1 March 31, 2016
2 Best Practices and Future Trends in Nonprofit FundraisingMarch 31, 2016 Introductions – Rick Schildgen Best Practices - Ginny Boss Future Trends – Rick Schildgen Panel Discussion – Cathy Patenaude, Family Health Partnership Clinic Jayne McGrath, Little City Foundation Cyndi Schu – The Family Institute at Northwestern Univ. Rita Galowich, Fund Inc. Audience Questions for Panel Conclusions – Rick Schildgen
3 Best Practices If you’ve seen one Nonprofit, you’ve seen one Nonprofit. No two are alike! Each have their own unique characteristics and challenges. But, when it comes to marketing, they all need to focus on the same basic questions…
4 Best Practices Who are you and what do you do? Mission PassionPrograms Activities
5 Best Practices Who do you serve and why should they care?Have a clear picture of your audience What do you bring to the table Find the hook between their needs and your unique value
6 Best Practices Old, new, tried and true.Some of the ways in which to engage your audience have changed due to advances in technology and generational shifts. Yet, others have stood the test of time and should remain an integral part of your marketing plan
7 Best Practices Saying, “Thank You”, ends one transaction but builds a bridge to future support and deeper engagement. Phone calls Handwritten thank you letters or notes Social media Instagram and Vine videos
8 Best Practices Non-ask Events – should be done at least twice a year and does not include any fundraising or admission fees. Great opportunity to talk about your mission Introduce your staff Make them feel like a part of your team
9 Best Practices Non-ask events can include: Eats, drinks and minglingA short program highlighting your work and the outcome of your efforts Time for questions and literature handouts A mention that someone will follow up to see if they have further questions
10 Best Practices The fortune is in the follow-up!Would they be interested in getting more involved by volunteering or joining a committee? Stay in touch through newsletters or invites to other events Make them feel like a part of your team first…then make an ask!
11 Best Practices Segmenting Your Donors – grouping similar donors together takes time, but advantages include: Organizing your fundraising materials Enables you to be more creative, innovative and intentional in the way you engage them Determines how best to communicate with each group
12 Best Practices How should you segment?Start with the giving category that means the most to your organization: Donor versus non-donors, and giving levels RFM: recency, frequency, money donated Demographics: age, gender, income, location Communication method: , direct mail, online with credit cards, checks, cash
13 Best Practices After segmenting with these groupings, develop strategies that match your donors segments. Then, test, measure, analyze and improve your strategies. Biggest barrier to donor segmentation – data integrity! It’s no good if it’s not accurate.
14 Best Practices Personalization – Why to do it?The vast majority of fundraising appeals are personalized letters from one person to another, based on the belief that “people want to give to people” No word is more is more important than our own name. The first thing donors should read in a letter is their name in a salutation Donors tend to forget when and how much they last gave. Remind them and thank them for how they’ve been helping.
15 Best Practices Personalization – Where to do it? Letters –Salutation: use their first names in most cases Start an ask sentence or thank you sentence with their first name For top donors: hand write notes on the letter Last annual fund gift Last annual fund gift date Response cards – Name and address - Phone number - Last annual fund gift and date Ask amount - Constituent ID
16 Best Practices Cross-Media StrategiesSynchronize your campaign with a variety of media channels Print Mobile marketing Website Broadcast Social media - Video Content media - Phone Call Follow-up
17 Best Practices Cross-Media StrategiesThe strength of integrated marketing is in the synergy it creates Appeal to a variety of generations Provide repetition required to be successful Exponentially build upon each other Improve the overall response rate
18 Best Practices Cross-Media Strategies Why it’s importantYour audience receives and processes information differently The speed at which information travels these days requires a much quicker response time Your competition is doing it!
19 Best Practices Cross-Media StrategiesSample of a well-developed cross-media campaign Send announcements of pending direct mail appeal Website posting and donation page Direct mail campaign is sent out Social media reinforcement Phone call follow-ups follow-up reminders Timely acknowledgements
20 Future Trends What trends are out there that your organization needs to be on the look out for? Do I need to embrace every new “fad” that comes along? Better to just concentrate on what we do well, rather than spreading ourselves too thin?
21 Future Trends Two big “gorillas” in the room… Increased competitionFrom more and more organizations From more fundraising models and media formats Generational trends The dominant giving generations – GI/Silent and the Baby Boomers will be fading in their giving impact Generation X – has not been seen as a strong force Generation Y – the Millennials, tend to be much more connected and willing to be involved
22 Future Trends Generational ChangesNeed to accept that your donor lists will likely shrink, if… You don’t gather new prospects Need to figure how to engage the Generation X donor group Cultivation and nurturing is the key Millennials can be a huge opportunity if… You adapt how you communicate Acknowledge that it is a constantly shifting donor group
23 Future Trends Peer to Peer Fundraising – a tremendous opportunity!Engage your loyal and passionate supporters to help fundraise on your behalf Crowdfunding Events, Contests Challenge Appeals Peer to Peer fundraising volume grew 70% in 2014 Donation amounts also have grown year over year
24 Future Trends Peer to Peer Fundraising – a tremendous opportunity!Why it works… Giving is personal – prompted by personal experiences or ties to a cause or an organization. Giving is also social – we are very much influenced by our family, friends and networks While your message can be moving and impactful, when it is reinforced by someone we know and trust, then the message becomes even more real.
25 Future Trends Peer to Peer Fundraising – a tremendous opportunity!Potential “ambassadors” to engage in a campaign Clients or people who have been helped by your organization Existing loyal donors Volunteers Staff Board members Partners – vendors, community groups Local leaders Youth groups
26 Future Trends Peer to Peer Fundraising – a tremendous opportunity!Key factors to ensure a successful campaign Board Buy-in – not only can your Board be a “natural” for this type of fundraising, but they must also give you the support to build the campaign Plan out the campaign and the communication materials needed in advance – create a clear “case for giving” Make it easy for your campaign fundraisers to understand and share the message with their contacts – provide collateral materials Make it easy for donors to give with a proven online system Celebrate your fundraiser’s successes and encourage participation with regular campaign updates Acknowledge all gifts to those who donate through a friend’s campaign – then continue to cultivate these new donors!
27 Future Trends Giving Tuesday – time to jump on board!Local campaigns started slow – 2013 and 2014 were minimal 2015 saw a good increase in local campaigns Giving Tuesday can be promoted both as a special event and/or as part of an organizations year-end campaign 2016 will offer a strong opportunity for those who plan the promotion of this early and with multiple media formats
28 Future Trends Giving Tuesday – time to jump on board!Engage a group of supporters to manage the campaign, and to “spread” the word Develop collateral materials to distribute – posters, buckslips, displays Utilize Social media campaigns with paid advertising to reach as many as possible Promote on your website well in advance and send blasts or even text messages Make it easy for online donations – consider a separate giving page for tracking this campaign
29 Future Trends Sharing the Donor ImpactNow more than ever, it is imperative to share not only your mission and passion, but also the impact that your donors have on this mission! Accountability and results are important for your donors – look to give it to them even before they ask for it This is key to cultivation! Not only to hold onto your donor base, but to help increase donation levels.
30 Future Trends Sharing the Donor ImpactWays to communicate this impact… Include updates in all or printed newsletters Send out a personalized letter/report of what your top donors impact was in the last year Consider holding small donor appreciation events that highlight the impact and provide opportunities for donors to ask questions or take a tour of your facility
31 Panel Discussion Introductions and brief overviewCathy Patenaude, Family Health Partnership Clinic Jayne McGrath, Little City Foundation Cyndi Schu – The Family Institute at Northwestern Univ. Rita Galowich, Fund Inc
32 Panel Discussion Tell us the different ways you do fundraising for your organization, which may include: - Grants - Fundraisers - Donor appeals - Corporate Sponsorships - Events - Online - Other How do you segment your donors? - How do you treat your V.I.P.s versus the other groups?
33 Panel Discussion How do you plan to communicate to these groups?- The means you use to reach them – different media formats - The number of times throughout the year - How many include a “hard ask” What has worked well for your organization? - What hasn’t and why? Can you share some of what you have done in your fundraising efforts?
34 Cathy Patenaude – Family Health Partnership Clinic Donor Engagement Strategies: Daily Patient/Donor/Volunteer Stories, updates, thank you’s on FB, Twitter Weekly Weekly announcements on Clinic website home page Monthly Monthly Constant Contact newsletters – avg. 34% open rate Various community presentations each month, i.e. to church groups, businesses, other non-profits Make direct contact donors (preferably face to face otherwise by phone) Most often done by E.D.
35 Cathy Patenaude – Family Health Partnership Clinic Donor Engagement Strategies: January hard copy newsletter mailed Send LYBNTY letters out (in regard to annual appeal letter) March notes sent to monthly donors; thank you & clinic update April Gala Volunteer Appreciation (important piece in developing them to be donors) May Donor Survey via Constant Contact – average 20% response June Hard copy newsletter mailed July Handwritten notes to ALL donors with quick thanks and update
36 Cathy Patenaude – Family Health Partnership Clinic Donor Engagement Strategies: September Annual Report mailed October Care4 Breast Cancer 5K race November Board writes notes to target donors just prior to Annual Giving appeal November Annual Giving appeal December Thank you calls to donors Extra note: Board members assigned donors to welcome/thank throughout the year (by mail) We are always encouraging tours and asking for advice from donors/volunteers Many attempts to have Clinic highlighted in news media throughout the year
37 Cathy Patenaude – Family Health Partnership Clinic Donor Engagement Strategies: 1291 Donors in system 2338 Constant Contact, 31% open rate each month (industry standard is reported at 10%) 752 Likes on our Race FB page 856 Likes on our Clinic FB page 279 Followers on Twitter
38 Cathy Patenaude – Family Health Partnership Clinic
39 Cathy Patenaude – Family Health Partnership Clinic
40 Cathy Patenaude – Family Health Partnership Clinic
41 Creativity with ImpactJayne McGrath – Little City Foundation Creativity with Impact Dress your Direct Mail to Impress!
42 Thoughts to Consider B4 You Start! “ Begin With The End in Mind”The Right Target Audience – who will get the mailing? Donors, members, stakeholders, board, new prospects, media? Will you segment your donor lists? Goals – what do you want to achieve? Revenue, Reach, Messaging Planning – costs, timing, size, backend processing, enclosures acknowledgements, fulfillment if necessary, postal considerations, reply devices, return envelopes etc. ROI – Do the math! Based on benchmarks, targets, etc. plan the possible outcomes to assure revenue can be made. Create a Focused Message/Story– what will be the main focus of the message? Will the writing elicit an emotion from the reader? Is it compelling enough to cause them to act?
43 Things to Consider B4 you Start!Cross Marketing – What support will you give the direct mail piece to drive action? Do you have a matching dedicated web give page? Is a schedule of online efforts prepared? Creativity – how will you get the envelope opened and what format will the piece take? Visuals? Does it draw the reader in? Personalization – make it personal, through salutation, custom ask amount based on previous gift history, appreciation or “we have missed your support” statements. Strong Ask – how will you ask? What will you ask for? Does the body content support that ask? Measurement vehicles – how will you measure the appeal’s success? Can you compare to last years’ efforts, last campaign etc. What analytical tools will you use?
44 A Treasure Chest of GemsThe Results! Revenue: $136,632 Cost: $22,161 ROI: 606% # Gifts: 1,886 Avg. gift: $72.45 Response Rate: 10% Ly/Sy Return: 28% Cost to raise a Dollar: .18¢ Online Revenue: $24,611 (171) 18,795 pieces mailed “Non-Profit Magazine Gold Award Winner”–Nov. 2015 “Tempo Award - 2nd Place for Best in Midwest Direct Marketing” - CADM Award Jul. 2015
45 “Tag You’re It!” Spread some Cheer!Revenue: $167,102 Cost: $16,792 ROI: 902% # Gifts: 1,565 Avg. Gift: $107.48 Response Rate: 6.56% Lybunt/Sybunt Recaptures: 31% Cost to Raise a Dollar: .09¢ Online Revenue: $39,315 (196) Thank-a-thon: 128 gifts for Appeal + other gifts out of 404 calls New Donors: 23 (5 joined monthly re-occurring giving) Premiums fulfilled: Over $ gifts, Over $ gifts 23,508 pieces mailed
46 Web, Online and Cross Market Support Giving Tuesday and “Tag You’re ItWeb, Online and Cross Market Support Giving Tuesday and “Tag You’re It!” Launch s Facebook Web page - $19,945 raised in 1 day + received a match for it Flyers – employee involvement Junior Board forwards of s and “Likes and Shares on FB” Thank-a-thon prior to mailing
47 “Sue’s Scrapbook of Memories”Revenue: $194,480 Cost: $17,524 ROI: 1009% # Gifts: 2,347 Avg. Gift: $82.86 Response Rate: 9.87% Ly/Sy Returns: 36% Cost to Raise a dollar: .09¢ Online: $19,930 (165) New: 73 23,900 pieces mailed
48 “ I am a Champion” Special Olympics AppealRevenue: $22,907 Cost: $3,519 ROI: 517% # Gifts: 454 Avg. Gift: $50.02 Response Rate:10% Ly/Sy Returns: 24% Cost to Raise a dollar: .15¢ # Gifts over $250 fulfilled: 15 5,863 pieces mailed
49 Cyndi Schu – The Family Institute at Northwestern Univ.
50 Cyndi Schu – The Family Institute at Northwestern Univ.
51 Cyndi Schu – The Family Institute at Northwestern Univ.
52 Cyndi Schu – The Family Institute at Northwestern Univ.
53 Cyndi Schu – The Family Institute at Northwestern Univ.Year-End Appeal Sample
54 Rita Galowich – Fund IncFund Inc's successful clients are… Maximizing their website Maximizing links to their website in all written and communications Including a "donate now" button on EACH PAGE OF THEIR WEBSITE that takes the person to the donation page Donations can be made through PayPal or a credit card Continuing to use snail mail for appeals More personal Gives options to make a gift on line or with response card
55 Rita Galowich – Fund IncFund Inc's successful clients are… Creating appeals that contain: A personal story of a donor and client to an organization Use of this individual's photo or name on the mailing envelope and letter Quote from this individual on the mailing envelope and letter Specific ask based on previous gift amount A "P.S." restating the gift request Response card that begins the gift string with the amount asked in the letter Personal note from a board member, etc.
56 Rita Galowich – Fund IncFund Inc's successful clients are… Strategically using social media Determining an overall strategy for social media Not hit or miss Pre-determined calendar times for dissemination of information Pre-determined messages Assigning a staff person or volunteer to implement social media strategies
57 Rita Galowich – Fund IncFund Inc's successful clients are… Communicating with donors regularly between solicitations This means touch points that are not solicitations but rather information about the organization through: communication Social media Newsletters Website information program information success stories annual reports donor list
58 Rita Galowich – Fund IncFund Inc's successful clients are… Spending time on board governance Evaluating who is on their board and what type of board members will help them meet changing needs Engaging the board in fundraising by providing options to choose Board education for old and new board members regarding their role and responsibilities The stronger your board, the stronger your organization!
59 Rita Galowich – Fund IncWhat are some of the trends and challenges I am seeing? Pledge times are getting shorter -- 3 rather than 5 years Hesitation to pledge -- economy driven Integrated campaigns capital, program, annual Fewer feasibility studies prior to a campaign new research tools make this possible in some instances Growth in startup planned giving programs
60 Rita Galowich – Fund IncWhat are some of the trends and challenges I am seeing? Volatility of the stock market impacting retiree giving Small nonprofits are realizing the importance of investing in resource development earlier in their existence Competition for dollars is forever increasing More focus on donor engagement by asking donors for feedback on specific concerns or challenges the organization faces Big challenge is to make your organization stand out -- need to think out of the box!