It's And, Not Or
1 like559 views
The document discusses trends in nonprofit fundraising. It notes that while overall charitable giving is growing slowly since 2007, online giving is increasing much faster than other channels. Retention of donors is a major challenge, as nearly 60% of donors from the previous year do not renew. Email is identified as a very important tool, as it allows for personalized engagement with donors. The document advocates for a diversified fundraising strategy that incorporates online, email, and multichannel approaches to maximize donor retention and lifetime value.
It's And, Not Or
- 1. 1 IT’S AND, NOT OR Danielle Johnson-Vermenton Senior Interactive Consultant March 19, 2014
- 2. 2 • Almost 4 years at Convio/Blackbaud • Lover of nonprofits • Passionate about online engagement & communications, strategy and inspiring my clients • 13 years in fundraising & marketing • If I weren’t doing this I’d own a small diner CONSULTANT, TRAINER, SPEAKER, MOM
- 3. 3
- 4. 4 Growth is Slow Another 7-8 years to get back to the high of ’07 Giving USA 2013 Report
- 5. 5 THE STATE OF FUNDRAISING ACCORDING TO BLACKBAUD’S CHARITABLE GIVING REPORT 6 of 9 verticals saw double digit increase online compared to 2012
- 6. 6 ONLINE MARKETING BENCHMARK REPORT 2013
- 7. 7 SUPPORTERS WANT TO BE ENGAGED ONLINE • More than half of donors received information from their favorite charity’s website and by email or eNewsletter • Website is #1 for information (the face of your org) • Preferred to spread the word about their favorite charity by email (51%), Facebook and in person • Donors aged 50+ prefer visiting the website and email to stay in touch • Nearly half of respondents gave the majority of their annual donation to the charity they felt most connected to NTEN & CharityDynamics Donor Engagement Study 2012
- 8. 8 Almost SIX out of every ten donors from the previous year DID NOT renew by year’s end! AFP FEP Study from 2013 Key Reasons They Leave No memory of ever supporting Did not feel connected to the organization Not asked to give again Other causes are more deserving Never heard how donation was used
- 9. 9 Sources: Dr. Adrian Sargeant and Woodliffe, 2007 and Growing Philanthropy in the US 2011 Study A 10% CHANGE IN RETENTION CAN INCREASE THE LIFE TIME VALUE OF A DONOR BASE UP TO 200%.
- 10. 10 # of Nonprofits 43% since 2001 What characterizes these organizations? nimble multichannel technology driven Source: Giving USA 2011
- 11. 11 Key Take-Aways Double digit growth in online revenue You need to communicate – online Retention is a challenge for all organizations Competition for supporters is increasing, where are you landing?
- 12. 12 So what are you doing today?
- 13. 13 Major Gifts Events Budget Goal Grants Planned Giving Direct Mail Board Gifts IS YOUR STRATEGY DIVERSIFIED? Online • What does your budget look like? • Are you dependent on one or two main sources of income? • What are your strengths? Weaknesses? Opportunities?
- 14. 14 TODAY VS TOMORROW Direct Mail Grants Events Board Major Gifts Online What’s the plan for next year? 5 years? How will you overcome challenges & trends? Where will you find new support? How will you retain donors?
- 15. 15 It’s And, Not Or
- 16. 16 Online Middle & Major Gifts Direct Mail Planned Giving Corporate Giving Special Events Grants & Foundation Sustained Giving ONLINE IS YOUR ANNUAL FUND PIPELINE
- 17. 17 Lifetime Donor ValueDonor Value 12 MonthsNew Donor Renewal Rate THERE IS PROVEN VALUE IN MULTI-CHANNEL ENGAGEMENT Sources: Study entitled “Integrating Online Marketing (eCRM) with Direct Mail Fundraising” by Convio and StrategicOne Traditional defined as offline use. Internet Enabled defined as both offline and eCRM use. 34.4% 50.9% Mail +48% Multi-Channel $96 $187 Mail +95% Multi- Channel $314 $694 Mail +121% Multi-Channel
- 18. 18 WIRED WEALTHY – CONNECTING TO MAJOR GIFTS Putting it into context •86% say they visit websites before making a gift •Only 8% say they are inspired by the website to give •Half say giving online is their preferred method Wired Wealthy Report http://www.convio.com/files/GD_WiredWealthy_Report.pdf Donor Categories Annual Gift Self Reported Behaviors & Preferences Relationship Seekers (29%) Avg $11,000 Likely to engage in social media 60% say websites help them to feel connected Strong multichannel donors, more than half give online All Business (30%) Avg $12,000 Most visit websites to donate - period 15% say websites help them feel connected Key to happiness? Easy and smooth donation process Casual Connectors (41%) Avg $9,000 Middle ground between the top 2 clusters, interest in online connection, websites and giving. Multichannel with a split preference for giving method.
- 19. 19 THE GENERATIONS – THEY WANT TO HEAR FROM YOU
- 20. 20 How do you get there?
- 21. 21 EMAIL IS KING Email is where the rubber meets the road. It is 1 x 1 communication that enables the constituent to give. It is transactional & the path for personal communication based on preferences & interests. -John Haydon Source: http://social.razoo.com/2011/10/email-fundraising-is-still-king/
- 22. 22 THERE’S VALUE IN EMAIL $13!On average for Luminate Online customers As your housefile (# of emails) grows so does the impact to your annual fund in revenue and reach.
- 23. 23 GETTING STARTED Think like a supporter Capture their email Provide multiple touch points Put out the welcome mat Have the right software tools
- 24. 24 THINK LIKE YOUR SUPPORTERS ABOVE THE FOLD Reduced 4x ABOVE THE FOLD – 1 step Who would you give your email to?
- 25. 25 HAVE MULTIPLE TOUCH POINTS & GIVE THEM A REASON
- 26. 26 You’ve got the email, now what?
- 27. 27 30% of donors reported being thanked immediately, 21% said they were never thanked. How many people do you think are thanked when they sign-up? What do you think that first impression is like for the new subscriber? Email is an agreement between you and the subscriber. Start that relationship with trust and appreciation.
- 28. 28 ENGAGE THOUGHTFULLY FROM DAY 1 Relevance Curve 0% 10% 20% 30% 40% 50% 60% 1 month 2 to 3 months 4 to 6 months 7 to 12 months Year 2 Year 3 Time on Housefile EmailOpenRate Org #1 Org #2 Org #3 The honeymoon period to engage new subscribers is greatest in the first 45-60 days.
- 29. 29 PUT OUT THE WELCOME MAT – ESTABLISH YOUR RELATIONSHIP These are examples of Luminate Online Go! customer Welcome Series.
- 30. 30 Key Take-Aways Email has economic value Think like a customer An online relationship often starts with an email Engage subscribers immediately
- 31. 31 What Are You Waiting For?
- 32. 32 CONCLUSION Online growth continues to outpace Retention is low Communicate based on preferences Organizations should be technology driven To grow revenue you need to be diversified Email is valuable so start with a welcome Online creates a pipeline of support
- 33. 33 Evaluate your resources and tools Is your database in order? Is your website user focused & mobile? Are you capturing emails? Is there a welcome mat? Is your online fundraising software doing the job? Does leadership understand the need for better tools & training? GET STARTED TODAY Online & Social Middle & Major Gifts Direct Mail Planned Giving Corporate Giving Special Events Grants & Foundation Sustained Giving
- 34. 34 Keep the conversation going! npENGAGE www.npengage.com twitter @Blackbaud http://www.youtube.com/user/blackbaudinc Connect @DJVermenton
- 35. 35 Charitable Giving Report: How Nonprofit Fundraising Performed in 2013 https://www.blackbaud.com/nonprofit-resources/charitablegiving 2013 Online Marketing Benchmark Study https://www.blackbaud.com/nonprofit-resources/onlinemarketingstudy NTEN & CharityDynamics Nonprofit Donor Engagement Benchmark Report http://www.nonprofitdonorengagement.com/ Integrating Online Marketing (eCRM) with Direct Mail Fundraising Whitepaper http://www.strategic-one.com/Integrated_Marketing_White_Paper.pdf Wired Wealthy Report http://www.npengage.com/uncategorized/convio-wired-wealthy-study/ The Next Generation of American Giving https://www.blackbaud.com/nonprofit-resources/generational-giving-report What is Luminate Online? https://www.blackbaud.com/online-marketing/luminate-online RESOURCES