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Ruffalo Noel Levitz

Giving Goes Quantum

February, 2016

Brian Gawor and Simone Robbins

CASE VIII Conference 2016

Ruffalo Noel Levitz

Head to  

pollev.com/ruffalonlto participate in live polls

‐ No app needed‐ Phone, tablet, laptop

‐ No device, just shout to a friend!

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Ruffalo Noel Levitz WELCOME

Brian Gawor, CFREVice President of Research Former Annual Fund and Major Gifts officer Doctoral student at Illinois State University

Simone RobbinsVice President and Consultant Works with Canadian and 

CASE I and II partnerships Graduate of McMaster University Toronto Native

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NERD TRANSLATOR

Ruffalo Noel Levitz IMPORTANT NOTES

• We will be moving fast!

• Available after:

All slides with links

What other people said to “what is a fundraiser?”

Poll responses

We are available after today!

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Head to  pollev.com/ruffalonlto participate in live polls

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Ruffalo Noel Levitz THE ADVANCEMENT COMMUNICATIONS TOOLKIT

Reality:A “like” is not a check.

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The Alumni Participation Problem

From 2007 to 2015, 69% of US institutions declined in alumni donors.The average loss was 26% of the donor count!

Source: RNL study of Voluntary Support of Education data. © 2015 VSE from CAE

14.90%

9.50%7.70%

5.00%

20.40%

14.20%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

All Higher Education All Public Higher Education All Private Higher Education

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LOTS OF CONTACT

LOTS OF “LIKE”A LEAKYBUCKET

AN ACTIONGAP THE

SOLUTION?

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TIME TO GOFULL ON NERD.

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Ruffalo Noel Levitz GET ON YOUR LAB COAT

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TRADITIONAL VIEW:

QUANTUM VIEW:

Ask this   Get That.

CREATE A “FIELD”OF INFLUENCE

RELATIONSHIP STATUS:“IT’S COMPLICATED”

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The (donor)Heisenberg UncertaintyPrinciple:

“You cannot know the speed and position of a donor at the same time.”

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Ruffalo Noel Levitz “THE WHY AXIS” – LIST AND GNEEZY

• Important to also think about what the donor “receives” in the exchange.

• The ‘warm glow’ effect can be powerful. (Andreoni)

• Results of numerous social, educational and fundraising experiments on an international scale.

• Generally, immediate incentives are the most effective.

• It’s not always money or stuff.

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Ruffalo Noel Levitz LET YOUR DONORS CONNECT

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Ruffalo Noel Levitz FROM OUR FRIENDS DOWN UNDER

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A message to my donor:“I won’t let you down. I promise I will make a difference.”‐ Sydney scholarship recipient.

A message to my donor:“I won’t let you down. I promise I will make a difference.”‐ Sydney scholarship recipient.

https://youtu.be/7nXkPVHimpE

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Ruffalo Noel Levitz SEND THEM A PERSONAL VIDEO?

• One institution typically saw a fulfillment of first time fall phonathon donors of about 38% by January.

• Those that were sent a video follow‐up by their student caller had fulfillment of 56% by January.

S Philanthropy Day Video Example from:

Ruffalo Noel Levitz NEW SURVEY: ASKING GIVING

of student fundraisers (phonathon) indicate that because of their experience, they are more likely to give.

RuffaloCODY 2014 SurveyUSA, Canada, Australia

n = 714

94%https://www.ruffalonl.com/papers‐research‐higher‐education‐fundraising/2014/developing‐phonathon‐callers‐with‐challenge‐and‐support B

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Ruffalo Noel Levitz MILLENNIAL GIVING

• Millennials view time and network as equal to money.

• Value small, incremental acts.

• Volunteer, Volunteer, Donate cycle‐‐ 97% prefer to use their skills to help.

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Ruffalo Noel Levitz THE VOLUNTEER TO DONATE CYCLE

• “in 2010, among people who had performed 60 or more hours of volunteer work the previous year, 91% made donations, giving an average of $784.

• In comparison, 79% of those who had not volunteered during the year had made donations, averaging $288.”

from Charitable Giving by Canadianshttp://www.statcan.gc.ca/pub/11-008-x/2012001/article/11637-eng.pdf

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CANADIANS, VOLUNTEERING AND DONATING:

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Ruffalo Noel Levitz INVOLVE THE TEAM IN STORYTELLING

• Talk to colleagues• Get everyone on board• Respect and protect privacy• Create a Story Bank• Use Social Media

“Strength in Storytelling”‐ Brennen JensenChronicle of Philanthropy, Nov. 6, 2014philanthropy.com

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“What motivates Millennials is a desire to affect their cause through your organization 

with their friends.”‐Derrick Feldmann

The Millennial Impact Project @ AFP Int’l 2014

themillennialimpact.com

MILLENNIAL CAUSE MOTIVATION

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FACULTYSTUDENTS

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Ruffalo Noel Levitz BRAINSCANS OF DONORS?

• 80% of planned givers have given annually.

• Dr. Russell James (Texas Tech): fMRI brain scan of subjects asked to contemplate giving, volunteer, and bequest decisions.

• Bequest decisions: activate the brain areas associated with mortality.

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Ruffalo Noel Levitz BRAINSCANS OF DONORS?

• Autobiographical: Planned giving is about a legacy and “symbolic immortality.”

• Bequests decisions are First Person rather than Third Person brain activity.

http://www.slideshare.net/rnja8c/planned‐giving‐and‐the‐brain# B

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Ruffalo Noel Levitz ACTION: BECOME PART OF THE DONOR’S STORY

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Ruffalo Noel Levitz U IS FOR URGENCY

• Do our deadlines (fiscal, calendar) matter to donors?

• Urgency influences donor action.

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Ruffalo Noel Levitz URGENCY: THE GIVING CHALLENGE

• A goal that often results in a pledged reward

• Most commonly now a number of donors rather than a percentage

• Potentially a specific dollar goal

• Usually a deadline that does not change

• Best  challenges utilize volunteers as missionaries who leverage their networks

• Increasingly, tracked online and through social media

GivingDayPlayBook.org

Tuesday

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Ruffalo Noel Levitz URGENCY: MATCHING CHALLENGES

• Challenges are effective.

• 1 x Match all that is needed—anything more makes little difference.

• Great if the “challenger” is connected to the donor.

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Ruffalo Noel Levitz OUR DEADLINE ARE OURS

The end of the fiscal year is coming…

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FUNDRAISING FUSION IS THE NEW ROI

RESPONSE RATES – PHONE CASE STUDY

55.3%48.3%

11.3%Phone + Mail

+ E-mailPhone + Mail Phone

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Pre‐DM Messages

$169.33 

$234.36 

4.27%

8.70%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

Donor Mailing‐No VM Donor Mailing‐Received VM

Impact of Pre‐DM Voicemail

Average Gift Response Rate

• FFA Test of 5,984 mailings split between message and no pre‐mail communication

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Phone Responsive Pieces

WAY• 11,350 total bad numbers 

identified in FY15 • Estimate of 5,000 remaining 

bad numbers to be identified this FY

Attempts• 10,000 alumni records estimated to pass 15 attempts

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Ruffalo Noel Levitz CHANNEL SELECTION

• 65% of consumers admit to responding to a direct mail appeal through an online method.

• 44% of marketers using 3 or more channels. Digital Marketing Association, 2014 and 2015

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Impact of Thank You Calls On RetentionThank You Test Thanked Not Thanked

Pledge Rate 81.4% 69.9%

CC Rate 36.9% 16.7%

Contact Rate 87.1% 80.8%

Shttp://blogfm.ruffalonl.com/2015/11/are‐thank‐you‐calls‐worth‐the‐effort/

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K‐State Stewardship Postcard ImpactStewardship postcards to non donors improved pledge rate performance

5%

5%

6%

3%

0% 1% 2% 3% 4% 5% 6%

1 Post Card Received

2 Post Cards Received

3 Post Cards Received

No Post Cards Received

Overall Acquisition Rate

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Ruffalo Noel Levitz CANADIAN PHONE AVERAGE PLEDGE

$22

$56

$96

$123

$136

$299

$105$110

$110

$121

Ruffalo Noel Levitz REMOVE BARRIERS

• Common sources of friction in giving: 

bad online giving portals

long direct mail response devices

mail‐only response

too many decisions for donor

too many “clicks”

friction

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Ruffalo Noel Levitz BARRIERS IN ONLINE GIVING

• How many clicks does it take to give?

• Registration

• 3 minutes and 58 seconds on average for an online purchase.

• 4 minutes and 15 seconds for online donations*. 

• Ask your team: “What do we actually need to accept a gift?”

*http://www.kimbia.com/10‐ways‐increase‐online‐donations‐optimize‐donor‐experience/ (Nielson Norman Group Study)

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Ruffalo Noel Levitz REDUCING BARRIERS

• Variable press personalization.

• Accept all payment methods.

• Link direct mail to online giving.

• Presumptive credit card asks in phonathon and inbound calls.

• Action: Aspirational, but reasonable gift arrays. (check boxes)

• Action: Reducing FRICTION may be your best ROI and improve your solicitations immediately

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3 ≠ U

3:58, 65%, <2

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GIVING IS QUANTUM

CONNECTION WITH THE DONOR

TIMING +URGENCY

CHANNEL

EASE OF GIVING

WARMING UP AND CONTEXT

PERSONALIZATION& RELEVANCY

MESSAGE

LUCK?

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SOCIALNETWORK

Ruffalo Noel Levitz GIVING IS QUANTUM

Direct Mail Email

Telefund Crowdfunding

Social Media

Mobile/Text

https://www.linkedin.com/pulse/how‐merge‐major‐gift‐work‐online‐fundraising‐justin‐wareGreat Post:

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Ruffalo Noel Levitz CONSISTENCY MATTERS

$1,313 $2,835$5,419

$9,335

$34,013

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

1 year 2 years 3 years 4 years 5+ years

Maximum Donor Consistency and Lifetime Giving

Max Consecutive Giving YearsAverage Results from Analysis of  8 institutions, 

4 public and 4 private, weighted by number of donors.

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Ruffalo Noel Levitz WHERE BIG DONORS COME FROM

8% 9% 10%

18% 19%

35%

0%

5%

10%

15%

20%

25%

30%

35%

40%

First Gift 1‐5 Years 6‐10 Years 11‐15 Years 16‐20 Years 20 Years or More

Time to reach $25,000 Gift Level

Percentage of Donors, Years Given Prior to $25,000 Gift

Average Results from Analysis of  8 institutions, 4 public and 4 private, weighted by number of donors. Represents donors with $25,000 or more as their largest lifetime gift.

Median First Gift for $25k to 49k donors: $179

$50k+ donors: $386

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Ruffalo Noel Levitz VALUE OF THE ANNUAL FUND

Nonprofit Research Collaborative, July 2014NPResearch.org

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Ruffalo Noel Levitz WHY DO PEOPLE GIVE?

Donors give when asked…

by the right person…

for the right thing…

at the right time…

for the right amount.

If they’ve given to you or others before…

And they feel connected…

And you’ve told a good story…

And you’ve told them “why now?”

And it’s easy…

And it matters.(after being thanked)B

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TRADITIONAL DONOR CYCLE

Identify Prospects

Qualify

No Longer a Prospect

StewardSolicitCultivate Close Gift

‐Education‐Involvement‐Engagement

THE TRADITIONAL DONOR CYCLE

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EXPER

IENCE

DISCOVER

THE QUANTUM DONOR STREAM

SOCIAL MEDIA

GIVING

ALUMNI ENGAGEMENT

VOLUNTEERISM

GIVEPLAN

ADVOCATE

GIVE

LEGACY

GIVE

GIVE

ADVOCATE

GIVE DAYMG VISIT

CAMPAIGN

EVENT

MG VISIT

Lifetime EngagementThink: Currents and Pushes

Everyone ParticipatesAnd the Donor Drives the Boat

GIVE

PHONATHON

Currents

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Ruffalo Noel Levitz THE GOAL IS DONOR ACTION

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Ruffalo Noel Levitz OTHER FUN STUFF

Download White Papers and read the blog at: www.ruffalonl.com/fundraising

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Ruffalo Noel Levitz WELCOME

Brian Gawor, CFREVice President of Research Brian.Gawor@RuffaloNL.com Twitter: @BrianGawor

Blog, Case Studies and White Papers:   www.ruffalonl.com/fundraising

Simone RobbinsVice President and Consultant Simone.Robbins@RuffaloNL.com Twitter: @SimoneARobbins

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