Cgvt presentation 1210 abc ext

Achieving Sustainability
Through Annual Giving

October 11, 2012

Special Thanks to
Common Good Vermont
People’s United Bank

© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100

Agenda


Agenda
• Introduction
• Understanding the key indicators of annual
giving success
• Break
• Strategies to maximize performance
indicators
• Luncheon & funders panel
• Hands-on clinic – turning ideas into actions
• Final Q&A

What Is Annual Giving?


What Is Annual Giving?

• Donations that are renewable from
year to year
• Fund annual operations budget
• Can be unrestricted or restricted
• Typically from individuals
• Annual should mean EVERY year …
NOT just ONCE a year

Show of hands:


Show of hands:

• How many of you have an annual giving
program?


Show of hands:

program?
• How many solicit their donors only
once per year? … 2 times? … 3+ times?


Show of hands:

program?
• How many solicit their donors only
once per year? … 2 times? … 3+ times?
• Who feels that their annual giving
program is achieving its full potential?


Feedback:


Feedback:

• What are main obstacles preventing
you from reaching full potential?


Feedback:

• What do you think are the biggest
opportunities to raise more money on
an annual basis?


Understanding the
Key Indicators
of Annual Giving Success


Annual Giving Comparison
of 9 Organizations
in Chittenden County


Leadership $1000+ Donors as % of All Donors

Giving 14%

7%

3%
LOW MEDIAN HIGH


Leadership $1000+ Donors as % of All Donors

Giving 14%

7%

3%
LOW MEDIAN HIGH

$1000+ Gifts as % of All Revenue

88%

52%

16%
LOW MEDIAN HIGH


Leadership Renewal Rate of $1000+ Donors

Giving
75% 78%
63%
46%

TARGET LOW MEDIAN HIGH


Leadership Renewal Rate of $1000+ Donors

Giving
75% 78%
63%
46%


Average Gift of $1000+ Donors

$8,172

$2,600 $1,079 $2,677



Active Renewal Rate of 1st-Time Donors

Donor
Retention
35%

27%
22%
14%



Active Renewal Rate of 1st-Time Donors

Donor
Retention
35%

27%
22%
14%


Renewal Rate of Multi-Year Donors

70% 69%
62%

25%



Lapsed Recapture Rate - Lapsed 1 Year

Donor 33%
Recapture 25%
23%

8%



Lapsed Recapture Rate - Lapsed 1 Year

Donor 33%
Recapture 25%
23%

8%


Recapture Rate - Lapsed 2 Years

15% 15%

9%

0%


Lapsed Recapture Rate - Lapsed 3+ Years

Donor 5%
Recapture 5%

2%
0%


A Profile of a
Typical Donorbase
and the Impact of
Key Indicators


Giving Pyramid Goal

Donors Revenue
Donor Pyramid Revenue Pyramid
Champions 6 $60,000 Champion
$25,000 1 $25,000 Leader 6
$10,000 2 $20,000 35
$5,000 3 $15,000
Champion
Advocate
$60,000
100
Leaders 35 $47,500
$2,500 5 $12,500
$1,500 10 $15,000 Leader
$1,000 20 $20,000 $47,500

Supporter
Advocates 100 $40,000 359
Advocate
$250-$999 $40,000

Supporters 359 $28,720
$1-$249 Supporter
$28,720

TOTALS 500 $176,220


Donor Growth Trends
Donors Median Target
Active Donor Retention & New Donors 70 80
Lapsed Donor Recapture Active 1st Year 70 22% 35%
Rates ----------------------------> Active Multi-Year 280 62% 70%
Lapsed 1 Year 155 23% 25%
Lapsed 2 Years 310 9% 15%
Lapsed 3+ Years 800 2% 5%
Total Donorbase 1,615
Active Donors 350


Donor Growth Trends
Donors Median Target
Active Donor Retention & New Donors 70 80
Lapsed Donor Recapture Active 1st Year 70 22% 35%
Rates ----------------------------> Active Multi-Year 280 62% 70%
Lapsed 1 Year 155 23% 25%
Lapsed 2 Years 310 9% 15%
Lapsed 3+ Years 800 2% 5%
Total Donorbase 1,615
Active Donors 350

5-Year Donor Growth Trends

Current Target
498 519
475
451
426
350 350 339 321 311 305 302

Current Year 1 Year 2 Year 3 Year 4 Year 5


New Donor Acquisition

Mail Performance Indicators Target Scenario 2 Scenario 3

Annual Mail Quantity 10,000 10,000 10,000
Response Rate 1.0% 0.5% 1.0%
Average Gift $50 $50 $35
Cost per Name $0.60 $0.60 $0.60




Cost per Name $0.60 $0.60 $0.60

New Donors

100 100

50

Target Scenario 2 Scenario 3




Cost per Name $0.60 $0.60 $0.60

Net Revenue

-$1,000
-$2,500
-$3,500




Cost per Name $0.60 $0.60 $0.60

Cost to Acquire A Donor

$70

$10 $25



Feedback:

• Attracting the attention and support
of new leadership donors/funders
• Maintaining consistent support from
leadership donors/funders
• Acquiring other new donors
• Lack of resources

Feedback:

an annual basis?


Feedback:

an annual basis?
• Strengthening leadership relationships
• Increasing donor retention and value
• Recapturing lapsed donors
• PLANNED GIVING!


Break


Strategies to
Maximize Performance

How lessons of dating can be applied
to a successful annual fund

5 Lessons:


5 Lessons:
#1 – Who to Ask

#2 – How to Communicate

#3 – Dating Tips

#4 – Learn from Friends


5 Lessons:
#1 – Who to Ask

#2 – How to Communicate

#3 – Dating Tips

#4 – Learn from Friends

#5 – The Big Proposal


Lesson 1: Who to Ask



a) Hot stranger



a) Hot stranger b) Good friend



a) Hot stranger b) Good friend c) Angry Ex



0.5%-3.0%



0.5%-3.0% 50%-80%



0.5%-3.0% 50%-80% 5%-30%



Special Treatment:



Special Treatment:
• Super Donors (incl. Loyals!)
• Major Donor Downgrades
• Major Donor Upgrades
• Remaining Major Donors
• Lapsed Major Donors
• First-time Donors
• Lapsed Donors



Lapsed Donors …
Rekindling Old Flames



Lapsed Donors …

Chance of getting back together:
5%-30%



Lapsed Donors …

5%-30%
Chance of finding someone new:
.5%-3.0%



Lapsed Donors …

• It’s easier to get back
together than to find
someone new.

• Usually it just takes a
little TLC.
• A handwritten note or 5%-30%
phone call makes a big Chance of finding someone new:
difference! .5%-3.0%


Lesson 2: How to Communicate



• One-on-One: nothing beats
it – if you’re good at it



• Events: great for meeting
and mingling



and mingling
• Direct Mail: effective way
to ask many people



and mingling
to ask many people
• Phone: good for follow-up



and mingling
to ask many people
• Email: efficient for
keeping in touch



and mingling
to ask many people
• Email: efficient for
keeping in touch
• Social Media: opportunity
to spread the word


Lesson 3: Dating Tips



• Have an engaging
conversation.

• Tell a compelling story.

• Make a good case for a
second date.

• Don’t be too desperate …
or aggressive.

• Follow up with a note
and/or phone call.



• Be personal.

• Show appreciation.

• Give good reasons to stay
in the relationship.

• Keep it simple.

• Stay in touch.

• Make someone feel good!


Lesson 4: Learn from Friends


GIFT REPLY FORM Puppets in Education
Kids on the Block - VT • Friend 2 Friend Programs - VT

Yes, I support the puppets! Jane Sample
130 South Willard Street
Enclosed is my gift to help reach the $30,000 goal by Dec. 31, 2011 at Burlington, VT 05401
the Community Sponsor level checked below:

o $2,500 for full-day program reaching 200+ kids o I am interested in learning about Planned Giving options.
o $1,250 for half-day program reaching 100+ kids o Please keep me informed via the email address below:
o $500 for workshop of 40+ kids
o $250 for class of 20+ kids
Please return with your gift to:
o $120 for 10 kids
Puppets in Education
o $60 for 5 kids 294 No.Winooski Avenue, Suite 125 - Burlington, VT 05401
o kids at $12 each = $ You may also give online at
www.PuppetsInEducation.org
Design and printing donated by Spencer Group Inc.

Lesson 5: The Big Proposal

PG Conversion Rates Based On Loyal Giving Patterns


• A planned gift is the
ultimate commitment in a
donor relationship



donor relationship

• Loyalty is the biggest key
to a “YES”


donor relationship

• Loyalty is the biggest key
to a “YES”

7.6%

3.0%

1.3% 1.3%
0.7%

15+ Consec. 10-14 Consec. 9 of Last 10 8 of Last 10 6-7 of Last 10
Years Years Years Years Years



Hands-on Clinic
Turning Ideas into Action

• 3 challenges – 15 minutes each
• 5 minute time limit for response
• 10 minute follow-up discussion


Challenge #1:
Establish a Case for Support

• The “Elevator Speech”
• A story of someone who benefited
• Compelling statistics


Challenge #2:
Assess Opportunities
& Resources

• List of opportunities
• Prioritize each one (scale of 1 to 5)
• Grade the resources you have to
pursue each opportunity (A-F)


Challenge #3:
Create a To-Do List

• Task
• What is the purpose/objective?
• Who/what can help?
• Deadline date


Annual Giving Resource Kit


• Affordable option to add resources
without adding staff
• Provides essential deliverables for
a successful annual fund
• By joining forces, participating
organizations can benefit from
significant cost-savings


Includes:
• Annual Fund template design
• Web-based donor management system
• Analytic reports
• Donor demographic overlay
• Custom ask amounts based on past giving
• VIP target lists and solicitation forms


Includes:
• Copywriting for 2 appeal letters &
follow-up appeals
• Direct mail production and coordination
for 2 appeals and follow-ups
• Strategic guidance


Q&A

Thank you for your participation!

Cgvt presentation 1210 abc ext

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