2013 dc dma seminar new donor trends & stewardship

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07/03/2022 Customer & Market Insights 1 NEW DONOR TRENDS Target Analytics Seminar @ 2013 DMA Non-Profit Conference in DC February 6, 2013

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Page 1: 2013 dc dma seminar   new donor trends & stewardship

04/13/2023 Customer & Market Insights 1

NEW DONOR TRENDS

Target Analytics Seminar @ 2013 DMA Non-Profit Conference in DC

February 6, 2013

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DECLINE IN NEW DONOR ACQUISITION2001-2010

Sector(# of organizations)

Total # New Donors2001-2010

% Change New Donors/Year

2001-2007

% ChangeNew Donors/Year

2007-2010

Advocacy (16) 6.6 million -9.5% 14.4%

Hospitals (23) 1.2 million 17.2% -0.4%

Cultural (16) 2.2 million 5% -2%

Environmental (37) 16.4 million -23.1% -11.0%

Health Research (30) 117 million 12.5% -14.8%

Human Services (36) 6.7 million 4.7% 2.5%

Colleges (34) * 350,000 -18.9%

* The % Change for colleges is for the period 2006-2011

SOURCE: TARGET ANALYTICS

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DECLINE IN F IRST YEAR RETENTION2001-2010 Sector(# of organizations)

Retention Rate 2001

Retention Rate 2010

% Change 2001-2007

% Change2007-2010

Advocacy (16) 34.0% 27.4% -19.5% 0.1%

Hospitals (23) 21.2% 18.1% -2.7% 0.6%

Cultural (16) 33.3% 26.8% -13.7% -6.5%

Environmental (37) 29.7% 24.0% -18.2% -1.4%

Health Research (30) 20.9% 19.3% -11.7% 0.4%

Human Services (36) 30.8% 26.3% -10.9% -4.2%

Colleges (34) * 30.8% 28.1% -8.8%

* The % Change for colleges is for the period 2006-2011

SOURCE: TARGET ANALYTICS

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• Acquisition is increasingly more expensive• First year retention rates are declining• Trends started prior to downturn and will likely continue

after recovery• Younger donors are less loyal than older donors• Low ROI on new donor acquisition (and getting lower).

- too costly to acquire new donors to replace lapsing donors

• WHAT CAN WE DO? !!!

SUMMARY OF CHALLENGES

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• View donors as valuable assets!

• When acquiring new donors, factor in whether you will retain the donor, and at what dollar level

• Fill the holes in your leaky bucket!

• Why did the donor give? Stop giving?

• According to Adrian Sargeant, Ph.D. from Indiana University’s Center on Philanthropy“A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200% .”

EMPHASIZE DONOR RETENTION OVER ACQUISITION

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• View donors as valuable assets!

• When acquiring new donors, factor in whether you will retain the donor, and at what dollar level

• Fill the holes in your leaky bucket!

• Why did the donor give? Stop giving?

• According to Adrian Sargeant, Ph.D. from Indiana University’s Center on Philanthropy“A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200% .”

EMPHASIZE DONOR RETENTION OVER ACQUISITION

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• View donors as valuable assets!

• When acquiring new donors, factor in whether you will retain the donor, and at what dollar level

• Fill the holes in your leaky bucket!

• Why did the donor give? Stop giving?

• According to Adrian Sargeant, Ph.D. from Indiana University’s Center on Philanthropy“A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200% .”

EMPHASIZE DONOR RETENTION OVER ACQUISITION

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• Be willing to invest in your donors, e.g. thank you calls. See Donor-Centered Fundraising – Penelope Burk

• Determine a donor’s potential early in your relationship and allocate resources accordingly

• Be Donor-Centric, not Campaign-Centric

FOCUS ON LIFETIME VALUE, NOT RESPONSE RATES

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• Set goals and measure your results

• Find peer groups and benchmark your results

• Checklist Manifesto, by Atul Gawande

• Identify best practices

• Find ways to collaborate to maximize results

FOCUS ON RESULTS, NOT EFFORT

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• Organize yourself to recognize a donor’s passion for your mission

• See yourself through the eyes of your donors

• Be willing to invest in your donors

• Test investments and track results carefully

INVEST IN YOUR MOST PASSIONATE SUPPORTERS

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1. Emphasize donor retention over donor acquisition

2. Focus on a donor’s lifetime value, not a campaign’s response rate

3. Focus on results, not effort

4. Identify & invest in your most passionate supporters

KEY TAKE-AWAYS

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THE BLACKBAUD INDEXGet up-to-date data on fundraising trends and valuable analysis by leaders in the sector.

Subscribe to free monthly updates by texting "index" to 69866 or via email by signing up at www.blackbaud.com/blackbaudindex.

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• Over 300 of the best fundraising ideas ever, at your fingertips 24/7…for free!• Contribute your own exhibit.• Sign up to receive hot news and updates.• What three things will you do differently, starting next week?

WWW.SOFII.ORG

A unique online resource of everything you could want to know about fundraising from c.1500 BC to the present day

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QUESTIONS?

Chuck Longfield, Chief [email protected]