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OF THE ANA NONPROFIT FEDERATION

VOLUME 22 n ISSUE 1 n MAY 2019

Cover story 4

A note from the editor 3

Optimizing donor acquisition 7

CCPA 2018 impact on fundraising & ANA NF survey results 10

Senny’s policy scorecard 16

DC Conference Awards Luncheon! 18

CORE PRINCIPLES & BEST PRACTICES

ANA NF

FACE

FACE

The Journal of the ANA Nonprofit Federation 2 Volume 22 / Issue 1 / May 2019

MEMBERS

Ms. Anna AverlingAmerican Bible Society

Mr. John Bell MMI Direct

Ms. Stephanie CeruoloInfogroup

Mr. Nick EllingerDonorVoice

Mr. John ErnstWiland

Mr. Steve FroehlichALSAC — St. Jude

Mr. Tom GaffnyTom Gaffny Consulting

Mr. Kevin GaschlerDucks Unlimited

Mr. Tyler Hall International Fellowship of Christians and Jews

Mr. Steve Harrison One & All

Ms. Jennifer HonadelEpsilon

Mr. Tim KerstenRKD Group

Mrs. Brenda LachanceChildFund International

Ms. Shira Mitchell Special Olympics International

Mr. Jeff NickelTrueSense Marketing

Ms. Elizabeth “Liz” NielsenFeeding America

Ms. Dorene Ocamb Mothers Against Drunk Driving (MADD)

Mr. Matt Panos Jewish Voice Ministries International Immediate Past Interim Chair

Ms. Kim Postulart Alzheimer’s Association

Ms. Jann Schultz Merkle Response Management Group (RMG)

Mr. David Strauss The Nature Conservancy

Mr. Mike Vcelik Boys Town

Ms. Valerie Vierengel ASPCA

Mr. Craig Zeltsar NNE Marketing

2019 ANA Nonprofit Federation Advisory Council

CHAIR

Ms. Tracey BurgoonDAV

VICE CHAIR

Mr. Nate DrushellInfoCision Management Corp.

ANA NF STAFF

Jocelyn Argarin, CMPDirector of Conferences & Education

Xenia “Senny” Boone, Esq.SVP

Jeremy LadsonManager, Education & Events

Alicia OsgoodDirector of Membership & Communications

225 Reinekers Lane, Suite 325 Alexandria, VA 22314 nonprofitfederation.org

The Journal is published online three times per year.

Alicia OsgoodManaging Editor

[email protected]

Leslie Oakey Publication & Website Design

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Dear Readers:

Thank you again to everyone who attended the 2019 Washington Nonprofit Conference. Enjoy photos of the festivities in this spring edition of the ANA Nonprofit Federation Journal.

In this edition: ANA NF Face 2 Face Core Principles and Best Practices; optimizing your donor acquisition program; CCPA in-depth and Senny’s Policy Scorecard.

Thank you for your support of the ANA Nonprofit Federation. Please attend our complimentary joint webinar with USPS and see you in Chicago.

Best,

Managing Editor [email protected]

A NOTE FROM THE EDITOR

2019 ANA NF Chicago Nonprofit Conference #ANACHINP

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Monday, August 26 – Wednesday, August 28 Renaissance Chicago Downtown Hotel n Chicago, IL

ANA Nonprofit Federation Nonprofit Members, please use code NPFMBR to receive your special all-inclusive pricing of $559 through 6.24.19.

ANA Nonprofit Federation Corporate Partners (for-profit agencies and suppliers), please use code CPARTNER to receive your special all-inclusive pricing of $559 through 6.24.19.

ANA-USPS Webinar: Postal Service’s Informed Visibility and More!

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Monday, May 20, 2019 2-3 PM ET

SIGN UP NOW FOR THESE UPCOMING EVENTS!


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BACKGROUND

Face to Face (F2F) fundraising is a very powerful mar-keting channel. It is used to directly contact your po-tential donor in a public space and to engage them in a fluid conversation about your mission with a fundraising goal. As such, F2F has many unique benefits:

■n Because (F2F) involves true, real-time conversa-tion, the individual fundraiser can think, antic-ipate and react directly to the behavior of the individual.

■n It’s flexible and timely, allowing organizations to communicate about issues of local and/or national concern — including late-breaking news or events.

■n It allows nonprofits to engage in street-level fundraising and activism to not only generate dollars but to also bring new activists to your cause, build awareness & PR, recruit for events and more.

■n Given the unique advantages of F2F, many chari-ties have reported success using this new medi-um to increase monthly sustainer support.

Like all channels, F2F also presents challenges to those wishing to leverage this approach. Some involve imple-mentation; others common questions that arise among those solicited along this medium. These include:

Current Concerns

■n Local ordinances; F2F may not be allowed in certain localities.

■n Brand impact from individual fundraiser repre-sentation; since F2F is a personal outreach, it is uniquely sensitive, and requires that solicitors practice a well-reasoned and respectful approach that meets our industries highest standards.

■n Questions about extent of donor’s commitment.

■n Complaints about aggressive asks

■n Transparency about investing in F2F and up-front costs

■n Also, common questions re: for-profit companies engaged in F2F:

– financial % stake in the donation– fair treatment and compensation of employees– professionalism of the company

Given this backdrop, it’s important that those engaged in F2F engage in Best Practices and adopt Core Princi-ples that reflect positively upon the general philanthrop-ic community. The Nonprofit Federation recommends the following set of Principles and Best Practices for F2F, which should extend across all charities and their agencies engaged in this growing channel.

CORE PRINCIPLES & BEST PRACTICES

FACE

FACE

ANA NF


PRINCIPLES & BEST PRACTICES

1. Full Transparency. Your organization/company should be transparent regarding the identity of the F2F solicitor/paid worker, this must be pro-vided to ensure trust. Fundraisers should wear a clearly visible identification badge that: includes their name and discloses who they represent. En-sure the name of the charity is provided, along with a website, phone number and/or address so that the donor may verify the validity of the or-ganization, ask follow-up questions such as how their donation will be used by the organization, or to manage their donation. The F2F fundrais-er shall inform donors fully, without omission, of the nature of their commitment and any ongoing donation schedule as applicable and not directly accept cash.

2. Fundraiser Employment, Training & Expectation Setting. Charities engaged in F2F fundraising should commit to providing up-to-date informa-tion on the charity and charity expectations for the campaign. Agencies should use ethical, trans-parent and fair employment practices and should commit to providing on-boarding and fundraiser principles training. This training and fundraiser ex-pectations include ensuring a charity’s ask, terms, conditions and descriptions are documented and accurately delivered. Such terms and conditions can be verified by providing written documenta-tion, along with an email confirmation and/or pro-viding a link to such terms and conditions.

3. Solicitation Accountability. The charity and agency should have permission to solicit at all fundraising locations and should follow all solicitation rules and/or rules for public engagement as outlined by the location, including Door-to-Door (D2D). Both charities and agencies may be responsible for fil-ing with states and/or municipalities to request so-licitation and/or report on the financial outcomes of a campaign. All state and federal laws should be adhered to by both parties. Additionally, fund-

raisers will utilize and follow site rotation systems as available. If site rotation systems are not avail-able in a given location, it is up to the agencies to coordinate use of a location.

4. Respectful Communications. The communication to potential donors should be respectful and cour-teous. It is vitally important that the fundraiser operate with integrity and in a courteous manner, in compliance with an organization’s or charity’s brand, and not use pressure tactics to force the donor to donate, as well as avoid any false com-pliments or engagement tactics that could lead to distrust by the individual being approached. Pro-fessional F2F fundraisers should not solicit mi-nors or other vulnerable populations who may be unable to make fully informed financial decisions.

5. A Commitment to Handling Complaints. The charity should monitor its F2F and D2D fundraisers to ensure professional conduct. There should be a point of contact such as a website or 800 number for any complaints by the donor and an option to opt-out. It is very important that the organization provides the best experience for their potential donor and that any complaints or questions are be actively monitored and followed up on.

6. Zero Tolerance for Disparagement. There should not be any disparagement of individuals by the F2F fundraiser. Any such behavior should be cause for immediate investigation and possi-ble removal from a campaign. Disparagement of any person or group on grounds addressed by fed-eral or state laws that prohibit discrimination is unacceptable.

7. Accurate Supporting Materials. When used during a F2F solicitation any photographs, illustrations, artwork and the situations they describe should be accurate portrayals and current reproductions of the missions served. Charities should see and approve of pieces prior to use in a campaign.


8. Fully Secure Data Sharing and Security. Individu-als should provide permission for any data sharing with third parties. Data gathered by F2F should be properly secured by the organization or the company working on its behalf, both offline and online data.

9. ‘Opt Out’ Choice for Consumers. The organization should honor requests by those who donated via F2F to opt-out of other solicitations upon donor requests and pursuant to the privacy policy of the organization.

10. Responsible Community Stewardship. The organi-zation and those working on its behalf should use proper methods locally to ensure they outreach with respect and based on appropriate time, place

and manner restrictions. (For example, not fund-raising directly outside a hospital treating critically ill patients, or at assisted living facilities.)

11. Protection Against Harassment and Abuse. No one should be subject to harassment and abuse (phys-ical, verbal, mental, sexual or otherwise.) The or-ganization should have policies and procedures in place to protect against harassment and abuse of anyone, to support reporting of such abuse inter-nally and to authorities as appropriate, and to ban any retribution or sanction against those reporting abuse. The policies and procedures for protecting against and reporting on abuse should be includ-ed as part of training programs. n

WE WELCOME YOUR FEEDBACK!

The ANA Nonprofit Federation welcomes member comment and feedback on these Principles as we continue to refine and improve ethical standards for the nonprofit fundraising and marketing community.

If you have additional recommendations and comments, please contact either Alicia Osgood at [email protected] or Senny Boone at [email protected].

2019 ANA NF CHICAGO NONPROFIT CONFERENCE ANA.NET/CONFERENCE/SHOW/ID/DMANP-AUG19 n #ANACHINP

ACCESS SPECIAL $559 ALL-INCLUSIVE PRICING NOW THROUGH 6.24.19!

ANA Nonprofit Federation Nonprofit Members, use code NPFMBR ANA Nonprofit Federation Corporate Partners (for-profit agencies and suppliers), use code CPARTNER

CONFERENCE RUNS MONDAY, AUGUST 26 TO WEDNESDAY, AUGUST 28 AT THE RENAISSANCE CHICAGO DOWNTOWN HOTEL

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The year is still young. You’ve realized that you’re fac-ing new fundraising challenges with your acquisition program. In reality, these new challenges are recurring challenges that almost seem like a scene from Ground-hog Day (with all deference to Phil Connors and Ned Ryerson).

Paper cost increases are forecast again as the game of supply and demand is played out on a worldwide basis. The United States Postal Service (USPS) rate increase went into effect in late January. Your acquisition budget has remained flat over the past year but these price increases will impact the number of contacts or promo-tions you’re able to send compared to last year.

To compound these challenges, the overall metrics of your acquisition program have come under pressure. Your response rates began to see a slight decrease in the fall of last year. And, while your average gift might have increased slightly, the reduced response rate has increased the cost to acquire a new donor.

In fact, according to industry benchmark reporting, the number of newly acquired donors is down from 6 per-cent to 11 percent across nearly every nonprofit catego-ry during the past year. The decline began in early 2018 and continued into the fourth quarter of 2018.

Higher costs, a flat budget, shrinking list rental/ex-change universes and declining performance metrics re-quire a different approach this year if you’re to maintain a strong house file. It’s time to implement an optimiza-tion plan for your acquisition program in 2019.

WORST IS FIRST OPTIMIZING YOUR

DONOR ACQUISITION PROGRAM

3 STEPS TO GROWING YOUR

DONORS

STEP 1 IMPROVE WORST FIRST

STEP 2 HOW TO IDENTIFY WORST 10%

STEP 3 REPLACE WORST 10% BALANCE/

BACK-FILL AUDIENCES & LAPSED REACTIVATION

Shift Budget to Display Ad

Shift Budget to Paid Social Media

Shift Budget to Lapsed Donor Telemarketing

Shift Budget to ‘Breakout’ Offer Testing

Identify which marketing dollars are least effective, and redirect those efforts into more

productive market spends

Roger Hiyama n■■SVP, Client Services, Wiland


STEP 1: SHIFTING YOUR FOCUS — WORST FIRST

Like most fundraising managers, you are very aware of your average metrics – response rate, average gift, cost per 1,000, net cost to acquire a donor, etc. These are the numbers that you’re routinely quoting and are an integral part of your budgeting process.

It’s time to shift your focus. It’s time to focus on the worst first. To make dramatic performance improve-ments to your program, the key is to make improvements to your worst performing marketing spend. So, just as you know your average metrics, a new focus must be on knowing the worst metrics as well.

Most fundraising managers are shocked when confront-ed with the performance metrics of their worst 10 per-cent marketing spend. But, focusing on the worst is the best way to improve your overall metrics.

STEP 2: HOW TO FIND IT — IDENTIFYING YOUR WORST 10%

You can identify your worst spend in a couple of ways. The simple way is to just sort the performance met-ric of choice in your list results spreadsheets. You will probably prefer to run this exercise individually on each campaign since the implementation will be done on a campaign by campaign basis. You might choose to sort on Net Cost To Acquire or Net Per New Donor metric in descending order.

Next, look to the quantity mailed column at the bot-tom of your sorted spreadsheet and combine the quantity mailed until you reach the quantity represents 10 percent of your overall program. That’s the worst 10 percent.

Are the results shocking to you?

If you’re participating in one of the nonprofit coopera-tive databases, an alternative more complex, but more effective, way to identify your worst spend is by using optimization modeling on the net file during post merge/purge processing. As opposed to the simple method which is just sorting on the list results, the optimization modeling has the ability to score individual records with-in each list based on their likelihood of responding to the appeal. Optimization modeling will usually rank the net file into anywhere from 20 to 40 segments with the worst names being in segments 20 or 40 respectively.

The reason that optimization modeling is so effective is that most marketing plans are somewhat optimized by nature of the lists included in the plan. Optimiza-tion modeling has the added ability to rank individuals based on total giving behavior within the industry/coop-erative database, ranking names by their likelihood of response.

Names identified in segments 38, 39 and 40 of a 40 segment optimization model should never be mailed. Using the optimization modeling can tease out the worst names from every list — and, every list has its dregs.

If you’re not part of a database co-op, the simple meth-od of identifying your worst 10 percent spend is still a great way of refocusing your acquisition efforts.

STEP 3: REPLACING THE WORST 10%

Once you’ve identified the worst 10 percent, your de-cisions on replacing or redirecting the spend is the fun part of the optimization exercise. And, if you’re not re-stricted in how or where you can redirect your invest-ment, you can really begin to position your program for growth by evaluating all acquisition channels.

Depending on how you view donor acquisition, argu-ably you should consider the following as replacement strategies:


■n Balance/Back-Fill Audiences: A growing best practice is to replace dropped names from your merge/purge with balance or back-fill audienc-es identified using predictive response model-ing. In other words, replacing the segments 38, 39, 40 names with new prospect names that score in segments 1 thru 5. It might add a day or two to your direct mail production schedule but it’s definitely worth it.

■n More Lapsed Reactivation: If you view lapsed reactivation as a part of your acquisition program, consider increasing the volume or contact frequency to lapsed donors. If you cur-rently mail to 100,000 lapsed donors, consider increasing that number to 125,000. If you’re running a lapsed campaign five or six times per year, consider increasing the number of con-tacts by one or two. A lapsed donor usually reactivates at a higher average gift than a cold prospect. Likewise, a reactivated lapsed donor will usually renew the next year at a 10 to 15 percent higher rate than a cold prospect name. Co-op modeling is an ideal way to identify your lapsed donors that are actively giving to similar organizations.

■n Shift Budget Dollars to Display Advertising: Display advertising is one of the least utilized advertising channels by nonprofits. If you’re not doing any website remarketing or co-targeting campaigns, you should strongly consider shift-ing $15,000 to $30,000 into a digital adver-tising initiative. Start by remarketing visitors to your donation page or website where you’ll likely see a positive return on investment (ROI) immediately. A smaller organization recently experienced a 30 ROI on its first remarketing campaign.

Next, consider targeting display ads to lapsed donor universes and co-targeting display ads to lapsed and cold names that are receiving your direct mail pieces.

■n Shift Budget Dollars To Paid Social Media: Consider running a fundraising campaign in Facebook using custom audiences or look-alike modeling within the Facebook platform. Many organizations are seeing break-even perfor-mance metrics while adding new donors to their files.

■n Shift Budget Dollars To Lapsed Donor Telemar-keting: Telemarketing is one of the more effec-tive reactivation techniques for lapsed donors. And, while the relative cost per contact is more expensive, pledge and conversion rates make telemarketing a very effective tool to reacti-vate lapsed donors for either onetime gifts or monthly sustainer gifts.

■n Shift Budget Dollars Into More “Breakout” Offer Testing: Challenge yourself to test beyond slight tweaks and incremental testing and develop new “breakout” offer tests. You can make bigger strides by testing new offers that may provide significant double-digit growth. You just need to allocate a little bit of money in this type of “breakout” offer testing.

You have the ability to greatly impact your acquisi-tion program for the rest of 2019 and beyond. Start by focusing on your worst marketing spend first, identify which marketing dollars are least effec-tive, and redirect those efforts into more productive marketing spends. n

Roger Hiyama ([email protected]) is senior vice president,

client services at Wiland. This article appears in the Journal cour-

tesy of The NonProfit Times.


OVERVIEWCalifornia is a beautiful state with one of the most generous popula-

tions in the country, resulting in great work accomplished by non-profits over many decades. Due to overzealous privacy advocates

seeking to prevent legitimate data collection and use, nonprofit organizations who rely on data for fundraising and mission are going

to find they will no longer have the data needed on Californians. The California Consumer Privacy Act of 2018 passed in less than one week

and was signed into law by California Governor Jerry Brown on June 28, 2018. It avoided a sweeping state privacy rights ballot initiative launched by privacy advocate Alastair MacTaggart (see https://www.caprivacy.org/) that, once passed, could not be amended by the state legislature. The ballot ini-tiative proponents agreed to the new law and withdrew their ballot initiative as a result. The new law takes effect on January 1, 2020.

KEY PROVISIONS OF THE NEW LAW

The Act gives “consumers” (natural persons who are California residents) four basic rights to their personal information:

1. The right to know (through a privacy policy and upon request) what information a business has collected, where it was sourced from, what it is being used for, whether it is being disclosed or sold, and to whom it is being disclosed or sold

2. An opt-out right — the consumer may choose to opt-out of the sale of their information to third parties; consumers under the age of 16 must first opt-in (parental consent)

CALIFORNIA CONSUMER PRIVACY ACT 2018: IMPACT ON FUNDRAISING & MISSION DELIVERY

SENNY BOONE — SVP, ANA NF

This is an overview of the new law https://leginfo.legislature.ca.gov/faces/billTextClient. xhtml?bill_id=201720180SB1121 and is not intended to serve as legal advice. Please

be certain to contact your own legal counsel for advice. If you have questions or comments, please contact Senny Boone, Esq. at 202.861.2498 or via email at

[email protected]. We actively seek your input into the impact of the new law on your mission.

https://www.caprivacy.org/

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB1121





3. The right to data deletion — a business must delete the personal information

4. The consumer must still receive “equal service and pricing from a business,” even if they exer-cise their privacy rights, such as opting out of data selling, under the Act.

THE ACT APPLIES TO…

For-profit businesses that collect and control California residents’ personal information, do business in Califor-nia, and (a) have annual gross revenues in excess of $25 million; or (b) receive or disclose the personal informa-tion of 50,000 or more CA residents, devices (mobile data for example) or households on an annual basis; or (c) derive 50 percent or more of their annual revenues from selling California residents personal information.

An exception to the law is if “every aspect of…com-mercial conduct takes place wholly outside of Califor-nia,” such as if the information was collected outside of California while he or she was outside of California, no part of any sale of his or her information occurred in California, and no personal information was collected while the consumer was in California.

The type of consumer information/data protected is “personal information.”

Personal information is defined very broadly — “infor-mation that identifies, relates to, describes, is capable or being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household.” The Act gives examples such as purchas-ing data, records of personal property, audio, electronic, visual, thermal, olfactory, or similar information.”

As worded, the definition is incredibly broad since it could be used to describe any information that may link or identify an individual or, even more broadly — the household. This definition defines privacy for entire households in addition to individuals. There are some very narrow exceptions to this sweeping definition —

such as de-identified data (as defined in the Act) or aggregate consumer information (which is also defined in the Act). Companies under the Act need to ensure their compliance efforts are broad to include all poten-tial data as a result.

ISSUES

Company Notice and ChoiceMost nonprofit organizations look to outside data sourc-es to supplement and enhance their existing records in order to update their data or conduct new acquisition campaigns or other mission-related involvement. There are many legitimate providers of properly sourced and protected data, but these providers must now take re-strictive steps that will curtail the amount of data avail-able for use ceasing data insight and subsequently, out-reach about important causes.

For example, data collected by a company from an in-dividual after an inquiry about cancer may not be used or shared to help the individual learn about helpful re-sources offered by a cancer organization or ways the data subject may help raise money to find a cancer cure. Data provided about a household with pets may not be provided to organizations seeking support for the humane treatment of animals. In short, although nonprofit organizations are exempt, the companies who provide their data for good are not.

Companies must update or craft the privacy policies and disclosures required at the time the data is col-lected. Businesses must disclose proactively the exis-tence and nature of consumers’ rights under the Act, the categories of personal information that is collected, the purpose for which the information is collected, and the categories of personal information that is sold or disclosed in the preceding 12 months (known as the look-back provision). Now companies must determine what personal data they are collecting from individuals and households and for what purpose and update their privacy policy at least every 12 months.


Companies that sell data to third parties need to disclose that practice and must give consumers the ability to opt-out of the sale by supplying a link titled “Do Not Sell My Personal Information” on the business’ home page.

Company Transparency about PI HeldConsumers have a right to request certain information from businesses, including the source of the informa-tion, the type of information it collected about the con-sumer, and all the third parties with which it shared the data. The consumer should be able to access this full set of information via a toll-free number or a Web-site. (It must be a no cost resource.) This information must be provided to the consumer within 45 days of the consumer’s request. (Nonprofits may be asked to provide additional information if they are the source of the data.)

Act Enforcement The Act is enforced by the California Attorney General, subject to a 30-day cure period. The civil penalty for intentional violations of the Act is up to $7,500 per violation.

For data breach of more sensitive information (sensitive information is more narrowly defined than personal in-formation above) there is a new private right of action that can be brought by a consumer to seek financial damages and this can be between $100 and $750 per CA resident per incident. For companies often the target of hacks, this would be prohibitively expensive due to new consumer lawsuits if they experience a data breach with thousands of customers impacted.

OutlookThe California law takes effect on January 1, 2020. Companies subject to the Act are working now to come into compliance, particularly those data source compa-nies that buy, share, sell all types of “personal informa-tion” under the Act. This includes a full review of the past 12 months of personal information data sold or disclosed (i.e. a look back of such data in 2019).

The California Attorney General must issue “implement-ing regulations” by July 1, 2020, which means addition-al regulatory requirements. The Attorney General may enforce the provisions of the Act 7.1.20 or six months af-ter the AG issues regulations, whichever comes sooner.

Other states are expected to take up similar data priva-cy bills this year, and some may not exempt nonprofits, so you must be very proactive in your data compliance management now. A federal privacy law that preempts a patchwork of various state laws is preferable to ensure there is one uniform standard for consistency and sta-bility for companies working on behalf of nonprofit or-ganizations. The ANA is working with a range of compa-nies and organizations to seek amendments to the new California law to ensure it is manageable for companies providing legitimate data to improve the performance and relevancy of ads, products, services, fundraising campaigns and missions served. The ANA seeks a na-tional privacy standard enforced by the Federal Trade Commission.

Bottom Line for CharitiesGiving is premised on smart, informed data sources. Data for good is foundational to the operations of a le-gitimate nonprofit organization. Charities seeking new data (individual or household) to be in touch with do-nors, supporters and new contacts about vitally import-ant missions will find fewer legitimate data resources barring changes to the laws. As data sources shrink due to state regulatory barriers, nonprofits must seek new ways to be in contact with an ever-reducing pool of data resources. This jeopardizes the future growth of chari-ties and charitable giving that benefits us all. n

If you have questions or would like to help us in efforts to protect data for good, please contact me as soon as possible at 202.861.2498 or via email at [email protected].?



The ANA Nonprofit Federation surveyed its members on the impact of the California Consumer Privacy Act taking effect January 1, 2020 with further implanting regulations by the state attorney general expected this summer. Data resources are the lifeblood of fundraising. The Act restricts common practices like data sharing and restricts data for California residents and “households.” Written to restrict businesses at certain levels, nonprofits are impacted via their data providers. Key survey results follow…

ANA NF MEMBER SURVEY: IMPACT OF CALIFORNIA DATA PRIVACY LAW ON NONPROFIT ORGANIZATIONS

Other:National non-profit vendor

Marketing Solution Provider enabling non-profits to reach the right donor— in the right channel

Q1: ARE YOU ACTIVE IN CALIFORNIA? IF SO, HOW?

PLEASE CHECK ALL THAT APPLY. Answered: 40 Skipped: 2

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

92.5%

50%

50%

0%

5%

We raise funds from California residents.

Our mission directly helps Californians.

We have organization volunteers and other key contacts in California.

No, we are not currently active in California.

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

continued


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other:Wealth indicators/data

Many data points are used for matching or analysis to select the most likely donor.

Marketing messaging is deployed at the USPS address,email, or digital/mobile display.

Co-op database modeling and selections; merge optimization

97.37%

84.21%

Mailing address

Home phone

Mobile phone

Household information

Standard demographic info (age, ethnicity, other)

Email address

IP address

Digital identifiers

Purchased data

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

76.32%

86.84%

94.74%

89.47%

39.47%

39.47%

42.11%

7.89%

Q2: WHAT TYPE OF DATA DO YOU USE?


Q3: DO YOU WORK WITH COOPERATIVE DATABASE COMPANIES?

Answered: 38 Skipped: 4Yes

No

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes

No

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

89.47%

10.53%

Yes

No

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

continued


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other(responses listed below)

Q4: DUE TO THE NEW LAW, IF YOU CANNOT UTILIZE CALIFORNIA DATA

STARTING IN 2020, WHAT IS THE ESTIMATED IMPACT ON YOUR ABILITY TO DELIVER YOUR MISSION?


0%Reduction in donations

No longer able to support new initiatives in California

No longer able to support new initiatives elsewhere

No longer able to fundraise; will need to review other, more costly ways to communicate

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

“Other” responses:

May reduce direct marketing targeted to CA

We are an edu with a large percentage of alum in CA; we would still be able to fundraise, but not with these individuals

No longer able to acquire new donors in California or exchange CA donors to other nonprofits or rent CA names to commercial entities (impacts revenue)

We will have to temporarily stop fundraising in CA while we achieve compliance with the new law.

Potentially impact other revenue opportunities including affinity programs where we share data with for profit companies

With the current restriction in the law, marketing solutions providers will be greatly challenged to support responsible non profit fundraising — while providing the donor notice, choice and transparancy.

Would have to rely on fundraising in the other 49 states.

CA represents 10-15% of acquisition sources and just a little less of current/lapsed donor sources

All of those things will be more costly, more difficult and less effective, but they won’t be gone.

Will see a reduction in donations that could impact many service we provide.

34.29%

17.14%

62.86%

31.43%

end of survey

n


POLICY SCORECARDCURRENT ISSUES: MAY 2019

Xenia “Senny” Boone, Esq.SVP, ANA NF

Since 1982, the Nonprofit Federation is the premier organization safeguarding nonprofit fundraising across marketing channels by advancing responsible data-driven fundraising and marketing. The Nonprofit Federa-tion is part of ANA, the largest marketing and advertising association. We work with a range of associations in the digital data and privacy space to prevent legislation that would adversely affect fundraising by curtailing data sources along with other vitally important policy issues facing the fundraising and marketing community.

DOMESTIC ISSUES

POSTAL SERVICE RECOMMENDS NO CHANGE TO MARKETING MAIL

In August of 2018, the United States Postal Service recommended limiting Marketing Mail to paper-based, non-merchandise content. The nonprofit fundraising community often uses premiums and other non-paper items to drive donations. Had the proposal been suc-cessful, it would have required the nonprofit mailing community to pay cost-prohibitive First Class postage to mail these items.

Having received nearly 4,700 comments from com-mercial and nonprofit mailing organizations against the proposal, the Postal Service announced there would be no changes to existing Marketing Mail letters and flats

requirements. The ANA and the ANA Nonprofit Feder-ation sent comments and urged members to comment against the proposal. Thank you to all our members who filed comments and helped preserve the use of premi-ums to fundraise and power nonprofit missions.

THE FUTURE OF THE USPS IS IN CONGRESS’ HANDS…

The President’s Task Force on the United States Post-al Service issued its report demonstrating the USPS is on an unsustainable financial path, losing a net of $69 billion from 2017-2018. A main reason is the USPS must pre-fund health costs for its retirees for 75 years — something no other government agency is required to do. The report, which may be found here: https://home.treasury.gov/system/files/136/USPS_A_Sustain-able_Path_Forward_report_12-04-2018.pdf, includes

https://home.treasury.gov/system/files/136/USPS_A_Sustainable_Path_Forward_report_12-04-2018.pdf




concepts such as relaxed price-setting to allow the USPS more flexibility and floats removing the current rate- setting oversight while asking Congress to place the agency on a sustainable path forward. Qualified non-profit organizations have a special nonprofit postal rate (based on rate subclasses) in the law that we must pro-tect in order to preserve fundraising via the mail chan-nel. Although legislation and changes to rate-setting are still to be debated, the mailing community must remain active and engaged to ensure that postal rates and over-sight for the USPS continue under the current rate-set-ting system with PRC and Congressional oversight. We will keep you updated.

REMINDER — A UNIVERSAL CHARITABLE DEDUCTION IS NEEDED…

The wide-ranging tax reform proposal by the Trump Ad-ministration and passed into law by Congress preserves the charitable tax deduction, BUT it increases the level at which individuals ($12,000) and couples ($24,000) may take a standard deduction instead of itemizing their tax deductions. As a result, more donors will no longer itemize, and that means they will not utilize their charitable tax deductions to lessen their tax bills. This could have a major impact on donations. New legisla-tion is needed to allow a universal charitable tax de-duction “above the line” that may be used by everyone, regardless of the standard deduction. Amendments did not make it through the final process due to the $200 billion estimated cost. A large coalition, including the ANA NF, supports a legislative solution, but it is difficult as it requires cost with no revenue offset. We need your ongoing help to secure support and locate revenue offsets.

CALIFORNIA CONSUMER PRIVACY ACT — LOOKING AHEAD TO 2020…

A recent ballot initiative by a self-appointed privacy ad-vocate (see detailed story in this edition) forced California legislators and the tech industry to seek a legislative fix. The new law, the California Consumer Privacy Act, takes effect in 2020, and planning is required now to ensure adequate compliance. The new law does not address

nonprofit fundraising by name, but there are signifi-cant unintended consequences for charities. Nonprofit organizations face a diminishing pool of data contacts for acquisition if third parties may no longer provide data. Harsh penalties for data breach are astronomical-ly expensive and would jeopardize legitimate companies through expensive lawsuits that could be so costly as to put them out of business. As much as California always breaks new ground, this new law is not future-facing. It is archaic and leads to very restrictive data rules that harm current data innovations important to society. We seek help from charities to offer case studies of impact so that the law may be properly modified as we prepare to comment on the upcoming Attorney General’s imple-menting regulations this summer.

INTERNATIONAL REMINDER: GDPR LANDED IN THE US ON MAY 25, 2018…

If you are active in the European Union, meaning you are collecting and using data from EU “data subjects,” as a data controller or as a data processor, you must pay attention to the changes in data rules in the EU to remain compliant and communicate with individuals. After several years of debating the new EU data protec-tion framework, the General Data Protection Regulation (GDPR) was adopted on April 8, 2016 with a May 25, 2018 effective date. GDPR does NOT exempt nonprofit organizations that are using EU data or are facing EU data subjects via their websites. It has very specific new opt-in consent re-quirements, sweeping definitions and coverage for data protection and major financial penalties for non-com-pliance. Review the GDPR requirements and steps to take by visiting this link https://thedma.org/resources/compliance-resources/gdpr-compliance/. n

For updates and the latest developments, please watch for the bi-weekly ANA Nonprofit Federation News Update and monitor the ANA Nonprofit Federaton website. If you have questions or comments, please contact Senny Boone, Esq., SVP, ANA Nonprofit Federation at [email protected].

https://thedma.org/resources/compliance-resources/gdpr-compliance/

https://thedma.org/resources/compliance-resources/gdpr-compliance/

https://www.nonprofitfederation.org



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