The importance of developing a robust regular giving (monthly giving) program. Understanding channel options and how to reach your donors effectively

1. Building A Channel Diverse Regular
Giving Fundraising Program

2. Building A Channel Diverse Regular
Giving Fundraising Program
• The importance of developing a robust regular
giving program
• Understanding the various channels available
for your regular giving program
• How to reach your donors effectively through
the various channels and methodologies

3. Long-term Objectives
Commitment
Strategy Staff
Budget
Infrastructure

4. RG as an Investment
Activity Return over 10 years
Equities (shares) 6.3%
Cash (savings, term deposits) 4.6%
Property - residential 8.4%
Gold 8.4%
Struggling F2F Program 10.8%
High performing F2F Program 15%+

5. 0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2005 2006 2007 2008 2009 2010 2011 2012
Cash Regular Gift
PFBM10_Analysis_ALL_v2.xlsm
CCIA was vulnerable – smaller, with a
newer program, the reduction in
acquisition…

6. $0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Millions
Cash Regular Gift
PFBM10CCIA_IncomeSummary_v4.xlsm
…. Had a much more profound
impact on the bottom line. An
older program would be more
resilient to a couple of years
reduced acquisition

7. Proposition Promotion
Passive
recruitment
Active
recruitment
Retaining Growing

8. $
8
REGULAR
GIVING
2015: Pareto Fundraising Benchmarking
BEQUEST CASH
MAJOR
DONORS
20%46% 7%28%
$125,157,040

9. Regular Giving Income - by channel of solicitation
$0
$10 M
$20 M
$30 M
$40 M
200520052005200520052005
200620062006200620062006
200720072007200720072007
200820082008200820082008
200920092009200920092009
201020102010201020102010
201120112011201120112011
201220122012201220122012
201320132013201320132013
201420142014201420142014
Income
Direct Mail Face to Face Media Online Other Phone
2015: Pareto Fundraising Benchmarking

10. New RG Recruits - by channel of solicitation
0
10 K
20 K
30 K
40 K
50 K
200620062006200620062006
200720072007200720072007
200820082008200820082008
200920092009200920092009
201020102010201020102010
201120112011201120112011
201220122012201220122012
201320132013201320132013
201420142014201420142014
Recruits
Direct Mail Face to Face Media Online Other Phone
2015: Pareto Fundraising Benchmarking

11. New RG Recruits - by channel of solicitation
0
100 K
200 K
300 K
200620062006200620062006
200720072007200720072007
200820082008200820082008
200920092009200920092009
201020102010201020102010
201120112011201120112011
201220122012201220122012
201320132013201320132013
201420142014201420142014
Recruits
Direct Mail Face to Face Media Online Other Phone
2015: Pareto Fundraising Benchmarking

12. 5 Year RG Ratio - by channel (2007-2009 recruits)
12.2
11.6
11.1
10.5
10
12
10.7
9.4
8.9
8.5
11.5
10.4
9.1
8.4
7.8
11.2
9.8
8.7
7.7
7.1
11.2
9.8
8.6
7.6
6.9
11.2
9.5
8.1
7.8
7
10
7.4
5.8
5.1
4.9
8.4
5.3
4
3.4
2.9
0
10
20
30
40
50
PressInserts
Unaddressed
DirectMail
TV
Phone
Online
Other
FacetoFace
Year 1 Ratio Year 2 Ratio Year 3 Ratio Year 4 Ratio Year 5 Ratio
2015: Pareto Fundraising Benchmarking

13. Who are these regular givers?
F2F
Two Step
Converted
Cash
Converts
All Others

14. Who are these regular givers?
75% recruited
via Door-to-
Door
Two Step
Converted
Cash Converts All Others

15. Who are these regular givers?
F2F
10% - 15% of
the volume of
F2F available
Cash Converts All Others

16. Who are these regular givers?
F2F
Two Step
Converted
10% target of
active multi
over 3 years
All Others

17. Who are these regular givers?
F2F
Two Step
Converted
Cash
Converts
Small
volume

18. Two Distinct Groups
1 2 3
4 5 6

19. Regular Giving Donors - by age
0
1 K
2 K
3 K
25
50
75
100
2015: Pareto Fundraising Benchmarking

20. Cash & Regular Giving Donors - by age
0
1 K
2 K
3 K
4 K
25
50
75
100
Cash Regular Gift
2015: Pareto Fundraising Benchmarking

21. Classic Mail responsive
Less likely to move
Likely to give additional gifts via DM or TM
More likely to leave a bequest
Attrition: 5% - 50% in Yr 1
Newbies Phone responsive
Highly mobile
Tech savvy
Will upgrade but less likely to make
additional gifts in traditional ways
Attrition: 30% - 58% in Yr 1

22. Non-Face-to-Face Average Gift: $23
Average Gift Range: $15 to $35
Year 1 Attrition: 29%
Year 1 Attrition Range: 10% to 45%
Year 2 Attrition: 16%
Year 3 Attrition: 10%
Face-to-Face Average gift: $25
Average Gift Range: $15 to $30
Year 1 Attrition: 44%
Year 1 Attrition Range: 30% to 55%
Year 2 Attrition: 18%
Year 3 Attrition: 9%
Cash Converts Average gift: $13
Average Gift Range: $10 - 20
Year 1 Attrition: 17%
Year 1 Attrition Range: 5% - 34%
Year 2 Attrition: 10%
Year 3 Attrition: 8%
Phone / Lead Conversion Average gift: $ $23
Average Gift Range: $13 - $30
Year 1 Attrition: 40%
Year 1 Attrition Range: 15% - 55%
Year 2 Attrition: 18%
Year 3 Attrition: 10%

23. Proposition Promotion
Passive
recruitment
Active
recruitment
Retaining Growing

24. Proposition
Its not a name
Donors care for the
mission
San Francisco Zoo’s
Meat & Potatoes
Monthly Giving
Program
“You can help us pay
our monthly grocery
bill. Each month, it
costs us nearly $22,000
to feed all the animals
in the Zoo.”

25. Critical factors
• Simple, single minded, unique
• Can you back it up, year on year?
– Feeding back the impact the donor is having
• Being realistic about the price point

26. Proposition Promotion
Passive
recruitment
Active
recruitment
Retaining Growing

27. Promotion
Your website
Donor care
Stories

33. Proposition Promotion
Passive
recruitment
Active
recruitment
Retaining Growing

34. Passive Recruitment
Website
Appeal
option
Appeal
tick box
Survey ?

35. Proposition Promotion
Passive
recruitment
Active
recruitment
Retaining Growing

36. Face to
Face
Digital
Phone
Direct
Mail
Everything
else

37. Face-to-Face
Face-to-Face
• 75% via Door to Door
• 25+ charities doing it
• Another 10+ wanting to do it
Fragmented market
• Agencies motivation is market share
• Length of relationship between supplier and charity
not as long as they were in Aus & UK markets

38. Face-to-Face
Team leaders are critical
• They will move agency for best deal
• High demand for them
• Some start their own businesses
Canvassers are critical
• Several 100 conversations a day
• 1-2 sign ups a day(here might be as high as 5)
• Daily average is the critical measure by
fundraiser/team/business

39. Face to Face
Consistency in your message is crucial
• Chopping and changing disrupts and may also affect the ability to sell
• Integrity is critical but F2F is such a simple interaction it needs a
simple message (like the phone)
• Fundraisers discover what sells and use it – learn from them don’t
fight it
Training & support program designed to
• Build confidence of fundraisers – help them know their truth
• Help maintain average sign ups per day
• Create a positive environment
• Keep the canvassers, keep them motivated

40. Face to Face
Attracting & Retaining Suppliers
• Show you have resources, budget and systems
• Develop a training system
• Multiple sessions
• Offer other opportunities to engage like tours
• How about quiz comps to win prizes?
Invest in fundraiser collateral
• Clothing
• Training materials
• Gifts
• Thank yous – CEO calls, drinks shouts

41. Phone
• Training & support program
Find the right supplier for you
• 8%+ response rates
Best response for conversion of warm & leads
• Purchased leads / own generated leads
• Data volume with rolling program best ROI
Online lead conversion

42. Digital
•Learn from warm &
two step
Straight to
donation
•Integrating with
phone
•Proposition critical
Two step
•Targeting & Testing
•Its not a young
audience
responding
Media
•Get advice
Landing
environment

43. Direct Mail
Strong response for
warm conversion
3%+ response
rate
Low attrition
Will continue to
give cash
Acquisition
opportunity
?
Thank you pack
conversion
1% - 3%
response rates
Low attrition
Mop up for
phone

44. Everything else
TV
• Creative / Proposition
• Media targeting critical
• Low engagement watching
• Contextual placement
• Response conversion
• Online / In bound phone
Inserts
• Great ROI
• Media critical
Channels that drive online
• Outdoor
• Press

45. Proposition Promotion
Passive
recruitment
Active
recruitment
Retaining Growing

46. Retaining: On Boarding
Reintroduce
ourselves
Reinforce our
unique benefit
Reinforce the
unique value of
supporting us
Introduce more
beneficiaries
Introduce more of
what the donors
cares about
Reinforce our
values
Promote
‘membership’ of
our community
Use multiple
channels
Say thank you,
again and again

47. Priority - Phase 1 Priority - Phase 1 Priority - Phase 1 Priority - Phase 1 Priority - Phase 1 Priority - Phase 1
MANDATORY MANDATORY MANDATORY MANDATORY MANDATORY MANDATORY
Stage SIGNUP WELCOME JOURNEY
Communication title Thank you and welcome email Supporter Details Leadership Thank You Mission moment Get involved Introductory eNews
Communication #
Timeframe 0 Day 3 Day 5 Week 3 Week 6 Week 13
Channel/s Email Email Email (video) Email (picture/video) Email
Overview
Instant recognition of action taken and
welcome
Delivering high quality supporter
service and care
Personal and heartfelt thank you from
leadership
Child voice focused story to generate
emotional reward
Cross-promote other actions to take in
support of mission
Transition to ongoing supporter
communications
Donor response objective
Real-time acknowledgement of action
taken
Validation of successful transaction and
sign-up
Experience emotional reward for action
taken
Positive supporter service experience
Establish relationship and trust
Overcome remorse and cognitive
dissonance
Shared values, beliefs and mission to
make a difference
Recreate original emotional connection
Reinforce donation impact
Reinforce donation impact via focus on
a single child
Demonstrate effectiveness
Build donor-beneficiary connection
Reinforce organisational trust
Increase understanding of organisation
and activities
Inspire to take additional steps to
support
Understand the ongoing
communications and how they'll be
kept updated and informed
Organisational objective
Easy, seamless and engaging sign-up
experience
Create great first impression
Start relationship
Reinforce product name and
proposition
Friendly and and efficient supporter
services
Introduce main contact and offer proxy
contacts
Open-up two way communications
Drive self-identity belief through
product and brand positioning
Build relationship through shared
values and mission
Establish 'voice' of organisation
Reinforce product and key beneficiary
group/s
Demonstrate donation 'at work'
Deepen relationship
Increase # supporters engaged in
multiple actions
Set clear expectations for supporters
Increase eNews open rates and
engagement
How should Donor feel? Acknowledged, Excited, Enthusiastic Valued, Respected
Affinity, Appreciated, Proud, Gratified
of self worth
Powerful, Uplifted, Inspired to do more Informed, Appreciated
Prominent Value(s) expressed Passion, Optimism Respect, Responsibility Trust, Determination Achievement Effective Impactful; Expert; Appreciative
Case Study / Story N/A
Video reel showcase of 'children in
crisis' being helped
Case study - TBC N/A
Signatory Supporter Services Supporter Services CEO CEO Supporter Services Supporter Services

48. Retaining: On Going Communications
• There is no evidence that
sending anything to low value
(Sub $10 per month) regular
givers is worthwhile
• Test it
• Try to upgrade (test)
• Tax Receipt Donor Care
• Low Value – sub $10 • Mid to High Value
•Something every month
•Multi channel
•Planned story – that’s about the
donor NOT you
•Includes other support and
interaction opportunities:
•Upgrade
•Cash
•Survey / feedback / comment
•Advocacy
•Tax Receipt Donor Care

49. How many touchpoints?
•Telephone
•Email
•SMS
•Direct Mail
What channels do you
have?
•Updates / feedback
•Survey
•Value add
•Product give aways
•Event invitations (relevant)
•Cross-sell
What is relevant?
• 1 email a month minimum
• Remember very few will be able to receive all
• Remember very few will actually consume all
• You can test
The best are up around
20 touchpoints in a year

50. Developing Content
Have a content strategy
• What motivates donors within the product / proposition?
• When are your key need and impact times?
• When will you have impactful, relevant and timely content?
• When are your make or break timings?
Ensure each communication delivers on the needs the strategy calls for
• (Re)Presenting the need
• Showing urgency
• Showing tangibility – impact / needs
• Being authentic
• Asking e.g. upgrades, engagement/participation
• Thanking
• Personalisation

51. Measurement & Monitoring
Critical measures
• Attrition by month
• Non-starter rates
– Online leads ~10%
– F2F ~15%
– Low for other channels
• Breakeven / Long-term ROI

52. Proposition Promotion
Passive
recruitment
Active
recruitment
Retaining Growing

53. Growing
Upgrade
Reactivation
Cross Sell

54. RG Upgrade Rate - by recruitment channel and year
0%
10%
20%
30%
2008
2009
2010
2011
2012
2013
2014
Direct Mail Face to Face Online Phone
2015: Pareto Fundraising Benchmarking

55. Growing
• 4-6 months; then every 12
• 2-8% non-starter rates
Upgrade
• Contact rates decline the older they are
• Passive cancels reactivate better
Reactivation
• F2F – advocacy, Peer-to-Peer, digi survey
• Others – cash, advocacy, survey
Cross Sell

56. Always thank for the Regular Gift
• Reinforce the proposition / impact the donor is
having
• Use the name if you have one
Recognise the RG relationships before
suggesting more opportunities

57. Proposition Promotion
Passive
recruitment
Active
recruitment
Retaining Growing

58. Thank You
fiona.mcphee@paretofundraising.com
+6421 336905
www.paretofundraising.com