© Pareto Fundraising 2011
Donor Management: Thanking, Supporting, Listening
How to keep your donorsFiona McPhee, MFIA, MFINZ
Pareto FundraisingFriday 13th May, 10.20 -12.00
© Pareto Fundraising 2011
You already have acquired donors
0
50,000
100,000
150,000
200,000
250,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Direct Mail Online Other PhoneNew Cash Recruits by Channel
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Direct Mail Face to Face Online Other PhoneRG Recruits by Channel (All)
Solicitation of cash recruits by channel
Solicitation of RG recruits by channel
Source: Pareto Fundraising AU & NZ Benchmarking 2010
RG recruitment still dominated by direct mail in New Zealand
with Face to Face increasing
Direct mail & the phone are likely your
main recruitment channels
© Pareto Fundraising 2011
This is about getting them to give again, and again
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2004
2005
2006
2007
2008
2009
2010
2004
2005
2006
2007
2008
2009
2010
2004
2005
2006
2007
2008
2009
2010
New Reactivated Retained
Mill
ions
Income Donors
Source: Pareto Fundraising AU & NZ Benchmarking 2010
A retained cash donor in NZ was worth $75
compared to $56 for a new donor and $58 for
a reactivated donor
Retained cash donors delivered almost 4.6
times as much income as recruited donors in
2010 in NZ.
Retention, Recruitment and Reactivation
© Pareto Fundraising 2011
What I’ll cover
What behaviours & needs are we addressing?
What can we do to keep our donors?
What you say & how you say it
© Pareto Fundraising 2011
This is about planning to keep your donors
• To do this developing a strategy that is written with your donors in mind will make all the difference:
“You make your communications about the donor, not yourself. That means all your energy goes to telling the donor what she wants to hear in the way she wants to hear it.” Jeff Brooks, Future Fundraising Now
© Pareto Fundraising 2011
A planned donor journey
March Appeal Ask
June Newsletter Ask
August Merchandise
Christmas Appeal Ask
Care
Ask
From this … … to This
© Pareto Fundraising 2011
A planned donor journey
• Creates a vision of where you want to take your supporters during their lifetime with you
• Creates a rapport with the supporter that meets their needs and demands
© Pareto Fundraising 2011
What do the people who support you want?
Acknowledgement
To know about your successes (impact & performance)
Emotional connections
A relationship on their terms
Supporting to be easy
© Pareto Fundraising 2011
Their relationship needs?
• Its all about me (the donor) and your beneficiaries (you are mostly just the conduit and in some cases the badge of honor)
Thanks to Moira Clarke, Professor of Strategic Marketing, Henley University
Meet Me
Remember Me
Understand me
Value me
© Pareto Fundraising 2011
How do brand new donors behave?
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Cash 12m RG 12m
Second Gift Rates New Cash Donors 2010
Source: Pareto Fundraising AU & NZ Benchmarking 2010
We retain less than 50% of all new cash
donors recruited.
0
2,000
4,000
6,000
8,000
10,000
12,000
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2004 2005 2006 2007 2008 2009
Year1 Attrition Year2 Attrition Year3 AttritionYear4 Attrition Year5 Attrition Recruits RG Attrition by Year - Non F2F Recruits (All)
Attrition of Regular Givers
In 2010 16% of new regular givers cancelled
in the first year.
© Pareto Fundraising 2011
What can we do to keep them?
Start off on the right foot
Plan the conversation
Thank & welcome them
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© Pareto Fundraising 2011
New High Value Cash Donor
3 – 5 Days
• Thank you call attempt & thank you letter (incl. receipt)
2 – 3 weeks
• Feedback letter
4 – 5 weeks
• Follow up ask
5 weeks
• Into communications program
Personal. Thank. Surprise. Make a
connection.
Linked to their initial emotional
response.
What impact has their support had?
Continue the emotional story.
© Pareto Fundraising 2011
New Regular Giver
Next day
• Thank you call attempt & Email
2-5 Days
• Thank you letter / Welcome pack
4 – 6 weeks
• Engagement communication
6 weeks
• Into communications program
Personal. Thank. Surprise. Make a
connection.
What impact has their support had?
Continue the emotional story.
Reinforce the emotional reasons they’ve signed up
for.
© Pareto Fundraising 2011
WWF-Australia Program
Day 1: SMS
Day 4: Welcome Call
Day 5: EmailDay 5:
Confirmation Letter
1st Newsletter with
Personalised cover letter
<$20 p/mth High Risk letter
Month 2: Feedback Letter
2nd Newsletter with
Personalised cover letter
© Pareto Fundraising 2011
Thank you communications
• Not just a financial transaction• Continue the conversation• Consider donor needs
© Pareto Fundraising 2011
Matthew McPhee26 Kings DriveWanaka, 9305 12 March 2010 Dear Matthew, I am writing to you today to thank you for the extremely kind gift of $75 you sent in response to my recent appeal for help. I can’t express just how grateful I am for your generosity. Thank you again. You may remember the Ronayne family and their son, Joel, from my letter. They kindly shared the story of his battle with neurofibromatosis (NF1), a critical condition that is difficult to manage so doctors recommended amputating Joel’s legs. Without the option of the groundbreaking treatment developed at the Kids Research Institute, Joel would not be jumping, running around, riding a bike, playing with a skateboard, swimming and ten pin bowling today. Thanks to the state of the art biophosphates treatment from our Researcher and Orthopaedic Surgeon, Professor David Little, and his team, Joel is now a healthy and happy eleven year old. To quote his overjoyed mum, Barbara, “Every day we say, ’Thank you’. If it wasn’t for the Kids Research Institute, my little boy wouldn’t have his legs. Joel is the best he’s ever been in his life at the moment. I think the future’s looking great.” Joel owes his steady progress to the cutting-edge research and innovative treatment that was a world first for Professor Little and the Kids Research Institute. Thank you again for helping critically ill children, Matthew. Your help at this time means we can continue to provide real hope for sick kids and their parents. Your support will truly light up the lives of these children and their families. Yours sincerely, Professor Chris Cowell Director, Kids Research InstituteThe Children’s Hospital at Westmead
© Pareto Fundraising 2011
Matthew McPhee26 Kings DriveWanaka, 9305 12 March 2010 Dear Matthew, I am writing to you today to thank you for the extremely kind gift of $75 you sent in response to my recent appeal for help. I can’t express just how grateful I am for your generosity. Thank you again. You may remember the Ronayne family and their son, Joel, from my letter. They kindly shared the story of his battle with neurofibromatosis (NF1), a critical condition that is difficult to manage so doctors recommended amputating Joel’s legs. Without the option of the groundbreaking treatment developed at the Kids Research Institute, Joel would not be jumping, running around, riding a bike, playing with a skateboard, swimming and ten pin bowling today. Thanks to the state of the art biophosphates treatment from our Researcher and Orthopaedic Surgeon, Professor David Little, and his team, Joel is now a healthy and happy eleven year old. To quote his overjoyed mum, Barbara, “Every day we say, ’Thank you’. If it wasn’t for the Kids Research Institute, my little boy wouldn’t have his legs. Joel is the best he’s ever been in his life at the moment. I think the future’s looking great.” Joel owes his steady progress to the cutting-edge research and innovative treatment that was a world first for Professor Little and the Kids Research Institute. Thank you again for helping critically ill children, Matthew. Your help at this time means we can continue to provide real hope for sick kids and their parents. Your support will truly light up the lives of these children and their families. Yours sincerely, Professor Chris Cowell Director, Kids Research InstituteThe Children’s Hospital at Westmead
I am writing to you today to thank you for the extremely kind gift of $75 you sent in response to my recent appeal for help. I can’t express just how grateful I am for your generosity. Thank you again.
You may remember the Ronayne family and their son, Joel, from my letter. They kindly shared the story of his battle with neurofibromatosis (NF1), a critical condition that is difficult to manage so doctors recommended amputating Joel’s legs. Without the option of the groundbreaking treatment developed at the Kids Research Institute, Joel would not be jumping, running around, riding a bike, playing with a skateboard, swimming and ten pin bowling today.
Acknowledgment, Emotional
connection, Impact
© Pareto Fundraising 2011
© Pareto Fundraising 2011
AcknowledgmentImpact
© Pareto Fundraising 2011
Dear <Salutation>, Thank you so much for becoming a Puppy Pal by agreeing to support Guide Dogs NSW/ACT with regular donations of $<amt> <frequency>. I want to welcome you to this fun – and very important – new initiative. Now that you’re involved, I know it’s going to set a lot of tails wagging! Every month, your contribution will help us turn young puppies into highly skilled Guide Dogs. These amazing animals can make it much easier for people who are blind or have impaired vision to live independent lives. Put simply, they enable people in your local community to get about exactly as they please. Of course, it’s crucial work that makes huge improvements to people’s lives – but we simply couldn’t do it without your support. We don’t charge anyone for our training, and we receive no government funding. That’s why we’re so grateful that you’ve chosen to get involved as a Puppy Pal, and help fund the training of much-loved Guide Dogs. We’d like to shake you by the paw! As a thank you for your kindness, we’ll send you regular updates from the place where it all happens – the Guide Dogs Centre – so you can see for yourself how our puppy students are getting on. The first of many updates is included with this letter. I hope that, as you get to meet more and more of our wonderful students over the coming months, you’ll be as proud as I am of their progress and achievements. What’s more, I hope that these updates will give you an insight into what the training at the Guide Dogs Centre involves. I’ve enclosed a map of the Centre so you can get an overview of the facilities there. What’s really amazing is that new dogs are graduating from the Centre – to incredibly high standards – all the time. In order to keep up with the needs of the 100,000 people in NSW and ACT who have impaired vision, the training of Guide Dogs is an ongoing challenge. Your wonderful commitment helps us meet our current demands – and plan ahead. I can’t tell you how valuable that is to us – and to all the people with impaired vision whose lives will be made better as a result of your kindness. You are doing something wonderful and I truly hope you will carry on doing it for a long time. As the months go by, you’ll be able to correspond with some of the dogs and their instructors. I hope you’ll enjoy getting close to these lovely pups and sharing in their successes as they make their way through their life-changing training. I just know you’re going to find them every bit as adorable as I do. I’ll be in touch again soon with another update. In the meantime, if you have any queries about this work, or the vital role you are playing in it by being a Puppy Pal, please don’t hesitate to contact a member of the team on 02 9412 9300. We’ll be very happy to hear from you. With warmest thanks and very best wishes Alex GreenFundraising Manager
AcknowledgementEmotional connection
Impact
© Pareto Fundraising 2011
Emotional connection
Impact
© Pareto Fundraising 2011
Dear Fiona, Thank you so much for your recent gift of $100, and for giving your compassionate support of the Thousand Homes for Hope Appeal. Your gift has been a great help as we take on the massive challenge of renovating, repairing and constructing one thousand homes for one thousand families by the end of the year. We knew when we committed ourselves to this ambitious plan that it would be far from easy. But it is so very important that we succeed. Those who need our help are living in the most appalling conditions you could imagine. They include families like those I told you about, clinging to survival on the Rach Gia dumpsite in Vietnam. With your help, my hope is that, in just a few months, families who have spent most of their lives up to their knees in rotting waste, will have a chance to move into decent homes with clean water and enough space to cook, study and rest in. But I will be honest with you: we still have a long way to go. That’s why I wanted to make an additional request of you today, and ask if you would please consider becoming a Habitat for Humanity Australia HopeBuilder. As a HopeBuilder, you contribute an affordable gift of your own choosing, that comes direct from your bank account or credit card each month. Along with other wonderful HopeBuilders, you’d be helping to build decent homes and a whole new world for people living in desperate poverty – brick by brick, house by house, family by family. In return for such generosity, you will be kept up to date on our projects, so you can see the impact your gift is making, and just how far your love goes. You’ll know your money is being spent exactly as you wish – on real, tangible building projects that will transform lives forever. We are depending heavily on our HopeBuilders to ensure the Thousand Homes for Hope Appeal is a success. And as it’s clear you share our belief in the power of a decent home to change lives, I would be overjoyed if you could join us as a HopeBuilder today. I’ve included a special HopeBuilder form to make signing up extremely easy. But for now, I want to thank you again for the help you have already given. I am always truly grateful for whatever you can manage. With my best wishes,
© Pareto Fundraising 2011
Dear Fiona, Thank you so much for your recent gift of $100, and for giving your compassionate support of the Thousand Homes for Hope Appeal. Your gift has been a great help as we take on the massive challenge of renovating, repairing and constructing one thousand homes for one thousand families by the end of the year. We knew when we committed ourselves to this ambitious plan that it would be far from easy. But it is so very important that we succeed. Those who need our help are living in the most appalling conditions you could imagine. They include families like those I told you about, clinging to survival on the Rach Gia dumpsite in Vietnam. With your help, my hope is that, in just a few months, families who have spent most of their lives up to their knees in rotting waste, will have a chance to move into decent homes with clean water and enough space to cook, study and rest in. But I will be honest with you: we still have a long way to go. That’s why I wanted to make an additional request of you today, and ask if you would please consider becoming a Habitat for Humanity Australia HopeBuilder. As a HopeBuilder, you contribute an affordable gift of your own choosing, that comes direct from your bank account or credit card each month. Along with other wonderful HopeBuilders, you’d be helping to build decent homes and a whole new world for people living in desperate poverty – brick by brick, house by house, family by family. In return for such generosity, you will be kept up to date on our projects, so you can see the impact your gift is making, and just how far your love goes. You’ll know your money is being spent exactly as you wish – on real, tangible building projects that will transform lives forever. We are depending heavily on our HopeBuilders to ensure the Thousand Homes for Hope Appeal is a success. And as it’s clear you share our belief in the power of a decent home to change lives, I would be overjoyed if you could join us as a HopeBuilder today. I’ve included a special HopeBuilder form to make signing up extremely easy. But for now, I want to thank you again for the help you have already given. I am always truly grateful for whatever you can manage. With my best wishes,
Your gift has been a great help as we take on the massive challenge of renovating, repairing and constructing one thousand homes for one thousand families by the end of the year. We knew when we committed ourselves to this ambitious plan that it would be far from easy. But it is so very important that we succeed. …
But I will be honest with you: we still have a long way to go. That’s why I wanted to make an additional request of you today, and ask if you would please consider becoming a Habitat for Humanity Australia HopeBuilder.
AcknowledgmentSupporting to be
easy
© Pareto Fundraising 2011
What can we do to keep them?
Start off on the right foot
Plan the conversation
Thank & welcome them
© Pareto Fundraising 2011
How do multi donors behave?
$0
$20
$40
$60
$80
$100
$120
$140
0%
10%
20%
30%
40%
50%
60%
70%
80%
1 2 3 4 5+
Retained Income Per Donor
Cash Donor retention number of previous gifts
The more gifts a donor makes the better our
retention.
Retained cash income by donor type
Nearly 10% of all cash income now comes from regular givers providing additional
cash donations.
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
2003 2004 2005 2006 2007 2008 2009 2010
Cash Only RG & Cash
Source: Pareto Fundraising AU & NZ Benchmarking 2010
© Pareto Fundraising 2011
What can we do to keep them?
Plan the conversations – particularly the care part
Personalise – show them you know them
Integrate across channels
Implement an acknowledgement strategy
Cross sell & Upgrade
© Pareto Fundraising 2011
Care in the Comms Plan
New Year Donor Care Letter
Feb (Tax) Appeal
Donor Survey
Survey follow up
& Bequest Follow Up
Winter Appeal Wave 1
Winter Appeal Wave 2
Survey feedback & Donor
Care postcard
August Appeal
RG Conversion
& RG Upgrade
High Value Donor Appeal
Summer Appeal Wave 1
Summer Appeal Wave 2
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What about my newsletter?
A key message is repeated
They make your donor feel like a VIP
They tell emotional stories
They show impact
They show your donor some thing new (don’t bore them)
© Pareto Fundraising 2011
What about my newsletter?
A key message is repeated
They make your donor feel like a VIP
They tell emotional stories
They show impact
They show your donor some thing new (don’t bore them)
If your newsletter is not about retaining donors and increasing value from donors why are you spending the time and $$?
Why are you sending it to them?
© Pareto Fundraising 2011
Integrate
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Integrate
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© Pareto Fundraising 2011
Implement an acknowledgment program
Bequestors
• Confirmed• Handwritten note from bequest officer or assigned manager
Major Donors
• Cash > $5,000 / RG > $100 per month• Personal note / call from Andrew Penman (CEO)
High Value Donors
• Cash >$500 / RG > $50 per month• Personal note / call from Appeals Manager
Mid Value Donors
• All other cash & RG• Thank you letter specific to ask responded to
Reactivated Donors
• Personal note / call from Appeal Manager
© Pareto Fundraising 2011
Cross sell & upgrade
© Pareto Fundraising 2011
What can we do to keep them?
Plan the conversations – particularly the care part
Personalise – show them you know them
Integrate across channels
Implement an acknowledgement strategy
Cross sell & Upgrade
© Pareto Fundraising 2011
What you say and how you say it
You are real people
Be beneficiary & impact focused
Tell emotional stories – heart first
Recognise their specific support
Say thank you
© Pareto Fundraising 2011
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Summary
1. Supporters need us to communicate with them
2. Relationship protocols will help to engage and retain
3. What you say & how you say it makes a difference
© Pareto Fundraising 2011
© Pareto Fundraising 2011
Fiona McPheePareto Fundraising
[email protected]: fimcphee
Linkedin: Fiona McPheeeNewsletter: www.paretofundraising.com