact.

• Consistent and careful application.

Obstacles:• Getting all your systems in sync.


Survey Question

Some organizations personalize their requests for contributions with conditional ask strings, that is, they take into account a donor’s previous giving when asking for another gift. For example, if a donor gave $100 last year, she would be asked this year to give an equal or greater amount, such as $100, $125, $150, $175. Thinking about your own organization in 2013, tell us about your use of conditional ask strings.


Figure 1.2 Conditional Ask String

Did not use Used in few Used in some Used in most Used always$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$1,543,682

$2,768,055

$1,841,081 $1,683,012

$4,964,755

Consistent use of conditional ask strings yields best results


Matching Campaigns

Announce a special effort to help match x dollars from a donor or group of donors who have issued a challenge. Ask for additional gifts to help reach the goal. Year end, time limited challenges work especially well. Capitalizes on team dynamic.


SUBJECT: Would you help with our challenge?

From: Mary Dillon Kerwin

To: John Miller

Date: 11/01/13

Dear Mr. Miller: I am working with a handful of long-time members of Advocates in Action to create a year-end matching gift to help spur individual giving among our members. You have been such a generous, long-time supporter that I wanted to ask if you would consider joining the challenge.

We have used this challenge-match campaign for the past two years to great success, raising more than $50,000 in the final few weeks of the year. The "challengers" simply let us know by email the maximum they would be willing to match before year end. If you would be willing to consider a gift of $1,000, or more, we would be very grateful.

We will gather all pledges and issue a joint challenge to our members in mid-December. Once that match goal is reached, we will notify you so you may then send your contribution. (The idea is that the challenge gift is withheld until the match is met).

Thank you for your long-time support and belief in our mission. Thank you for considering our request. If you have any questions, please let us know.

Warm regards, Mary Dillon Kerwin [email protected] (703) 399-0855


Matching Campaigns

Conditions for Success:• Tracking and reporting • Timing to avoid conflict with annual giving

Obstacles:• No matching funds!


Survey Question

Some organizations use matching campaigns to encourage donors to give. You may have seen this as “For every dollar you give, your gift will be matched dollar for dollar.” Thinking about your own organization and your fundraising activities in 2013, tell us about your use of matching campaigns.


Figure 1.3 Matching Campaigns

No Matching Campaigns

Low emphasis Moderate Emphasis Heavy Emphasis$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$1,778,860 $1,848,724

$2,655,744

$3,246,755

Matching campaigns are associated with higher revenue


Giving Clubs

Use recognition as an incentive to increase giving. Use giving levels such as platinum, gold, silver and bronze.


Giving Clubs

Conditions for Success:• Need critical mass of donors at higher levels, willingness to be listed

• Publication for recognition

Obstacles:• Sensitivity about giving abilities.


Survey Question

Some organizations have a giving club or leadership circle that recognizes donors who give above a certain threshold. For example, donors who give $500 or $1,000 may be listed in the annual report or receive special recognition. Thinking about your organization in 2013, which of the following best describes your use of this type of giving club.


Figure 1.4 Giving Clubs

No Giving Club Recognition Only Recognition and Fundraising$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$1,748,474$1,940,761

$2,697,044

Giving clubs with a fundraising component are associated with higher revenue


Second Gift Ask

The donor’s “first gift” is an annual contribution. The second gift would be for a special event, a program-restricted gift, honoraria, or gift to subsidiary.


Second Gift Ask

Conditions for Success:• Need a variety of fundraising opportunities • Creative and flexible

Obstacles:• We only solicit once a year.


Survey Question

Some organizations ask their donors to give once a year, while others solicit their donors two or more times a year. Thinking about your own organization in 2013, how many times did you ask your donors to give?


Figure 1.5 Second Gift Ask

Did not solicit Solicited once Some once, others more

Solicited all 2 to 3 times

Solicited all 4 times or more

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$1,659,148$1,836,170

$2,697,201

$1,654,427

$2,217,072

Asking more than once a year helps when it’s targeted


Sustainer Programs

Monthly or quarterly contributions of small gifts to add up to larger overall contribution.


Sustainer Programs

Conditions for Success:• Should be continuous• Careful of people falling through the cracks. Need system for checking on credit card expiration.

Obstacles:• Selling the initial sign up.


Survey Question

Some organizations encourage their donors to sign up for recurring donations. This is sometimes called a sustainer program. Often this is a monthly or quarterly contribution processed online. In your own organization, tell us about your use of a recurring donation program in 2013


Figure 1.6 Sustainer Program

Low emphasis/no program Moderate and heavy emphasis$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

$3,500,000.00

$4,000,000.00

$1,789,965

$2,726,310

Sustainer campaigns see higher revenue


IMPLEMENTATION


Next steps

• Dedicate energy and resources to developing an upgrade strategy.

• Review 3 to 5 years of individual giving fundraising results.

• Use cumulative annual giving as the metric.


Next steps

• Look at giving totals broken out by new v. current v. lapsed donors.

• Evaluate potential for “new” dollars (re-defined).

• Try one or two new techniques for increasing giving among current donors in your organization.


BOARD V DEVELOPMENT DIRECTOR


Figure 2.1 Development Directors

No DevDir Less than 5 yrs 5 to 9 yrs 10 to 14 yrs 15 plus yrs$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$1,537,686$1,297,823

$2,170,352

$3,066,418$3,213,659

Experienced development directors see higher revenue


Figure 2.2 Board Participation

Low Low to moderate Moderate to high High$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$1,829,662$1,973,2673 $2,109,688

$2,506,708

Board participation has little to no impact


Figure 2.3 Executive Director Tenure

Less than 5 yrs 5 to 9 yrs 10 to 14 yrs 15 plus yrs$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$1,873,090 $1,945,450$2,105,967 $2,242,143

Executive Director tenure has little to no impact


Figure 2.4 Comparison

DD & ED<5yr, BD Low DD & ED 5-10yr, BD L/M DD & ED 10-15yr, BD M/H

DD & ED 15yr+, BD H$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

An increase in development director experience has the greatest impact

Board participation Executive director tenureDevelopment director yrs experience


ADDITIONAL RESOURCESUpcoming webinars


Upcoming webinars and trainings

Charity Watchdogs: Managing Your Organization's Profile and Ranking

Tuesday, July 14, 2015 at 1:15 PM ET (12:15 pm Central/10:15 am Pacific)Fundraising Webinar: Potential donors check out your organization through charity watchdogs like Better Business Bureau, Guidestar, Charity Navigator and others. Research shows they're having an impact on donor behavior. Learn where the "watchdogs" get their information, how they assess their rankings and what you can do to improve your profile and ranking.

http://www.bluestrike.org/webinar_charity_watchdogs_20150714





Get Ready, Here It Comes . . . Year End Fundraising!August 11, 2015 at 9am - 10am

In-person training in Washington, DC: During this moderated discussion, we will talk about how to 1. create fresh, relevant content that will excite your donors at year end; 2. keep your staff focused on solicitation activities; 3. build bridges with non-development staff to help with year end activities; 4. engage your board; and 5. prep your office, website and online presence.

http://www.bluestrike.org/get_ready_here_it_comes_year_end_fundraising

http://www.bluestrike.org/get_ready_here_it_comes_year_end_fundraising



Recapturing Lapsed Donors: Strategies for Getting Them Back

Tuesday, September 15, 2015 at 1:15pm ET (12:15 pm Central/10:15 am Pacific)

We start with 10 of the most common reasons donors stop giving and describe how understanding those reasons will help you prioritize your list of "lost" or lapsed donors. We will outline several cost-effective approaches you can implement right now to bring those donors back on board. This 45-minute webinar is designed as an interactive session and is limited to 15 participants.

http://www.bluestrike.org/recapturing_lapsed_donors_strategies_for_getting_them_back

http://www.bluestrike.org/recapturing_lapsed_donors_strategies_for_getting_them_back


BLUESTRIKE.ORG

Thank you for participating today!

From Mary Dillon Kerwin

President of Blue Strike

Check out our other slide shows at http://www.bluestrike.org/resources

http://www.bluestrike.org/resources

http://www.bluestrike.org/resources

blue strike webinar five simple ways to upgrade your donors - june 16, 2015 final

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