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Maximize Your Monthly Committed Giving

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  • 1. Maximize your monthly committed g y y giving gCharity Monte, CFREAndrew Olsen, CFREFebruary 4, 2011
  • 2. Overview • Why build a monthly giving program • It’s good for y g your organization g • It’s good for your donor • How to build a successful program p g • Audience • Timing • Offer • Media channel • Sustaining and stewarding monthly g donors g g y gift2
  • 3. “Monthly giving is perfect for fundraisers because donors love it. They find it easy, convenient and affordable. It enables them to do a lot of good by giving a small amount regularly that they will scarcely miss ” miss. Harvey McKinnon3
  • 4. It’s good for your organization • Increase predictable annual revenue • Improve donor retention • Increase long-term donor value (LTDV) • E Expand f t d future planned gift pipeline l d ift i li4
  • 5. Increase predictable annual revenue • Number of gifts annually from a “single gift” donor? 2.03 2 03 gifts US / 2 11 gifts Canada 2.11 • Average total revenue/donor of $113 annually • Monthly gift donors give an average of 10 gifts per year for a total year, annual revenue per donor of $150. Monthly donors contribute 33% more annual revenue per donor than their single gift counterparts.5
  • 6. Are you leaving money on the table? Active donor file 20,000 20,000 20,000 % giving monthly g g y 2% 5% 5% Monthly givers 400 1,000 1,000 Avg. gift $15.00 $15.00 $25.00 Annual value per donor $180 $180 $300 Total monthly gift income $72,000 $180,000 $300,000 • Target Analytics found monthly sustainers account for 10% of the donor population, contributing 21% of the total income.6
  • 7. Improve donor retention • Average retention rate for Russ Reid Missions? 62% • Retention rates for monthly givers can be as high as 80-95%7
  • 8. Increase long-term donor value • Average LTDV for Russ Reid Missions? $227 US / $400 Canada • LTDV for $15 monthly giver? $750 US = $227 x 400 donors = $90,800 Canada = $400 x 400 d C d donors = $160 000 $160,000 Monthly Givers = $750 x 400 donors = $300,0008
  • 9. Expand your planned gift pipeline • One of the strongest indicators of planned gift likelihood is . . . • Income • Assets • No Children • Loyalty • Age ge • Education9
  • 10. How to build a successful program
  • 11. Audience • Some good news for Missions . . . • Russ Reid s Heart of the Donor ™ study found that 28% of domestic Reid’s poverty donors give at least once per month (loyalty) • Heart of the Donor ™ also found that 22% of domestic poverty donors have committed to a monthly giving program with at least one nonprofit Your donors are 69% more likely to become monthly donors than the overall donor population11
  • 12. Audience • Newly acquired donors • Likelihood to convert to monthly giving decreases the longer a donor is on your file. • Greatest opportunity to convert a single gift donor to a monthly donor is within the first 45-90 days on your file.12
  • 13. Audience • Rapid responders • Donors who contribute 3+ gifts in the first few months of their affiliation with the Mission (acquisition request, thank-you receipt, early cultivation appeal) • F Frequent givers t i • 3 – 8 gifts in the past 12 months13
  • 14. Timing • 45 – 90 days of acquisition gift • As quickly as possible after their third gift within a short timeframe • On their anniversary with your organization • Q Quarterly or yearly t l l14
  • 15. Offer • Fixed amount that relates to their last gifts or total annual support • Any monthly amount they can give • Specific, tangible, ongoing need such as meals • C Consider l id leveraging a matching offer f the first twelve months of i t hi ff for th fi t t l th f support • $10 * 12 months = $ 0 so you g t will actua y p o de $ 0 worth o $ 0 o t s $120 your gift actually provide $240 o t of support to the Mission this year.15
  • 16. Media Channel • Telephone • Online • E-mail appeals • Web pages or micro sites • Upgrade at “checkout” • Direct Mail • Monthly within other mail packages (welcome package, monthly appeals, newsletters, thank-you receipts)16
  • 17. Sustaining and stewarding monthly gift donors • Make them feel like partners • Give them opportunities to upgrade • At their anniversary • When their credit card expires • Include them in “extra gift” appeals • 10-15% will make an extra gift annually • Year-end or at special one-time gift at tax return time • Seasonal, holiday request when need is particularly high17
  • 18. The “ultimate” gift • Monthly givers are some of your most loyal donors. Treat them like insiders and focus on deepening the relationship. • Sustainers are more than twice as likely to make a planned gift commitment than the overall donor population. • Factor this increased planned gift likelihood into your ROI discussions when looking at the costs of launching and maintaining a monthly giving program.18
  • 19. Resources • Harvey McKinnon, Monthly Gift Guru • “Tiny Essentials of Monthly Committed Giving” book • http://harveymckinnon.com/blog • Target Analytics 2009 donorCentrics U.S. Recurring Giving Benchmarking Analysis • “The Ins and Outs of Monthly Giving Programs” article by FundRaising Success • Russ Reid: Heart of the Donor™: Insights into donor motivation and behaviors for the 21st century19
  • 20. Thank YouCharity Monte, CFRE Andrew Olsen, CFREAccount Director Account Directorcmonte@russreid.com aolsen@russreid.com(626) 463-9272 463 9272 (626) 463-9459 463 9459