Strategies for
Renewing First
Time Donor
Support
TODAY’S PRESENTER

Cynthia J. Armour
Certified FundRaising Executive
Elderstone.ca
WEBINAR REMINDERS

• You can hear us, but we can’t hear
you
• Have questions? Type questions in
the Questions Log
• Turn u...
WHAT IS CANADAHELPS?
• A public charitable foundation and registered charity
• Through CanadaHelps.org, anyone can donate ...
Cynthia J. Armour, CFRE
Elderstone Resource Development
www.elderstone.ca 705-799-0636

Canada Helps Webinar – March 5, 20...


Making a case for donor relations in the quest to
renew first-time supporters



Introducing key terms you need to kno...








Your charity has not acquired a donor until
they make their second or third gift
Disaster relief often equals ...






Every $100 gained for 2011 was matched by
$100 in losses through attrition
Every 100 donors gained in 2011, 107 w...






Slight improvements from the previous year
Every $100 gained in 2012 was offset by $96
in losses through gift att...




BUT – organizations raising under $100,000
had an average net loss of -13.5% (which
means $113.50 was lost for every...


“It usually costs less to retain and motivate
an existing donor than to attract a new one
For most organizations – and ...


Direct mail acquisition

$1.25 to $1.50 per $1.00 raised



Direct mail renewal

$0.20 to $0.25 per $1.00 raised



B...
Donor Acquisition
 Donor Attrition
 Donor Conversion


(and we‟re not talking
about organ-transplants)

Donor Lifetime ...
Donor Renewal
 Donor Retention
 Donor Response Rates
 Donor Segmentation
 Lapsed Donors
 Multi-channel Giving, Stewar...


At the heart of fundraising is the art of
relationship building – the mutual creation of
that intersection between the ...
Canadians continue to place great importance on the
information charities provide to the public.


98% think it is import...




Canadians continue to give charities low ratings for
the degree to which they report on how donations
are used, the ...


Studies indicate that finding new donors and
dollars is on the decline



There are fewer new donors



Retention of ...


“A 10% increase in donor retention can increase
the lifetime value of the donor database by up
to 200 percent. When peo...


Satisfaction
Trust
Commitment



Each little interaction builds loyalty




© Cynthia J. Armour, CFRE www.elderstone...
“The best prospective donor is the
donor who has supported your
organization in the past.”
Edith Falk, Campbell & Campbell...
 Location

is to real estate
as relationship is to
philanthropy.
Source: Effective Donor Relations – Janet L Hedrick

© C...


Acknowledgement – the process of saying
thank you for the gift



Recognition – the process of publicly
recognizing th...




Effective donor relations is an organizational
philosophy, advocated by decision-makers
and practiced by everyone.

...






Communications – meaningful, 2-way
Frequency and face-to-face interaction
increases as the relationship grows
Inv...


Gift acceptance and management



Acknowledgement



Donor recognition and appreciation



Stewardship – accountabil...


A positive emotion or attitude



Meaningful, thoughtful and individualized



Unified strategy for the donor
Source:...


93% would definitely or probably give again



64% would give more



74% would continue to give indefinitely



70%...


For already acquired donors, the things that
influence their decision to give or not give
again happen in the space bet...


Customer-service focus means entire staff,
board and volunteers are part of the donor
relations team! (= Culture of Phi...










Implies a burden of trust
Timely and appropriate reporting to donors on
use of funds
Involves and engages d...







Benefits are not costly or extravagant
Shared responsibility between charity and
donor
A functional database an...






Start with the board creating, approving and
adopting a stewardship policy

Form a stewardship planning task forc...
© Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636

33




People will give more to a cause as they
become more involved and committed
Staff will be more effective based on th...


Fund development committee conducts donor
analysis (recommended twice a year):
◦ How many donors do you have?
◦ What le...






The board is expected to be involved in donor
relations
The board needs to approve the donor
relations plan
The b...


Comprehensive database is essential to track:
◦ Number of repeat donors and WHO they are
◦ Number and value of increase...






Create a budget for donor relations that
includes, postage, printing and donorfocused events (which may include o...


Use current donors to convey the agency‟s
message to potential donors



Determine how to tie donor relations to the
o...






Establish relationships between donors and
the stewardship staff
Keep all donors on the database unless they
ask ...


Consider using the following mediums for
effective outreach:
◦ Marketing and print materials
◦ Mailings (annual fund)
◦...


Begin by recruiting the “right” donors



Thank promptly



Welcome them



Invite more information



Demonstrate ...
BEFORE YOU




Request a personalized renewal within six
months of their first gift

The timeliness, relevance and quali...







My Charity Village Fundraising Q & A archives
http://www.charityvillage.com (search Cynthia
Armour under Articl...
- Muttart Foundation Talking About Charities



http://www.muttart.org/surveys



http://www.imaginecanada.ca/files/www/...
Sample Stewardship Policies –
 http://www.externalaffairs.uga.edu/policies/nodes/compl
ete/335
 http://majorgivingnow.or...











Grace, Kay Sprinkel: Beyond Fundraising (John Wiley & Sons, Inc.
1997)
Burk, Penelope: Thanks! A Guide ...


Cynthia J. Armour, CFRE
◦ Elderstone Resource Development

Strategic Leadership and Management
Cavan, Ontario

(705) 79...
More Charity
Training
MYCHARITYCONNECTS

Educational and training opportunities
through MyCharityConnects

www.mycharityconnects.org
UPCOMING WEBINARS
Key Steps for Building a Major Gifts Program
by guest speaker Sue Egles

Date: Wednesday, March 19, 2014...
STAY IN TOUCH

communications@canadahelps.org

1-877-755-1595
@canadahelps

youtube.com/canadahelps

facebook.com/canadahe...
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Strategies for Renewing First Time Donor Support

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Learning Outcomes

-Making a case for donor relations in the quest to renew first-time supporters
-Introducing key terms you need to know
-Defining the value of relationship building
-Identifying steps to a strong donor relations program
-Providing names and sources for more information

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Strategies for Renewing First Time Donor Support

  1. 1. Strategies for Renewing First Time Donor Support
  2. 2. TODAY’S PRESENTER Cynthia J. Armour Certified FundRaising Executive Elderstone.ca
  3. 3. WEBINAR REMINDERS • You can hear us, but we can’t hear you • Have questions? Type questions in the Questions Log • Turn up your computer’s volume • For the best webinar experience, close all other applications • Webinar slides will be shared 2
  4. 4. WHAT IS CANADAHELPS? • A public charitable foundation and registered charity • Through CanadaHelps.org, anyone can donate to any registered Canadian charity online • We have facilitated over $390 million in charitable donations online since our launch in 2000 • 14,500 charities use us to collect donations and fundraise online • Over 850,000 Canadians have donated through CanadaHelps • For donors, CanadaHelps is a one-stop-shop for giving. For charities, CanadaHelps is an online fundraising solution that is affordable, easy and secure WELCOME TO GIVING MADE SIMPLE!
  5. 5. Cynthia J. Armour, CFRE Elderstone Resource Development www.elderstone.ca 705-799-0636 Canada Helps Webinar – March 5, 2014
  6. 6.  Making a case for donor relations in the quest to renew first-time supporters  Introducing key terms you need to know  Defining the value of relationship building   Identifying steps to a strong donor relations program Providing names and sources for more information © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 5
  7. 7.     Your charity has not acquired a donor until they make their second or third gift Disaster relief often equals one-time donations “December Donors” First-time donor super credit benefits donors who‟ve never supported charities before © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 6
  8. 8.    Every $100 gained for 2011 was matched by $100 in losses through attrition Every 100 donors gained in 2011, 107 we lost through attrition Organizations raising $100,000 or less lost $110 for every $100 they raised © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 7
  9. 9.    Slight improvements from the previous year Every $100 gained in 2012 was offset by $96 in losses through gift attrition Every 100 donors gained in 2012 was offset by 105 lost donors through attrition © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 8
  10. 10.   BUT – organizations raising under $100,000 had an average net loss of -13.5% (which means $113.50 was lost for every $100 raised) The greatest losses in gift dollars came from lapsed new gifts, particularly in the organizations with lowest and highest growth in giving ratios (the net of gains in giving minus losses in giving). © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 9
  11. 11.  “It usually costs less to retain and motivate an existing donor than to attract a new one For most organizations – and especially those that are sustaining losses or achieving only modest net gains in gifts and donors – taking positive steps to reduce gift and donor losses is the least expensive strategy for increasing net fundraising gains.” Source: AFP 2012 Fundraising Effectiveness Project © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 10
  12. 12.  Direct mail acquisition $1.25 to $1.50 per $1.00 raised  Direct mail renewal $0.20 to $0.25 per $1.00 raised  Benefit/Special events $0.50 per $1.00 raised (gross to net)  Membership associations $0.20 to $0.30 per $1.00 raised  Donor clubs $0.20 to $0.30 per $1.00 raised  Planned Giving $0.20 to $0.30 per $1.00 raised  Corporations $0.20 per $1.00 raised  Foundations $0.20 per $1.00 raised  Volunteer-led solicitations $0.10 to $0.20 per $1.00 raised  Special projects $0.10 to $0.20 per $1.00 raised  Capital campaigns $0.10 to $0.20 per $1.00 raised © Cynthia J. Armour, CFRE www.elderstone.ca - 705-7990636 11
  13. 13. Donor Acquisition  Donor Attrition  Donor Conversion  (and we‟re not talking about organ-transplants) Donor Lifetime Value  Donor Loyalty  Donor Relations  © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 12
  14. 14. Donor Renewal  Donor Retention  Donor Response Rates  Donor Segmentation  Lapsed Donors  Multi-channel Giving, Stewardship  © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 13
  15. 15.  At the heart of fundraising is the art of relationship building – the mutual creation of that intersection between the organization‟s mission and the donor‟s philanthropic vision. Strong relationships with donors don‟t just happen; they require careful attention not only to donors themselves but also to fundraising fundamentals that are grounded in ethical practice. © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 14
  16. 16. Canadians continue to place great importance on the information charities provide to the public.  98% think it is important (very or somewhat) for charities to provide information on how they use donations  98% want information about the programs and services the charities deliver  97% want information about charities‟ fundraising costs and  96% want information about the impact of charities‟ work on Canadians Source: Talking About Charities 2008 - Canadians‟ Opinions On Charities And Issues Affecting Charities, The Muttart Foundation © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 15
  17. 17.   Canadians continue to give charities low ratings for the degree to which they report on how donations are used, the impact of programs and charities‟ fundraising costs Of significance, there have been significant drops in the trust levels of some types of charities since the study was last conducted in 2008. International development agencies dropped 9% from the previous study, while churches dropped 7% and environmental charities 5%. © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 16
  18. 18.  Studies indicate that finding new donors and dollars is on the decline  There are fewer new donors  Retention of first-year and multi-year donors is falling  Recruiting new donors can cost up to 10 times more than retaining existing ones! Source: Mutual Appreciation – Advancing Philanthropy – Jan/Feb 2009 © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 17
  19. 19.  “A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200 percent. When people stay around, they do things like upgrade their gifts, contribute to galas and even volunteer. All those things, you can put a dollar value on.” Source: Adrian Sargeant, Ph.D., Hartsook Chair in Fundraising and Professor of Philanthropic Studies at Indiana University‟s Center on Philanthropy © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 18
  20. 20.  Satisfaction Trust Commitment  Each little interaction builds loyalty   © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 19
  21. 21. “The best prospective donor is the donor who has supported your organization in the past.” Edith Falk, Campbell & Campbell  Linkage, Ability and Interest = a warm prospect vs. a cold suspect © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 20
  22. 22.  Location is to real estate as relationship is to philanthropy. Source: Effective Donor Relations – Janet L Hedrick © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 21
  23. 23.  Acknowledgement – the process of saying thank you for the gift  Recognition – the process of publicly recognizing the gift  Stewardship – the process of using the gift as the donor intended and communicating with the donor about the use of the gift Source: Effective Donor Relations – Janet L Hedrick © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 22
  24. 24.   Effective donor relations is an organizational philosophy, advocated by decision-makers and practiced by everyone. Measurable results can only be provided if the CEO and the Board have a strategic plan in place, with time-limited and specific objectives against which results can be measured. © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 23
  25. 25.    Communications – meaningful, 2-way Frequency and face-to-face interaction increases as the relationship grows Involvement or engagement – in the life of the organization, treated as a member of the family, donor will talk about the organization using the term we rather than you Source: Janet L. Hedrick © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 24
  26. 26.  Gift acceptance and management  Acknowledgement  Donor recognition and appreciation  Stewardship – accountability and reporting  Ask again and repeat the process © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 25
  27. 27.  A positive emotion or attitude  Meaningful, thoughtful and individualized  Unified strategy for the donor Source: Effective Donor Relations – Janet L Hedrick © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 26
  28. 28.  93% would definitely or probably give again  64% would give more  74% would continue to give indefinitely  70% of donors would increase the overall value of their philanthropy if charities were more effective at acknowledging their gifts and communicating results Source: Donor-Centered Fundraising – Penelope Burk © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 27
  29. 29.  For already acquired donors, the things that influence their decision to give or not give again happen in the space between solicitations, not at the point of asking for a gift. That is why so many donors say that, once acquired, meaningful acknowledgement and measurable information become the ask; solicitation is merely the convenient point in time to offer the already-determined „yes‟ or „no‟. © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 28
  30. 30.  Customer-service focus means entire staff, board and volunteers are part of the donor relations team! (= Culture of Philanthropy)  Prompt thank you and receipting  Ensures gifts are used for intended purpose  Funds are tracked - accountability in action © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 29
  31. 31.      Implies a burden of trust Timely and appropriate reporting to donors on use of funds Involves and engages donor in the charity‟s work Builds understanding of the need and provides solutions for donor to help Recognition reflects the gift-size © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 30
  32. 32.     Benefits are not costly or extravagant Shared responsibility between charity and donor A functional database and trained staff who can mine the information The board complies with the Income Tax Act and reports to CRA to maintain charitable status © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 31
  33. 33.    Start with the board creating, approving and adopting a stewardship policy Form a stewardship planning task force involving board members, other volunteers, a development or administrative staff member, and some donors Analyze the donor base where gifts cluster and establish four or five preliminary (test) giving recognition levels Source: Beyond Fundraising, Kay Sprinkel Grace © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 32
  34. 34. © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 33
  35. 35.   People will give more to a cause as they become more involved and committed Staff will be more effective based on their involvement and commitment © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 34
  36. 36.  Fund development committee conducts donor analysis (recommended twice a year): ◦ How many donors do you have? ◦ What levels do they give? ◦ How frequently do they donate? ◦ Who are they? © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 35
  37. 37.    The board is expected to be involved in donor relations The board needs to approve the donor relations plan The board adopts a donor relations policy including who signs thank you letters and makes thank you phone calls to donors, budgets, etc. © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 36
  38. 38.  Comprehensive database is essential to track: ◦ Number of repeat donors and WHO they are ◦ Number and value of increased gifts and WHO made them ◦ Event attendance ◦ First-time donors ◦ Newly engaged donors © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 37
  39. 39.    Create a budget for donor relations that includes, postage, printing and donorfocused events (which may include one-toone meeting/meal with a major gift prospect) Ensure stewardship activities are in line with the budget, amount of the gift and image of the agency Determine what (if any) kind of involvement your top donors want © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 38
  40. 40.  Use current donors to convey the agency‟s message to potential donors  Determine how to tie donor relations to the organization‟s mission  Focus on the intangible benefits that turn donors into investors  Continue to maintain stewardship with longterm and major donors even if they lapse © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 39
  41. 41.    Establish relationships between donors and the stewardship staff Keep all donors on the database unless they ask to be removed Create giving levels with (cost-effective) benefits © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 40
  42. 42.  Consider using the following mediums for effective outreach: ◦ Marketing and print materials ◦ Mailings (annual fund) ◦ Phone calls (personal phone calls from board members) ◦ Interim progress report (donor communications) © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 41
  43. 43.  Begin by recruiting the “right” donors  Thank promptly  Welcome them  Invite more information  Demonstrate how their gift makes a difference © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 42
  44. 44. BEFORE YOU   Request a personalized renewal within six months of their first gift The timeliness, relevance and quality of the first gift acknowledgement is a vital driver to donor conversion and ultimate retention. © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 43
  45. 45.     My Charity Village Fundraising Q & A archives http://www.charityvillage.com (search Cynthia Armour under Articles) Tony Poderis: Building Donor Loyalty http://www.raisefunds.com/012703forum.html Association of Donor Relations Professionals (www.adrp.net) Public Broadcasting Major Giving Initiative http://majorgivingnow.org/index.html © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 44
  46. 46. - Muttart Foundation Talking About Charities  http://www.muttart.org/surveys  http://www.imaginecanada.ca/files/www/en/supercredit/first- - First Time Donor Super Credit explained time_donors_super_credit_explained.pdf  2013 AFP – Fundraising Effectiveness Survey Report http://www.afpnet.org/files/ContentDocuments/FEP2013FinalRepor t.pdf © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 45
  47. 47. Sample Stewardship Policies –  http://www.externalaffairs.uga.edu/policies/nodes/compl ete/335  http://majorgivingnow.org/downloads/pdf/KCET_Steward ship.pdf  http://majorgivingnow.org/downloads/pdf/UU_Stewardshi p.pdf  http://www.arrowleadership.org/alpages/invest/investme nt-reports/stewardship.shtml Sample Thank You Script  http://majorgivingnow.org/downloads/pdf/OPB_Thank_M ember_Script.pdf © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 46
  48. 48.         Grace, Kay Sprinkel: Beyond Fundraising (John Wiley & Sons, Inc. 1997) Burk, Penelope: Thanks! A Guide to Donor-Centred Fundraising (Burk & Associates Ltd. 2000) Rosso Henry A. and associates: Achieving Excellence in Fundraising, 3rd Edition (Jossey –Bass 2010) Sargeant, Adrian and Jay, Elaine: Building Donor Loyalty: The Fundraiser‟s Guide to Increasing Lifetime Value (Jossey-Bass 2004) Lysakowski ACFRE, Linda: The Development Plan (John Wiley & Sons, Inc. 2007) Ciconte, Barbara L. and Jacob, Jeanne G.: Fundraising Basics: A Complete Guide, 3rd Edition (Jones and Bartlett Publishers 2009) Ahern, Tom and Joyaux ACFRE, Simone: Keep Your Donors (John Wiley & Sons, Inc. 2008) Burnett, Ken: Relationship Fundraising (Jossey-Bass 2002) © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 47
  49. 49.  Cynthia J. Armour, CFRE ◦ Elderstone Resource Development Strategic Leadership and Management Cavan, Ontario (705) 799-0636 answers@elderstone.ca © Cynthia J. Armour, CFRE www.elderstone.ca 705-799-0636 48
  50. 50. More Charity Training
  51. 51. MYCHARITYCONNECTS Educational and training opportunities through MyCharityConnects www.mycharityconnects.org
  52. 52. UPCOMING WEBINARS Key Steps for Building a Major Gifts Program by guest speaker Sue Egles Date: Wednesday, March 19, 2014 Time: 2:00-3:00PM Eastern Time The Future of Volunteer Management by guest speakers Jonathan Burns and Kevan Osmond Date: Wednesday, April 2, 2014 Time: 2:00-3:00PM Eastern Time Jonathan Burns www.mycharityconnects.org/webinars Kevan Osmond
  53. 53. STAY IN TOUCH communications@canadahelps.org 1-877-755-1595 @canadahelps youtube.com/canadahelps facebook.com/canadahelps
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