DMA-DC 2016_Workshop - Growing Revenue Despite a Declining Donor File
- 1. Growing Revenue Despite a Declining Donor File How One Nonprofit Reached 18% YOY Growth in Three Years Mark Publow, CFRE Nicole Pena, Phoenix Rescue Mission
- 2. 2 • Revenue was soft but we weren’t sure why • Program budgets were expanding but were not accompanied by clear plan for growing revenue • We were repeating the same fundraising program but seeing diminishing results • As a result, the financial picture was not good — No cash reserves — Assuming new debt — Total funding to program was declining Anatomy of the Challenge
- 3. Fiscal Year Total Cash Contributions Revenue % Variance Active 12 mo. donor count % Variance Gift Count % Variance FY2011 $8,089,389 NA 44,299 NA FY2012 $7,399,654 -8.5% 40,213 -9.2% 94,677 FY2013 $7,196,235 -2.7% 37,760 -6.1% 89,552 -5.4% FY2014 $7,535,102 4.7% 32,751 -13.3% 81,262 -9.3% FY2015 $8,885,976 17.9% 32,583 -0.5% 84,985 4.6%
- 4. Fiscal Year Donor retention rate LYBUNT 12 months Average Gift % Variance Average Donor Giving Per Year % Variance FY2011 63% 16,422 NA $182.61 FY2012 51% 19,436 $ 79.46 $184.01 0.8% FY2013 59% 15,206 $ 80.36 1.1% $190.58 3.6% FY2014 54% 14,972 $ 92.72 15.4% $230.07 20.7% FY2015 64% 11,105 $ 104.56 12.8% $272.72 18.5%
- 5. 5 Architecture of a Turnaround Four Strategic “Shifts” A. Shifting from Data Entry to Data Optimization B. Shifting from Reporting to Analytics C. Shifting our Donor Messaging D. Shifting to a High Performance Ecosystem
- 6. 6 Shifting from Data Entry to Data Optimization
- 7. Database - The initial problem • Reports out of RE were not only difficult to set up, but data did not make sense or sometimes did not yeild the same results. • There had been no real thought (strategic intent) behind how data input into RE had been both structured and maintained, over many years.
- 8. Database - The Ah-Ha Moment • We needed to see the big picture, not so much what were doing, as where we need to be. • We need to focus on what we want to get out of RE (meaningful reports and dashboards) as a driver for how we input data.
- 9. Database - The initial problem • Reports out of RE were not only difficult to set up, but data did not make sense or sometimes did not yeild the same results. • There had been no real thought (strategic intent) behind how data input into RE had been both structured and maintained, over many years.
- 10. Three Key Streams • The “did not givers” (LYBUNT) 19,000 people for a loss of 1.4 million in revenue • The “do not mailers” (complained, overreacted, dead?) - 15,000 marked DNM in 2011 • The “we have no cluers” (matching gift companies, churches, businesses, volunteers – people in the database that were seeking us out )
- 11. Database - Discovery • Using the right codes for the wrong reasons • Seven different ways, in three different places to say “do not mail” in the database • Solicitation codes: we weren’t sure how to use • Attribute codes: were used for too many areas • Constituency codes: were being ignored • Our direct mail numbers were decreasing precipitously
- 12. Database – Course of Action • Brainstormed what we believed were the ‘best’ categories or descriptions for Solicitation codes, Attribute codes and Constituency codes. • Sought a Blackbaud consultant to ensure we were doing the right things. • Updated all of our data for SC’s, AC’s and CC’s (going back one prior year) • Mailed all of our “do not mailers” with a questionnaire. • Mailed all of our LYBNT’s with an appeal. • Cleaned up our mailing file query. • Began placing constituents into mailing groups to test our segmentation strategy
- 13. 13 Shifting from Reporting to Analytics
- 14. 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 LYBUNTDonors LYBUNT by Month (Rolling 12 Month Total Each Month) FY12 FY13 FY14 FY15 FY16
- 15. Analytics - Course of Action • Determined Key Performance Indicators (KPIs) we would use • Long-term Donor Value • Net Yield • Average Gift / Gift Frequency • Retention • Pushed analytics to the forefront of discussions with marketing agency partner(s) • Attempted to push to analytics-led strategy … an uphill climb • Developed more sophisticated internal reporting and for the first time internal analytics • Identified (and sourced) external analytics resources / tools
- 16. Thanksgiving Appeals FY15 (YTD) - FY14 (12/12/14 data) FY15 Appeal # Mailed FY15 % Resp FY15 Ag Gift FY15 Net Revenue FY14 Appeal # Mailed FY14 % Resp FY14 Ag Gift FY14 Net Revenue Thanksgiving Placemat 33,946 9.50% $56.54 $162,458 Thanksgiving 56,232 6.20% $57.58 $161,521 Thanksgiving MSMT 24,344 15.50% $49.61 $167,053 Thanksgiving F/U 56,232 4.50% $49.04 $102,882 Thanks Last Chance 26,655 5.80% $48.27 $56,506 Thanks Women + Kids 55,739 4.20% $41.20 $71,856 TOTAL (YTD) 84,945 $386,017 TOTAL 168,203 $336,259 Note: 590 of 3,766 gifts to MSMT were multiple gifts fromthe same donor (15.67%) - generally giving the same amount 2x Note: Mailed 49.5% fewer pieces in FY15 and generated 14.8% MORE net revenue to date (appeals still generating revenue) Analytics – One Example of Change
- 17. 17 Shifting our Donor Messaging
- 18. Shifting Our Donor Message The Challenge • “Appeal of the Month” approach • Appeal content was not localized (syndication program) • Program services underwent dramatic change but marketing program still based on “old” message • Changing Lives Center – dramatic shift from serving homeless men primarily with addition of a large center serving homeless women and children
- 19. Course of Action • Shifted from Appeal of the Month to 4 Campaigns per year • To boost retention, restructured newsletter • Brought writing in-house • Shifted from 5-6 newsletters per year to monthly • Expanded monthly mailing of newsletters to include volunteers, gift-in-kind donors and deeper lapsed
- 22. 22 Shifting to a High Performance Ecosystem
- 23. 23 • Who are your key stakeholders – internal and external? • How do you build performance that leads to results? • Creating a healthy and generative ecosystem High Performance Ecosystem
- 24. 24 • Development staff • Program staff / partners • CEO, CFO & Board • Vendor Partners • Engaged donors & volunteers Key Stakeholders
- 25. 25 Results • Increased fundraising despite decline in file size • Created operating reserves; discontinued bank LOC • Established and raised $ for endowment (first-time) • Shifted slowest FR season of the year (summer) to high performance • Tested and refined story-driven messaging to a variety of segments • Increased Net Yield to Program by at least 8% a year each year • Decreased total FR costs by at least 1% a year each year
- 26. 26 Mark Publow, CDO www.phoenixrescuemission.org mpublow@childrensdefense.org https://www.facebook.com/phoenixrescuemission/ @phxmission Nicole Pena, Director of Marketing & Public Relations Phoenix Rescue Mission Growing Revenue Despite a Declining Donor File npena@phoenixrescuemission.org