The Regular Giving Toolbox

Regular Giving Tool Box
What makes a regular giving program flourish?
Fiona McPhee

• The things that are making regular giving
programs flourish
The result of me being nosey

Long ranging plan
& budget
Back End
Management
Proposition
Channel
Management
On Boarding
On Going
Communications
Increasing Value
Measurement &
Analysis
Customer Service

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

Regular Giving Income - by channel of solicitation
$0
$100 M
$200 M
$300 M
200520052005200520052005
200620062006200620062006
200720072007200720072007
200820082008200820082008
200920092009200920092009
201020102010201020102010
201120112011201120112011
201220122012201220122012
201320132013201320132013
201420142014201420142014
Income
Direct Mail Face to Face Media Online Other Phone

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

Two Distinct Groups
1 2 3
4 5 6

Silent (1925-1945)
Boomers (1946-
1964)
The sandwich generation The love generation
The Depression
generation
The me generation
The Beat generation Trailing-edge boomers
The beatniks The hippies
The lost generation
Breakthrough
generation
Boomers:
• Grew up with a placid childhood which inspired
their revolution
• In the 60’s they had goals of freedom, idealism,
self expression and being socially conscious.
• By the 80’s they had jobs, families and were
becoming demanding consumers.
• Today they have come to grips with an ethnically
diverse world, their mid-life crisis, are feeling
nostalgic.
Silent:
• Financial insecurity meant people had fewer children
– so it was a smaller generation
• As children they worked very hard and kept quiet
• They grew up in conditions complicated by war and
economic depression
• This increased their need for achievement, power and
status

Generation X (1964-
1979)
Generation M (Y)
(1980-2000)
Slackers Google generation
The twenty/thirty
somethings
The MySpace generation
The generation after The MyPod generation
Leading-edge boomers iGeneration
The gap generation
The corporation
generation
Gen X:
• Grew up in the 80’s with economic strain, AIDS,
divorce & working mums
• They were also the first true tech generation
• In the 90’s they created You Tube & My Space
for the next generation to use
• Dealt with the inheritance of racial strife,
homelessness
• They mistrust institutions, reject rules, dislike
authority but know how to work together
Gen Y:
• Bought up as the most child centric generation
• Highly tech literate
• Used to being in a tribe/group
• Juggle multiple interests all the time.

Classic Mail responsive
Less likely to move
Likely to give additional gifts via DM or TM
More likely to leave a bequest
Attrition: 8% - 30% in Yr 1
Newbies Phone responsive
Highly mobile
Tech savvy
Will upgrade but less likely to make additional gifts in
traditional ways
Attrition: 40% - 65% in Yr 1

Non-Face-to-Face Average Gift: $24.34
Average Gift Range: $15 to $85
Year 1 Attrition: 28%
Year 1 Attrition Range: 11% to 50%
Face-to-Face Average gift: $30.39
Average Gift Range: $15 to $40
Year 1 Attrition Range: 38% to 65%
Cash Converts Average gift: $15
Average Gift Range: $10 - 20
Year 1 Attrition Range: 7% - 30%
Phone / Lead Conversion Average gift: $ $20.34
Average Gift Range: $12 - $27
Year 1 Attrition Range: 12% - 55%
$- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00
1
2
3
4
Average Gift
0% 10% 20% 30% 40% 50% 60%
1
2
3
4
Year 1 Attrition

It’s not just about the Regular Gifts
they make
Cash Donors
converted to RG
will keep giving
cash

they make
Non-F2F are
great bequest
prospects

Regular Giving Pledge BQ rate - by recruitment
channel
0%
1%
2% DirectMail
Other
Media
Phone
Online
Faceto
Face
ConfirmedBequest
Rate
Conf BQ Penetration Active Regular Givers
0
100 K
200 K
300 K
400 K
500 K
ActiveRG
Donors

they make
They have
High Value
Potential

RG Gifts $1K+ - by year and value band
$0
$10 M
$20 M
$30 M
20052005200520052005
20062006200620062006
20072007200720072007
200820082008200820082008
200920092009200920092009
201020102010201020102010
201120112011201120112011
201220122012201220122012
201320132013201320132013
201420142014201420142014
Income
$100K+ $25K-$100K $4.8K-$25K $1.2K-$4.8K $1K-$1.2K $1K

they make
They will do other
things emergency
response, activism,
DM appeals (profiled)

Long ranging plan
& budget
Back end
Management
Digital
On Boarding
On Going
Communications
Upgrade
Reactivation
Measurement &
Analysis
Customer Service

Expenditure Warm Costs Contact % Pack/Call Postage F2F cost Total cost
Year F2F RG Cash DM Cash Online RG Inserts RG O/L leads DRTV Fixed Warm Total Cash program 100% $1.20 $0.50 $0.00 $1.70 1
1 $112,647 $0 $30,000 $0 $31,500 $0 $0 $3,065 $177,212 F2F RG 90% $0.00 $0.00 $15.00 $13.50
2 $270,000 $0 $0 $0 $100,000 $0 $0 $14,346 $384,346 EOYR 100% $1.00 $0.41 $0.00 $1.41
3 $270,000 $0 $0 $0 $100,000 $0 $0 $24,323 $394,323 RG Conversion 50% $12.00 $0.00 $0.00 $6.00 0%
4 $130,000 $0 $0 $0 $70,000 $0 $0 $28,048 $228,048 RG Servicing 100% $10.00 $1.10
5 $90,000 $0 $0 $0 $50,000 $0 $0 $27,412 $167,412
6 $90,000 $0 $0 $0 $50,000 $0 $0 $26,684 $166,684 1 8%
7 $90,000 $0 $0 $0 $50,000 $0 $0 $26,681 $166,681
8 $90,000 $0 $0 $0 $50,000 $0 $0 $27,085 $167,085 DMCash 2.500% 0.000% $35.00 $0.00 0.00
9 $90,000 $0 $0 $0 $50,000 $0 $0 $27,630 $167,630 F2F RG 0.000% 100.000% $0.00 $30.00 0.58
10 $90,000 $0 $0 $0 $50,000 $0 $0 $28,092 $168,092 Cash online 0.862% 0.000% $35.00 $16.00
RG Inserts 0.000% 0.080% $66.00 $16.00
Acquired donors (tot) RG O/L leads 0.000% 8.000% $0.00 $15.00 0.30
RG Cash DRTV 0.000% 0.011% $0.00 $23.80 0.00
Cumulative 7276 1000
Expenditur Acq Warm & Conversion Net Inc Expenditure Gross Inc Net Inc Acquired donors (p.a.)Contact
Year 1 $177,212 $70,000 $76,647 $3,039 -$62,526 $177,212 $114,686 -$62,526 542 1000 100%
Year 2 $384,346 $0 $338,749 $4,427 -$41,171 $561,558 $457,861 -$103,697 1395 0 100% DMCash $1.15 $2.10 $0.00 $1.00 $3.28
Year 3 $394,323 $0 $562,258 $3,924 $171,859 $955,881 $1,024,043 $68,162 1395 0 100% F2F RG $0.00 $0.00 $265 $5.00 $270.00
Year 4 $228,048 $0 $634,833 $3,478 $410,263 $1,183,929 $1,662,354 $478,425 758 0 100% Cash online $0.00 $0.25 $0.00 $1.00 $0.26
Year 5 $167,412 $0 $606,368 $3,083 $442,040 $1,351,341 $2,271,805 $920,465 531 0 100% RG Inserts $0.00 $0.25 $0.00 $1.00 $0.25
Year 6 $166,684 $0 $580,054 $2,503 $415,872 $1,518,025 $2,854,362 $1,336,337 531 0 55% RG O/L leads $0.75 $18.48 $0.00 $5.00 $20.24
Year 7 $166,681 $0 $572,786 $2,422 $408,527 $1,684,706 $3,429,570 $1,744,863 531 0 DRTV $0.02 $4.64 $0.00 $5.00 $0.02 2
Year 8 $167,085 $0 $575,930 $2,147 $410,991 $1,851,792 $4,007,646 $2,155,855 531 0
Year 9 $167,630 $0 $582,672 $1,903 $416,945 $2,019,422 $4,592,222 $2,572,800 531 0 Click here to visit Acqusition Phasing Sheet 1
Year 10 $168,092 $0 $587,617 $1,687 $421,212 $2,187,514 $5,181,526 $2,994,012 531 0 0
0
Lowest net income point is -$117,471 in Month 20 0
0
Acquisition Breakeven Month is Month 33
Warm DMProgram
Ongoing Cash Giving
RG Conversion in month
1.27
F2F Attrition
Bequest Income
Major Donor Income
0%
0%
DRTV Attrition
Acq Costs
Lists and
Post
Pack/Call
Cost F2F Cost
Thank
you Total cost
Executive Summary
Annual
Income
Year 1 ROI
O/L Lead Attrition
Activity Cash Resp RG Resp
Cash Ave
Gift
RG Ave
Gift
0.00
1.00
2.00
3.00
4.00
5.00 ROI by Year
-$0.2
$0.0
$0.2
$0.4
$0.6
$0.8
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
Millions
Income by Year
Net Income Gross Income
0.00
0.50
1.00
1.50
2.00
2.50 Cumulative ROI by Year
-$2.0
$0.0
$2.0
$4.0
$6.0
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
Millions
Cumulative Income by Year
Net Income Gross Income
$0
$0
$0
$0
$0
$0
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
Thousands
Est Major Donor Income by Year
Est MD Income
$0
$0
$0
$0
$0
$0
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
Thousands
Est BequestIncome by Year
Est Bequest Income
-$0.50
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
1
5
9
13
17
21
25
29
33
37
41
45
49
53
57
61
65
69
73
77
81
85
89
93
97
101
105
109
113
117
Millions
Acquisition Breakeven Month is Month 33
Lowest net income point is -$117,471 in Month
20

0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2005 2006 2007 2008 2009 2010 2011 2012
Cash Regular Gift
PFBM10_Analysis_ALL_v2.xlsm
Reduction in acquisition
volumes over time.

23
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Millions
Cash Regular Gift
PFBM10WWF_AU_IncomeSummary_v4.x lsm
The consequences of this
reduction in acquisition can be
seen in 2008 - 2010, but WWF
kept some activities going.

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
CCI was more vulnerable – smaller,
with a newer program than WWF, the
reduction in acquisition…

$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 like WWF’s would
be more resilient to a couple of
years reduced acquisition

Direct Debit &
Credit Card
facilities
Database &
data capture
Processing &
banking
Paperless
Direct Debit
Decline
Management

Direct Debit &
Credit Card
facilities
Structure to
allow for
analytics
Processing &
banking
Paperless
Direct Debit
Decline
Management

Direct Debit &
Credit Card
facilities
Database &
data capture
In-house or
Outsourced
agility is critical
Paperless
Direct Debit
Decline
Management

Direct Debit &
Credit Card
facilities
Database & data
capture
Processing &
banking
Huge impact on
outsourced
phone campaigns
Decline
Management

Direct Debit &
Credit Card
facilities
Database &
data capture
Processing &
banking
Paperless
Direct Debit
Biggest impact
on managing
attrition

Decline Management
Reprocess Credit Card
right away
Contact Direct Debit
Donor to request
permission to
reprocess (right away
/ double next month)
•Phone
•SMS
•Email
Do not hold or cancel
a decline
• Minimum 3
months of
attempts
Reprocess Direct
Debit right away
Reprocess Direct
Debit right away

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

Face to Face
• Supplier quality & your ability to engage
• Retention & ongoing management
Digital / Integrated
• Website – landing environment
• Two step integrating with phone
• Straight to donation – learn from warm & two
step

Phone
• Find the right supplier for you
• Delivers best response for conversion of warm & leads (but can’t
reach everyone)
Direct Mail
• Strong response for warm conversion
• Acquisition opportunity?
TV
• Expertise
• Budget
• Inbound conversion – phone / web

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

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

Multi Channel
Donors # % Total Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Cumulative
Total 16,722 -12.26% -5.71% -4.52% -3.25% -2.61% -3.46% -2.11% -2.39% -36.30%
All Communications Sent &
Opened/Delivered 2,767 17% -10.91% -5.68% -3.96% -2.74% -2.62% -4.32% -0.38% -2.13% -32.74%
Emails Sent (Opened) 2,902 17% -11.04% -5.76% -3.92% -2.80% -2.75% -4.30% -1.16% -2.03% -33.77%
Emails Sent (Not Opened) 5,539 33% -11.80% -5.47% -4.32% -3.30% -3.36% -3.50% -2.11% -3.02% -36.87%
Emails Not Sent 2,874 17% -14.62% -6.28% -5.56% -3.71% -0.80% -2.53% -2.99% -1.42% -37.91%
Print Only 2,640 16% -14.22% -6.08% -5.68% -4.00% -0.97% -2.47% -3.10% -1.46% -37.97%

Low Value – sub $10
• There is no evidence that
sending anything to low value
(Sub $10 per month) regular
givers is worthwhile
• Test it
• Try to upgrade
• Test it
• Tax Receipt Donor Care
Mid to High Value
•Common practice is 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

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

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

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

Donor Save
• Amount downgrade
• Payment holiday
– Max 3 months
• Change payment type
• Change payment date
• Avoiding DO NOT CONTACT as an outcome
– But do some thing with them

RG Upgrade Rate - by recruitment channel and year
0%
20%
40%
60%
2008
2009
2010
2011
2012
2013
2014
Direct Mail Face to Face Online Phone
Five year range: 85% to 0%

Have a proposition
First approach ~6 months (test)
Multi channel
Ask at least annually
Test ask levels / multipliers
Can Auto Upgrade work for you?

Ask at sign up
to opt in to
Auto Upgrade
Call to increase
the amount
Call to upgrade
Ask to opt in to
Auto Upgrade

Ask at sign up
to opt in to
Auto Upgrade
Call to increase
the amount
Call to upgrade
Ask to opt in to
Auto Upgrade
Best in class has 80%+ of all 5
year plus recruits upgraded
Average is 36%

Reactivation
Response Rates of 10% to 16%.
• Passive can get 25% to 30%
• Donor cancelled will get 6% to 12%.
Generally include up to 48mths
• Can go back as far as 108mths for charity cancelled and 72mths for donor cancelled.
• The further you go back however the lower the overall RR will be.
Generally get people back on board at 75% of their original gift.
Test 0 pay reactivation

Have a proposition
Know why they cancelled & when, and what else they
may have done in between
Multi channel
Warm them up
• E.g. digital with phone follow up

Attrition by payment number & cumulative
Income per donor, Av number payments, Year 1 Ratio

3 month attrition
Cumulative 3 month attrition
Compare suppliers / channels / products

Does everyone in
your organisation
know why you are
doing RG?
Does everyone
know how to
defend the channels
being used?
Does everyone
know how to sell
regular giving?
Do you have an
inbound save
program?

Fiona McPhee
fiona.mcphee@paretofundraising.com
Twitter: fimcphee
Phone: +6421 336 905
Web: www.paretofundraising.com

The Regular Giving Toolbox

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