cgvt presentation 1210 abc ext
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This Powerpoint is part of the presentation by Mike Spencer of the SpencerGroup, given on October 11th, 2012 in partnership with Common Good Vermont and People's United Bank at the "Achieving Sustainability Through Annual Giving" Training.TRANSCRIPT
Achieving SustainabilityThrough Annual Giving
Special Thanks toCommon Good Vermont
People’s United Bank
© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
October 11, 2012
Agenda
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Agenda
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• Introduction
• Understanding the key indicators of annual giving success
• Break
• Strategies to maximize performance indicators
• Luncheon & funders panel
• Hands-on clinic – turning ideas into actions
• Final Q&A
What Is Annual Giving?
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What Is Annual Giving?
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• Donations that are renewable from year to year
• Fund annual operations budget
• Can be unrestricted or restricted
• Typically from individuals
• Annual should mean EVERY year … NOT just ONCE a year
Show of hands:
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Show of hands:
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• How many of you have an annual giving program?
Show of hands:
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• How many of you have an annual giving program?
• How many solicit their donors only once per year? … 2 times? … 3+ times?
Show of hands:
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• How many of you have an annual giving program?
• How many solicit their donors only once per year? … 2 times? … 3+ times?
• Who feels that their annual giving program is achieving its full potential?
Feedback:
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Feedback:
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• What are main obstacles preventing you from reaching full potential?
Feedback:
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• What are main obstacles preventing you from reaching full potential?
• What do you think are the biggest opportunities to raise more money on an annual basis?
Understanding theKey Indicators
of Annual Giving Success
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Annual Giving Comparisonof 9 Organizations
in Chittenden County
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Leadership
Giving
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3%
7%
14%
LOW MEDIAN HIGH
$1000+ Donors as % of All Donors
Leadership
Giving
© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
3%
7%
14%
LOW MEDIAN HIGH
$1000+ Donors as % of All Donors
16%
52%
88%
LOW MEDIAN HIGH
$1000+ Gifts as % of All Revenue
Leadership
Giving
© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
75%
46%
63%
78%
TARGET LOW MEDIAN HIGH
Renewal Rate of $1000+ Donors
Leadership
Giving
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75%
46%
63%
78%
TARGET LOW MEDIAN HIGH
Renewal Rate of $1000+ Donors
$2,600 $1,079 $2,677
$8,172
TARGET LOW MEDIAN HIGH
Average Gift of $1000+ Donors
ActiveDonor
Retention
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35%
14%
22%
27%
TARGET LOW MEDIAN HIGH
Renewal Rate of 1st-Time Donors
ActiveDonor
Retention
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35%
14%
22%
27%
TARGET LOW MEDIAN HIGH
Renewal Rate of 1st-Time Donors
70%
25%
62%69%
TARGET LOW MEDIAN HIGH
Renewal Rate of Multi-Year Donors
LapsedDonor
Recapture
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25%
8%
23%
33%
TARGET LOW MEDIAN HIGH
Recapture Rate - Lapsed 1 Year
LapsedDonor
Recapture
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25%
8%
23%
33%
TARGET LOW MEDIAN HIGH
Recapture Rate - Lapsed 1 Year
15%
0%
9%
15%
TARGET LOW MEDIAN HIGH
Recapture Rate - Lapsed 2 Years
LapsedDonor
Recapture
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5%
0%
2%
5%
TARGET LOW MEDIAN HIGH
Recapture Rate - Lapsed 3+ Years
A Profile of aTypical Donorbaseand the Impact of
Key Indicators
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Giving Pyramid Goal
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Donors Revenue
Champions 6 $60,000$25,000 1 $25,000$10,000 2 $20,000$5,000 3 $15,000
Leaders 35 $47,500$2,500 5 $12,500$1,500 10 $15,000$1,000 20 $20,000
Advocates 100 $40,000$250-$999
Supporters 359 $28,720$1-$249
TOTALS 500 $176,220
Supporter$28,720
Advocate$40,000
Leader$47,500
Champion$60,000
Revenue Pyramid
Supporter359
Advocate100
Leader35
Champion6
Donor Pyramid
Donor Growth Trends
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Donors Median TargetActive Donor Retention & New Donors 70 80Lapsed Donor Recapture Active 1st Year 70 22% 35%Rates ----------------------------> Active Multi-Year 280 62% 70%
Lapsed 1 Year 155 23% 25%Lapsed 2 Years 310 9% 15%Lapsed 3+ Years 800 2% 5%
Total Donorbase 1,615Active Donors 350
Donor Growth Trends
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Donors Median TargetActive Donor Retention & New Donors 70 80Lapsed Donor Recapture Active 1st Year 70 22% 35%Rates ----------------------------> Active Multi-Year 280 62% 70%
Lapsed 1 Year 155 23% 25%Lapsed 2 Years 310 9% 15%Lapsed 3+ Years 800 2% 5%
Total Donorbase 1,615Active Donors 350
350 339 321 311 305 302350
426 451 475 498 519
Current Year 1 Year 2 Year 3 Year 4 Year 5
5-Year Donor Growth Trends
Current Target
New Donor Acquisition
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Mail Performance Indicators Target Scenario 2 Scenario 3
Annual Mail Quantity 10,000 10,000 10,000
Response Rate 1.0% 0.5% 1.0%
Average Gift $50 $50 $35
Cost per Name $0.60 $0.60 $0.60
New Donor Acquisition
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Mail Performance Indicators Target Scenario 2 Scenario 3
Annual Mail Quantity 10,000 10,000 10,000
Response Rate 1.0% 0.5% 1.0%
Average Gift $50 $50 $35
Cost per Name $0.60 $0.60 $0.60
100
50
100
Target Scenario 2 Scenario 3
New Donors
New Donor Acquisition
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Mail Performance Indicators Target Scenario 2 Scenario 3
Annual Mail Quantity 10,000 10,000 10,000
Response Rate 1.0% 0.5% 1.0%
Average Gift $50 $50 $35
Cost per Name $0.60 $0.60 $0.60
-$1,000
-$3,500
-$2,500
Target Scenario 2 Scenario 3
Net Revenue
New Donor Acquisition
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Mail Performance Indicators Target Scenario 2 Scenario 3
Annual Mail Quantity 10,000 10,000 10,000
Response Rate 1.0% 0.5% 1.0%
Average Gift $50 $50 $35
Cost per Name $0.60 $0.60 $0.60
$10
$70
$25
Target Scenario 2 Scenario 3
Cost to Acquire A Donor
Feedback:
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• What are main obstacles preventing you from reaching full potential?
Feedback:
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• What are main obstacles preventing you from reaching full potential?
• Attracting the attention and support of new leadership donors/funders
• Maintaining consistent support from leadership donors/funders
• Acquiring other new donors
• Lack of resources
Feedback:
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• What do you think are the biggest opportunities to raise more money on an annual basis?
Feedback:
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• What do you think are the biggest opportunities to raise more money on an annual basis?
• Strengthening leadership relationships
• Increasing donor retention and value
• Recapturing lapsed donors
• PLANNED GIVING!
Break
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Strategies to Maximize Performance
How lessons of dating can be appliedto a successful annual fund
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5 Lessons:
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5 Lessons:
#1 – Who to Ask
#2 – How to Communicate
#3 – Dating Tips
#4 – Learn from Friends
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5 Lessons:
#1 – Who to Ask
#2 – How to Communicate
#3 – Dating Tips
#4 – Learn from Friends
#5 – The Big Proposal
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Lesson 1: Who to Ask
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Lesson 1: Who to Ask
a) Hot stranger
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Lesson 1: Who to Ask
a) Hot stranger
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Lesson 1: Who to Ask
a) Hot stranger
b) Good friend
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Lesson 1: Who to Ask
a) Hot stranger
b) Good friend c) Angry Ex
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Lesson 1: Who to Ask
a) Hot stranger
b) Good friend c) Angry Ex
0.5%-3.0%
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Lesson 1: Who to Ask
a) Hot stranger
b) Good friend c) Angry Ex
0.5%-3.0% 50%-80%
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Lesson 1: Who to Ask
a) Hot stranger
b) Good friend c) Angry Ex
0.5%-3.0% 50%-80% 5%-30%
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Lesson 1: Who to Ask
Special Treatment:
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Lesson 1: Who to Ask
Special Treatment:
• Super Donors (incl. Loyals!)
• Major Donor Downgrades
• Major Donor Upgrades
• Remaining Major Donors
• Lapsed Major Donors
• First-time Donors
• Lapsed Donors© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
Lesson 1: Who to Ask
Lapsed Donors … Rekindling Old Flames
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Lesson 1: Who to Ask
Lapsed Donors … Rekindling Old Flames
Chance of getting back together:5%-30%
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Lesson 1: Who to Ask
Lapsed Donors … Rekindling Old Flames
Chance of getting back together:5%-30%
Chance of finding someone new:.5%-3.0%
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Lesson 1: Who to Ask
Lapsed Donors … Rekindling Old Flames
• It’s easier to get back together than to find someone new.
• Usually it just takes a little TLC.
• A handwritten note or phone call makes a big difference!
Chance of getting back together:5%-30%
Chance of finding someone new:.5%-3.0%
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Lesson 2: How to Communicate
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Lesson 2: How to Communicate
• One-on-One: nothing beats it – if you’re good at it
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Lesson 2: How to Communicate
• One-on-One: nothing beats it – if you’re good at it
• Events: great for meeting and mingling
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Lesson 2: How to Communicate
• One-on-One: nothing beats it – if you’re good at it
• Events: great for meeting and mingling
• Direct Mail: effective way to ask many people
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Lesson 2: How to Communicate
• One-on-One: nothing beats it – if you’re good at it
• Events: great for meeting and mingling
• Direct Mail: effective way to ask many people
• Phone: good for follow-up
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Lesson 2: How to Communicate
• One-on-One: nothing beats it – if you’re good at it
• Events: great for meeting and mingling
• Direct Mail: effective way to ask many people
• Phone: good for follow-up• Email: efficient for
keeping in touch
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Lesson 2: How to Communicate
• One-on-One: nothing beats it – if you’re good at it
• Events: great for meeting and mingling
• Direct Mail: effective way to ask many people
• Phone: good for follow-up• Email: efficient for
keeping in touch• Social Media: opportunity
to spread the word© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
Lesson 3: Dating Tips
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Lesson 3: Dating Tips
• Have an engaging conversation.
• Tell a compelling story.
• Make a good case for a second date.
• Don’t be too desperate … or aggressive.
• Follow up with a note and/or phone call.
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Lesson 3: Dating Tips
• Be personal.
• Show appreciation.
• Give good reasons to stay in the relationship.
• Keep it simple.
• Stay in touch.
• Make someone feel good!
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Lesson 4: Learn from Friends
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Lesson 4: Learn from Friends
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LiveStamp
G I F T R E P L Y F O R M
Yes, I support the puppets! E nclosed is my gift to he lp reach the $30,000 goa l by D ec. 31, 2011 at the C om m un ity S po nsor leve l checked below:
o $2,500 for fu ll-day p rogram reach ing 200+ kids o $1,250 for half-day program reaching 100+ kids o $500 for workshop of 40+ kids o $250 for c la ss of 20+ kids o $120 for 10 kids o $60 for 5 kids o k ids a t $12 each = $
Puppets in E ducation Kids on the Block - VT • F riend 2 F riend P rogram s - VT
Jane Sample 130 South Willard Street Burlington, VT 05401 o I am interested in learning about Planned Giving options. o Please keep me informed via the email address below:
Please return with your gift to: P u pp e ts in Education 294 No.W inooski Avenue , Suite 125 - Burlington, VT 05401
You may also give online at
www.P uppetsInE ducation .org Design and pr inting donated by S pencer G roup Inc .
Lesson 5: The Big Proposal
PG Conversion Rates Based On Loyal Giving Patterns
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Lesson 5: The Big Proposal
• A planned gift is the ultimate commitment in a donor relationship
PG Conversion Rates Based On Loyal Giving Patterns
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Lesson 5: The Big Proposal
• A planned gift is the ultimate commitment in a donor relationship
• Loyalty is the biggest key to a “YES”
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Lesson 5: The Big Proposal
• A planned gift is the ultimate commitment in a donor relationship
• Loyalty is the biggest key to a “YES”
7.6%
3.0%
1.3% 1.3%0.7%
15+ Consec.Years
10-14 Consec.Years
9 of Last 10Years
8 of Last 10Years
6-7 of Last 10Years
PG Conversion Rates Based On Loyal Giving Patterns
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Luncheon with
Funders
Hands-on ClinicTurning Ideas into Action
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• 3 challenges – 15 minutes each
• 5 minute time limit for response
• 10 minute follow-up discussion
Challenge #1:Establish a Case for Support
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• The “Elevator Speech”
• A story of someone who benefited
• Compelling statistics
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Challenge #2:Assess Opportunities
& Resources
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• List of opportunities
• Prioritize each one (scale of 1 to 5)
• Grade the resources you have to pursue each opportunity (A-F)
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Challenge #3:Create a To-Do List
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• Task
• What is the purpose/objective?
• Who/what can help?
• Deadline date
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Annual Giving Resource Kit
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Annual Giving Resource Kit
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• Affordable option to add resources without adding staff
• Provides essential deliverables for a successful annual fund
• By joining forces, participating organizations can benefit from significant cost-savings
Annual Giving Resource Kit
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Includes:• Annual Fund template design
• Web-based donor management system
• Analytic reports
• Donor demographic overlay
• Custom ask amounts based on past giving
• VIP target lists and solicitation forms
Annual Giving Resource Kit
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Includes:• Copywriting for 2 appeal letters &
follow-up appeals
• Direct mail production and coordination for 2 appeals and follow-ups
• Strategic guidance
Q & A
Thank you for your participation!© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100