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Cultivating Mid-Level Donors
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Cultivating Mid-Level Donors

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  • Start/EGK intro
    2 minutes

    Time allowed: 75 mins
    Attendees: 40, CEOs/EDs/VPs, etc
     
  • 2 minute
    Survey re who is in the room – CEO, VP, CDO, etc.
  • 3 minutes

    -Why is this important to you?
    - money left on table
    - donors are ready for taking to the next level
    - competition is tough – spend time on what will have the greatest ROI
    Nonprofits are missing out on money
    They’re overlooking a committed and productive audience: middle donors
    These are donors who give more than low-dollar direct marketing donations, but less than major gift targets
    -Your mid-level program is all about dollar amount
    - Folks who give more than a token gift
    - Haven’t entered your classification of major donors (usually around $250-$9,999 annually)
    -Many fundraisers and experts agree that mid-level donors are exceptionally valuable
    -Many also agree that orgs haven’t made investments necessary to make the most of this immense opportunity
    -Major donor classification survey – how do attendees classify major donors?

  • 2 minutes
  • 2 minutes

    Lackluster treatment
    MLD=middle child
    Neglect leads to reduced retention and inadequate major donor pools
  • 5 minutes

    Leadership
    Adjust strategies and investment priorities to bridge the gap
    Create teams that can collaborate to:
    a. Prospect and upgrade donors to a mid-level;
    b.Care and nurture for donors at this level (mix all types of donor tactics)
    c.Create a pipeline of future major donors; and,
    d.Measure success

    Staff
    -Assign credit
    -have metrics
    -reduce ask frequency

    Silos
    MGOs as masters of the personal touch – birthdays, articles, rich/sophisticated communication; but timing is uncertain and scaling is tough
    Internet as master of broad communication but impersonal
    -Direct marketing great at analytics, broad communication, high volume; but impersonal and one dimensional

    Content
    Substance, consistency, focus on stewardship, branding

    Time
    -results take time
    -must listen to donors and what they want
  • 3 minutes
  • 10-15 minutes

    Group activity – partner up (2 or 3 people) to discuss your organizations ability to create a MLDP based on the 5 program strategies
    Scale of 1 to 5 (5 being best) for each
    Choose one or two to discuss
    Come back together and share info
  • 2 minutes

    -Abundance all around, especially with individuals
    -MLD must be motivated and taped
    -$316 billion is what was given philanthropically in 2012 – that’s not our limit; philanthropy has been stagnant (2% of GDP) for the last many years
  • 1 minutes

    How much will this cost?
    What is the ROI?
    Will I have to give it time?
    Is more staff required?
    etc.
  • 3 minutes
  • 3 minutes
  • Donor segmentation by tier allowed us to develop a customized work plan for donor cultivation based on recent giving history and wealth capacity. These efforts should be complemented with personal cultivation, donor visits, donor receptions, etc. Understanding the importance of ROI, we more deeply analyzed the file and prioritized the portfolio across all tiers in order to guide the strategy for personal cultivation. The donors were prioritized based on the following criteria:
     
    Priority A – Major Donors (last gift of $2,500+ or lifetime giving of $10,000+)
    Priority B – Mid-Major Donors (last gift of $1,000-$2,499 or lifetime giving of $5,000-$9,999)
    Priority C – Middle Donors (last gift of $500-$999 or lifetime giving of $1,000-$4,999)
  • 1 minute
  • 15 minutes
  • End

Transcript

  • 1. Cultivating Mid-Level Donors Emma Kieran, Vice President, Fundraising and Development, Orr Associates, Inc. (OAI) 2014 Nonprofit Empowerment Summit Giving It Our All!
  • 2. CULTIVATING MID-LEVEL DONORS Presented by Emma Gilmore Kieran RAFFA CONFERENCE JUNE 3, 2014
  • 3. Agenda  Mid-level Donor (MLD) Overview: Who Are They?  Top 5 Program Necessities  Program Benefits  Group Discussion  30 Day Plan  Q&A
  • 4. MLD Overview: Who Are They?  Most Committed and Loyal Donors Ripe for retention Believe in your cause Strong upgrade potential  Significant Income Potential Donors @ $1k - $10k 1% of Donor Population 1/3 of $ Given
  • 5. Top 5 Program Necessities Leadership Capacity Staff Bandwidth Anti-silo Structur e Meaningful Content Time to Evaluat e
  • 6. Program Benefits ROI Tap into income potential Increase retention Tailor program to needs
  • 7. Create Your 30 Day Plan WEEK ONE  Grade your organization on the 5 program strategies  Get buy-in from key leaders WEEK TWO  Choose one or two items for immediate change  Commit to execution and design reporting structure  Look at costs and staffing WEEK THREE  Devise plan for second tier changes
  • 8. 30 Day Plan WEEK FOUR  Devise a 6- to 12-month plan for costly changes ONGOING  Be patient  Report out often  Create metrics
  • 9. Mid-Level Donor Prospect Matrix Touch Effort Tier % of Effort and Investmen t Strategy Cultivation and Solicitation Approach Desired Outcomes HighTouch High 1 50% Very Personal Strategic Moves Upgrade to Major Gift Donor Medium 2 30% Upgrade to Tier 1 Donor Low 3 20% Less Personal Tactical Moves Upgrade to Tier 2 Donor
  • 10. More Information http://seachangestrategies.co m/missing-middle/
  • 11. Q&A 18
  • 12. Thank You! 19 Contact Info: Emma Gilmore Kieran Vice President, Fundraising and Development Orr Associates, Inc. ekieran@oai-usa.com 202-719-8056