It's and Not or Danielle Johnson Vermenton, Senior Interactive Consultant, Blackbaud, on the latest trends of online philanthropy and the impact on nonprofits. Learn how online philanthropy is the pipeline for all your fundraising goals - and tips on how to get started.

1. THE PRINCIPLE OF AND, NOT OR
BY DANIELLE JOHNSON VERMENTON
SR INTERACTIVE CONSULTANT, BLACKBAUD

2. “CAUTIOUSLY OPTIMISTIC”
Nearly 6 out of 10 charities
raised more in 2012 than 2011
(first time since 2006 that more than ½ showed such positive results)
2012 NRC Report of US & Canadian Charities

3. In the NRC Canadian Study: about 70-80% of responding organizations use 8 of
the 10 different fundraising methods.
Only online & events increased at half of the responding organizations and at
51 and 50%, BUT direct response only rose 39% (and declined at 20%)

4. THE STATE OF ONLINE FUNDRAISING
ONLINE MARKETING BENCHMARK STUDY 2013
CANADIAN HIGHLIGHTS
•
Organizations total email file growth
was almost 17%
•
Average online donation $85
•
Revenue per usable email $15
(higher than the median)
•
Sustainer growth 30%
•
Repeat fundraising growth 20%
The source for fundraising most likely
to increase continues to be online
according to the 2012 NRC Study. 57%
of respondents saw an increase in
2012 compared to 2011.

5. Almost SIX out of every ten donors from the
previous year DID NOT renew by year’s end!
Based on the FEP Study from 2012
Key Reasons They Leave
o
o
o
o
o
o
No longer able to afford support
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

6. A 10% CHANGE IN RETENTION CAN INCREASE THE
LIFE TIME VALUE OF A DONOR BASE UP TO 200%.
Donors want to be seen as partners and are looking for more
meaningful ways of expressing their support than just giving.
“With the goal of building donor loyalty and maybe even creating a
donor for life, what do you want the donor experience to be?”
Sources: Dr. Adrian Sargeant and Woodliffe, 2007 and Growing Philanthropy in the US 2011 Study

7. WHO IS THE NEW NONPROFIT?
What characterizes these organizations?
nimble  multichannel  technology driven

8. Key Take-Aways
Double digit growth in online revenue and housefiles
(housefiles = # of emails)
Increasingly preferred method of communication –
website, email & social media
Retention is a universal challenge for all organizations
Competition for supporters is increasing

9. WHAT ARE YOU DOING TODAY?

10. HOW DIVERSIFIED ARE YOU?
• What does your budget
look like?
• Are you dependent on one
or two main sources?
• Is your strategy
multichannel?
Board
Gifts
Online
Events
Direct Mail
Major
Gifts
Planned
Giving
Grants
Budget Goal

11. TODAY VS TOMORROW
So what’s your plan for next year?
What about 5 years?
Events
Direct Mail
Board
Online
Major
Gifts
Grants
How will you grow while adjusting
to the changes? Where will you
find new support? And how will
you keep it?

12. IT’S AND* NOT OR?
ePhilanthropy doesn’t replace direct mail.
It doesn’t cannibalize major gifts.
Online is about acquisition and retention.
It opens doors and deepens engagement.
*it means smarter work

13. ONLINE PHILANTHROPY
IS YOUR ANNUAL FUND PIPELINE
Middle &
Major Gifts
So what’s the big picture?
Sustained
Giving
It fuels major gifts, events,
sustained giving, direct mail
even corporate giving.
Online provides deeper,
personalized engagement
and is the final piece in a
multichannel strategy.
Grants &
Foundation
Direct Mail
Online
& Social
Special
Events
Corporate
Giving
Planned
Giving

14. THERE IS PROVEN VALUE IN MULTI-CHANNEL ENGAGEMENT
New Donor Renewal Rate
Donor Value 12 Months
Lifetime Donor Value
$694
+121%
$187
+48%
+95%
50.9%
$314
$96
34.4%
Mail
Multi-Channel
Mail
MultiChannel
Mail
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.
Multi-Channel

15. WHAT DO CANADIAN DONORS WANT?
43% report giving to 2-3
charities and 18% to 4-5
79% want to know how
their gift made a
difference
AFP Foundation / Ipos Reid Survey 2012
6 in 10 do research
before donating
74% believe charities
should spend $ on more
innovative ways to
fundraise

16. THE GENERATIONS – HOW ARE YOU REACHING THEM?
 Gen Y & X: increase in mobile – research, giving, listening
 Civics give to more charities, Gen Y & X are choosier and Boomers
will outpace everyone (but have a strategy for X)
 Social still has a low impact on fundraising, BUT high engagement
 All ages are multichannel and open to a mix of channels

17. SO HOW DO YOU GET THERE?

18. EMAIL IS KING!
Timely

Dynamic

Personalized

Actionable

19. LET’S TALK ABOUT THE VALUE OF EMAIL
$15!
As your housefile (# of emails) grows so does the
impact to your annual fund in revenue and reach.

20. LET’S GET STARTED!
 Think like a supporter
 Capture emails
 Provide multiple touch points
 Say welcome
 Have the right tools

21. THINK LIKE YOUR SUPPORTERS
ABOVE THE FOLD
Reduced 4x
Who would you give your email to?

22. HAVE MULTIPLE TOUCH POINTS

23. NOW WHAT DO YOU DO?
(You have the email address)

24. How many people do you think are
thanked when they subscribe?
What does their journey look like?
What do you think that first
impression is like for the new
subscriber (potential donor)?
Email is an agreement between you
and the subscriber. Start that
relationship with trust and
appreciation.

25. PUT OUT THE WELCOME MAT

26. ENGAGE THOUGHTFULLY FROM DAY 1
Relevance Curve
Email Open Rate
60%
50%
40%
30%
Org #1
Org #2
Org #3
20%
10%
0%
1 month
2 to 3
months
4 to 6
months
7 to 12
months
Year 2
Year 3
Time on Housefile
The honeymoon period to engage new subscribers is greatest in the first 45 days.

27. Key Take-Aways
 Email has economic value
 Think like a customer/supporter
 An online relationship often starts with just an email
 Engage subscribers immediately
 Say thank you and stay relevant

28. WHAT ARE YOU WAITING FOR?

29. GETTING STARTED
Evaluate your
resources and tools.
Middle &
Major Gifts
Sustained
Giving
Is your donor database in order?
Is your website user friendly &
responsive?
Is your online marketing and fundraising
software doing the job?
Are you capturing emails in multiple
places?
Is there a welcome mat?
Grants &
Foundation
Direct Mail
Online &
Social
Special
Events
Corporate
Giving
Planned
Giving

30. RESOURCES
The Next Generation of Canadian Giving
https://www.blackbaud.com/nonprofit-resources/generational-giving-report-canada
What Canadian Donors Want: AFP Foundation / Ipsos Reid Survey
http://www.afpnet.org/Audiences/ReportsResearchDetail.cfm?itemnumber=11841
NRC 2012 Study of Canadian & US Charities
http://www.afpnet.org/Audiences/ReportsResearchDetail.cfm?ItemNumber=16703
2013 Luminate Online Benchmark Study
https://www.blackbaud.com/nonprofit-resources/onlinemarketingstudy
Integrating Online Marketing (eCRM) with Direct Mail Fundraising Whitepaper
http://www.strategic-one.com/Integrated_Marketing_White_Paper.pdf
Landing Page Optimization (Is your donation form working?)
http://www.optimizeandprophesize.com/jonathan_mendezs_blog/2007/02/7_rules_for_lan.html
What is Luminate Online?
https://www.blackbaud.com/online-marketing/luminate-online