donor retention: current rates are plummeting! what … · donor retention: current rates are...

Donor Retention: Current Rates Are Plummeting!

What Can Every Fundraiser Do to Reverse the

Trend?

Presented by:

Jay Love

March 17, 2015

1:00 – 2:30 p.m. Eastern

Noon – 1:30 p.m. Central

11:00 a.m. – 12:30 p.m. Mountain

10:00 –11:30 a.m. Pacific

9:00 – 10:30 a.m. Alaska

Association of Fundraising Professionals 4300 Wilson Boulevard, Suite 300, Arlington, VA 22203-4168

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Association of Fundraising Professionals

2015 WEB/AUDIOCONFERENCES

Educating Fundraisers in the 21st Century

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The Association of Fundraising Professionals

WEB/AUDIOCONFERENCE 2015

March 17, 2015

Jay Love

Donor Retention: Current Rates Are Plummeting! What Can Every Fundraiser Do to

Reverse the Trend?

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SITE ROSTER

mailto:[email protected]

Jay Love

Jay B. Love currently serves as the CEO and Co-Founder of Bloomerang. Bloomerang serves the non-profit sector only with cutting edge technology tools for fundraising and communications. Prior to Bloomerang, he was the CEO and Co-Founder of eTapestry for 10 years. eTapestry was the leading SaaS technology company serving the charity sector. Jay orchestrated the sale of eTapestry to Blackbaud in 2007 after growing the company to more than 10,000 non-profit clients and charting seven years of record growth. Before starting eTapestry, Jay served 14 years as President and CEO of Master Software Corporation. MSC provided a widely used family of database products for the non-profit sector called Fund-Master. Jay has also been a business consultant for numerous high tech firms throughout the U.S. He is a graduate of Butler University with a B.S. in Business Administration. He currently serves on the boards of numerous non-profits and one private tech company. He and his wife Christie served as Co-Chairs for the Indianapolis YMCA 2011 Capital Campaign and are the proud parents of three children as well as five grandchildren. He was a founding Chairman of NPower Indiana, Founding Member of TechPoint Foundation and Founding Member of the AFP Business Member Council. He is a past member of the AFP Business Member Council. He is a past member of the AFP National Board, but currently serves as Chairman of the AFP Ethics Committee. He is a current Board Member for The Lilly School of Philanthropy at IU, Gleaners Food Bank, and TechPoint Foundation for Youth. Over the years he has given more than 2,000 speeches around the world for the charity sector and is often the voice of new technology for fundraisers.

3/5/2015

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What Fundraisers Can Do to Stop Falling Donor Retention Rates

Your PresenterJay B. Love

• 30 Years of Technology Leadership• Over 20,000 Database Installations• Former Founder & CEO of eTapestry• Former CEO of Master Software/Fund-Master• AFP Board Member• AFP Ethics Committee Chairman• Center on Philanthropy at IU Board Member• Innovation Fund at Butler University Board Member• Gleaners Food Bank Board Member• Co-Chair of Indianapolis YMCA Capital Campaign

3

3/5/2015

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Do you know your retention rate?

In our surveys, less than 45% of fundraisers

knew their current donor retention rate.

Do you know your retention rate?

3/5/2015

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Fundraising Effectiveness Project (FEP)A project to help nonprofit organizations

measure and compare

Participating Donor Software Firms:

• Donor2/Campus Management Corporation• PhilanthrAppeal (FundTrack Software)• DonorPerfect Fundraising Software• The Raiser’s Edge ® (Blackbaud)• eTapestry • Avectra• Bloomerang• Sage Software• MatchMaker FundRaising Software• Telosa Software (Exceed!)• Metafile

Fundraising Effectiveness Survey »

3/5/2015

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The 2014 results are in »

Nearly 6 out of every 10 donors do not give again!

Gift retention isn’t much better »

3/5/2015

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New donor retention is even worse »

But retention is improving slightly »

3/5/2015

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Net gain/loss »

Net gain/loss by charity size »

3/5/2015

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Who to focus on »

Donor Attrition Over Five Years

# of

Donors

Attrition

Rate

Donors

Remaining

After 1

Year

Donors

Remaining

After 2

Years

Donors

Remaining

After 3

Years

Donors

Remaining

After 4

Years

Donors

Remaining

After 5

Years

1,000 20% 800 640 512 410 328

1,000 40% 600 360 216 130 78

1,000 60% 400 160 64 26 10

So what?

3/5/2015

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So what?

Improving donor retention rates by just 10% can increase the lifetime value of your database by 150-200%!- Dr. Adrian Sergeant,

Bloomerang Chief Scientist

Donor retention math »

3/5/2015

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# of Donors in Current 12 Months(from the previous years pool)

Divided by

# of Donors in Previous 12 Months

Calculating Your Retention Rate

Total Dollars from Donors in Current 12 Months

(from the previous years pool)

Divided by

Total Dollars from Donors in Previous 12 Months

Calculating Your Dollar Retention Rate

3/5/2015

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19

• $0 - $25

• $26 - $100

• $101 - $1,000

• $1,001 -$10,000

• $10,000 & Up (50% of Total)

(Where do you desire

a 10% change?)

Importance of Dollar Retention »

Seattle’s Lakeside Upper School counts … Bill Gates among its alumni. Rumor has it a fundraiser for the high school called Gates, who asked: “How much is everyone else giving?” About $75 he was told. “So put me down for $75,” said Gates.

-- Forbes, Jan 22, 1996, p. 16

Beyond Dollar Retention Rate »

3/5/2015

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“The total net contribution that a customer/donor generates during his/her lifetime in your database”

Defining Lifetime Value »

LTV = ∑Ci

Where

c = net contribution from each year’s fundraising activity

i = expected duration of each relationship in years

Defining Lifetime Value (LTV) »

3/5/2015

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$1000 +

$500 - $1000

$100 - $500

$25 and under annually

$25 - $100

Value

Value Segments »

Time

Why for-profit customers leave »

• 1% - Death

• 3% - Relocation

• 5% - Won by competitor

• 14% - Bad complaint handling

• 77% - Lack of interest from us

3/5/2015

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• 5% - thought charity did not need them

• 8% - no info on how monies were used

• 9% - no memory of supporting

• 13% - never got thanked for donating

• 16% - death

• 18% - poor service or communication

• 36% - others more deserving

• 54% - could no longer afford

Why nonprofit donors leave »

https://www.linkedin.com/today/post/article/20140520191728-746287--infographic-

why-donors-stop-their-support

https://www.linkedin.com/today/post/article/20140520191728-746287--infographic-why-donors-stop-their-support

3/5/2015

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• Recency and pattern of giving

• Cash donors vs. sustaining donors

• # of years giving +

• Upgrade / Downgrade + -

• Lapsed -

• Event attendance +

• Opens email +

• Click links in emails +

• Unsubscribes from email -

• Has stated communication preferences +

• Has inbound interactions +

• Has soft credits +

• Volunteers +

Automatic engagement factors »

• Drip feed mission performance data

• Connect often (1st 90 Days!)

• Be personal (SEGMENT via DB)

• Develop like a good personal friendship

• Find & use numerous human connectors

• Always communicate what monies are doing!

6 key retention drivers »

3/5/2015

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Donor communications »

“Are your charity's fundraising, advocacy or other "persuasion" communications riddled with common, hidden flaws that limit their effectiveness?”- Tom Ahern,

Bloomerang Donor Communications Head Coach

You’re trying for “mental nods.”

Secret to Success #1 »

3/5/2015

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Your appeal is NOT about how wonderful your organization is.

Your appeal IS about how wonderful the donor is.


1st paragraph: 10 words or less.


3/5/2015

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Multiple asks


Don’t bore me.


3/5/2015

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Know your SMIT.Single Most Important Thing.


Get them into a fight.


3/5/2015

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Make a promise.


3/5/2015

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Minimum donor segments »

• 48 Hour Rule

• Be Different Than the Rest

• Handwritten Rule Written Communications

• State Exactly What the Monies will Fund

• Call or See in Person as Often as Possible

5 acknowledgement principles »

3/5/2015

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(Involve Your Entire Fundraising Team)

• Fully Map a Track for Each Key Segment

• Survey in 1st 90 Days, Then “Honor”

• Involve Human Connectors

• Nurture Means Personal

• Never Forget the “You” Test for EVERY “Touch”

5 communication principles »

Questions?Jay B. Love

[email protected]@JayBarclayLove

3/5/2015

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Coming Next….

April 14, 2015

1:00 – 2:30 p.m. ET

Fundraising on a Shoestring (Fundraising for

Those With No Time to Surprise)

Alice Ferris, ACFRE & James Anderson

For a listing of the 2014 AFP Webinar Series, please visit our

website at www.afpnet.org in the professional development section.

If you’re interested in more sessions on Donor Retention and Stewardship

you may want to consider attending AFP’s International Fundraising Conference

• Know Thy Donors: The Comprehensive Donor Feedback Project

• Building Donor Loyalty: What’s New?

• Donor Relations the Walt Disney Way

• Stewarding Event Donors: From One Transaction to Major Engagement

• Stewardship in a Small Shop: Building Lasting Relationships with Donors

For more information on these and other sessions and to register

please visit the conference website: www.afpfc.com

http://afpfc.com/

http://afpfc.com/

CERTIFICATE OF PARTICIPATION

I was a participant in the AFP Webinar held

March 17, 2015

1:00 – 2:30 PM Eastern

Donor Retention: Current Rates Are Plummeting! What Can Every

Fundraiser Do to Reverse the Trend?

Presented by:

Jay Love

Full participation in this session is applicable for 1.5 points in Category 1.B – Education

of the CFRE International application for initial certification and/or recertification.

Signed__________________________________________________________

This is for your records only.


March 17, 2015

Donor Retention: Current Rates Are Plummeting! What Can Every Fundraiser Do to Reverse the Trend?

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2015 WEBINARS Educating Fundraisers in the 21st Century

JANUARY 28, 2015, WEDNESDAY

INTEGRATING PLANNED GIVING INTO

YOUR CAMPAIGN/MAJOR GIFTS

PROGRAM BRIAN SAGRESTANO, JD, CFRE

FEBRUARY 18, 2015, WEDNESDAY

MAKING EACH RUNG COUNT: HOW

TO BUILD A DONOR LADDER THAT

GOES FROM ANNUAL GIFT TO

ULTIMATE GIFT MICHAEL DELZOTTI, CFRE &

CHRISTOPHER KASAVICH, MBA, CFRE

MARCH 4, 2015, WEDNESDAY

IS YOUR ORGANIZATION

SUSTAINABLE? SIMONE JOYAUX, ACFRE

MARCH 17, 2015, TUESDAY

DONOR RETENTION: CURRENT RATES

ARE PLUMMETING! WHAT CAN

EVERY FUNDRAISER DO TO REVERSE

THE TREND JAY LOVE

APRIL 14, 2015, TUESDAY

FUNDRAISING ON A SHOESTRING

(FUNDRAISING FOR THOSE WITH NO

TIME TO FUNDRAISE) ALICE FERRIS, ACFRE & JAMES

ANDERSON, CFRE

APRIL 29, 2015, WEDNESDAY

FIND HIGH CAPACITY PROSPECTS

HIDING IN PLAIN SIGHT RACHEL MUIR, CFRE

MAY 7, 2015, THURSDAY

SEVEN SECRETS OF SUCCESSFUL

SOLICITATIONS

ANNE MELVIN, J.D.

MAY 20, 2015, WEDNESDAY

ENGAGING YOUR BOARD IN

FUNDRAISING FOR THE SMALL SHOP SANDY REES, CFRE

CFRE APPROVED CONTINUING

EDUCATION PROVIDER

EACH WEBINAR SESSION OFFERS

1.5 CFRE POINTS!

JUNE 3, 2015, WEDNESDAY

MAKING FRIENDS WITH FINANCIAL STATEMENTS:

ACCOUNTING AND BUDGETING CONCEPTS FOR

FUNDRAISERS STEPHANIE CORY, CFRE

JUNE 18, 2015, THURSDAY WHY AND HOW TO USE SOCIAL MEDIA TO SHOW

GRATITUDE TO DONORS STEVEN SHATTUCK

JULY 15, 2015, WEDNESDAY

WIN WIN WIN: BUILD DEEPER RELATIONSHIPS WITH

YOUR CORPORATE PARTNERS THROUGH CAUSE

MARKETING TANIA LITTLE, CFRE

AUGUST 12, 2015, WEDNESDAY

WHAT YOU NEED TO KNOW ABOUT PLANNED GIVING

WHEN PLANNED GIVING IS NOT ALL THAT YOU DO TIMOTHY D. LOGAN, FAHP, ACFRE

AUGUST 25, 2015, TUESDAY

THE CAMPAIGN PREQUEL: SUCCESS BEGINS

BEFORE THE CAMPAIGN PLAN MATTHEW COTTLE, CFRE

SEPTEMBER 16, 2015, WEDNESDAY

IN IT FOR THE LONG HAUL: HOW DONOR RETENTION

AND MAJOR GIFTS CAN TRANSFORM YOUR NONPROFIT JOHN GREENHOE, CFRE

SEPTEMBER 29, 2015, TUESDAY

CREATIVE AND COMPELLING FUNDRAISING MESSAGES

FOR DIGITAL SOLICITATIONS DERRICK FELDMANN

OCTOBER 14, 2015, WEDNESDAY

SOCIAL MEDIA AND ETHICS IN FUNDRAISING DAVID TINKER, CFRE & LISA CHMIOLA, CFRE

OCTOBER 28, 2015, WEDNESDAY

HOW TO RAISE MAJOR GIFTS THE RIGHT WAY AMY EISENSTEIN, ACFRE & DR. ADRIAN SARGEANT

NOVEMBER 18, 2015, WEDNESDAY

TEN IDEAS TO ELEVATE YOUR SMALL SHOP

FUNDRAISING PROGRAM LIGIA PEÑA, CFRE

DECEMBER 10, 2015, THURSDAY

THE WHATS, HOWS AND WHYS OF MAJOR GIFT

SOLICITATION JILL PRANGER, ACFRE

Webinars will be held at 1:00-2:30 p.m. Eastern / 12:00-1:30 p.m. Central 11:00 a.m.–

12:30 p.m. Mountain / 10:00-11:30 a.m. Pacific / 9:00-10:30 a.m. Alaska FEES: $159

(U.S.) per member session; $295 (U.S.) per nonmember session

Special AFP Member Bundle - $99 per session when registering for 10 or more programs at one time!

AFP 2015 WEBINAR SERIES

January 28, 2015 Brian Sagrestano, JD, CFRE: Integrating Planned Giving into Your Campaign/Major Gifts Program

February 18, 2015 Michael Delzotti, CFRE & Christopher Kasavich, MBA, CFRE: Making Each Rung Count: Building a Donor

Ladder that Goes from Annual Gift to Ultimate Gift March 4, 2015 Simone Joyaux,ACFRE: Is Your Organization Sustainable?

March 17, 2015 Jay Love: Donor Retention

April 14, 2015 Alice Ferris, ACFRE & James Anderson, CFRE: Fundraising on a Shoe String (Fundraising for Those With No

Time to Fundraise)

April 29, 2015 Rachel Muir, CFRE: Find High Capacity Prospects Hiding in Plain Sight

May 7, 2015 Anne Melvin, J.D.: Seven Secrets of Successful Solicitations

May 20, 2015 Sandy Rees, CFRE: Engaging Your Board in Fundraising for the Small Shop

June 3, 2015 Stephanie Cory, CFRE: Making Friends with Financial Statements: Accounting&Budgeting Concepts for

Fundraisers June 18, 2015 Steven Shattuck: Why and How to Use Social Media to Show Gratitude to Donors

July 15, 2015 Tania Little, CFRE: Win Win Win: Build Deeper Relationships with Your Corporate Partners Through Cause

Marketing August 12, 2015 Timothy D. Logan, FAHP, ACFRE: What You Need to Know About Planned Giving When Planned Giving Is

Not All That You Do

August 25, 2015 Matthew Cottle, CFRE: The Campaign Prequel: Success Begins Before the Campaign Plan

September 16, 2015 John Greenhoe, CFRE: In it for the Long Haul: How Donor Retention and Major Gifts can Transform Your

Nonprofit September 29, 2015 Derrick Feldmann: Creative and Compelling Fundraising Messages for Digital Solicitations

October 14, 2015 David Tinker, CFRE & Lisa Chmiola, CFRE: Social Media and Ethics in Fundraising

October 28, 2015 Amy Eisenstein, ACFRE & Dr. Adrian Sargeant: How to Raise Major Gifts the Right Way

November 18, 2015 Ligia Peña, CFRE: Ten Ideas to Elevate Your Small Shop Fundraising Program

December 10, 2015 Jill Pranger, ACFRE: The Whats, Hows and Whys of Major Gift Solicitation

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FEES: $159 (U.S.) per member site per session; $295 (U.S.) per nonmember site per session

Special AFP Member Bundle - $99 per session when registering for 10 or more programs at one time!

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donor retention: current rates are plummeting! what … · donor retention: current rates are...

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