donations processing: embracing efficiency, security, and data to build your future
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Donations Processing: Embracing Efficiency, Security, and Data to Build Your Future#12NTCAHCDS
Chip Sugrue -- @ChipSugrueBrett Ridge – @BanterwithBrett
The American Heart Association
Chip SugrueVice President of Customer Strategies/Affiliate Management Consultant
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Mission
Building healthier lives, free of cardiovascular diseases and stroke
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@ChipSugrue
2020 Goal
“By 2020, to improve the cardiovascular health of all Americans by 20% while reducing death from cardiovascular diseases and stroke by 20%.”
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@ChipSugrue
AHA Affiliates
SD
NE
SouthWest Affiliate Midge LaPorte Epstein, EVP AR, CO, NM, OK, *TX & WY
Mid-Atlantic AffiliateJeremy Beauchamp, EVPMD, NC, SC, *VA & WA, DC
Greater Southeast AffiliateDavid Markiewicz, EVPAL, *FL, GA, LA, MS, PR & TN
WY
AK
WA
MT
OR
ID
CO
AZ
CANV UT
NM
TX
ND
IA
MO
AR
IL
MN
WI
IN
TN
LAMS AL GA
SC
FL
NC
VA
Great Rivers AffiliateNicole Aiello Sapio, EVPDE, KY, OH, *PA & WV
MI
KY WV
OHPA
DE
NJ
CTNY RI
VT NH
ME
MDDC
PR
HI
KS
OK
National Center
Founders AffiliateMichael Weamer, EVPCT, ME, MA, NH, NJ, *NY, RI & VT
NYCMASD
Western States AffiliateRoman J. Bowser, EVPAK, AZ,*CA, HI, ID, MT, NV, OR, UT & WA
Midwest AffiliateKevin Harker, EVPIA, IL, IN,*KS, MI, MN, MO, ND, NE, SD & WI
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@ChipSugrue
Chip Sugrue
5 Years National Vice President Of Customer Strategies American Heart Association, National Center
10 Years as CEO/Executive Vice President AHA Minnesota Affiliate AHA Northland Affiliate AHA Northeast Affiliate
9 Years as National Affiliate Management Consultant American Heart Association, National Center
34 Years Total Field/National Center Experience
CDS Global
Brett RidgeSenior Solutions Manager, Nonprofit
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Our parent company, Hearst Corporation, is more than 120 years old and comprises nearly 20,000 employees spanning six major groups
Newspapers
Magazines
Broadcasting
Entertainment/Syndication
Interactive Media
Business Media
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@ChipSugrue
CDS Global ClientsPublishing
Consumer Products
Nonprofits
Utilities
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@ChipSugrue
Publishing Consumer Products Nonprofits Utilities
Markets
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@ChipSugrue
CDS Global Locations
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@ChipSugrue
Brett Ridge
10 Years as CEO/Executive Director Make-A-Wish Foundation of Iowa National Multiple Sclerosis Society of Iowa FFA Foundation of Iowa
7 Years as VP/Director of Marketing, Public Relations, Public Affairs (Government Relations) American Cancer Society, Midwest & Iowa Divisions
Numerous State and National Task Forces & Coalitions
More than Meets the Eye
Chip SugrueBrett Ridge
AHA Donations Processing Beginnings
Chip SugrueChip SugrueVice President of Customer Strategies/Affiliate Management Consultant
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
The Problem
Differences in donations processes: Donations captured Donations acknowledged Donations receipted Donations cultivated
Could we be confident that our donors were being appropriately thanked, cultivated or at a minimum, meeting IRS receipting regulations?
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Why All the Fuss?
AHA estimates only 55% of contributions and payments received an acknowledgement Lack of process consistency between Affiliates makes
acknowledgement rates an estimate
To ensure we were consistently meeting IRS guidelines
How much revenue has AHA lost due to uncultivated relationships because contributions were not captured for acknowledgement?
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
What to do?
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Objectives
Review the mechanics of how we cage, capture and acknowledge our donors
The solution must: Provide consistency across the organization Be cost-effective for the Association Allow for scalability to quantity demands Be “trackable” – provide the Association a means to record if,
when and what type of donation was received and acknowledgement generated
Improve the data quality for the Association
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Our Vision
We envision a day that the AHA will:1. Process all financial contributions into E1 according to
established guidelines2. Achieve a donor entry turnaround of three working days from receipt
at the donor capture processing location3. Mail an acknowledgement for a contribution with appropriate IRS
terminology within five working days of receipt of donation4. Identify trends in giving and segment donors based upon
demonstrated behaviors 5. Design and implement an association-wide cultivation strategy
Classifications of donors Creation of specific cultivation paths targeted to donor segment needs Example: Sending a message about us almost meeting our impact goal
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Three Moving Parts
1. Caging How AHA deposits money
2. Capture How AHA collects customer
data into the AHA CRM systems (Siebel, Kintera, etc.)
3. Acknowledgement The “Thank You”
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@ChipSugrue
Caging: What Did We Gain?
Ability to electronically upload data into existing applications
Ability to develop a reporting infrastructure
Solution consistently applied
Ability to track batch status within caging process
Ability to adjust to future changes and invest in technology
Minimal start-up costs
Minimized ongoing training costs after implementation
Ability to add additional income sources
Minimized impact on system infrastructure
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@ChipSugrue
Capture: What Did We Gain?
Maximized the number of donors captured
Provided better opportunity for 360 degree view of donor
Solution consistently applied
Met data security and internal privacy requirements
Ability to identify the source of the donation and market
Disaster recovery is included
Ability to adjust to future changes in technology
Designated staff have visibility to the donation process
Minimized redundancies in processing between caging and capture
Ability to have consistent data verification
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Acknowledgements: What Did We Gain?
Ability to comply with IRS reporting guidelines
Standardized process for thanking our donors
Increased cost efficiencies by comingling mailings
Ability to cultivate and re-engage donors
Customization of acknowledgements by event or activity (phase 2)
Ability to track status of acknowledgement
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@ChipSugrue
Cost Savings/Reallocation
Existing lockbox costs would be reduced (e.g. Heart Walk) and reallocated
Reduced the number of lockboxes needed from 21 to 14
Some mail costs shifted from Affiliates to vendor
Reduction in copying costs and time spent copying checks
Staff time reallocated due to increased efficiencies
Redeployment of staff resources for some Affiliates
Depository fees savings of approximately $26,000/year with 9 deposits from the vendor per day versus 300 deposits
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Caging, Capture, Acknowledgement Impact
More donation information captured and entered into expanded 360 data warehouse
Standardized cash receipts guidelines developed
Affiliates now participating in cash pooling program
Better customer service in responding to donor inquiries
Ability now to expand standardized Donor Appreciation project
Opened up new opportunities in other business functions (Youth Market, Work place Giving, Health Strategies)
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
The Impact In Numbers (27 months)
More than $425,000,000 in income processed3,510,379 transactions937,905 acknowledgements mailed7,000 requests for informationMore than 2.4 million new donors added to CRMMore than $200,000 savings in acquisition costsMore than $47,000 in second gifts
Savings of more than $52,000 in bank feesSavings of more than $24,000 by eliminating 7 lockboxes
Volume Donations Processing Technology & Tools
Brett RidgeSenior Solutions Manager, Nonprofit
mail receiptPO boxes identify clients and transaction typesRegional collection officesMail is either picked up at post office or delivered to sitesFrom remote locations (RDC)
STEP
1
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Getting It Done
Remote Deposit Capture Reduce float time Save on costly postal fees Improves funds availability Process deposits from events, local office Multiple scanner options Easy-to-use software and implementation Capture data in addition to checks
STEP
2 mail processingSORTATIONSort multiple
classes of documents
EXTRACTIONOpen and remove
envelope contents
IMAGING & DATA CAPTUREImaging Systems
Web Image Archive
Handwriting Detection & Recognition
SortationSorts two-piece, check only, document only, customer service, etc.
ExtractionCombination of automated & manual
Imaging & Data CaptureState-of-the-art imaging systemCapture virtually any data from any documentsSpeed up processingEnsure security, compliance, highest accuracy in industryIncrease amount of data captured about donors
Imaging & Data Capture
Handwriting Detection
Web Image Archive
depositingSTEP
3 • Balancing – No data file, check or check image leaves CDS Global without being in balance
• Deposit• Manual – Physical deposit of checks via bonded courier• Electronic Check Presentment (ECP)
• Send an electronic image of check to bank for depositing• Check 21• ACH/ARC • Both
• Online Bill Pay Support – Relationships with vendors to receive data feeds when bills are paid via online banking site
Customer DatabaseCommunication/Feeds
• Customize feeds or key data directly into donor database to suit requirements
• Highly flexible, easy to use• Keeping valuable data safe• Transaction data distributed via secure
FTP site (CDSFiles)
STEP
4
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@ChipSugrue
Donor Acknowledgements & Marketing Solutions
Recognize attract, retain donorsSeamless programs that handle the printing, personalization and mailing of donor acknowledgement packagesPaper and electronic methods availableQuickly and accurately acknowledge donorsDonor solicitations Rewards for high-value donorsPersonalized, multichannel campaignsSimple event registration capabilities and online payment
AHA Donations Processing Expansions
Chip SugrueVice President of Customer Strategies/Affiliate Management Consultant
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Expanding the Program
Accounts Receivable Results 4 of 7 affiliates participating 4,700+ receivables processed and deposited Saves AHA preparation and processing time
Customized acknowledgement letter for Youth Market donors
Created customized acknowledgement for those making additional donations
2012 – Creating customized acknowledgement for Workplace Giving donors
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@ChipSugrue
Expanding the Program
Remote Data Deposit and Capture Testing Determine if batch headers and checks could be scanned
remotely to CDS Global for caging, capture and acknowledgement
Quantify cost savings from not mailing information Quantify additional interest earned for depositing income faster Identify impact of scanning on AHA workload Identify any issues with AHA taking on the check
destroying responsibilities
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@ChipSugrue
Expanding the Program
Remote Data Deposit and Capture Pilot Two high-volume offices within the Founders Affiliate (Framingham
and Robbinsville) were selected to participate• Pilot ran from April 1-June 30, 2011• CDS Global loaned one scanner to each office• CDS Global conducted webinar to train staff on scanning machines
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@ChipSugrue
Expanding the Program
Remote Data Deposit and Capture Pilot More than 45% of the total income from the Founders Affiliate was
processed from Framingham and Robbinsville offices Robbinsville also processed Accounts Receivable More than 1/3 of the total batches processed (1,166) More than 1/4 of all checks (5,441) processed
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@ChipSugrue
Expanding the Program
Remote Data Deposit and Capture Pilot Results 1,166 batches and more than $3,543,000 processed More than $845 in postal costs saved More than $600 in additional interest earned Additional cost savings of $45.60 from not having to use
Tyvek envelopes Information scanned in the morning/deposited the same day Information available in e1 and Web Image Archive within hours
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Expanding the Program
Remote Data Deposit and Capture Pilot Results Scanning did not appear to take any more or less staff time than
manually preparing batches and prepping them for mailing Scanning could help speed up process for confirming donations in
event management tools Scanning documentation would save a step Positive ROI using scanners
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@ChipSugrue
Expanding the Program
Remote Data Deposit and Capture Pilot Results Potential costs savings assuming similar costs to the Founders
Affiliate offices for 25 additional AHA offices:• Postage savings of $42,250*• Increased income of $29,123 (1.5%)• Decreased Tyvek envelope costs $2,280• Estimated total savings and increased interest
income = $73,653+ per year
*FDA sending all batches Priority Mail
Stop the Guessing Game
Brett RidgeSenior Solutions Manager, Nonprofit
Gathering Deeper Data from Donations
Chip SugrueBrett Ridge
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Leveraging Data
Weave Your Way into Their DNA Remember who they are … their context Be simple and direct on their level
Creative Simplicity … not off the wall Create a plan for touches
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@ChipSugrue
Expanding the Relationship
Growth from Increased Relationships 3X+ and 2X donors with activity are 132% and 56% more valuable
than their average donor counterparts Life to Date Dollars from donors with both revenue and
non-revenue activity
Freq.Category
Donors w/Activity
ActivityFreq.
GivingFreq. LTD Dollars LTD $/Donor
3x+ 659,081 4.04 7.34 $589,745,418 $894.80
2x 309,174 3.04 2 $42,773,548 $138.35
1x 652,531 2.27 1 $45,220,394 $69.30
Totals 1,620,786 3.14 3.77 $677,739,360 $418.15
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@ChipSugrue
Gathering Data
Begin a Dialogue Provide information Ask their thoughts Get their opinion Make them feel that you care what they think …
and then actually begin to care
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Gathering Data
Solicitations Mailed Emailed Personal calls Online portals
• Age, gender, creed, etc.• Email address• Communication
preferences, social media information
• Interests, hobbies, event preferences
• WHY THEY CARE
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@ChipSugrue
Gathering Data
Tear-Offs Can be scanned
PURL To prepopulated microsites
• Surveys, information etc.
QR Codes Directly to microsites, websites,
webstores, surveys, etc.
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@ChipSugrue
Gathering Data
Acknowledgements Mailed Emailed Personal calls Online portals
• Begin a dialogue• Provide information• Ask their opinion• Ask for another donation
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Gathering Data
Acknowledgement Opportunities Planned giving wills and estates (7,000 requests) Volunteer opportunities (7/1/2011 – 300+ requests) Research information Join the You’re the Cure Advocacy Network Soft ask for additional donation (FY 2011 – $47,000 from
689 donations = $68.21 gift average. First 7 months of FY 2012 – $53,614 from 345 donations = $155 gift average.)
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@ChipSugrue
Gathering Data
Track It Who responded? What channel did they use? What did they tell you?
Analyze the Data What does it tell you about
groups? Individuals? Build profiles
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@ChipSugrue
Leveraging Data
Context It’s not about you Connect with them on their level Meet consumers at their destination
Enhance Data Add additional data Build profiles on individuals Build prospect profiles
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@ChipSugrue
Constituent Data 100,000
Email on File?
Provide Constituent
Analysis (age, propensity to
give, etc.)
Age 20-60
Yes
Record in Campaign Manager as Successful
Send AgeTargeted Personalized Postcard w/QR and Tear-Off Option (2 or 3 age segments)
Positive Response?
Send 2nd Email
Capture Email
Microsite w/Call to Action
Utilize Tear-Off
Utilize QR to PURL
NoAge 60 +
Go To PURL?
Send Email with PURL
No
Open Email?
No
Yes
Yes
Acknowledge via US Mail and/or Email, Notify IRC for Fulfillment
Or
Record in Campaign Manager as
Unsuccessful
2nd
No
No Yes
Yes
Record in Campaign Manager as
Unsuccessful
Scan Tear-Off
NoYes
Open Email?
Yes
No
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Leveraging Data
AHA Multichannel Opportunities Average of 1,000 customers contact AHA Service Center via email or
phone each day for educational or donation information Dynamic Delivery provides opportunity to email educational or
donation information while they are on the phone• Average more than 9,000 Dynamic Delivery emails per month
In FY 2011, more than 110,000 Dynamic Delivery emails were sent, saving the organization more than $220,000 in print and postage costs while delivering outstanding service to the customer
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Leveraging Data
AHA Multichannel Opportunities In March 2011 we created a monthly educational email to send to
our online donors to heart.org. More than 48,000 online donors received these emails in the last year. Our 2011 year-end email campaign to these donors increased income more than 47%. Volunteers and staff called all $500+ year-end campaign donors.
In FY 2011, we added a donate button to the bottom of the Dynamic Delivery email. As a result Dynamic Delivery customers donated more than $184,000 during the year. In FY 2012 we have already exceeded FY2011 with more than $284,000 through the first 7 months.
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@ChipSugrue
Leveraging Data
AHA Multichannel Opportunities In FY 2012, we added monthly opportunity to volunteer for the AHA.
Customers receive 15 days after Dynamic Delivery. February 2012, we added a direct link to our volunteer form. The number of volunteer submissions doubled the day the email was sent out. Local staff follow-up with those interested in volunteering to onboard them to a volunteer activity.
At least 3 channels used (phone, email, personal follow-up)
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Leveraging Data
Fight for it! Enlist marketing professionals as consultants
• Not for creative work … but to sell the ideas Replace, replenish, refuel Forward-thinking Board Members & Staff
• Positive attitude
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Leveraging Data
We are not perfect, we learn as we go … We are great at acquiring new donors, we are not as good retaining and renewing donors Some of our offline cultivations have not done well Our donation renewal rates are not where we want them to be We need to be more proactive (ex: sending late breaking news about
stroke to our stroke customers after our annual Stroke Conference) The opportunity to volunteer from our website is new 12/1/2011
and we are learning
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@ChipSugrue
“Failure is a prerequisite for great success. If you want to succeed faster, double your rate of failure.”
_ Brian Tracy
Leveraging Data
The Glass Is Half Full
Chip SugrueBrett Ridge
#12NTCAHCDS@BanterwithBrett
@ChipSugrue
Evaluate This Session!Each entry is a chance to win an NTEN engraved iPad!
or online using #12NTCAHCDS at www.nten.org/ntc/eval
Donations Processing: Embracing Efficiency, Security and Data to Build Your Future#12NTCAHCDS
Chip SugrueBrett Ridge
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