trends in charitable giving and strategies for using these ... · san juan rpd. june 2017. trends...

San Juan RPD

June 2017

Trends in Charitable Giving and Strategies for Using These to Keep

your Donors Engaged

Agenda for Today• Snapshot of Colorado’s nonprofit operating environment• IRS charitable deduction statistics• Generosity Survey

– Overall findings– Donor profiles

• Landscape• Donor Retention• Opportunities for Engagement• Capitalizing on Colorado Gives Day• Implications

2016 Year In Review

27%

51%

14%

7% 1%

Demand for your nonprofit's programs/services has...

Significantly Increased

Somewhat increased

stayed the same

somewhat decreased

significantly decreased

2016 Year In Review

29%

23%

30%

26%

11%

17%

47%

49%

34%

42%

35%

35%

21%

22%

13%

19%

15%

17%

1%

3%

18%

9%

37%

27%

2%

3%

5%

3%

2%

5%

0% 20% 40% 60% 80% 100%

Overall revenue

Individual donations

Corporate giving

Foundation grants

Government grants

Earned income/fees for service

In terms of revenue for 2016, you expect your organization to...

Fall short of our revenue goals Meet our revenue goals Exceed our revenue goals

Not applicable I don't know/I'd prefer not to say

2016 Year In Review

16%

13%

8%

10%

10%

6%

12%

9%

14%

4%

4%

5%

2%

3%

55%

35%

24%

4%

14%

8%

12%

9%

6%

25%

20%

27%

9%

0% 10% 20% 30% 40% 50% 60%

Cut back programs

Eliminate programs

Turn away clients

Cut staff pay or hours

Lay off staff

Try new strategies to increase revenue

Create a new program/service

Try new strategies to reduce expenses

Restructure (such as a merger or a majorchange in strategy/focus)

Has your nonprofit done or is considering doing any of the following...

We may do this in 2017 We expect to do this in 2017 We've done this in 2016

2016 Year in review

26%

55%

12%

6% 1%

When considering your outlook for your organization in 2016, you are...

Very Optimistic Somewhat Optimistic

Neutral Somewhat Pessimistic

Very pessimistic

Revenue Sources by SectorSector Private

DonationsPrivate Payments

Govt. Grants/payments

InvestmentIncome

Other revenue

Arts, culture, humanities

44 34 16 < 1 6

Education 20 65 15 3 2Environment/animals

51 28 15 < 1 5

Health care 4 59 35 < 1 2HumanServices

17 28 51 1 3

Source: Evaluating the Charitable Deduction and Proposed Reforms, Urban Institute, June 2012

Coloradan’s Charitable GivingYear Total Charitable

Deductions (billions)Ave. Contribution per Return

2014 $3.487 $5,109

2013 $3.293 $4,758

2012 $3.376 $4,753

2011 $3.244 $4,477

2010 $3.050 $4,144

2009 $2.777 $3,839

2008 $2.981 $3,993

2007 $3.313 $4,278

Coloradan’s Charitable GivingAGI % of

taxpayers claiming deduction

Of those deducting,% by income category

Ave. contributiondeduction

Under $25,000 7.7 5 $1,508$25,000 to $49,999 13.4 12 $2,188$50,000 to $74,999 30.6 16 $2,540$75,000 to $100,000 45.5 16 $3,002$100,000 to $200,000 67.7 35 $3,916$200,000 to $500,000 87.3 13 $7,139$500,000 to $1 million 90.2 2 $19,457$1 million and more 90.2 0.95 $123,399

Key Findings

Generosity Survey 2014

Giving Decision

Generous Spirit

Generosity Environment

Generosity Resources

Generosity Priorities

Generous Spirit

Generosity Environment

Generosity Environment

Generosity Environment

Of those who have heard, 32% statewide made a gift.

Giving Resources

Ways People Give

Ways People Give

Faithful FriendsDonor Profiles

loyal

plannersreligious

Free Spirits

socialtrusting

spontaneous

Mavericksindependent

skeptical

Occasional Donors

rarely giveunconnected

Free Spirits

socialtrusting

spontaneous

Donor Profiles

Based on people who feel similarly about whether:

Family and friends support charitable causes Feels a responsibility to support charitable causes Believes that most charities are ethical Thinks of herself/himself as a charitable person Gives as a part of religious beliefs Is a planed or spontaneous giver Gives mostly to same or new charities Gives to charities that do or do not contact her or him

The Faithful FriendsDonor Profiles

Giving is part of my religious beliefs

…and everyone else

Most of my giving is planned in advance

My charitable spending tends to go to the same charities every year

The Faithful FriendsDonor Profiles

Household donations, past 12 months

Causes Supported(Past 12 months)

Environmental

Religious

Youth

The Faithful FriendsDonor Profiles

Looked at the organization’s financialscompared with 14% of everyone else

Learned about the organization from a friend or family membercompared with 45% of everyone else

Question: Did you do any of the following before making your most recent donation?

Researched how effective the organization is

compared with 35% of everyone else

The Faithful FriendsRepublican Household income $100,000 or moreGen X

Donor Profiles

Politically Independent/UnaffiliatedMillennials

Race/EthnicityBaby Boomer, Silent GenerationsGender

MOR

EAB

OUT

AVER

AGE

LESS

The Free SpiritsDonor Profiles

Most charities are honest and ethical in their use of donations

…and everyone else

I tell my friends and family about the charitable causes I support

Most of my charitable spending is spur-of-the-moment donations

67%

87%

Donor Profiles

Question: Did you do any of the following before making your most recent donation?

The Free SpiritsSearched online for information about the

organization

Researched how effective the organization is

In the past 12 months, have you donated as a result ofan email from someone you know?

Donor ProfilesThe Free Spirits

Number of charities supported, past 12 months

I tend to pick different charities to support each year

Donor ProfilesThe Free Spirits

Causes Supported(past 12 months)

The Free SpiritsDemocratHousehold income between $30,000 and $50,000

Donor Profiles

Republican

Generations (All)Politically Independent/UnaffiliatedHousehold income between $30,000 and $50,000Gender

MOR

EAB

OUT

AVER

AGE

LESS

The MavericksDonor Profiles

…and everyone elseMost charities are honest and ethical

in their use of donations

Giving is part of my religious beliefs

Politically Independent/ Unaffiliated

Donor Profiles

Question: Did you do any of the following before making your most recent donation?

The Mavericks

Looked at the organization’s website

Searched online for information about the organization

Researched how effective the organization is

Donor ProfilesThe Mavericks

In the past 12 months, have you donated as a result of…

My friends and family support

charitable causes

I feel a responsibility to support

charitable causes

Donor ProfilesThe MavericksCauses Supported(past 12 months)

Top Charities SupportedHumane Society

Goodwill

Salvation Army

Disabled Veterans

Wounded Warrior

Food Banks

Donor ProfilesThe MavericksWhen they make donations:

More likely than average to donate more than $1,000 annually (27% vs. 24% statewide)

Politically Independent/UnaffiliatedMaleMillennials, Baby Boomers

Donor Profiles

Democrat, RepublicanFemaleGen XHousehold income more than $75,000

Household income $75,000 or lessSilent Generation

MOR

EAB

OUT

AVER

AGE

LESS

The Mavericks

Occasional DonorsDonor Profiles

My friends and family support charitable causes

…and everyone else

I think of myself as someone who supports charitable causes

I feel a responsibility to make charitable donations

Donor Profiles

Total Household Donationspast 12 months

Occasional Donors

Number of Nonprofits Supportedpast 12 months

Donor ProfilesOccasional Donors

Causes Supported(past 12 months)

Donor Profiles

In the past 12 months, have

you made a donation as a

result of…?

Occasional Donors

Donor Profiles

Household Income

Occasional Donors

Income $30,000 or lessGen X

Donor Profiles

Baby BoomersDemocrats

Millennials, Silent GenerationRepublicans, Politically Independent/Unaffiliated

MOR

EAB

OUT

AVER

AGE

LESS

Occasional Donors

Regional Comparisons

Western Slope donors are: Most likely to give as result of being asked by someone

they know (69.2%) Have volunteered for organization

(34.1%) Had a good experience with

organization (71.8%) Could use or benefit from services (61.7%)

Regional Comparisons

Western Slope donors are: Most likely to name a charity in their will (12.9% vs. 5.5% overall)Least likely to: give through a website (14.9%), look at an organization’s website (32.1%)search for information online (22.2%) prior

to donating.

Renny Fagan, President and CEO,rfagan@coloradononprofits.org789 Sherman Street, Suite 200

Denver, CO 80203303-832-5710

www.coloradononprofits.org

5855 Wadsworth Bypass, Unit A • Arvada, CO 80003720.898.5900 • CommunityFirstFoundation.org

Strategies for Using These to Keep your

Donors Engaged

5855 Wadsworth Bypass, Unit A • Arvada, CO 80003720.898.5900 • CommunityFirstFoundation.org

ColoradoGives Team

Dana Rinderknecht, Director of Online Giving

Bryce Wilkinson, Senior Online Giving Specialist

Lisa Lujan, Online Giving Coordinator

Making the Pie Bigger!

2017 Landscape

• Micro Moments

• Check phones 150 times per day

• Spend an average of 1 min 10 secs

• Embracing Mobile

• Tipping point has been reached

• Start focusing on mobiles design first

• Video & Live Streaming

• Average person views 206 videos per month

• 69% of all consumer traffic driven by this (2017)

• Content is predominant to everything!

Let’s Talk Retention Stats

• 70% of first time donors, don’t give again

• Top reasons why

• 54 percent said they could no longer afford it

• 36 percent said others were more deserving

• 18 percent said poor service or communication

• 16 percent said death

• 13 percent said they never received a thank you

• For every $100 gained, $95 lost (didn’t give again, decreased donation)

• 2015/2016 Retention Rate = 45%

• What is your cost of donor acquisition vs retention (Lifetime Value of a Donor)?

Creating a Personalized Donor Experience

• Are you putting more emphasis on revenue than donor satisfaction and the giving experience?

• Are you sending too many emails and/or direct mail pieces?

• Do you track opt-outs on your email list?

• Are you checking click through rates to see what is engaging your donors?

• Industries’ best, most responsive donors are being bombarded

• Evidence that the donor pool is down 13%

What do donors want

• Hands on service

• Meaningful engagement in the mission

• Words of affirmation

• 3 to 1 ratio of You vs We

• Accurate and correct name, spelling, grammar, gift amount

• Tokens of appreciation

• Inexpensive, mission related

What do donors want (part 2)

• Quality Time

• Feel valued and appreciated

• Gratitude Reception

• Proof of impact

• Exclusive insider experience

Breakdown by Donor Profiles (One Way to Segment)

• Faithful Friends

• Loyal, Religious, Planners

• Free Spirits

• Spontaneous, Trusting, Social

• Mavericks

• Independent, Skeptical

• Occasional Donors

• Unconnected, Rarely Give

• Doesn’t have to be about money

• How else can a donor progress?

• Advocate

• Volunteer

• Fundraiser (Fundraising Pages)

• A networker bringing you more donors

Progression of a Donor

• You are Building a Relationship

• Like a love relationship where he leaves you because you ignore him, lie, don’t return calls, are late/not timely, don’t appreciate him

• Are you asking for too much without thanking the donor?

• Is it all about you?

From Blackbaud webinar featuring Adrian Sargeant (the Robert F. Hartsook Chair in Fundraising at the Center on Philanthropy at Indiana University and consultant)

Cultivating New Donors

• Instill a Gratitude Culture

• Write a note card a day

• Set aside 15 minutes each day for a thank you call, text, tweet

• Give your board members assignments to call and thank donors

• Give your program staff assignments to call and thank donors

• Institute a practice of TYIF (Thank You It’s Friday)

Delighting Your Donors

Opportunity:

Monthly Donors

Monthly Donors

• Blackbaud Study – These work!

• Average gift size higher then one time donors ($143 vs $43)

• More likely to retain donors who gave by bank transfer

• Covert loyal multi-year single gifts to monthly gifts helps long term retention (29% vs 14%)

Monthly Donors

• Is this part of your overall plan?

• When is the best time to ask?

• Should you do a special mailing?

• Is this an option on every mailing?

• Do you include this in your welcome information?

• What is your goal? $ vs Donors

Opportunity:

Mobile Donors

Colorado Gives Day Mobile Device Hits

• Overall 31.9% of the Sessions were Mobile/Tablet

• Operating Systems

• iOS = 72%

• Android = 25%

• Windows, BlackBerry = 3%

ColoradoGives.org Mobile Device Hits

• Overall YTD thru Aug 29.3%

• Operating Systems

• iOS = 66%

• Android = 31%

• Other = 3%

Mobile Strategy

• Do you have one?

• Are you using Google Analytics?

• What are your numbers?

• How are they changing?

• When is the last time you went through the process to interact with your nonprofit via your mobile device?

• Have a new board member try it!

• EMAIL!!!

Opportunity:

Peer to Peer

Fundraising Pages

• Your supporters fundraise on your behalf

• Increases involvement

• Brings you more first-time donors

• Drive immediacy

• Focuses giving for donor

Online Tools – Fundraising Pages

Peer-to-Peer Fundraising

Crowdfunding – Peer to Peer

• How much are your event gift amounts compared to your general gifts?

• Does your average gift amount change by the participation type or the participant's connection to your nonprofit?

• What's your average self-donation?

• What events have been most successful for your organization?

Capitalizing on Colorado Gives Day

• Have a post Gives Day Plan

• Incorporate Colorado Gives Day into your year round fundraising plans

• Review your donor information from your ColoradoGives.org report

• Acknowledge the donation based on information from the report

• Involve board and staff in year round donor gratitude

Implication for Generosity Environment – Before Gift

• 46% learned about the organization from a friend or family member• How could you learn about this?

• Did you acknowledge that?

• 47% looked at your website

• What does it say?

• Can I donate on that page?

• 38% looked at effectiveness of your nonprofit

• How do you show this?

• Do you talk about it in your marketing, fundraising?

Implication for Generosity Environment – Result of

• 56% asked in person by someone they know• 30% email from someone you know

• Are you asking your supporters to tell their friends/family?

• Does your newsletter have information that is forward worthy?

• 24.8% phone call

• When is the last time you called donors?

• Who makes these calls?

Dana RinderknechtDirector of Online Giving

DRinderknecht@CommunityFirstFoundation.org720-898-5911

www.CommunityFirstFoundation.org

www.ColoradoGives.org