Presented by Kathleen E. Pavelka, CFRE, President Paul Kemblowski, Vice President Call Center...

Presented by Kathleen E. Pavelka, CFRE, President

Paul Kemblowski, Vice President Call Center Operations Telecomp, Inc.

NEAHP District ConferenceMarch 17, 2009

Newport, Rhode Island

ROLLING UP YOUR SLEEVES AND GETTING IT DONE

ROLLING UP YOUR SLEEVES AND GETTING IT DONE

Increase your Results Now

Formula for SuccessFormula for Success

There are only TWO ways to Increase your Success:

#1 Increase the number of people giving

#2 Increase the average level of support

Do BOTH

Your Foundation for SuccessYour Foundation for Success

Major Gift Donors

Leadership Donors

Repeat Annual Donors

First-time Annual Donors

#1 Increase the Number of Donors#1 Increase the Number of Donors

• Ask More– Expand your solicitation pool

(Ask More People)

– Increase the number of times you ask(Ask More Often)

• Ask Smarter– Increase response rates

(A Higher Percentage of your prospects become donors)

#2 Increase the Average Gift#2 Increase the Average Gift

• Ask More– Increase your Expectations

(Ask people to give more)

• Ask Smarter– Determine most capable and willing donors

(Ask the right people)– Method

(Ask the right way)

Embrace the Power of MathEmbrace the Power of Math

• You are smarter than a 5th Grader

• There is no test at the end

• This isn’t Rocket Science

• Numbers tell a story – get into your comfort zone

The Power of MathThe Power of Math

Client A

9,305 Donors

$114 Average Gift

Increase Average Gift by $10

= $93,050

(8.7% increase)

Client B

6,406 Donors

$226 Average Gift

75,000 Patients

Increase Response Rate by ½ point

= 75,000 x .005

= 375 new donors x $226

= $84,750

(5.9% increase)

Expand yourPyramidExpand yourPyramid

Major Donors

Leadership Donors



Increase your Success

Increase your Success

Your Foundation for SuccessJust Grew!

Your Foundation for SuccessJust Grew!

Major Donors

Leadership Donors



#1 Increase the Number of DonorsASK MORE PEOPLE


I. Improve Database Accuracy1. Run file through NCOA

- Contact your local post office

- Very low cost

2. Add Return Address Requested on every mailing

- Same conversation w/Post Office for rules

3. Enter updates/bad addresses timely

- Hire a Temp/Intern; use receptionist



I. Improve Database Accuracy4. Telephone Number Research

- Computer matching very low cost (Allant)- Directory Assistance if worth the investment

5. Advanced Research - Has come down in cost dramatically ($.30 per) - Based on Last Known Address and/or SSN

6. First Class Mail - For most important prospects - Provides information

- To control timing

Soliciting people with bad addresses or phone numbers wastes precious resources.


The U.S. Post Office estimates that 20% of the population moves each year.

Database = 30,000 or 10,000 Mailing Cost = $.30 per piece Number of Mailings = 4 annually

30,000 x .20 x $.30 x 4 = $7,20010,000 x .20 x $.30 x 4 = $2,400

Soliciting people with bad addresses or phone numbers means fewer donors.


You are not reaching everyone you think you are. What is the lost opportunity?

Database = 30,000 or 10,000

Typical Response Rate = 5%

Typical Average Gift = $100

30,000 x .20 x .05 = 300 x $100 = $30,000

10,000 x .20 x .05 =100 x $100 = $10,000



II. Increase Prospect Pool1. Patients and Parents of Patients

- Tremendous prospect pool right at your finger tips

- More effective than many donor populations

(unique to healthcare)

2. Special Event Donors/Attendees

3. Volunteers/Auxiliary

4. Staff

5. Affiliated Staff

#1 Increase the Number of DonorsASK MORE OFTEN


III. Increase Solicitations 1. Increase the number of times you Ask - Solicit as long as each successive effort is cost

effective- Expect each successive direct mail effort to produce half of the previous effort

Suggested Opportunities per year:Leadership: 3-5 Long-Lapsed/Non-Donors: 1-2 Potential Leadership: 5-8 Second Gift Appeal: 1-2Renewals: 5-8Lapsed Donors: 3-5



III. Increase Solicitations

2. Add additional Solicitations to Marketing/Other Materials

- Newsletters (add clip out coupon or box minimally, envelope ideally)

- Annual Report

- Displays in key areas in hospital and your other facilities (lobby, waiting areas, info desk, cafeteria)

- Donor wall (add permanent display)

- Event Program/Tables



III. Increase Solicitations

3. Giving on your Website

- Must be a “tab” on home page

- “Giving” versus “Foundation”

- Make sure it is easy to give and easy to find you

- Web site should be given as an option on your response device; drive donors to the web site

More opportunities

More donors

=

#1 Increase the Number of DonorsASK SMARTER


I. Case for Support1. Talk about the Future

- The “What if” is a lot more important than the “What was” for nearly everyone that you solicit

2. Tell a story - Giving originates from the heart; the head is the

regulator

3. Peer-to-Peer is best

- Major gift rule that applies to all giving



I. Case for Support4. The Most Compelling

- Cancer

- Heart

- Emergency

- Children



II. Prospect Selection1. Make friends with IT and learn some basics

about your systems

- Often they will determine whether or not you receive the proper patient selection

2. Know your Patient Census - All Hospitals must report basic information

(Admissions, Inpatient days, Outpatient visits, Births, etc.)

- Does your Patient selection make sense?



II. Prospect Selection3. Exclusions You Know

- Deceased in hospital, Medicaid, charitable care, accounts in collection, etc.

4. Exclusions You May Not Know - Lab-only (blood drawn at doctors’ offices, nursing

homes, etc. that is processed at the hospital) - Age Groups (young adults, older adults) - Diagnosis/Department (Psychiatric, STD, etc.) See Bill McGinley re: HIPPA - Litigants (see Legal)



II. Prospect Selection5. HIPPA

- Be familiar and confident on the rules and regulations; be ready to do battle with legal if necessary; use your resources

6. Some tips for Patient Selection- Select Next of Kin for Parents of Pediatric Patients (Mothers give better than Fathers, who are usually the Guarantor)- Select Parents of Newborns by the age of the newborn (0 to 10 days old on date of discharge) and select Next of Kin



II. Prospect Selection6. Some tips for Patient Selection (continued)

- Ask IT to start with the entire pool and then exclude who you don’t want rather than selecting those you do want; this avoids big mistakes- Exclude those without a telephone number for patients (if Admissions wasn’t able to secure a phone number, info is probably bad or they are impossible to reach)- If going back more than 12 months for Inpatients or 6 months for Outpatients, exclude those with only one visit beyond that period (go to multi-visit patients after these periods to increase results)



III. Segmentation1. Relationship to Institution

- Group prospects/donors by their relationship to you- Hierarchy

2. Unique and Meaningful Case for Support - Segment should require a unique message (i.e.

Parents of Pediatric Patients versus Adult Patients)

3. Unique Objective- Each segment should merit a specific objective



Sample Donor Objectives

Leadership: Increased giving/planned gift cultivationPotential Leadership: Increase gift to Leadership LevelRenewing Donors: Increase gift by 30% or moreLapsed Donors: Reactivate giving; increasing is secondaryLong Lapsed Donors Sybunts: Reactivate giving (even if decrease)Special Event/Telethon/ Memorial-only Donors: Convert to unrestricted Annual DonorsEmployee Donors: Renew and increase gift; good example

of unique message



III. Segmentation4. Segmentation versus Fragmentation

- If it doesn’t require a unique message and/or have a unique objective, then don’t waste time and energy creating a segment

5. Segmentation versus Tracking Codes - Track results within segments as much as you

would like – just be sure group is large enough to provide meaningful measure of results



III. Segmentation6. Segmentation versus Restricted Giving

- allows you to appeal to their interest, but does not mean that you have to restrict their gift to a particular area -- two separate and distinct issues (i.e. Discussing cardiac care as an example of the excellent care provided, but asking for the whole hospital)



IV. Timing is Everything1. Create Master Calendar of Events/Activities

- Marketing efforts/advertising

- Foundation Newsletter/Annual Report

- Special Events (yours and other related groups)

- Medical Symposiums/Etc.

- Holidays/Tax times/Etc.

- News items



IV. Timing is Everything2. Ride the Momentum

- Best time to solicit Special Event Donors/Attendee

- Marketing spends millions on advertising for cardiology; do you have a solicitation out there?

- Feature your letter signer’s story in Newsletter

- Invite Donors to Medical

Symposiums

- Etc.



IV. Timing is Everything3. Solicit Patients as close to their experience

as possible

- Your Case for Support is the most relevant

- Monthly is best, if mailing

- Quarterly is best, if telephoning

- Weekly is best, for personal solicitation

- Response Rates will easily rise ½ point if you follow this strategy (Remember the Power of Math)



IV. Timing is Everything4. Calendar Year-End a MUST for Donors

- Many Donors only give at year-end; you must be in the “pile”

- Must be a real solicitation; holiday cards with return envelopes do not count (see them as cultivation and stewardship)

- Fiscal year-end a MUST if different



V. Solicitation Method1. Number of People to Solicit

- Personal Solicitation for only the chosen few

- Direct Mail or Telemarketing for everyone else

2. Make sure the investment is appropriate to the expected outcome.

More Donors

More Dollars

=

#2 Increase the Average GiftASK FOR MORE


I. Raise Expectations1. Be Specific

- Include a specific gift expectation or range of gift expectations in each solicitation

2. Be Bold- Lift your own expectations and ask for More - a lot More

- Remember it is our job to provide the opportunity only; it is the Donor’s job to decide when to give and how much



I. Raise Expectations3. Do not create low-end Donors

- Adjust the gift levels on your response device

- Make sure to provide Leadership level options

4. Leadership Package

- Includes a series of letters with a follow-up call and ask Donors to take a LEAP to $1,000 or more

- Invitation to join Leadership Society



II. Solicit Current Year Donors1. Ask for a Second (or Third) Gift

- Akin to the old adage: If you want something done ask someone who’s busy

- Donors will usually repeat their earlier gift; effectively doubles their gift

- We usually experience a 30% to 50% response rate (remember the power of math)

- Monthly giving program



Segment

Pledge Rate

Average Pledge

Income per Solicitation

Current Donors $1-$99

25% $52 $13


46% $115 $53


37% $270 $99

Current Donors $1,000+

51% $1,046 $535

Sample Current Donor ResultsNew York Presbyterian Hospital @ Columbia

#2 Increase the Average GiftASK SMARTER


I. Raise Sights1. Wealth Screening

- Not just for Major Giving; use highly-rated prospects in direct mail or telephone outreach; target for leadership gift

- Use Leadership Package for targeted solicitation

2. Quality of Solicitation

- Look at your direct mail or pre-call materials with a new eye; don’t read them – just look at them – What impression are they giving?



II. Method1. Personal Invitation, Tour and Solicitation

- Set-up a medical briefing with a prominent physician; personally invite your top annual giving prospects (by phone as well as mail)

- Give them a tour of the hospital – or specifically the area of the physician’s expertise

- Send them home with a solicitation package (nicely done)

- Call them and mail them for follow-up



II. Method2. Personal Solicitation

- Make sure Annual Giving is on the agenda of your major gifts officers

- Personal Solicitation is not just for major gifts officers; make your own appointments – just one a month would reap big benefits

- The side benefit is: you will learn about your donors and how they see your institution in the community; it’s like getting research for free



III. Cultivation and Stewardship1. Involvement

- Expand Board and/or Committees

- Invite to everything you do

- Special seating at events

- Periodic email (let your best donors into your “inner circle”); treat them like a good friend

- Announce newsworthy items to them first

- Take a look at AFP’s Leadership Society – good model



III. Cultivation and Stewardship2. Thank You Method/Frequency

- Determine method(s) that are appropriate

Handwritten note Personal letter

Personalized form letter Telephone Call

Receipt (not desired method for any donor)

E-mail Other (flowers, candy)

- Determine who should thank the donor

(CEO, Chair of Board, Volunteer, Doctor, etc.)



III. Cultivation and Stewardship2. Thank You Method/Frequency

- Determine how many times you wish to thank the donor (never worry that it is too many)

- Formal Recognition (Recognition v. Benefits)

- Don’t get hung-up on Benefits; fashion them from things you already do or the Hospital already does (educational seminars, special events, volunteer or community days, etc.)

- Most importantly, make them feel good about their giving; that they are making a difference

MEASURE

EVERYTHING

After all, you must Know Your Math

MEASURE

EVERYTHING

After all, you must Know Your Math

Barriers to Getting It DoneBarriers to Getting It Done

• Budget Restrictions

• Short-Staffed

• Management Approval

• Board Approval

• Philosophy

• IT

Show them

The Power of Math

Hold on as you take your institution to new heights!

Presented by Kathleen E. Pavelka, CFRE, President Paul Kemblowski, Vice President Call Center...

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Transcript of Presented by Kathleen E. Pavelka, CFRE, President Paul Kemblowski, Vice President Call Center...