raising $1,000 gifts by mail

Fundraising Today:Fundraising Today:The Good, The Bad, The UglyThe Good, The Bad, The Ugly

A presentation by Mal WarwickPlanned Parenthood Federation of America

Development Officers ConferencePortland, Oregon, August 6, 2006

Copyright © 2006 by Mal Warwick

WhichWhich central central circlecircle isis biggerbigger??

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Here’s the deal . . .

1) Challenge vs. response

2) What do donors really think of us?

3) Are we putting all the pieces together?

4) Are we ready for the ultimate gift?

5) What can we do for our donors?

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1) Challenge vs. response

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$1,900,000,000,000$1,900,000,000,000

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Madrid

Baghdad

Giving USA 2006 = $260 billion

$14

$17

$30

$199

Corporations

Bequests

Foundations

Individuals

Global PhilanthropyGlobal Philanthropy

Pentagon spendingPentagon spending

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2) What do donors really think?

This is not goodThis is not good

Donor attrition: Year 1

Donor attrition: Year 2

Donor attrition: Year 3

Donor attrition: Year 4

Donor attrition: Year 5

Donor attrition: Year 6

Donor attrition: Year 7

Pop Quiz!

ResearchResearch demonstratesdemonstrates donorsdonors’’ #1 desire is:#1 desire is:a)a) Free Free giftsgifts

b)b) A personal A personal visitvisit fromfrom thethe chiefchief executiveexecutive

c)c) PromptPrompt acknowledgmentacknowledgment ofof theirtheir giftsgifts

d)d) NewspaperNewspaper adsads listinglisting theirtheir namesnames

e)e) InvitationsInvitations toto specialspecial donordonor partiesparties

Pop Quiz!

ResearchResearch demonstratesdemonstrates donorsdonors’’ #2 desire is:#2 desire is:a)a) NewspaperNewspaper adsads listinglisting theirtheir namesnames

b)b) Free Free giftsgifts

c)c) Personal Personal visitsvisits fromfrom boardboard membersmembers

d)d) InformationInformation aboutabout how how theirtheir giftsgifts werewere usedused

e)e) SexSex

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3) Are we putting all the pieces together?

Direct Mail Direct Mail

Telem

arketin

g

Telem

arketin

g

LegaciesLegacies

Major GiftsMajor Gifts

EmailEmail

Special events

Special eventsGrantsGrants

InternetInternet

Fundraising in Silos

LegaciesLegacies

EventsEvents TelemarketingTelemarketing

Direct Mail Direct Mail

Major GiftsMajor Gifts

The BossThe Boss

Integrated Fundraising

Major GiftsMajor Gifts

Direct MailDirect Mail

TelemarketingTelemarketingEventsEvents

LegaciesLegacies

The Strategic PlanThe Strategic Plan

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4) Are we ready for the ultimate gift?

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What we know about legacies

1 in 14 wills contains a bequest

At least 8 of 10 legacy gifts are bequests

Average bequest in USA = $35,000

Bequests yield fortunes:– 29% in UK

– 7% in USA — $17 billion in 2005

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March 2003 poll

500 Canadian and 500 American surveys 2+ DM gifts in past three yearsNo monthly donors, bequest pledgers, or donors with single gifts of $500+

Charitable bequestsCharitable bequests

0102030405060708090

100

Aware of bequestgiving

Have been solicited forbequest gift

USACanada

Bequest givingBequest giving

0

5

10

15

20

25

30

Have a will & havenamed a charity

Haven't named acharity but will likely

do so

USACanada

Bequest is Bequest is ““a good ideaa good idea”” (USA)(USA)

0

10

20

30

40

50

60

70

80

Overall Employed Single gift$1,000+

Overall< 55EmployedIncome $50k+Single gift $1,000+

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Legacy marketing challenges

Emphasis on wealthy donors

Poor donor relations

Focus on means, not mission

Lack of investment in cultivation

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Available media tools

Direct mail

Telemarketing

Estate planning seminars

Donor consultation sessions

Internet

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So . . .

Ask everyone for legacies, particularly service users.

Use communications appropriate for the group.

Treat pledgers with great care.

Write legacy materials like major donor materials.

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5) What can we do for our donors?

Five Keys to Successful Fundraising

Transparency

Accountability

Follow-throughEthics

Donor focus

The Six Gifts

Donors are multi-dimensional

Bequest Donor

MonthlyDonor

User of Services

Bike-a-Thon Participant

Board Member

Volunteer

Staff Retiree

Letter-Writer

Activist

Each Donor

“Never forget that every customer of yours is a human being—an organic, intelligent individual with a constantly evolving set of attitudes and opinions…Instead of reaching your target audience, think of having a conversation with these individuals.”

— Don Peppers and Martha Rogers, The One to One Future

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TheThe principal principal motivationsmotivations forfor givinggiving

Heart

Head

Spirit

“Almost without exception, donors said they needed information, and that if they got it, they would continue to give and they would make increasingly generous contributions.”

— Penelope Burk, Thanks!

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Keep in mind . . .

Touch thehearts ofyour donors!

And And somesomechocolate chocolate wouldnwouldn’’t hurt, t hurt, either!either!

Ask not what your donors can do for you. Ask what you can do foryour donors.

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Enough, already!For more information, contact:Mal Warwick Associates2550 Ninth Street, Suite 103Berkeley, CA 94710-2551Phone +1 (510) 843-8888Email info@malwarwick.comWeb www.malwarwick.com