maximize your database for fundraising success (neahp)
TRANSCRIPT
Maximize Your Database for Fundraising Success
Jay 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
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Your presenters »
Debra Liverpool
• 18 years experience of fundraising, advocacy and business development for various organizations
• 27 years experience in banking and finance with various banks by merger or acquisition
• Leadership roles in organizations and volunteer champion for health, education, youth and families.
• Principal, DELCY Associates, LLC • Director Of Philanthropy, Family Services • Major Gift Officer, American Red Cross
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Your presenters »
Agenda »
• The importance of donor retention • Your database: a 3-‐legged stool • Data Management 101 • Segmenting 101 • Appeals • Acknowledgement
• Engagement Tracking/Scoring • Reporting
What is the key purpose of a database?
What is the key purpose of a database?
“To enable and insure the proper funding of your organization’s mission.”
What is the key purpose of a database?
“To enable and insure the proper funding of your organization’s mission.”
(Is there a secret to achieving this purpose?)
Calculating Your Retention Rate »
# of Donors in Current 12 Months (from the previous years pool)
divided by # of Donors in Previous 12 Months
Fundraising Effectiveness Project (FEP) A project to help nonprofit organizations
measure and compare
Who is Studying Donor Retention?
The 2014 results are in »
Nearly 6 out of every 10 donors do not give again!
Gift retention isn’t much better »
New donor retention is even worse »
But retention is improving slightly »
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?
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 »
10% of your donors in the previous year multiplied by your average gift amount
EQUALS
Potential first-‐year increase!
The hidden “math” of your database »
“The total net contribution that a customer/donor generates during his/her lifetime in your database”
Defining Lifetime Value »
$1000 +
$500 -‐ $1000
$100 -‐ $500
$25 and under annually
$25 -‐ $100
Value
Value Segments »
Time
“Proper database usageis the key to donor retention
and lifetime value!”
-‐ Jay Love -‐ CEO, Bloomerang
The 3-‐Legged Stool »
1. Record keeping 2. Outbound communications 3. Interactions
1. Record Keeping »
• The original reason to replace 3x5 cards in the 1980s!
• Everyone in the organization should use the database
• Everyone in the organization should benefit from data
2. Communications »• The “secret sauce” of retention success! • Offline
• Appeals • Acknowledgements • Newsletters • Handwritten notes (magical!)
• Online • Email • Website interactions • All must be integrated!
3. Interactions »• Types
• Phone calls • Texts • Meetings • Emails • Chat
• Notes • The institutional memory of your organization • Enables the highest levels of engagement • All must be integrated!
Data Management »
Can you have too many names in your database?
0 / 10 / 90 Rule »
• 0% of your funding • 10% of your funding • 90% of your funding
0 / 10 / 90 Rule »
• 0% of your funding • 10% of your funding • 90% of your funding
What should you do with each segment?
0 / 10 / 90 Rule »
• 0% of your funding • remove all but:
• previous above-‐average donors • previous board members • previous top volunteers
• 10% of your funding • handle in an automatic manner, but research
• 90% of your funding • focus the majority of your efforts here
Segmenting »
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
Appeal segmenting »
Appeal principles »
• Design a “style” for each segment • Consider calling and mailing segments 2, 4 and 6 • Handwritten notes and/or P.S. are powerful • Test, test, test! • Personalize as much as possible (database fields) • More than once a year • Always aim for monthly donors!
Acknowledgement segmenting »
• 48 hour rule • Call ALL first-‐time donors • Handwritten notes • Be different than the rest • State exactly how donation will be used • Fully map a track for each segment
Acknowledgement principles »
Donor communications » “Successful donor communications are quite simple. At heart, they are love letters to donors & prospects, woven through with clear cries for help.” -‐ Tom Ahern, Bloomerang Donor Communications Head Coach
http://aherncomm.com
Engagement factors »
40
Reporting »
1. Record keeping • Hone in on what is truly needed
Reporting »
1. Record keeping 2. Communication-‐related (plus results!)
• The key to proper testing
Reporting »
1. Record keeping 2. Communication-‐related (plus results!) 3. Big picture for board (YTD and vs budget)
• Dashboards and graphics
Reporting »
1. Record keeping 2. Communication-‐related (plus results!) 3. Big picture for board (YTD and vs budget) 4. KPIs
• Metrics that make a difference
Reporting »
KPI September Goal September ActualNew Donors 500 831New Volunteer Signups
460 652Web Sessions 17,500 22,253Email Signups 12,500 16,794Cost per New Donor
$1.00 $1.39Cost per Return Donor
$0.25 $0.27Budget YTD $61,745.09 $61,638.94
1. Record keeping 2. Communication-‐related (plus results!) 3. Big picture for board (YTD and vs budget) 4. KPIs 5. Funnel
• Moves the funding needle the most!
Reporting »
Free educational resources »
https://bloomerang.co/resources
•Daily blog post •Weekly webinar •Downloadables •Nonprofit Wrap-‐Up •Bloomerang TV
