This presentation looks at the basics of an annual giving fundraising campaign, specifically how to acquire new donors, retain them year to year, and increase their annual giving. I gave this presentation on September 10, 2008 at the Detroit Fundraising Summit (Wayne State University), sponsored by Center for Non-Profit Success.

1. Annual Giving Campaigns:
Chris LeBrun, MBA Detroit Fundraising Summit
Andrews University Sponsored by Center for NonProfit Success
Berrien Springs, MI September 10, 2008

3. First Gift
Legacy Repeat
Gift Gift
Major Regular
Gift Giving
Upgrade

4. Separating the Best from the Rest

5. First  Acquiring donors may be the most
Gift important function in fundraising process
 Lays the foundation for all fundraising
 Brings greater depth to organization
 Replaces donors lost in attrition
 New major donor prospects in the pipeline

6. First  New constituent-donors
Gift  Hardest type of donor acquisition
 Introduce constituents to the organization
 Don’t focus on gift amount
 Existing constituent-donors
 Already in your database
 Natural connection with organization
 Focus on participation

7. First  Keep expectations low
Gift  Response rates of 1 – 2% are GREAT!
 Costs $1.00 – $1.25 to raise $1.00
 Place an emphasis on introductory gifts

8. First  Consider the intangibles during acquisition
Gift  Age and/or reputation of the organization
 The perceived importance of the cause
 Make-up of your list can effect results

9. First  Acquisition uses impersonal methods
Gift  Acquisition mailings
 Online giving
 Special Events
 Word of mouth
 What doesn’t work as well
 Phone solicitation
 Personal visits

10. They Did it Once, Now Get Them to Do It Again

11. Repeat  Repeat gifts provide a multitude of info
Gifts  Separate donors from occasional/event gifts
 Identify a connection to “The Cause”
 Affirm solicitation methods
 Identifies donors who can give more

12. Repeat  Only one chance to make a first impression
Gifts  Processing time of first gift
 Donors watch how gift is received and used
 Thank yous are natural renewal solicitations
 Recognition can lead to personal visits

13. Repeat  Renewal often impersonal but not generic
Gifts  Phone solicitation
 Renewal Mailings
 Special Events
 Automatic giving
 Recovering lapsed donors
 Other methods
 Personal Visits
 Gift clubs (emphasis on consecutive giving)

14. Repeat  ROI is greater for repeat than acquisition
Gifts  Response rates up to 20 – 30%
 Cost to raise a dollar only about 20 cents
 Gift amounts are higher

15. Ensuring the Future of the Organization

16.  Securing upgrade gifts helps to fulfill
Upgrade the goal of annual giving campaigns
Gifts  Identify major gift prospects
 Increase annual support for organization
 Insure the future goals of the organization
are met

17.  Upgrade gifts are often the result of
Upgrade being able to engage donors
Gifts  Strong stewardship program
 Personal solicitations
 Phone solicitations
 Volunteering
 Gift clubs
 Segmented mailings

18. Direct Advice for Direct Mail

19. Tips &  Response rates are higher
Tricks  Increased competition
 Other charities
 For-profit direct mail marketing
 How can you get them inside?
 Tease them
 “Handwritten” addresses
 Pictures
 Odd shape envelopes
 Bulky mail

20. Tips &  Segmenting takes time but it’s worth it
Tricks  Increases your response rate
 Solicit for several projects in one mailing
 Ask for an appropriate gift amount
 Allows an impersonal medium to feel personal
 Reminds each donor of their connection to the
organization

21. Tips &  Variable Data Printing (VDP) allows each
Tricks donor to receive customized mailings
 Personalized letters/envelopes
 Demographics (age, region, history, etc.)
 Target projects / areas of interest
 Reminds them of their giving history
 Solicit the right gift amount

22. Tips &  Higher costs with VDP but also higher ROI
Tricks  5.35 % response for fundraising acquisition*
 Compare with 1-2% for acquisition
 VDP increases response rate:
 +44% with one area of variable info**
 +45% with color (no variable)**
 +135% with color and one variable**
 +500% with color and multiple variables**
Sources
* The Direct Marketing Association
** Romano & Broudy

23. Tips &  Email allows segmentation and VDP
Tricks  Cost is minimal and reduces over time
 Response rates aren’t as high but response
times are faster
 Online acquisition gift amounts are
typically higher
 Multi-channel donors renew at much higher
rates than single-channel donors

24. lebrunc@andrews.edu