Strategies for Registration Fees AND Participant Fundraising A Panel Discussion Kathryn Hall

Recent research indicates that walk/run registration fees can depress participant fundraising, yet for some organizations they are a key success factor. Is this throttling effect inevitable, like death and taxes? Can we take a proactive stance on walk/run fees and participant fundraising?

Blackbaud Confidential 2

2/24/14 Blackbaud Confidential 3

Kathryn Hall Sr. Client Success Manager Blackbaud Kathryn.Hall@blackbaud.com

Panel Members Ashley Krieg Managing Director, Event Strategy and Training Arthritis Foundation

Shana Masterson National Associate Director, Interactive Fundraising & Engagement American Diabetes Association

Liza Munson Senior Vice President, Campaign Development The Leukemia & Lymphoma Society

Overall Fundraising Growth Runs/Walks

WITH Registration Fee

Runs/Walks WITHOUT

Registration Fee

12% 15%

Average Online Amount Runs/Walks WITH Registration Fee

WITHOUT Registration Fee

$48 $53

Fundraising Per Participant WITH

Registration Fee WITHOUT

Registration Fee

$51 $93

Fundraising Per Fundraiser WITH

Registration Fee WITHOUT

Registration Fee

$228 $328

Percent of Return Participants WITH

Registration Fee WITHOUT

Registration Fee

17% 20%

Good Reasons for Registration Fees •  Ensure a minimum amount from every individual

•  Add incremental revenue

•  Cut out non-contributors using resources

•  Restrain event size / fit within desired venue

•  Know how many people will likely show up

•  Cover sunk costs for things like event management and chip timing

•  Save coaches time from working with non-fundraisers

•  Reduce cleanup, damage and security expenses

Events with registration fees tend to have lower fundraising totals. This does not mean there’s nothing we can do about it! Knowledge is power!

How Can We Use This Knowledge?

“Correlation does not imply causation”

•  Is your messaging about the race / participation fee or the fundraiser?

•  Emphasize the fee, and people will think they have done all they need to do for you.

How Can We Use This Knowledge?

I didn’t know I was supposed to 17%

No one asked me to 47%

Fundraising seemed too challenging 8%

I didn’t feel comfortable asking for donations 18%

I was only asked to be a team member and not to raise money 33%

Why Didn’t You Fundraise?

Opportunity Cost: The exchange of value we accept when we choose one option over another. Every action has a cost, even ones we don’t pursue.

Peace Corps instead of job after college?

Registration fee or fundraising dollars?

•  $25 registration fee + $51.36 = $76.36 versus $92.53

•  Opportunity cost of $16.17 per participant?

Transform an Existing Event Series

If you have two programs, a run and a walk – do they have similar % of fundraisers and fundraising per participant?

If not, examine how you message each:

•  Could messaging imply that the fee covers participation and there’s no need to do more? Make sure it’s clear the fee gets you in the door AND we still want / need you to fundraise.

•  Examine the website. Does it focus on mission or race? Could it be clearer?

Use data to make unemotional decisions

Race or Fundraiser?

Race or Fundraiser? Do you communicate clearly that fundraising the key purpose for the event? •  “Front door” to the event: Recruitment materials,

website • Registration process •  Segmented communication plan: Fundraisers, Non-

fundraisers, Team Captains, High Value Individuals •  “Achievers” club for those hitting fundraising

milestones •  Event-day messaging •  Post-event follow-up

Every Point of Contact

What do you hope to gain by adding a fee?

•  If you have 1000 walkers and charge them a $10 reg fee you’ll raise $10k for that event – does that meet your business goals?

Look at fundraising amounts to figure out an appropriate fee amount & fee structure: •  $10, $20? •  Are kids free? •  Do we offer limited discount codes to past participants?

Identify a few events to add a fee – test it and see how it works before adding a fee to all events

Business Case for Adding a Fee

Make the Fundraising Message as Clear as Possible

Walk to Cure Arthritis (No Registration Fee)

We expected participants to fundraise, but in reviewing our collateral and materials, we weren’t ASKING them to fundraise! • Messages for Walk included: Come join us! Build awareness! And

Network with others who have arthritis! •  Language shift to: Sign Up and Fundraise Today! and Every step counts,

Every dollar matters!

We added a national email platform for consistent fundraising messaging to key segments for all Walks

•  Target groups: Team captains, $0 walkers, fundraising walkers and mission affinity participants

•  Key Messages: How to start fundraising, Impact of $ and why $ are important, Tools and resources for social media and email asks, Thank you for fundraising with acknowledgement of fundraising milestones

Goal: decrease % of $0 walkers and raise participant fundraising average

Language Shift

Jingle Bell Run/Walk (Registration Fee)

Treating everyone the same didn’t work

• We found 13% of participants had a great mission affinity: they declare their mission connection during registration, self-identify as having arthritis, are previous fundraisers and/or current, active fundraisers.

• We LOVE our great participants who want to come, have fun and run. They might run races each weekend and have low or no mission affinity.

Shifting focus to grow 4 groups with greatest mission affinity •  Bless and release runners. We will send meaningful, impactful mission

message, but not repeat fundraising messages. •  Expand relationships with fundraisers and those with mission connection.

We can implement a full cultivation plan for this segment to increase the average $ raised for these participants.

•  Cultivation plan will include personal phone calls, emails with targeted messages, revised incentive levels and tie in with 30th anniversary.

Goal: Focus on fundraisers with mission affiliation, grow their average $ raised

Discounts and Promo Codes

Fundraising Per Rider FREE

Promo Code PAID

Full Fee

$242 $291

Online Conversion Rate Per Rider FREE

Promo Code PAID

Full Fee

61% 85%

Additional Donation at Registration FREE

Promo Code PAID

Full Fee

20% 51%

What Wasn’t Working… •  PANICKING

•  Offering free registration at health fairs/events

•  Too many discounts available throughout the year

•  Inconsistent discounts

•  Sending email only

•  “Riders call asking for a discount code.”

What Was Working •  A solid plan from launch to event date.

•  Sliding scale of registration fees, no discount codes. •  Discount codes are never as good as the one offered previous to it.

•  Less>More •  Multi-channel communication plan. •  Offering “free” registration only to top fundraisers, teams,

sponsors. •  Custom discount codes (not free) for large teams/

companies •  “The registration fee helps us cover XYZ and ensures more

funds will go towards the fight against diabetes.”

Business Case for Registration Fee

The Leukemia & Lymphoma Society Experience

Light the Night •  Considered switching to a Light The Night registration fee

during the time of Champion For Cures •  Decided that for us a better route was to engage every

participant in fundraising to have greatest mission impact

Team In Training

•  Participants need skin in the game and have a fundraising minimum commitment level to achieve.

•  Program has a standard $100 reg fee.

Connect fundraising to your mission. Consistently encourage fundraising as part of event participation.

Kathryn Hall

Kathryn.Hall@Blackbaud.com 512-813-7026 @KathrynHall

For more information, resources, and conversations, visit: blackbaud.com/research npEngage.com