Artez Interactive - From Donor Acquisition to Fundraising: Performance Benchmarks for Nonprofits

  • 2,282 views
Uploaded on

What do the numbers say about donor giving over the last five years? What are the trends in annual donation? Donations by channel? Average gifts? One time gifts? This one hour webinar, featuring the …

What do the numbers say about donor giving over the last five years? What are the trends in annual donation? Donations by channel? Average gifts? One time gifts? This one hour webinar, featuring the findings from Cornerstone's Global File Audit will give you the stats and analysis needed to maximize your fundraising programs.

The Global File Audit created by Cornerstone provides benchmark results for direct response fundraising programs over a 5 year period (2005 -2009) and identifies both industry and sector trends. The rich, historical data that was provided allowed for the segmentation of donors that is the basis of many of the reports found within the Global File Audit.

The baseline and trend data can be used to provide insight when building new strategies for the future and will become an essential tool for fundraisers when creating strategic plans and planning resource allocation.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
2,282
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
44
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. From Donor Acquisition to Fundraising: Performance Benchmarks for Nonprofits
  • 2. Our Presenters Wes Moon Ian Hembery Business Development Manager Vice President Cornerstone Group Business Development of Companies Artez Interactive
  • 3. Webinar Tips  This webinar is being recorded and will be available on our website shortly  If you have any technical troubles, please use the “chat” feature  We will take all questions at the end. Please use the “raise hand” or “chat” feature to ask a question.
  • 4. From Donor Acquisition to Fundraising: Performance Benchmarks for Nonprofits
  • 5. Objectives for Today's Session  Understanding of the Cornerstone Global File Audit  Review Global Fundraising Trends in Direct Response  One Time Gift Donor Benchmarks  One Time Gift Channel Conversions  Monthly Gift Donors Trends
  • 6. Global File Audit Overview  Global File Audit reviews provides benchmark results over a 5 year period (2005 – 2009)  Analyze $695 million dollars from 25 million donations  Two main donor groups are analyzed: One Time Gift Donors (OTG)  Monthly Gift Donors (Pre-authorized or PA)
  • 7. Data Criteria – What is Excluded  The Audit focuses on direct response results, all else is excluded  Donor Exclusions  $1000 Single Transaction  Gift Exclusions:  Tribute Gifts (In Memory, In Honour)  Memberships Payments  Product Purchases  Special Event Donations
  • 8. OTG and PA Donors Combined 2005-2009 1 Year 4 Year 2005 2006 2007 2008 2009 % Change % Change Total Donors 2,154,856 2,037,014 2,018,373 2,008,841 1,881,016 -6.4% -12.7% Total Gifts 4,873,248 4,969,290 5,199,516 5,419,393 5,394,612 -0.5% 10.7% Total Revenue $139,435,682 $131,218,430 $138,418,016 $144,024,353 $142,395,503 -1.1% 2.1% Total Number of Donors by Year Total Revenue by Year $144,024,35 2,154,856 $142,395,50 3 3 $139,435,68 $138,418,01 2,037,014 2,018,373 2 6 2,008,841 1,881,016 $131,218,43 0 2005 2006 2007 2008 2009 20052005 20062006 20072007 20082008 20092009
  • 9. Overall Trend Analysis  With the exception from 2009, Not for Profits are raising more each year from fewer donors  Revenue per donor (Calendar Year) has increased substantially since 2005 ($65 to $76)  The 17% increase in revenue per donor increased come from:  Larger One Time Gifts  Growth in Monthly Donor programs
  • 10. One Time Gift Donors 2005-2009 2005 2006 2007 2008 2009 1 Year 4 Year % Change % Change Total Donors 1,889,771 1,747,138 1,699,068 1,676,750 1,541,769 -8.1% -18.4% Total Gifts 2,524,903 2,317,443 2,256,117 2,230,770 2,084,419 -6.6% -17.4% Total Revenue $100,218,106 $87,657,409 $87,673,954 $87,958,652 $83,823,286 -4.7% -16.4% Total Revenue by Year Total Number of Donors by Year 1,889,771 $100,218,10 1,747,138 6 1,699,068 1,541,769 1,676,750 $87,673,954 $87,657,409 $87,958,652 $83,823,286 2005 2006 2007 2008 2009 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009
  • 11. One Time Gift Trend Analysis  5 year decline pronounced for two main reasons:  2005 - International Relief Organizations and emergency donations in support of the tsunami inflated results  2009 - Due to the recession many charities cut back significantly on mailings  A new trend in OTG Donors? Shrinking file sizes.  Fewer donors are being added annually  Not enough previous donors are retained to make up the difference
  • 12. OTG Channel Summary 2005-2009 Overall Revenue By Channel  2009 Direct Mail Stats: $120,000,000 $120  Gifts: 1,877,006  Revenue: $69,654,801 $100,000,000 $100  Rev/Donor: $50.74 $80,000,000 $80 $60,000,000 $60  2009 Online Stats:  Gifts: 81,671 $40,000,000 $40  Revenue: $6,540,773 $20 $20,000,000 Rev/Donor: $91.95 $0 $0 2005 2006 2007 2008 2009 Direct Mail Revenue Telemarketing Revenue Direc WEB Revenue Direct Dialog Revenue WEB DRTV Revenue Other/Unknown Revenue DRTV
  • 13. One Time Gift Channel Analysis  Direct Mail is Still King for One Time Gifts:  83% of revenue generated through DM activities  Up 2% (81%-83%) from 2005  Is online an emerging channel?  Much higher average gift than DM ($37 vs. $81)  One of the few channels that experienced growth in 2009  Very low retention rates when compared to mail  1st year renewal rate: Mail 39% vs. Online 9%
  • 14. OTG Donors Acquisition 2005-2009 New Donors by Year 650,000 621,928 600,000 541,559 550,000 527,313 513,404 500,000 450,000 421,353 400,000 2005 2006 2007 2008 2009  New donor acquisition declined significantly in 2009, down 18% from 2008.  Matches charitable industry prospecting activity (down 25%)1. 1 See Cornerstone Quarterly Activity Report here: http://cstonecanada.com/publications/whitepapers.asp
  • 15. OTG New Donor Channel Summary 2005-2009 Overall Revenue By Channel  2009 Direct Mail Stats: $35,000,000 $120  Gifts: 368,905 $30,000,000  Revenue: $11,268,773 $100  Rev/Donor: $35.88 $25,000,000 $80 $20,000,000 $60  2009 Online Stats: $15,000,000  Gifts: 51,577 $40 $10,000,000  Revenue: $3,954,483 $20 Rev/Donor: $83.51 $5,000,000 $0 $0 2005 2006 2007 2008 2009 Direct Mail Revenue Telemarketing Revenue Direct M WEB Revenue Direct Dialog Revenue WEB A DRTV Revenue Other/Unknown Revenue DRTV A
  • 16. OTG New Donor Channel Analysis  Direct Mail Prospecting Activity Declined  2009 mail volume decreased by 25% from 2008  Direct Mail Campaign Performance Improved 2008 vs. 2009  Response rate: 6.96% change  Revenue per responder: 5.10% change  Revenue per mail piece: 12.42% change  Is online an emerging channel?  Web revenue now represents 21% new donor revenue
  • 17. 1st Year Donor Renewal 2005-2009 First Year Donor Renewal Rates by Year 2009 31.1% 2008 33.8% 2007 34.7% 2006 31.6% 2005 37.4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%  This statistic has the greatest variance between sectors and charities for any donor renewal segment. (+/- 20%)  Donor stewardship plays a significant role when renewing this audience
  • 18. 2nd Year Donor Renewal 2005-2009 Two Year Repeat Donor Renewal Rates by Year 2009 51.4% 2008 52.3% 2007 51.3% 2006 51.9% 2005 55.2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%  Renewal rates increase as donors become more loyal  Less variance between sectors/charities (+/- 10%)  2nd year donor performance is slightly less than the more loyal 3yr+
  • 19. Long Term Repeat Donor Renewal 2005-2009 Long-Term Repeat Donor Renewal Rates by Year 2009 69.1% 2008 69.6% 2007 68.8% 2006 69.1% 2005 71.4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%  Renewal rates increase as donors become more loyal  Little variance between sectors/charities (+/- 5%)  3 year+ donors generated $32,659,461 of revenue and remains strong despite slightly reduced activity and economic factors
  • 20. Lapsed Donor Reactivations 2005-2009 1 Year 4 Year Total Lapsed Renewals 2005 2006 2007 2008 2009 % % Change Change Total # OTG Donors in Year 1,889,771 1,747,138 1,699,068 1,676,750 1,541,769 -8.1% -18.4% Reactivated 285,555 250,033 255,305 269,837 259,241 -3.9% -9.2% % Reactivation of OTG 15.1% 14.3% 15.0% 16.1% 16.8% 4.5% 11.3% Total Revenue $12,902,699 $11,472,012 $12,058,759 $13,087,366 $12,732,217 -2.7% -1.3% Revenue/Donor $45.18 $45.88 $47.23 $48.50 $49.11 1.3% 8.7% % Lapsed Reactivation of All OTG Donors by Year 2009 9.4% 3.1% 1.5% 2.8% 2008 9.1% 3.3% 1.4% 2.3% 2007 8.8% 2.7% 1.3% 2.1% 2006 8.3% 2.6% 1.2% 2.2% 2005 8.7% 2.8% 1.6% 2.0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Lapsed One Year Two Years Three Years Four+ Years
  • 21. Long Term Repeat Donor Renewal 2005-2009 Reactivated Donor Renewal Rates by Year 2009 42.8% 2008 43.0% 2007 42.2% 2006 41.1% 2005 45.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%  Outperforms 1st year donor rates (31.1%)  Many lapsed donors do not live where you think they live!
  • 22. Donor Retention Rates by Acquisition Channel 40.00% 35.00% 30.00% 25.00% Direct Mail 20.00% Telemarketing Web 15.00% Direct Dialogue 10.00% 5.00% 0.00% 1st Year 2nd Year 3rd Year 4th Year
  • 23. Revenue by Acquisition Channel $140.00 $120.00 $100.00 $80.00 Direct Mail $60.00 Telemarketing Web $40.00 Direct Dialogue $20.00 $0.00 Average Gift Average Lifetime Value (5 years)
  • 24. Multi-Channel Donors 100.00% 40.00% 35.00% 80.00% 30.00% 25.00% 60.00% 20.00% 40.00% 15.00% 10.00% 20.00% 5.00% 0.00% 0.00% % of Donors Who Only Used One Channel % of Donors Who Used at Least Two Channels Direct Mail Telemarketing Web Direct Dialogue Direct Mail Telemarketing Web Direct Dialogue  Donors demonstrate a strong tendency to donate via their acquisition channel  Pulls towards direct mail because of the activity of participants in the study
  • 25. Revenue Per Donor, Single vs Multi-Channel Donors $300.00 $250.00 $200.00 Direct Mail $150.00 Telemarketing Web $100.00 Direct Dialogue $50.00 $0.00 Single Channel Multi-Channel
  • 26. Monthly Gift Donor Summary 2005-2009 1 Year 4 Year 2005 2006 2007 2008 2009 % Change % Change Total Donors 265,085 289,876 319,305 332,091 339,247 2.2% 28.0% Total Gifts 2,348,345 2,651,847 2,943,399 3,188,623 3,310,193 3.8% 41.0% Total Revenue $39,217,576 $43,561,020 $50,744,062 $56,065,702 $58,572,217 4.5% 49.4% Gifts/Donor 8.86 9.15 9.22 9.60 9.76 1.6% 10.1% Average Gift $16.70 $16.43 $17.24 $17.58 $17.69 0.6% 6.0% Revenue/Donor $147.94 $150.27 $158.92 $168.83 $172.65 2.3% 16.7% Total Number of Donors by Year Total Revenue by Year 332,091 339,247 $58,572,217 319,305 $56,065,702 289,876 $50,744,062 265,085 $43,561,020 $39,217,576 2005 2006 2007 2008 2009 2005 2006 2005 2007 2006 2008 2007 2009 2008 2009 2005 20
  • 27. Monthly Donors Acquisition 2005-2009 New Donors by Year 80,000 71,033 70,000 65,645 63,422 58,968 60,446 60,000 50,000 40,000 30,000 20,000 10,000 0 2005 2006 2007 2008 2009  Large number of new PA Donors added in each of the past 5 years through two main strategies:  “Direct dialog” or “face to face”  Telemarketing conversion from direct mail donors
  • 28. New PA Donor Channel Summary 2005-2009  2009 Direct Mail Stats: Overall Revenue By Channel  Revenue: $1,418,413 $30  Rev/Donor: $116.92 $8,000,000 $7,000,000 $25 2009 Telemarketing Stats: $6,000,000  Revenue: $407,374 $20 $5,000,000  Rev/Donor: $80.57 $4,000,000 $15 2009 Online Stats: $3,000,000 $10  Revenue: $484,474 $2,000,000  Rev/Donor: $149.30 $5 $1,000,000 2009 Direct Dialog Stats: $0 $0 20 2005 2006 2007 2008 2009  Revenue: $3,778,988 Direct Mail Revenue Telemarketing Revenue Direct Ma WEB Ave  Rev/Donor: $91.37 WEB Revenue DRTV Revenue Direct Dialog Revenue Other/Unknown Revenue DRTV Av
  • 29. PA Donor Retention Rates by Acquisition Channel 100.00% 90.00% 80.00% 70.00% 60.00% Direct Mail 50.00% Telemarketing 40.00% Web 30.00% Direct Dialogue 20.00% 10.00% 0.00% 1st Year 2nd Year 3rd Year 4th Year
  • 30. Revenue by Acquisition Channel $900.00 $800.00 0 .8 $700.00 29 $8 $600.00 5 Direct Mail .9 38 $500.00 3 Telemarketing $6 .8 57 $400.00 Web $5 8 .1 $300.00 42 Direct Dialogue $4 $200.00 $100.00 $0.00 Average Lifetime Value (After 5 years)
  • 31. Review of Today's Session  Fewer donors are giving more  One time gift programs had less activity and less revenue, however 2009 campaigns outperformed 2008  Decreased activity for 2009 prospecting campaigns may hurt loyalty programs in future years  Donor retention rates remain high for DM acquired donors and very low of online acquired donors
  • 32. Review of Today's Session  Donors are demonstrating a channel preference with their first gift  Charities are focusing on growing monthly donor programs  Lifetime value of monthly donors more than 5 times that of a one time gift donor  Direct Mail acquired donors perform well when converted to monthly
  • 33. Questions? Wes Moon 416-932-9555 x146 wmoon@cstonecanada.com
  • 34. More Webinars for You Nonprofits & Corporate Partners: Tips for boosting your brand through their social media channels (feat. Geyser Marketing Group) May 27th @ 1 pm ET (North America) Register at www.artez.com Check out more webinars at www.artez.com/webinar_library
  • 35. Contest May Month of Madness at Artez We want you to “like” us on Facebook to keep up on the latest news about Artez events & product enhancements, but we also want you to get something extra-awesome… Like us on Facebook and when we post this week’s book - be the first person to post a comment on our posted link! And, it’s yours! We’ll mail it to you wherever you are. Last week’s winner was from North Carolina!
  • 36. Thank you /artezinteractive @artezonline “Digital Fundraising Podcast” on iTunes