Donations Processing: Embracing Efficiency, Security, and Data to Build Your Future
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The document discusses the American Heart Association's efforts to standardize and improve its donations processing systems. It describes how the AHA worked with CDS Global to implement centralized caging, capture, and acknowledgement processes to provide consistency, improve security and data quality, and increase donations. The new system helped process over $425 million in donations and saved over $52,000 in bank fees while improving the donor experience. The AHA then expanded the program to additional revenue streams and piloted remote deposit capture.
Donations Processing: Embracing Efficiency, Security, and Data to Build Your Future
- 1. Donations Processing: Embracing Efficiency, Security, and Data to Build Your Future #12NTCAHCDS Chip Sugrue -- @ChipSugrue Brett Ridge – @BanterwithBrett
- 2. The American Heart Association Chip Sugrue Vice President of Customer Strategies/ Affiliate Management Consultant
- 3. Mission Building healthier lives, free of cardiovascular diseases and stroke #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 4. 2020 Goal “By 2020, to improve the cardiovascular health of all Americans by 20% while reducing death from cardiovascular diseases and stroke by 20%.” #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 5. AHA Affiliates A K Founders Affiliate WA Michael Weamer, EVP MT ND CT, ME, MA, NH, NJ, *NY, RI & VT M ME N VT NH OR M RI SD SD WI NY NYC A W CT ID MI Y PA IA OH NJ Western States Affiliate NE Midwest Affiliate Roman J. Bowser, EVP IL Great Rivers Affiliate IN DE Kevin Harker, EVP AK, AZ,*CA, HI, ID, MT, NV, OR, UT & WA IA, IL, IN,*KS, MI, MN, MO, ND, Nicole Aiello Sapio, EVP CO DE, KY, OH, *PA W WV & DC NV UT NE, SD & WI VA MD KY CA KS M V O Mid-Atlantic Affiliate NC TN Jeremy Beauchamp, EVP MD, NC, SC, *VA & WA, DC OK AR SC AZ NM National TX Center MS AL GA SouthWest Affiliate LA FL Midge LaPorte Epstein, EVP Greater Southeast Affiliate AR, CO, NM, OK, *TX & WY David Markiewicz, EVP HI AL, *FL, GA, LA, MS, PR & TN PR #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 6. Chip Sugrue 5 Years National Vice President Of Customer Strategies American Heart Association, National Center 10 Years as CEO/Executive Vice President AHA Minnesota Affiliate AHA Northland Affiliate AHA Northeast Affiliate 9 Years as National Affiliate Management Consultant American Heart Association, National Center 34 Years Total Field/National Center Experience #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 7. CDS Global Brett Ridge Senior Solutions Manager, Nonprofit
- 8. Our parent company, Hearst Corporation, is more than 120 years old and comprises nearly 20,000 employees spanning six major groups Newspapers Magazines Broadcasting Entertainment/Syndication Interactive Media Business Media #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 9. CDS Global Clients Publishing Nonprofits Consumer Products Utilities #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 10. Markets Publishing Consumer Products Nonprofits Utilities #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 11. CDS Global Locations #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 12. Brett Ridge 10 Years as CEO/Executive Director Make-A-Wish Foundation of Iowa National Multiple Sclerosis Society of Iowa FFA Foundation of Iowa 7 Years as VP/Director of Marketing, Public Relations, Public Affairs (Government Relations) American Cancer Society, Midwest & Iowa Divisions Numerous State and National Task Forces & Coalitions #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 13. More than Meets the Eye Chip Sugrue Brett Ridge
- 14. AHA Donations Processing Beginnings Chip Sugrue Vice President of Customer Strategies/ Affiliate Management Consultant
- 15. The Problem Differences in donations processes: Donations captured Donations acknowledged Donations receipted Donations cultivated Could we be confident that our donors were being appropriately thanked, cultivated or at a minimum, meeting IRS receipting regulations? #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 16. Why All the Fuss? AHA estimates only 55% of contributions and payments received an acknowledgement Lack of process consistency between Affiliates makes acknowledgement rates an estimate To ensure we were consistently meeting IRS guidelines How much revenue has AHA lost due to uncultivated relationships because contributions were not captured for acknowledgement? #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 17. What to do? #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 18. Objectives Review the mechanics of how we cage, capture and acknowledge our donors The solution must: Provide consistency across the organization Be cost-effective for the Association Allow for scalability to quantity demands Be “trackable” – provide the Association a means to record if, when and what type of donation was received and acknowledgement generated Improve the data quality for the Association #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 19. Our Vision We envision a day that the AHA will: 1. Process all financial contributions into E1 according to established guidelines 2. Achieve a donor entry turnaround of three working days from receipt at the donor capture processing location 3. Mail an acknowledgement for a contribution with appropriate IRS terminology within five working days of receipt of donation 4. Identify trends in giving and segment donors based upon demonstrated behaviors 5. Design and implement an association-wide cultivation strategy Classifications of donors Creation of specific cultivation paths targeted to donor segment needs Example: Sending a message about us almost meeting our impact goal #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 20. Three Moving Parts 1. Caging How AHA deposits money 2. Capture How AHA collects customer data into the AHA CRM systems (Siebel, Kintera, etc.) 3. Acknowledgement The “Thank You” #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 21. Caging: What Did We Gain? Ability to electronically upload data into existing applications Ability to develop a reporting infrastructure Solution consistently applied Ability to track batch status within caging process Ability to adjust to future changes and invest in technology Minimal start-up costs Minimized ongoing training costs after implementation Ability to add additional income sources Minimized impact on system infrastructure #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 22. Capture: What Did We Gain? Maximized the number of donors captured Provided better opportunity for 360 degree view of donor Solution consistently applied Met data security and internal privacy requirements Ability to identify the source of the donation and market Disaster recovery is included Ability to adjust to future changes in technology Designated staff have visibility to the donation process Minimized redundancies in processing between caging and capture Ability to have consistent data verification #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 23. Acknowledgements: What Did We Gain? Ability to comply with IRS reporting guidelines Standardized process for thanking our donors Increased cost efficiencies by comingling mailings Ability to cultivate and re-engage donors Customization of acknowledgements by event or activity (phase 2) Ability to track status of acknowledgement #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 24. Cost Savings/Reallocation Existing lockbox costs would be reduced (e.g. Heart Walk) and reallocated Reduced the number of lockboxes needed from 21 to 14 Some mail costs shifted from Affiliates to vendor Reduction in copying costs and time spent copying checks Staff time reallocated due to increased efficiencies Redeployment of staff resources for some Affiliates Depository fees savings of approximately $26,000/year with 9 deposits from the vendor per day versus 300 deposits #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 25. Caging, Capture, Acknowledgement Impact More donation information captured and entered into expanded 360 data warehouse Standardized cash receipts guidelines developed Affiliates now participating in cash pooling program Better customer service in responding to donor inquiries Ability now to expand standardized Donor Appreciation project Opened up new opportunities in other business functions (Youth Market, Work place Giving, Health Strategies) #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 26. The Impact In Numbers (27 months) More than $425,000,000 in Savings of more than $52,000 in income processed bank fees 3,510,379 transactions Savings of more than $24,000 by 937,905 acknowledgements eliminating 7 lockboxes mailed 7,000 requests for information More than 2.4 million new donors added to CRM More than $200,000 savings in acquisition costs More than $47,000 in second gifts #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 27. Volume Donations Processing Technology & Tools Brett Ridge Senior Solutions Manager, Nonprofit
- 28. mail receipt PO boxes identify clients and transaction types STEP Regional collection offices 1 Mail is either picked up at post office or delivered to sites From remote locations (RDC)
- 29. Getting It Done Remote Deposit Capture Reduce float time Save on costly postal fees Improves funds availability Process deposits from events, local office Multiple scanner options Easy-to-use software and implementation Capture data in addition to checks #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 30. STEP 2 mail processing SORTATION EXTRACTION IMAGING & DATA Sort multiple Open and CAPTURE classes of remove Imaging Systems documents envelope Web Image contents Archive Handwriting Detection & Recognition
- 31. Sortation Sorts two-piece, check only, document only, customer service, etc.
- 32. Combination of automated & manual
- 33. Imaging & Data Capture State-of-the-art imaging system Capture virtually any data from any documents Speed up processing Ensure security, compliance, highest accuracy in industry Increase amount of data captured about donors
- 34. Imaging & Data Capture
- 37. STEP depositing 3 • Balancing – No data file, check or check image leaves CDS Global without being in balance • Deposit • Manual – Physical deposit of checks via bonded courier • Electronic Check Presentment (ECP) • Send an electronic image of check to bank for depositing • Check 21 • ACH/ARC • Both • Online Bill Pay Support – Relationships with vendors to receive data feeds when bills are paid via online banking site
- 38. STEP Customer Database 4 Communication/Feeds • Customize feeds or key data directly into donor database to suit requirements • Highly flexible, easy to use • Keeping valuable data safe • Transaction data distributed via secure FTP site (CDSFiles)
- 39. Donor Acknowledgements & Marketing Solutions Recognize attract, retain donors Seamless programs that handle the printing, personalization and mailing of donor acknowledgement packages Paper and electronic methods available Quickly and accurately acknowledge donors Donor solicitations Rewards for high-value donors Personalized, multichannel campaigns Simple event registration capabilities and online payment #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 40. AHA Donations Processing Expansions Chip Sugrue Vice President of Customer Strategies/ Affiliate Management Consultant
- 41. Expanding the Program Accounts Receivable Results 4 of 7 affiliates participating 4,700+ receivables processed and deposited Saves AHA preparation and processing time Customized acknowledgement letter for Youth Market donors Created customized acknowledgement for those making additional donations 2012 – Creating customized acknowledgement for Workplace Giving donors #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 42. Expanding the Program Remote Data Deposit and Capture Testing Determine if batch headers and checks could be scanned remotely to CDS Global for caging, capture and acknowledgement Quantify cost savings from not mailing information Quantify additional interest earned for depositing income faster Identify impact of scanning on AHA workload Identify any issues with AHA taking on the check destroying responsibilities #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 43. Expanding the Program Remote Data Deposit and Capture Pilot Two high-volume offices within the Founders Affiliate (Framingham and Robbinsville) were selected to participate • Pilot ran from April 1-June 30, 2011 • CDS Global loaned one scanner to each office • CDS Global conducted webinar to train staff on scanning machines #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 44. Expanding the Program Remote Data Deposit and Capture Pilot More than 45% of the total income from the Founders Affiliate was processed from Framingham and Robbinsville offices Robbinsville also processed Accounts Receivable More than 1/3 of the total batches processed (1,166) More than 1/4 of all checks (5,441) processed #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 45. Expanding the Program Remote Data Deposit and Capture Pilot Results 1,166 batches and more than $3,543,000 processed More than $845 in postal costs saved More than $600 in additional interest earned Additional cost savings of $45.60 from not having to use Tyvek envelopes Information scanned in the morning/deposited the same day Information available in e1 and Web Image Archive within hours #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 46. Expanding the Program Remote Data Deposit and Capture Pilot Results Scanning did not appear to take any more or less staff time than manually preparing batches and prepping them for mailing Scanning could help speed up process for confirming donations in event management tools Scanning documentation would save a step Positive ROI using scanners #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 47. Expanding the Program Remote Data Deposit and Capture Pilot Results Potential costs savings assuming similar costs to the Founders Affiliate offices for 25 additional AHA offices: • Postage savings of $42,250* • Increased income of $29,123 (1.5%) • Decreased Tyvek envelope costs $2,280 • Estimated total savings and increased interest income = $73,653+ per year *FDA sending all batches Priority Mail #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 48. Stop the Guessing Game Brett Ridge Senior Solutions Manager, Nonprofit
- 49. Gathering Deeper Data from Donations Chip Sugrue Brett Ridge
- 50. Leveraging Data Weave Your Way into Their DNA Remember who they are … their context Be simple and direct on their level Creative Simplicity … not off the wall Create a plan for touches #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 51. Expanding the Relationship Growth from Increased Relationships 3X+ and 2X donors with activity are 132% and 56% more valuable than their average donor counterparts Life to Date Dollars from donors with both revenue and non-revenue activity Freq. Donors Activity Giving LTD Dollars LTD $/Donor Category w/Activity Freq. Freq. 3x+ 659,081 4.04 7.34 $589,745,418 $894.80 2x 309,174 3.04 2 $42,773,548 $138.35 1x 652,531 2.27 1 $45,220,394 $69.30 Totals 1,620,786 3.14 3.77 $677,739,360 $418.15 #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 52. Gathering Data Begin a Dialogue Provide information Ask their thoughts Get their opinion Make them feel that you care what they think … and then actually begin to care #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 53. Gathering Data Solicitations Mailed Emailed Personal calls Online portals • Age, gender, creed, etc. • Email address • Communication preferences, social media information • Interests, hobbies, event preferences • WHY THEY CARE #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 54. Gathering Data Tear-Offs Can be scanned PURL To prepopulated microsites • Surveys, information etc. QR Codes Directly to microsites, websites, webstores, surveys, etc. #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 55. Gathering Data Acknowledgements Mailed Emailed Personal calls Online portals • Begin a dialogue • Provide information • Ask their opinion • Ask for another donation #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 56. Gathering Data Acknowledgement Opportunities Planned giving wills and estates (7,000 requests) Volunteer opportunities (7/1/2011 – 300+ requests) Research information Join the You’re the Cure Advocacy Network Soft ask for additional donation (FY 2011 – $47,000 from 689 donations = $68.21 gift average. First 7 months of FY 2012 – $53,614 from 345 donations = $155 gift average.) #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 57. Gathering Data Track It Who responded? What channel did they use? What did they tell you? Analyze the Data What does it tell you about groups? Individuals? Build profiles #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 58. Leveraging Data Context It’s not about you Connect with them on their level Meet consumers at their destination Enhance Data Add additional data Build profiles on individuals Build prospect profiles #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 59. Constituent Data 100,000 Provide Email on Send Email Constituent File? with PURL Age Yes Analysis 20-60 (age, propensity to give, etc.) Open No Email? Send 2nd Age Email 60 + No Yes Send AgeTargeted Personalized Postcard w/QR and Tear-Off Go To Open Option (2 or 3 age segments) PURL? Email? No Yes Yes Utilize QR Yes to PURL No Microsite w/Call 2nd Capture Or to Action No Email Utilize Tear- Scan Tear-Off No Off Yes Positive Acknowledge via US Mail and/or Response? No Email, Notify IRC for Fulfillment Yes Record in Campaign Manager as Record in Campaign Unsuccessful Manager as Record in Campaign Manager as Successful Unsuccessful #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 60. Leveraging Data AHA Multichannel Opportunities Average of 1,000 customers contact AHA Service Center via email or phone each day for educational or donation information Dynamic Delivery provides opportunity to email educational or donation information while they are on the phone • Average more than 9,000 Dynamic Delivery emails per month In FY 2011, more than 110,000 Dynamic Delivery emails were sent, saving the organization more than $220,000 in print and postage costs while delivering outstanding service to the customer #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 61. Leveraging Data AHA Multichannel Opportunities In March 2011 we created a monthly educational email to send to our online donors to heart.org. More than 48,000 online donors received these emails in the last year. Our 2011 year-end email campaign to these donors increased income more than 47%. Volunteers and staff called all $500+ year-end campaign donors. In FY 2011, we added a donate button to the bottom of the Dynamic Delivery email. As a result Dynamic Delivery customers donated more than $184,000 during the year. In FY 2012 we have already exceeded FY2011 with more than $284,000 through the first 7 months. #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 62. Leveraging Data AHA Multichannel Opportunities In FY 2012, we added monthly opportunity to volunteer for the AHA. Customers receive 15 days after Dynamic Delivery. February 2012, we added a direct link to our volunteer form. The number of volunteer submissions doubled the day the email was sent out. Local staff follow-up with those interested in volunteering to onboard them to a volunteer activity. At least 3 channels used (phone, email, personal follow-up) #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 63. Leveraging Data Fight for it! Enlist marketing professionals as consultants • Not for creative work … but to sell the ideas Replace, replenish, refuel Forward-thinking Board Members & Staff • Positive attitude #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 64. Leveraging Data We are not perfect, we learn as we go … We are great at acquiring new donors, we are not as good retaining and renewing donors Some of our offline cultivations have not done well Our donation renewal rates are not where we want them to be We need to be more proactive (ex: sending late breaking news about stroke to our stroke customers after our annual Stroke Conference) The opportunity to volunteer from our website is new 12/1/2011 and we are learning #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 65. Leveraging Data “Failure is a prerequisite for great success. If you want to succeed faster, double your rate of failure.” ̶ Brian Tracy #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 66. The Glass Is Half Full Chip Sugrue Brett Ridge
- 67. Evaluate This Session! Each entry is a chance to win an NTEN engraved iPad! or online using #12NTCAHCDS at www.nten.org/ntc/eval #12NTCAHCDS @BanterwithBrett @ChipSugrue
- 68. Donations Processing: Embracing Efficiency, Security and Data to Build Your Future #12NTCAHCDS Chip Sugrue Brett Ridge
Editor's Notes
- #3: This is an exercise that people in the workshop will do where they get to cut one notebook sheet of paper with one continuous cut and try to make it such that the paper is still connected yet can fit around someone’s body. The idea is that you can get so much more from a piece of paper than you first think.
- #8: This is an exercise that people in the workshop will do where they get to cut one notebook sheet of paper with one continuous cut and try to make it such that the paper is still connected yet can fit around someone’s body. The idea is that you can get so much more from a piece of paper than you first think.
- #9: Backed by the stability of the Hearst Corporation, one of the world’s largest diversified media organizations, CDS Global has the financial strength to continue to invest in solutions that will produce client growth and success. [CLICK]
- #10: As we deliver these solutions to multiple industries, we’re trusted by some of the world’s best-known (and lesser-known) organizations, serving our clients as not just a supplier or a vendor, but a strategic partner. [CLICK]
- #11: We support an increasingly diverse set of industries, with our primary business units being Publishing, Consumer Products, Nonprofits, and Utilities. [CLICK]
- #12: With corporate headquarters in Des Moines, Iowa, CDS Global’s facilities are placed at strategic locations across the globe. We have 13 sites in North America, as well as offices in the U.K. and Australia.We offer processing centers on both the east and west coasts, and in the Midwest. Our processing centers in the Midwest are able to offer lower cost ground service with few shipping zone jumps to the 48 contiguous U.S. states. [CLICK]
- #14: This is an exercise that people in the workshop will do where they get to cut one notebook sheet of paper with one continuous cut and try to make it such that the paper is still connected yet can fit around someone’s body. The idea is that you can get so much more from a piece of paper than you first think.
- #31: Our sophisticated page-scanning, imaging and recognition technologies supply you with an efficient and cost-effective data management platform capable of collecting precise donor information. Our automated imaging and data capture technologies speed up processing while ensuring security, compliance and the highest accuracy in the industry. They also increase the amount of data being captured about your donors and help to refine and support marketing and donor engagement programs over time.
- #34: -Our sophisticated page-scanning, imaging and recognition technologies supply you with an efficient and cost-effective data management platform capable of collecting precise donor information. -They also increase the amount of data being captured about your donors and help to refine and support marketing and donor engagement programs over time. -Our data capture systems read and store information from virtually any document that comes with your receivables – including donor contributions and correspondence.-Our automated imaging and data capture technologies speed up processing while ensuring security, compliance and the highest accuracy in the industry. They also increase the amount of data being captured about your donors and help to refine and support marketing and donor engagement programs over time.
- #35: Using our advanced imaging systems, CDS Global is able to collect precise customer information during the order and remittance processes. We capture and electronically store essential information, which can be immediately imported into your customer databases.
- #36: Using our intelligent recognition software, easily detect and capture handwritten information from your customers including address changes, customer messages, vouchers, mark-sense selections and more. Not only can our technology determine that something has been hand-written, it can actually read and translate what was written, which saves processing time and ensures that all information from customers is captured.For example on this donation you can see that the man that is donating wants the donation to be given in the name of his son who was a victim of drunk driving.
- #37: CDS Global’s Web Image Archive (WIA) is an electronic storage facility designed to store your documents and information, providing online access to your critical data. With a complete audit trail and flexible search functionalities, your customer service representatives and internal personnel can quickly search and find any document that was processed on behalf of a customer.
- #38: Balancing – A differentiator for us. We ensure the highest accuracy in the industry.Online Bill Pay - Relationships with certain vendors (Metavante, ORCC, etc.) to receive data feeds when bills are paid via online banking site
- #40: CDS Global has the products and expertise to help you recognize, attract and retain your most exclusive donors. Promptly acknowledging all donors is a critical step in donation processing. Donors are much more willing to give again if their gifts are quickly and accurately acknowledged. We offer seamless programs that handle the printing, personalization and mailing of donor acknowledgement packages as well as donor solicitations rewards for high-value donors, and personalized, multichannel campaigns – helping our clients acquire new donors, reward loyal donors, increase one-time gifts, and increase giving levels among various donor segments. American Heart example: The executives were looking for more donations. Ran a donor acknowledgment campaign that included an ask for an additional gift. The postal savings paid for the acknowledgment process alone. Through personalization and correct segmentation they saw a XX% increase in ROI.
- #49: This is an exercise where the participants try to lay out an 8 foot length of post-its on the floor or wall with no rulers. They do it first in smaller groups and then join groups together. They idea is that the more people involved, the more confident they become in their decision….in essence they have more data to leverage.