How to Use Your Database to Power Your Fundraising - FINZ 2014 Presentation
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How to Use Your Database to Power Your Fundraising - FINZ 2014 Presentation

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At the 2014 FINZ Conference Naomi Hamilton-Hakim, Blackbaud Pacific's Senior Marketing & Partnerships Manager led a presentation on ensuring your database empowers your fundraising.

At the 2014 FINZ Conference Naomi Hamilton-Hakim, Blackbaud Pacific's Senior Marketing & Partnerships Manager led a presentation on ensuring your database empowers your fundraising.

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  • 1. Section heading hereHow to Use Your Database to Power Your Fundraising Naomi Hamilton-Hakim Senior Marketing & Partnerships Manager Blackbaud Pacific
  • 2. A brief introduction Blackbaud is leading provider of software and services to the global not for profit community  Founded 1981  29,000 not for profit Customers  Serving 60 Countries  Implement fundraising databases for a variety of NFPs in NZ (eTapestry, The Raiser’s Edge, Blackbaud CRM)  Consulting
  • 3. How database savvy are you? Remain standing if:  Your organisation uses a fundraising database solution (not Excel, Access etc)  You have a dedicated database manager  You have clear database procedures in place  You have an active data hygiene program  You have an active database training program in place for staff  Your CEO knows where to find and read system reports, and finds these useful  You know your current donor acquisition rates per channel  You know your current donor retention rates per channel (for 12, 24, 36 & 48 months)  You know who your most passionate donors are!
  • 4. The plan (agenda) Today we’re going to discuss:  Why your database is so important  How you can setup your database to provide a strong foundation for your fundraising  Current trends in fundraising  How you can enable your database to help you measure success
  • 5. Why focus on your database? Because it’s one of your biggest fundraising assets!  Your database is your key to building a relationship with your donors  Successful not for profits are data-driven  You can use your data to create actionable insights  Your data will tell you what’s working and what’s not  You can use your database to track ROI  Enables sophisticated segmentation (RFM)  You can create workflows, simplify administration and automate some tasks
  • 6. What are the consequences of a badly maintained database?
  • 7. You will lose donors & dollars! • incomplete addressDirect Mail • no email addressElectronic Direct Mail • lack of contact detailsMajor Gifts • no birthdateBequests • incorrect deadlinesTrusts & Foundations • no contact nameCorporate Partnerships
  • 8. 3 pinnacles of a powerful fundraising database CLEAN • No duplicate records • No missing information • Similar information stored together • Good code tables WELL MAINTAINED • Schedule of maintenance • Error-free output • Easily generates output • Secure STRONG • Essential data captured • Needs little maintenance • Organisation/mission specific information • Helps everyone do their jobs!
  • 9. 8 tips to creating a truly powerful database 1. Choose the right system for your needs 2. Designate ownership 3. Confirm security & disaster recovery procedures 4. Keep your data clean 5. Engage & train your whole team 6. Confirm data entry policies & procedures 7. Ensure your reports are relevant & accurate 8. Consider the data you really need
  • 10. 1. Select the right database REQUIREMENTS • Staff • Revenue • Capacity • Growth FUNCTIONALITY • Compile list of expectations • Be as specific as possible • Prioritise requirements • Consider any existing systems you have in place TIMELINE • Set a realistic time frame • Consider implementation time • Understand the project complexity • Have a clear project deadline FUNDING • Establish a clear budget • Consider hardware, conversion, training, maintenance and support
  • 11. 2. Own It You need a Database Manager to:  Assist your organisation’s database users with support questions  Conduct regular user group meetings with key users  Produce weekly, monthly, quarterly, and any other necessary reports for distribution  Maintain the structure of attributes, business rules and all other structural functions  Maintain data integrity by establishing regular system checks  Handle global changes, importing, and other global database functions  Maintain and update the policy and procedures guide
  • 12. 3. Confirm security & disaster recovery procedures Ensure that your database is secure and that you have a disaster recovery plan:  Should every staff member/volunteer/board member be able to access everything?  Backup, backup, backup!  Ensure your processes are agreed and documented  Protect your data and ensure your organisation’s future
  • 13. 4. Keep your data clean Garbage in, garbage out!  Ensure top down support  Audit/assessment  Deal with areas/issues identified  Begin data cleansing  Ask for help  Be proactive  Maintain
  • 14. 5. Your whole team needs to be engaged & trained Database Manager Systems Administrator Administrative Assistants Fundraising Manager/Senior Leadership/CEO Program Staff Gift Processors Relationship Manager
  • 15. 6. Create clear processes and procedures Continually check your procedures and ensure:  Data accuracy from all sources  Efficient input of data  Effective input of data  CEE (confirm, edit and enhance!)  That you have a documented, detailed policies and procedures manual that is up-to-date!
  • 16. 7. Effective and accurate reporting Continually check:  Have relevant been dashboards enabled per user?  Is all data captured and kept relevant for data analysis?  Is all of the relevant data being looked at? Reported on?  Do you need different reports?  Do you need different data?
  • 17. 8. How ‘big’ is your data? Ensure that you effectively capture the data you need to drive your fundraising activities:  Insight vs. information  How much ‘rich’ data do you need?  Be aware of privacy laws governing data collection  Don’t get overwhelmed – take it one step at a time!
  • 18. Time to network! Take 5 minutes and discuss with the person next to you:  What your current database setup is  What do you well with your database currently?  How could improve your database usage?
  • 19. Current fundraising trends What’s happening in fundraising right now?  Increasing global focus on donor value through upgrading and acquisition of donors with a higher long-term value (donor conversion)  Integrated channel approach (source diversification)  Search for new channels  Growing awareness of retention challenges  Automation Source: DonorCentrics Benchmarking
  • 20. Focus on donor long-term value Key aims to:  Upgrade existing donors  Acquire donors with high term value  Spend less time on donors that are low value
  • 21. Monitor donor value with your database How is your organisation performing?  How many donors do you have?  What is the average value per donor?  What’s your (new) donor conversion rate?  What is your conversion rate across subsequent years?  Which ‘groups’ of donors convert better?  Which channels convert better?  Which donors are low value for your organisation?  Which groups of low value donors can you drop in favour of investing more value in high value conversions? What’s your capacity?
  • 22. Source diversification Vital to successful fundraising as provides:  Flexibility (changes in market circumstances)  Stability (ability to shift investments quickly, easily with predictable outcome)  Increased performance (able to adjust channels to alter growth & return)  Donor choice  Enhanced exposure to existing and potential donors
  • 23. Source diversification
  • 24. Source diversification & your database  Have you enabled a variety of ways for donors to give?  Do you have a clear idea of which donors are coming through which sources?  How frequently do you report on source success?  Use source success to drive investment decisions
  • 25. Search for new fundraising channels There is no silver bullet, but channels of interest include:  Social  Online  List sharing/co-operatives  SMS  Crowdfunding  Responsive TV (future)  Retargeting
  • 26. Social
  • 27. Helping the search Need to ensure that continue to invest in legacy programs while exploring new options:  Ensure that you track the source & channel of all donations  Continue to look for trends in your data  Examine demographics  Keep some funds for innovation  Collaborate, network & share ideas!
  • 28. Donor retention Finding new donors is hard, but retaining them is even harder!  Cost to acquire a new donor is 6-7 times that to retain an existing donors  Top 18 charities had a massive 1% change in the number of donors on file 2011 - 2012. They lost 28% and gained 29%!  We estimate they spent over $60m to basically stand still. A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200% . Adrian Sargeant, Ph.D. from Indiana University’s Center on Philanthropy
  • 29. Donor choices D Charity B D Charity CCharity A D Charity D
  • 30. Donor retention & your database What’s a not for profit to do?  Establish a fanatical relationship management culture  Become donor-centric versus campaign-centric  Treat your donors as your most valuable asset  Monitor your first-year donor retention, multi-year donor retention, retention per channel, donor reactivation, total donor file size, total revenue and revenue per donor  Thank, thank and thank again!  Stop the leaky bucket
  • 31. Monetise your data What happens when someone tells you they love you?  Monetise daily interactions by scoring 1 – 5 (love variable)  Incentivise the staff recording this data  Align those that love you with those that have the resources to give (or are giving) and concentrate on these  Create ‘hurdles’ and track the results
  • 32. Automation Let your data save you time and money by automating:  Thank you emails  Donor nurturing processes  Receipting  Regular gift processing  Birthday congratulations  Touch points with lapsed donors  Any recurring processes!
  • 33. Fundraising & your database Use your database to:  Record your supporters actions in an easily usable format  Ensure that you have a multi-channel fundraising approach  Get creative!  Focus on key retention metrics and execute best practice retention approaches  Ensure you treat your donors as your most valuable asset  Enable your data to assist you in making investment decision and track results  Contrast your results against industry benchmarks
  • 34. Group work Break into pairs and answer the following questions:  Did you learn anything new today? What was it?  Which 3 changes will you make to your database when you get back to the office?  How will you continue to educate your colleagues on the importance of your data & database on an ongoing basis?
  • 35. Further Resources • Fundraising Database Management Training: undraising-database-management • Blackbaud Database Health Check • Blackbaud Database Review • Blackbaud Data Hygiene Services
  • 36. Thanks! Naomi Hamilton-Hakim Senior Marketing & Partnerships Manager Blackbaud Pacific +61 8986 6000 @bbpacific @fairynomo