Using the Fundraising Funnel to
Maximize Your Fundraising
Presented by Joe Garecht
TheFundraisingAuthority.com
Joe Garecht
 Founder, The Fundraising Authority
 Author of The Non-Profit Fundraising Formula and The Silent Auction
Han...
Jay B. Love
CEO and Co-Founder of Bloomerang
• 30 Years of Technology Leadership
• Over 20,000 Database Installations
• Fo...
The Donor Funnel
Prospect
Cultivate
Ask
Steward
4
The Donor Funnel
PROSPECTING
CULTIVATION
ASKING
STEWARDSHIP
5
Step #1: Prospecting
6
Step #1: Prospecting
7
Step #1: Prospecting
8
Step #1: Prospecting
9
The BEST way to find new
prospects:
REFERRALS
Step #1: Prospecting
10
The NEXT best way to find new
prospects:
Non-Ask Events!
Step #2: Cultivation
11
Step #2: Cultivation
Relationships are built
between PEOPLE.
12
Step #2: Cultivation
How Do You Build
Relationships?
13
Step #3: Asking
14
Step #3: Asking
15
Step #3: Asking
What is your donor thinking?
16
Step #3: Asking
What is an ASK?
17
18
How to Handle Donor Objections
19
Make sure you understand the
objection.
Restate the question and
validate the concern....
Step #4: Stewardship
20
Step #4: Stewardship
Keep
In
Touch
21
Final Piece of the Puzzle
Effective use of a Donor Database allows the
“Donor Funnel” process to be a natural
progression ...
“Engagement” is the Linchpin
The word "linchpin" is also used figuratively to mean
"something [or someone] that holds the ...
Engagement is the KEY
To Donor Retention!
Yes, your eyes read correctly:
Over SIX out of every TEN Donors
from the previous year did NOT
donate at all the next year!
CUE THE EXPERTS:
Dr. Adrian Sargeant
Bloomerang Chief Scientist
Professor of Fundraising at the Center on
Philanthropy at ...
DONOR RETENTION BEST PRACTICES
Dr. Adrian Sargeant
Bloomerang Chief Scientist
“A 10% improvement in retention can double
t...
Donor Retention Made Simple
30
6 Key Retention Drivers
(That can double lifetime value)
• Drip feed mission performance data
• Connect often
• Be persona...
# of Donors in Current 12 Months
(from the previous years pool)
Divided by
# of Donors in Previous 12 Months
Calculating Y...
Donor Retention Meter
• The Dow Jones of your database
• Measures back exactly 365 days
• Reflects changes daily, weekly a...
“The total net contribution that a
customer/donor generates during
his/her lifetime in your database”
Defining Lifetime Va...
$1000 +
$500 - $1000
$100 - $500
$25 and under annually
$25 - $100
Value
36
Value Segments »
Time
Automatic Engagement Factors
• Recency and pattern of
giving
• Cash donors vs.
sustaining donors
• # of years giving +
• U...
Engagement Level Graph
• The Donor “thermometer” of your database
• Updated automatically daily
• Adrian’s expert formulas...
What is the
donor’s
engagement
over time!
Highlight vital “retention” information
---
Timeline Highlights
• If you use Facebook you know it
• Everyone can use
• Adrian’s expert formulas/algorithms
• No user s...
Engagement Begins With The Thank You!
DONOR COMMUNICATION BEST PRACTICES
Mr. Tom Ahern
Bloomerang Donor Communications
Head Coach
"Successful direct mail appeal...
5 Acknowledgment Principles
(Drastically Improve First Year Donor Retention)
• 48 Hour Rule
• Be Different Than the Rest
•...
5 Communication Strategy Practices
(Involve Your Entire Fundraising Team)
• Fully Map a Track for Each Key Segment
• Surve...
Questions?
51
Joe Garecht
The Fundraising Authority
www.TheFundraisingAuthority.com
215.839.9085
joe@thefundraisingauthori...
Next Webinar
10/22 – 1pm
Keith Curtis
Recruiting and Building a
Strong Board
https:bloomerang.co/resources/webinars
Using the Fundraising Funnel to Maximize Your Fundraising
Using the Fundraising Funnel to Maximize Your Fundraising
Using the Fundraising Funnel to Maximize Your Fundraising
Using the Fundraising Funnel to Maximize Your Fundraising
Using the Fundraising Funnel to Maximize Your Fundraising
Using the Fundraising Funnel to Maximize Your Fundraising
Using the Fundraising Funnel to Maximize Your Fundraising
Using the Fundraising Funnel to Maximize Your Fundraising
Using the Fundraising Funnel to Maximize Your Fundraising
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Using the Fundraising Funnel to Maximize Your Fundraising

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Joe Garecht, founder of The Fundraising Authority and author of two books on fundraising, will outline the strategy that has helped him raise over $30 million during his fundraising career.

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  • Transcript of "Using the Fundraising Funnel to Maximize Your Fundraising"

    1. 1. Using the Fundraising Funnel to Maximize Your Fundraising Presented by Joe Garecht TheFundraisingAuthority.com
    2. 2. Joe Garecht  Founder, The Fundraising Authority  Author of The Non-Profit Fundraising Formula and The Silent Auction Handbook  Have raised over $30 million during my fundraising career 2
    3. 3. Jay B. Love CEO and Co-Founder of Bloomerang • 30 Years of Technology Leadership • Over 20,000 Database Installations • Former Founder & CEO of eTapestry • Former CEO of Master Software/Fund-Master • AFP Board Member • Chairman AFP Ethics Committee • Center on Philanthropy at IU Board Member • Innovation Fund at Butler University Board Member • Gleaners Food Bank Board Member • Co-Chair of Indianapolis YMCA Capital Campaign 3
    4. 4. The Donor Funnel Prospect Cultivate Ask Steward 4
    5. 5. The Donor Funnel PROSPECTING CULTIVATION ASKING STEWARDSHIP 5
    6. 6. Step #1: Prospecting 6
    7. 7. Step #1: Prospecting 7
    8. 8. Step #1: Prospecting 8
    9. 9. Step #1: Prospecting 9 The BEST way to find new prospects: REFERRALS
    10. 10. Step #1: Prospecting 10 The NEXT best way to find new prospects: Non-Ask Events!
    11. 11. Step #2: Cultivation 11
    12. 12. Step #2: Cultivation Relationships are built between PEOPLE. 12
    13. 13. Step #2: Cultivation How Do You Build Relationships? 13
    14. 14. Step #3: Asking 14
    15. 15. Step #3: Asking 15
    16. 16. Step #3: Asking What is your donor thinking? 16
    17. 17. Step #3: Asking What is an ASK? 17
    18. 18. 18
    19. 19. How to Handle Donor Objections 19 Make sure you understand the objection. Restate the question and validate the concern. Answer the objection.
    20. 20. Step #4: Stewardship 20
    21. 21. Step #4: Stewardship Keep In Touch 21
    22. 22. Final Piece of the Puzzle Effective use of a Donor Database allows the “Donor Funnel” process to be a natural progression of the relationship . . .
    23. 23. “Engagement” is the Linchpin The word "linchpin" is also used figuratively to mean "something [or someone] that holds the various elements of a structure together."
    24. 24. Engagement is the KEY To Donor Retention!
    25. 25. Yes, your eyes read correctly: Over SIX out of every TEN Donors from the previous year did NOT donate at all the next year!
    26. 26. CUE THE EXPERTS: Dr. Adrian Sargeant Bloomerang Chief Scientist Professor of Fundraising at the Center on Philanthropy at Indiana University holding what is presently the world’s only endowed chair in that discipline. Top 10 Most Influential People in Fundraising Renowned expert on Donor Retention and Donor Loyalty Mr. Tom Ahern Bloomerang Donor Communications Head Coach One of the world’s top authorities on donor communications Author of 4 books on Donor Communications Winner of 3 prestigious international IABC Gold Quill awards
    27. 27. DONOR RETENTION BEST PRACTICES Dr. Adrian Sargeant Bloomerang Chief Scientist “A 10% improvement in retention can double the LIFETIME value of your donor database!”
    28. 28. Donor Retention Made Simple 30
    29. 29. 6 Key Retention Drivers (That can double lifetime value) • Drip feed mission performance data • Connect often • Be personal (SEGMENT) • Develop like a good personal friendship • Find & use numerous human connectors • Always communicate what monies are doing!
    30. 30. # of Donors in Current 12 Months (from the previous years pool) Divided by # of Donors in Previous 12 Months Calculating Your Retention Rate »
    31. 31. Donor Retention Meter • The Dow Jones of your database • Measures back exactly 365 days • Reflects changes daily, weekly and monthly • Automatic, no guesswork • What is watched is addressed
    32. 32. “The total net contribution that a customer/donor generates during his/her lifetime in your database” Defining Lifetime Value
    33. 33. $1000 + $500 - $1000 $100 - $500 $25 and under annually $25 - $100 Value 36 Value Segments » Time
    34. 34. Automatic Engagement Factors • Recency and pattern of giving • Cash donors vs. sustaining donors • # of years giving + • Upgrade / Downgrade + - • Lapsed - • Event attendance + • Opens email + • Click links in emails + • Unsubscribes from email - • Has stated communication preferences + • Has inbound interactions + • Has soft credits + • Volunteers + • Social Media (coming soon) • …and a whole lot more!
    35. 35. Engagement Level Graph • The Donor “thermometer” of your database • Updated automatically daily • Adrian’s expert formulas/algorithms • No user set-up required! • Easy to filter and report on • Springboard for major/legacy giving
    36. 36. What is the donor’s engagement over time! Highlight vital “retention” information ---
    37. 37. Timeline Highlights • If you use Facebook you know it • Everyone can use • Adrian’s expert formulas/algorithms • No user set-up required! • Perfect for a smart phone or tablet • Access ever donor “touch point” in seconds
    38. 38. Engagement Begins With The Thank You!
    39. 39. DONOR COMMUNICATION BEST PRACTICES Mr. Tom Ahern Bloomerang Donor Communications Head Coach "Successful direct mail appeals are quite simple. At heart, they are love letters to donors & prospects, woven through with clear cries for help."
    40. 40. 5 Acknowledgment Principles (Drastically Improve First Year Donor Retention) • 48 Hour Rule • Be Different Than the Rest • Handwritten Rule Written Communications • State Exactly What the Monies will Fund • Call or See in Person as Often as Possible
    41. 41. 5 Communication Strategy Practices (Involve Your Entire Fundraising Team) • Fully Map a Track for Each Key Segment • Survey in 1st 90 Days, Then “Honor” • Involve Human Connectors • Nurture Means Personal • Never Forget the “You” Test for EVERY “Touch”
    42. 42. Questions? 51 Joe Garecht The Fundraising Authority www.TheFundraisingAuthority.com 215.839.9085 joe@thefundraisingauthority.com Jay B. Love Bloomerang www.bloomerang.co 317-513-8000 jay.love@bloomerang.co
    43. 43. Next Webinar 10/22 – 1pm Keith Curtis Recruiting and Building a Strong Board https:bloomerang.co/resources/webinars
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