Progressive Annual Fund Strategies

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Whether you have a "one-person shop" or a team of development professionals, achieving the maximum, sustainable results depends upon a clear understanding of what you need to do to get to the next …

Whether you have a "one-person shop" or a team of development professionals, achieving the maximum, sustainable results depends upon a clear understanding of what you need to do to get to the next level of support.

This webinar will emphasize that there really are ONLY two ways to increase your (and your program's) success: by increasing the number of people who give and by increasing the average level of support.

We'll discuss how to be truly successful - and here's a little preview...you must DO BOTH!

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  • 1. Progressive Annual Fund Strategies / Pushing Your Program to the Next level Ron & Sue Rescigno October 30, 2012A Service Of: Sponsored by:
  • 2. Protecting and Preserving the www.cjwconsulting.com Institutional Memories of Nonprofits Since 1993 (866) 598-0430 info@cjwconsulting.comA Service Of: Sponsored by:
  • 3. www.mission.doA Service Of: Sponsored by:
  • 4. Today’s Speakers Ron & Sue Rescigno President & Vice President Rescignos Marketing ConnectionsAssisting with chat questions: Hosting:Jamie Maloney, Nonprofit Webinars Cheri J Weissman, CJW Consulting & Services, Inc.A Service Of: Sponsored by:
  • 5. Progressive Annual Fund Strategies: Advancing Your Program to the Next Level Ron and Susan Rescigno
  • 6. The Path to Success Put simply, there are essentially TWO ways to increase your success: • Method #1 – Increase the number of people giving • Method #2 – Increase the average level of support Here’s the catch: to be as successful as possible, You Must Do Both.
  • 7. Increase the Number of DonorsLaying the Groundwork for Your Success• Major Gift Donors• Leadership Donors• Repeat Annual Donors• First-time Annual Donors
  • 8. Increase the Number of DonorsAsk More People Ask Smarter Expand the number in your • Increase response rates by solicitation pool finding new, unusual, – reunion committees, student different ways to engage organizations, parent & alumni your audiences groups, volunteers, regional campaign committees, acquisitionAsk More Often Remember, the golden Face-to-face rule of fundraising: Social Media If you don’t ask, you Expand your circle won’t get! Friend of a friend
  • 9. Increase the Number of DonorsYou must know the magic numbers or you’ll get nowhere fast! 1,000 = # of prior year donors 600 = # of prior year donors who also have made a gift in the current year 60% = Renewal rate based upon 600 prior year donors who gave in current year – out of 1,000. Industry Standard = 70% - 85% depending on the non-profit institution
  • 10. Increase the Number of DonorsQuestions You Should Be Asking•Who is your most cost-effective donor?•Who is most likely tobecome a long-timeconsistent donor?•Who is most likely toincrease giving?•Do you have a leadershipdonor pool?
  • 11. Increase the Number of DonorsRelationship to Institution/Organization What is the donor’s or prospect’s relationship to you/your organization? Group them accordingly Establish hierarchy and dual relationshipsSpecial/Different/Out-of-the-Ordinary/Unique Case for Support – What’s Yours? Segments require unique messagingUnique Objective Segments should have a specific objective based on their needs or preferences
  • 12. Increase the Number of Donors Types of Donors Leadership – increased giving/major gift cultivation Potential Leadership – increase gifts to Leadership Levels Renewing Donors – increase gifts by 30% or more Lapsed Donors – re-activate giving; increasing is secondary in importance Long Lapsed/Sybunts – Even if there is a decrease, re-activate giving Special Event/Phonathon/Memorial-only Donors – Convert! Convert! Convert! to un-restricted annual donors Employee Donors – Renew and increase gift; good example of need for unique messaging
  • 13. Increase the Number of Donors It’s about Segmenting…not Fragmenting  If your appeal does not have a unique message or objective, it’s probably not a good use of your time or the resources you will spend on it! Appeal Codes  We wholeheartedly endorse tracking – as long as the group you are tracking is large enough to produce meaningful results. Segmentation vs. Restricted Giving  Build rapport/a “case” based on donor interest. This does not mean you have to restrict gifts. Your messaging needs to be based upon stated interests.
  • 14. Increase the Number of Donors It is critical that you provide MULTIPLE opportunities to give throughout the year*As long as each preceding effort has been successful, continue to solicit—with direct mail, you should expect that each successive effort will be half of your preceding effortSuggested opportunities per year: Leadership: 3-5 Long-lapsed and Non-donors: 1-2 Potential Leadership: 5-8 Second Gift Appeal: 1-2 Renewals: 5-8 Lapsed Donors: 3-5
  • 15. Increase the Number of DonorsYour Case for Support What does the future hold? Stress the ‘what if’; it’s almost always more powerful than the ‘what was’ or ‘what is’The Art of the Story The head is a regulator of facts and figures (go easy) The heart is where giving comes from Stories that touch the heart, that compel readers to wonder ‘what if?’, are the stories people give to Special OfferPeer-to-Peer is Best “ I gave because…now won’t you?”
  • 16. Increase the Number of DonorsFocus on the Donor – Not your Non-profit Find out what is important to him/herImpact of Gift – ‘What if’ you didn’t give or never gave? Not what the money will buy; what it will mean!Vary the Case for SupportDifferent people give for differentreasons. It’s your job to find out whatthese reasons are and speak to themdirectly
  • 17. Increase the Number of Donors Invest in New Donors to Generate a Future Return • Find them through Direct Mail
  • 18. RenewalsAs you move through the course of the year, the objective changes: INCREASING RENEWING THE GIFT THE GIFT You must Increase giving from renewing donors to balance the “loss” from those who do not renew
  • 19. Increase the Average GiftAsk For More Ask Smarter Increase expectations  Identify your most Convince people to give more capable and willing donors –Askingthe right people to lead the way can pay big dividends  Have a plan of attack: –Ask the right way, at the right time, with the right message, via the right communication channel)
  • 20. Don’t Be “Math Shy”Numbers tell a story— get comfortable with them!  Do the math
  • 21. The Story Is in the NumbersClient A Client B 9,305 donors  6,406 donors $114 Average Gift  $226 Average Gift Increase Average Gift by $10  75,000 Names on list =$93,050 / 8.7% increase  Increase Response Rate by ½ percentage point  =75,000 x .005  =375 new donors x $226  = $84,750 / 5.9% increase
  • 22. Increase the Average Gift Amount # of Donors Gift Income Average Gift 1,000 $100,000 $100Prior Year ResultsThe Average Gift that you must have in order toearn another $100,000 “gift income” at differentRenewal Rates: Renewal Rate # of Donors Average Gift @70% 700 $143 @65% 650 $154 @60% 600 $167
  • 23. Increase the Average Gift If you have a leadership society, establish a “Chair” for communication purposes Sell the benefits that reinforce your case for giving – Example: on-campus activities, leadership society, leadership emails Target mid-range donors and ask for a leadership gift ONLY Treat them like a leadership donor – communications, invitations, etc. that are appropriate Quality solicitation materials – matching the significance of the gift Ask for a specific amount
  • 24. Increase the Average GiftRemember: your best donor is acurrent donor Solicit current year donors for a second gift • Vary the case for support; think “special appeal” • Combined annual giving is what determines giving society levels
  • 25. Thank You!
  • 26. Find listings for our current season of webinars and register at: NonprofitWebinars.comA Service Of: Sponsored by: