Its And not Or

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It's and Not or
Danielle Johnson Vermenton, Senior Interactive Consultant, Blackbaud, on the latest trends of online philanthropy and the impact on nonprofits. Learn how online philanthropy is the pipeline for all your fundraising goals - and tips on how to get started.

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Its And not Or

  1. 1. THE PRINCIPLE OF AND, NOT OR BY DANIELLE JOHNSON VERMENTON SR INTERACTIVE CONSULTANT, BLACKBAUD
  2. 2. “CAUTIOUSLY  OPTIMISTIC” Nearly 6 out of 10 charities raised more in 2012 than 2011 (first time since 2006 that more than ½ showed such positive results) 2012 NRC Report of US & Canadian Charities
  3. 3. In the NRC Canadian Study: about 70-80% of responding organizations use 8 of the 10 different fundraising methods. Only online & events increased at half of the responding organizations and at 51 and 50%, BUT direct response only rose 39% (and declined at 20%)
  4. 4. THE STATE OF ONLINE FUNDRAISING ONLINE MARKETING BENCHMARK STUDY 2013 CANADIAN HIGHLIGHTS • Organizations total email file growth was almost 17% • Average online donation $85 • Revenue per usable email $15 (higher than the median) • Sustainer growth 30% • Repeat fundraising growth 20% The source for fundraising most likely to increase continues to be online according to the 2012 NRC Study. 57% of respondents saw an increase in 2012 compared to 2011.
  5. 5. Almost SIX out of every ten donors from the previous  year  DID  NOT  renew  by  year’s  end! Based on the FEP Study from 2012 Key Reasons They Leave o o o o o o No longer able to afford support No memory of ever supporting Did not feel connected to the organization Not asked to give again Other causes are more deserving Never heard how donation was used
  6. 6. A 10% CHANGE IN RETENTION CAN INCREASE THE LIFE TIME VALUE OF A DONOR BASE UP TO 200%. Donors want to be seen as partners and are looking for more meaningful ways of expressing their support than just giving. “With  the  goal  of  building  donor  loyalty  and  maybe  even  creating  a   donor  for  life,  what  do  you  want  the  donor  experience  to  be?” Sources: Dr. Adrian Sargeant and Woodliffe, 2007 and Growing Philanthropy in the US 2011 Study
  7. 7. WHO IS THE NEW NONPROFIT? What characterizes these organizations? nimble  multichannel  technology driven
  8. 8. Key Take-Aways Double digit growth in online revenue and housefiles (housefiles = # of emails) Increasingly preferred method of communication – website, email & social media Retention is a universal challenge for all organizations Competition for supporters is increasing
  9. 9. WHAT ARE YOU DOING TODAY?
  10. 10. HOW DIVERSIFIED ARE YOU? • What does your budget look like? • Are you dependent on one or two main sources? • Is your strategy multichannel? Board Gifts Online Events Direct Mail Major Gifts Planned Giving Grants Budget Goal
  11. 11. TODAY VS TOMORROW So  what’s  your  plan  for  next  year?     What about 5 years? Events Direct Mail Board Online Major Gifts Grants How will you grow while adjusting to the changes? Where will you find new support? And how will you keep it?
  12. 12. IT’S  AND*  NOT  OR? ePhilanthropy doesn’t  replace  direct  mail. It  doesn’t  cannibalize  major  gifts. Online is about acquisition and retention. It opens doors and deepens engagement. *it means smarter work
  13. 13. ONLINE PHILANTHROPY IS YOUR ANNUAL FUND PIPELINE Middle & Major Gifts So  what’s  the  big  picture? Sustained Giving It fuels major gifts, events, sustained giving, direct mail even corporate giving. Online provides deeper, personalized engagement and is the final piece in a multichannel strategy. Grants & Foundation Direct Mail Online & Social Special Events Corporate Giving Planned Giving
  14. 14. THERE IS PROVEN VALUE IN MULTI-CHANNEL ENGAGEMENT New Donor Renewal Rate Donor Value 12 Months Lifetime Donor Value $694 +121% $187 +48% +95% 50.9% $314 $96 34.4% Mail Multi-Channel Mail MultiChannel Mail Sources:  Study  entitled  “Integrating  Online  Marketing  (eCRM)  with  Direct  Mail  Fundraising”  by  Convio  and  StrategicOne Traditional defined as offline use. Internet Enabled defined as both offline and eCRM use. Multi-Channel
  15. 15. WHAT DO CANADIAN DONORS WANT? 43% report giving to 2-3 charities and 18% to 4-5 79% want to know how their gift made a difference AFP Foundation / Ipos Reid Survey 2012 6 in 10 do research before donating 74% believe charities should spend $ on more innovative ways to fundraise
  16. 16. THE GENERATIONS – HOW ARE YOU REACHING THEM?  Gen Y & X: increase in mobile – research, giving, listening  Civics give to more charities, Gen Y & X are choosier and Boomers will outpace everyone (but have a strategy for X)  Social still has a low impact on fundraising, BUT high engagement  All ages are multichannel and open to a mix of channels
  17. 17. SO HOW DO YOU GET THERE?
  18. 18. EMAIL IS KING! Timely  Dynamic  Personalized  Actionable
  19. 19. LET’S  TALK  ABOUT  THE  VALUE  OF  EMAIL $15! As your housefile (# of emails) grows so does the impact to your annual fund in revenue and reach.
  20. 20. LET’S  GET  STARTED!  Think like a supporter  Capture emails  Provide multiple touch points  Say welcome  Have the right tools
  21. 21. THINK LIKE YOUR SUPPORTERS ABOVE THE FOLD Reduced 4x Who would you give your email to?
  22. 22. HAVE MULTIPLE TOUCH POINTS
  23. 23. NOW WHAT DO YOU DO? (You have the email address)
  24. 24. How many people do you think are thanked when they subscribe? What does their journey look like? What do you think that first impression is like for the new subscriber (potential donor)? Email is an agreement between you and the subscriber. Start that relationship with trust and appreciation.
  25. 25. PUT OUT THE WELCOME MAT
  26. 26. ENGAGE THOUGHTFULLY FROM DAY 1 Relevance Curve Email Open Rate 60% 50% 40% 30% Org #1 Org #2 Org #3 20% 10% 0% 1 month 2 to 3 months 4 to 6 months 7 to 12 months Year 2 Year 3 Time on Housefile The honeymoon period to engage new subscribers is greatest in the first 45 days.
  27. 27. Key Take-Aways  Email has economic value  Think like a customer/supporter  An online relationship often starts with just an email  Engage subscribers immediately  Say thank you and stay relevant
  28. 28. WHAT ARE YOU WAITING FOR?
  29. 29. GETTING STARTED Evaluate your resources and tools. Middle & Major Gifts Sustained Giving Is your donor database in order? Is your website user friendly & responsive? Is your online marketing and fundraising software doing the job? Are you capturing emails in multiple places? Is there a welcome mat? Grants & Foundation Direct Mail Online & Social Special Events Corporate Giving Planned Giving
  30. 30. RESOURCES The Next Generation of Canadian Giving https://www.blackbaud.com/nonprofit-resources/generational-giving-report-canada What Canadian Donors Want: AFP Foundation / Ipsos Reid Survey http://www.afpnet.org/Audiences/ReportsResearchDetail.cfm?itemnumber=11841 NRC 2012 Study of Canadian & US Charities http://www.afpnet.org/Audiences/ReportsResearchDetail.cfm?ItemNumber=16703 2013 Luminate Online Benchmark Study https://www.blackbaud.com/nonprofit-resources/onlinemarketingstudy Integrating Online Marketing (eCRM) with Direct Mail Fundraising Whitepaper http://www.strategic-one.com/Integrated_Marketing_White_Paper.pdf Landing Page Optimization (Is your donation form working?) http://www.optimizeandprophesize.com/jonathan_mendezs_blog/2007/02/7_rules_for_lan.html What is Luminate Online? https://www.blackbaud.com/online-marketing/luminate-online

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