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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


Agenda


• 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?


What Is Annual Giving?


• 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:


Show of hands:


• How many of you have an annual giving program?

Show of hands:



• How many solicit their donors only once per year? … 2 times? … 3+ times?

Show of hands:



• 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:


Feedback:


• What are main obstacles preventing you from reaching full potential?

Feedback:



• What do you think are the biggest opportunities to raise more money on an annual basis?

Understanding theKey Indicators

of Annual Giving Success


Annual Giving Comparisonof 9 Organizations

in Chittenden County


Leadership

Giving


3%

7%

14%

LOW MEDIAN HIGH

$1000+ Donors as % of All Donors

Leadership

Giving


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


75%

46%

63%

78%

TARGET LOW MEDIAN HIGH

Renewal Rate of $1000+ Donors

Leadership

Giving


75%

46%

63%

78%


Renewal Rate of $1000+ Donors

$2,600 $1,079 $2,677

$8,172


Average Gift of $1000+ Donors

ActiveDonor

Retention


35%

14%

22%

27%


Renewal Rate of 1st-Time Donors

ActiveDonor

Retention


35%

14%

22%

27%


Renewal Rate of 1st-Time Donors

70%

25%

62%69%


Renewal Rate of Multi-Year Donors

LapsedDonor

Recapture


25%

8%

23%

33%


Recapture Rate - Lapsed 1 Year

LapsedDonor

Recapture


25%

8%

23%

33%


Recapture Rate - Lapsed 1 Year

15%

0%

9%

15%


Recapture Rate - Lapsed 2 Years

LapsedDonor

Recapture


5%

0%

2%

5%


Recapture Rate - Lapsed 3+ Years

A Profile of aTypical Donorbaseand the Impact of

Key Indicators


Giving Pyramid Goal


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


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


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


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







Cost per Name $0.60 $0.60 $0.60

100

50

100

Target Scenario 2 Scenario 3

New Donors







Cost per Name $0.60 $0.60 $0.60

-$1,000

-$3,500

-$2,500


Net Revenue







Cost per Name $0.60 $0.60 $0.60

$10

$70

$25


Cost to Acquire A Donor

Feedback:



Feedback:



• 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:



Feedback:



• Strengthening leadership relationships

• Increasing donor retention and value

• Recapturing lapsed donors

• PLANNED GIVING!

Break


Strategies to Maximize Performance

How lessons of dating can be appliedto a successful annual fund


5 Lessons:


5 Lessons:

#1 – Who to Ask

#2 – How to Communicate

#3 – Dating Tips

#4 – Learn from Friends


5 Lessons:

#1 – Who to Ask

#2 – How to Communicate

#3 – Dating Tips

#4 – Learn from Friends

#5 – The Big Proposal


Lesson 1: Who to Ask



a) Hot stranger



a) Hot stranger

b) Good friend



a) Hot stranger

b) Good friend c) Angry Ex



a) Hot stranger


0.5%-3.0%



a) Hot stranger


0.5%-3.0% 50%-80%



a) Hot stranger


0.5%-3.0% 50%-80% 5%-30%



Special Treatment:



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


Lapsed Donors … Rekindling Old Flames




Chance of getting back together:5%-30%





Chance of finding someone new:.5%-3.0%




• 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 finding someone new:.5%-3.0%


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






• Phone: good for follow-up• Email: efficient for

keeping in touch






• 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



• 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.



• Be personal.

• Show appreciation.

• Give good reasons to stay in the relationship.

• Keep it simple.

• Stay in touch.

• Make someone feel good!


Lesson 4: Learn from Friends


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



• A planned gift is the ultimate commitment in a donor relationship





• Loyalty is the biggest key to a “YES”




• 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



Luncheon with

Funders

Hands-on ClinicTurning Ideas into Action


• 3 challenges – 15 minutes each

• 5 minute time limit for response

• 10 minute follow-up discussion

Challenge #1:Establish a Case for Support


• The “Elevator Speech”

• A story of someone who benefited

• Compelling statistics

Challenge #2:Assess Opportunities

& Resources


• List of opportunities

• Prioritize each one (scale of 1 to 5)

• Grade the resources you have to pursue each opportunity (A-F)

Challenge #3:Create a To-Do List


• Task

• What is the purpose/objective?

• Who/what can help?

• Deadline date

Annual Giving Resource Kit




• 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



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



Includes:• Copywriting for 2 appeal letters &

follow-up appeals

• Direct mail production and coordination for 2 appeals and follow-ups

• Strategic guidance

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