Charity Fraud – What your charity needs to know Part 2

March 15, 2011

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Today’s Presenters

Milly Siderius

Canadian Council of Christian Charities

Michel Valentik & Michael MacVicar

Capital One Canada

Owen Charters

CanadaHelps

Webinar Agenda

Fraud Prevention Month & Charity fraud

Giving following a disaster

Ethical fundraising practices

Online security for your charity

Marketing to potential donors

Fraud Prevention Month

Charity Fraud – What is it?

• Impersonators pretend to represent a legitimate charity

• A false charity is created

• The money never reaches the charity

Goals:

• empower Canadians to recognize the signs of charity fraud

• enable Canadians to identify legitimate charities

• ensure that charities maintain Canadians’ trust

Partnership to raise awareness about charity fraud in Canada

Understanding Canadians’ Donation Habits, Views

and Awareness about Charity Fraud and Efforts Taken to Protect Against Fraud

Concerns about charity fraud increase following a natural disaster

• 61% of Canadians report increased concern over charity fraud in the wake of a natural disaster

Protection from Charity Fraud

• Despite the significant increase in fear of charity fraud, many take no steps to protect themselves

• What made people trust a charity:

– Reputation

– Media coverage & advertising

– Being asked by a friend or colleague to give

Protecting Your Donors in an Online World

Security tips your organization

needs to know

Owen Charters

Collect only the information you need

Secure Your Website

• Look for the https:// at the beginning of a web address and a lock on your browser

Encrypt Data During Transmission

• Look for evidence of a security certificate trustmark, like VeriSign

• Servers and data storage must be in a secure facility

• Data must be backed up and stored securely

• Encrypt stored data that is sensitive

Secure Data Storage

Protect Against Hackers

• Update software • Install firewalls • Use external certification

• Anyone processing online credit card transactions must comply with the Payment Card Industry Data Security Standards

• Founded by American Express, Discover Financial Services, JCB International, MasterCard Worldwide, and Visa, Inc.

1. Build and Maintain a Secure Network

2. Protect Cardholder Data

3. Maintain a Vulnerability Management Program

4. Implement Strong Access Control Measures

5. Regularly Monitor and Test Networks

6. Maintain an Information Security Policy

Social Media

Laptop & Smartphone Considerations

• Strong passwords

• Protocols for travelling with laptops

• Don’t share sensitive data over unsecured, public networks

Develop Security Policies & Practices

• Document best practices for secure transmission and storage of data

• Educate all staff about their responsibilities

Confidential

Marketing to Potential Donors Michel Valentik

Michael MacVicar

March 15, 2011

42 Confidential

There are 2 key to being successful in direct marketing

I. TARGETING II. EXECUTION

• Goal: Stretch your budget by ensuring

that you are putting your message in

front of the right audience

• Key Activity:

• Building a marketing list

• Goal: Make sure your marketing is

conveying the right message to your

audience

• Key Activities:

• Design and personalization of your

marketing materials

Marketing is all about getting the right message

in front of the right audience at the right time

43 Confidential

I: TARGETING – The 80 / 20 Rule (1 of 2)

Target

Donors

Everybody

Else

It’s a big

world out

there

While your cause is

undoubtedly a great

one, only a small

fraction of the

population is likely to

be highly engaged

Why does identifying “target donors” matter?

44 Confidential

I: TARGETING – The 80 / 20 Rule (1 of 2)

Target Donors

Further, 20% of

donors typically

account for 80%

of donations Pursuing

everybody is

costly for very

additional

donations

Building a “marketing list” of “target donors” can reduce

your marketing costs and increase your donations

45 Confidential

I: TARGETING – Building a Marketing List (1 of 2)

Identify “What characteristics do your best donors share in common?” • Do they tend to be men vs. women?

• Are they a particular age? Younger? More mature?

• Where do they live? Where do they shop?

• What do they read? What do they do?

Segment (i.e., group together) prospects (i.e., potential donors) that

share similar characteristics

Prioritize by focusing your marketing dollars and efforts on prospects

who are: • The most likely to respond to a letter that they receive from you

• The most likely to donate more than they average

Tailor your messages and efforts to reflect to your segments based

on what you know about each of them that makes them unique

1

2

3

4

Important Steps in Building a Marketing List

46 Confidential

I: TARGETING – Building a Marketing List (2 of 2)

Canada Post • Can help you reach every home and business in Canada

• Provides less expensive alternatives like Unaddressed Admail

Statistics Canada • Provides free information on a wealth of topics about

Canadians that can help shape your thinking about donors

List Aggregators • Can sell specialized pre-packaged lists of names and

addresses that you can use for marketing purposes, often

based on the specific criteria that you request

and most importantly…

Your Current Donor List!

Some great sources of information that are available

to help you build a marketing list include

47 Confidential

II: EXECUTION – Top Tips for Marketing To Your Audience

Personalize It When communicating with potential donors, especially past ones, address

them by name.

Share the Benefit Communicate the benefit first – before you ask them to act.

Keep it Easy When a consumer’s going to respond, give them options and keep it simple.

Make it Interesting Get their attention – and keep it –.with engaging copy, images and formats.

Guarantee Accuracy Consumers will only deal with companies and organizations that they trust.

Avoid errors in your communications.

Once you are in front of the right audience,

make sure you are delivering the right message

1

2

3

4

5

48 Confidential

II: EXECUTION – Marketing To Donors Online

Advertise on sites that your target audience visits

Use sites that can target your audience for you, like Google and

Facebook

Stand out with clean and bold designs

Communicate simple and compelling messages

Use concise call-to-actions, like “Learn More” and “Get Details”

1

2

3

4

5

Tips and tricks when marketing to donors online

49 Confidential

II: EXECUTION – Marketing To Donors with Direct Mail

Make sure the envelope is intriguing

Personalize the message with variable text and a letter from an

important person within your organization

Make sure the message is relevant and easy to understand. Use

subheads, call-outs and bulleted lists to help the recipient scan

the content

Give them as many options to reply as possible, such as a Web

address, phone number, BRE, etc.

1

2

3

4

Tips and tricks when marketing to donors via direct mail

The Charity Fraud Awareness Quiz

The Charity Fraud Awareness Quiz

• March 1st - March 31st

• Each participant eligible to enter their favourite charity for a chance to win weekly and monthly prize

• Prize donations from Capital One:

• Weekly $1,000 donation • Grand $20,000 donation

The Charity Fraud Awareness Quiz – 2011 Winner!

Congratulations to this year’s first $1,000 winner:

• Aga Khan Foundation of Canada

How can you win?

Encourage your supporters to take the

Charity Fraud Awareness Quiz and increase your charity’s chances to win!

ABOUT MYCHARITYCONNECTS

• Join us for thought-provoking keynotes, practical how-to workshops and plenty of chances to learn from other non-profits about what works online… and what doesn’t.

• Proud partner in Net Change week

MyCharityConnects Conference 2011

JUNE 6 – 7 | MaRS Centre, Toronto

www.mycharityconnects.org/2011Conference

Registration now open!

Upcoming Webinars www.mycharityconnects.org/webinars

• March 23 – The Art of Storytelling: 2.0 Edition

• April 13 – Blogging Basics

• April 27 – Social Media Done Right: 5 Case Studies

• May 11 – Spruce up your E-newsletter

• May 25 – 10 Tips to Improve Your Website

• June 15 – Getting the Most From your MyCharity

Account & Reports

QUESTIONS

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