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RETAINING DONORS THROUGH TOUGH ECONOMIC TIMES Presented by Sean Triner © Pareto Fundraising 2009
<ul><li>My favourite Charity:  The Sumba Foundation </li></ul><ul><li>How you support:  Regular gift from credit card & oc...
© Pareto Fundraising 2009
What’s happening right now?  © Pareto Fundraising 2009
© Pareto Fundraising 2009
© Pareto Fundraising 2009
Individual/Organisational giving trends Base: Total gross income,  excluding  Bequest and Events to give underlying trend ...
© Pareto Fundraising 2009
Gross Income trend – Ind. Vs Org. Base: All donors © Pareto Fundraising 2009
Sources of individual giving Base: All individual giving © Pareto Fundraising 2009
Gross income by channel - cash Base: All individual cash giving © Pareto Fundraising 2009
Tax Appeal change +ve -ve © Pareto Fundraising 2009
Major Donors – Gifts $1,000+ Base: All cash gifts $1,000+ in 2008 from individuals © Pareto Fundraising 2009
New donors since 2000 Base: All individuals © Pareto Fundraising 2009
Cash gift acquisition volume trend © Pareto Fundraising 2009
Regular gift acquisition volume trend © Pareto Fundraising 2009
Gross income trend Base: All donors © Pareto Fundraising 2009
Changes in Cash and RG income Base: All individuals © Pareto Fundraising 2009
© Pareto Fundraising 2009
© Pareto Fundraising 2009
 
© Pareto Fundraising 2009 Trusts 10% Posh ball 40% Appeals 45% Corporate 15%
Vulnerability Index © Pareto Fundraising 2009 Very Important Insignificant Very vulnerable Relatively safe
SWOT © Pareto Fundraising 2009
<ul><li>Developed 22 Christmas appeals  </li></ul><ul><ul><li>In Australia, NZ, Hong Kong and Canada  </li></ul></ul><ul><...
Internal  v External © Pareto Fundraising 2009
<ul><li>Thanked just 66% of the time </li></ul>Customer care 47% of monthly gifts not set up Complaint resolved 62% of occ...
Crisis or Opportunity? © Pareto Fundraising 2009
Crisis or opportunity? © Pareto Fundraising 2009
© Pareto Fundraising 2009 Avoiding Recession Suicide
© Pareto Fundraising 2009 Practice good relationship management with donors and please don’t ignore them.
What do our donors want? M eet me U nderstand me V alue me R emember me © Pareto Fundraising 2009
Donors being ignored © Pareto Fundraising 2009
Good relationship management © Pareto Fundraising 2009
Find out who they are © Pareto Fundraising 2009
Make it personal © Pareto Fundraising 2009
Make it personal © Pareto Fundraising 2009
Give feedback © Pareto Fundraising 2009
Thank properly © Pareto Fundraising 2009
© Pareto Fundraising 2009
It’s worth the effort  –  long term © Pareto Fundraising 2009
© Pareto Fundraising 2009 Don’t sacrifice long term gain for  short term savings.
It’s now or never  © Pareto Fundraising 2009
Smarter ,  rather than less acquisition  © Pareto Fundraising 2009
Smarter,   rather then less activity <ul><ul><li>Trim “fat” or areas that offer marginal returns and protect the muscle </...
Don’t sacrifice long term for short term <ul><li>“ We normally send a bequest mailing in April, but this year we are scrap...
Don’t sacrifice long term for short term Now have over 1,500  confirmed bequestors © Pareto Fundraising 2009
Don’t sacrifice long term for short term BUT, only now  reaping the rewards © Pareto Fundraising 2009
© Pareto Fundraising 2009 Focus on the things that will  have the biggest impact .
It’s all about the 80/20 rule © Pareto Fundraising 2009
Growth: Regular giving and bequests © Pareto Fundraising 2009 443M 394M 345M 295M 246M 197M 147M 98M 49M
© Pareto Fundraising 2009
Pareto Principle  © Pareto Fundraising 2009 Decile Cumulative Gross Income Count Cumulative Count % of Donors Cumulative %...
© Pareto Fundraising 2009
Spend time where it makes a difference  © Pareto Fundraising 2009
Spend time where it makes a difference  © Pareto Fundraising 2009 Impact of spending time and effort  on a small group – 4...
© Pareto Fundraising 2009 Getting the balance right.  Cost v value.
Cost of fundraising incl bequests © Pareto Fundraising 2009
Cost v value: the balance  © Pareto Fundraising 2009
Cost vs value: the balance <ul><li>Do you know the REAL cost of each program you run (including staff)?  </li></ul><ul><li...
© Pareto Fundraising 2009
© Pareto Fundraising 2009
My favourite Charity:  The Sumba Foundation How you support:  Regular gift from credit card & occasional donation Why?  Th...
My favourite Charity:  The Sumba Foundation How you support:  Regular gift from credit card & occasional donation Why?  I ...
© Pareto Fundraising 2009 Use data to make  informed  and  strategic  decisions.
<ul><li>ANALYTICAL </li></ul><ul><li>Your Growth </li></ul><ul><li>Your donor  </li></ul><ul><li>behaviour </li></ul><ul><...
© Pareto Fundraising 2009 Look around and see what  others are doing.
How do we measure up? © Pareto Fundraising 2009
Pareto Benchmarking © Pareto Fundraising 2009
Become a voyeur: mystery shop © Pareto Fundraising 2009
© Pareto Fundraising 2009
© Pareto Fundraising 2009 Remember that donors give to organisations that MEET needs.
What’s your story <ul><li>I am a donor and I want to know what you do.  </li></ul><ul><li>Write down in a few short paragr...
© Pareto Fundraising 2009
 
Messages that stick S U C C S E imple nexpected oncrete redible motional tories © Pareto Fundraising 2009
Case for support – its got to have heart © Pareto Fundraising 2009
What’s your story <ul><li>I am a donor and I want to know what you do.  </li></ul><ul><li>Write down in a few short paragr...
© Pareto Fundraising 2009 Summary. © Pareto Fundraising 2009
<ul><li>“ Relationship fundraising is an approach to the marketing of a cause which centres not around raising money but o...
<ul><li>“ If you are really nice to your donors </li></ul><ul><li>they are more likely to give you more  </li></ul><ul><li...
Board and management © Pareto Fundraising 2009
The Pareto Principle © Pareto Fundraising 2009
Look after your donors © Pareto Fundraising 2009
Get more donors © Pareto Fundraising 2009
… people are good; they care © Pareto Fundraising 2009
Karen Miller,  Benevolent Society  © Pareto Fundraising 2009
Last year The Benevolent Society received a copy of a receipt sent from our organisation to a donor – what’s so great abou...
Well…the letter was dated Christmas Eve 1920 and it was sent to a little girl aged 5 called Gwen. © Pareto Fundraising 2009
Gwen had kept her receipt all these years, in her little box of treasures and her daughter found it recently.  © Pareto Fu...
Gwen is now 93 years old and would have accumulated much in her time, imagine keeping a donation receipt from when you wer...
© Pareto Fundraising 2009 The thank you letter reads: ‘ I have just heard that your daddie has been reading you the storie...
© Pareto Fundraising 2009 Do you know what was done with the ten shillings?  They brought bread, wheat, milk, porridge, ja...
© Pareto Fundraising 2009 You did not know that when you were making pin-holes in those flowers you were going to make som...
Isn’t that gorgeous?  I know the language is old fashioned, but what a lovely receipt – it acknowledges how she came to ma...
Just today I met Gwen’s daughter and got to see the original letter – she also brought a photo of her mum aged about 5, in...
© Pareto Fundraising 2009 She’s happy for me to share the story which is why I’m telling you now.  Her daughter made a don...
© Pareto Fundraising 2009 It is all about a relationship between a donor and the beneficiary
The Pareto Group exists to make the world a better place, by expanding the not-for-profit sector's capacity worldwide to e...
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Retaining Donors Through Tough Economic Times

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Using data available to Pareto Fundraising, the retaining donors through tough economic times workshop looked at the ways in which charities could maintain and strengthen their relationships with their donors.

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  • Transcript of "Retaining Donors Through Tough Economic Times"

    1. 1. RETAINING DONORS THROUGH TOUGH ECONOMIC TIMES Presented by Sean Triner © Pareto Fundraising 2009
    2. 2. <ul><li>My favourite Charity: The Sumba Foundation </li></ul><ul><li>How you support: Regular gift from credit card & occasional donation </li></ul><ul><li>Why? </li></ul><ul><li>I went to see them at Christmas last year and met loads of the kids. It was fantastic, we met .... </li></ul>You as a donor © Pareto Fundraising 2009
    3. 3. © Pareto Fundraising 2009
    4. 4. What’s happening right now? © Pareto Fundraising 2009
    5. 5. © Pareto Fundraising 2009
    6. 6. © Pareto Fundraising 2009
    7. 7. Individual/Organisational giving trends Base: Total gross income, excluding Bequest and Events to give underlying trend Growth from Individual giving is much more stable than from Organisational giving. © Pareto Fundraising 2009
    8. 8. © Pareto Fundraising 2009
    9. 9. Gross Income trend – Ind. Vs Org. Base: All donors © Pareto Fundraising 2009
    10. 10. Sources of individual giving Base: All individual giving © Pareto Fundraising 2009
    11. 11. Gross income by channel - cash Base: All individual cash giving © Pareto Fundraising 2009
    12. 12. Tax Appeal change +ve -ve © Pareto Fundraising 2009
    13. 13. Major Donors – Gifts $1,000+ Base: All cash gifts $1,000+ in 2008 from individuals © Pareto Fundraising 2009
    14. 14. New donors since 2000 Base: All individuals © Pareto Fundraising 2009
    15. 15. Cash gift acquisition volume trend © Pareto Fundraising 2009
    16. 16. Regular gift acquisition volume trend © Pareto Fundraising 2009
    17. 17. Gross income trend Base: All donors © Pareto Fundraising 2009
    18. 18. Changes in Cash and RG income Base: All individuals © Pareto Fundraising 2009
    19. 19. © Pareto Fundraising 2009
    20. 20. © Pareto Fundraising 2009
    21. 22. © Pareto Fundraising 2009 Trusts 10% Posh ball 40% Appeals 45% Corporate 15%
    22. 23. Vulnerability Index © Pareto Fundraising 2009 Very Important Insignificant Very vulnerable Relatively safe
    23. 24. SWOT © Pareto Fundraising 2009
    24. 25. <ul><li>Developed 22 Christmas appeals </li></ul><ul><ul><li>In Australia, NZ, Hong Kong and Canada </li></ul></ul><ul><ul><li>13 up on income versus 2007, 9 down on 2007 </li></ul></ul><ul><ul><li>Overall income 2008 around $41.7m versus $39.3m in 2007 </li></ul></ul><ul><ul><li>New charities ALL up – averaging over 30% up </li></ul></ul><ul><li>Organisational income falling </li></ul><ul><ul><li>Specifically corporate support </li></ul></ul>What are we seeing at Pareto? © Pareto Fundraising 2009
    25. 26. Internal v External © Pareto Fundraising 2009
    26. 27. <ul><li>Thanked just 66% of the time </li></ul>Customer care 47% of monthly gifts not set up Complaint resolved 62% of occasions Welcome pack took on average 22 days © Pareto Fundraising 2009
    27. 28. Crisis or Opportunity? © Pareto Fundraising 2009
    28. 29. Crisis or opportunity? © Pareto Fundraising 2009
    29. 30. © Pareto Fundraising 2009 Avoiding Recession Suicide
    30. 31. © Pareto Fundraising 2009 Practice good relationship management with donors and please don’t ignore them.
    31. 32. What do our donors want? M eet me U nderstand me V alue me R emember me © Pareto Fundraising 2009
    32. 33. Donors being ignored © Pareto Fundraising 2009
    33. 34. Good relationship management © Pareto Fundraising 2009
    34. 35. Find out who they are © Pareto Fundraising 2009
    35. 36. Make it personal © Pareto Fundraising 2009
    36. 37. Make it personal © Pareto Fundraising 2009
    37. 38. Give feedback © Pareto Fundraising 2009
    38. 39. Thank properly © Pareto Fundraising 2009
    39. 40. © Pareto Fundraising 2009
    40. 41. It’s worth the effort – long term © Pareto Fundraising 2009
    41. 42. © Pareto Fundraising 2009 Don’t sacrifice long term gain for short term savings.
    42. 43. It’s now or never © Pareto Fundraising 2009
    43. 44. Smarter , rather than less acquisition © Pareto Fundraising 2009
    44. 45. Smarter, rather then less activity <ul><ul><li>Trim “fat” or areas that offer marginal returns and protect the muscle </li></ul></ul><ul><ul><li>Ideally keep the savings to reinvest back into fundraising </li></ul></ul>© Pareto Fundraising 2009
    45. 46. Don’t sacrifice long term for short term <ul><li>“ We normally send a bequest mailing in April, but this year we are scrapping it because we need to save $20,000…” </li></ul>© Pareto Fundraising 2009
    46. 47. Don’t sacrifice long term for short term Now have over 1,500 confirmed bequestors © Pareto Fundraising 2009
    47. 48. Don’t sacrifice long term for short term BUT, only now reaping the rewards © Pareto Fundraising 2009
    48. 49. © Pareto Fundraising 2009 Focus on the things that will have the biggest impact .
    49. 50. It’s all about the 80/20 rule © Pareto Fundraising 2009
    50. 51. Growth: Regular giving and bequests © Pareto Fundraising 2009 443M 394M 345M 295M 246M 197M 147M 98M 49M
    51. 52. © Pareto Fundraising 2009
    52. 53. Pareto Principle © Pareto Fundraising 2009 Decile Cumulative Gross Income Count Cumulative Count % of Donors Cumulative % of Donors 1 $ 6,854,383 45 45 0.0% 0.0% 2 $ 13,708,765 292 337 0.2% 0.3% 3 $ 20,563,148 716 1,053 0.6% 0.9% 4 $ 27,417,531 1,291 2,344 1.1% 1.9% 5 $ 34,271,913 2,171 4,515 1.8% 3.7% 6 $ 41,126,296 3,557 8,072 2.9% 6.6% 7 $ 47,980,679 5,712 13,784 4.7% 11.2% 8 $ 54,835,061 10,018 23,802 8.2% 19.4% 9 $ 61,689,444 19,807 43,609 16.1% 35.5% 10 $ 68,543,827 79,193 122,802 64.5% 100.0% 122,802 122,802 100.0% 100.0% 80%
    53. 54. © Pareto Fundraising 2009
    54. 55. Spend time where it makes a difference © Pareto Fundraising 2009
    55. 56. Spend time where it makes a difference © Pareto Fundraising 2009 Impact of spending time and effort on a small group – 463 donors
    56. 57. © Pareto Fundraising 2009 Getting the balance right. Cost v value.
    57. 58. Cost of fundraising incl bequests © Pareto Fundraising 2009
    58. 59. Cost v value: the balance © Pareto Fundraising 2009
    59. 60. Cost vs value: the balance <ul><li>Do you know the REAL cost of each program you run (including staff)? </li></ul><ul><li>Income per fundraiser? </li></ul><ul><li>Do you know the Value To Date of donors recruited from different sources two or three years ago? </li></ul>© Pareto Fundraising 2009
    60. 61. © Pareto Fundraising 2009
    61. 62. © Pareto Fundraising 2009
    62. 63. My favourite Charity: The Sumba Foundation How you support: Regular gift from credit card & occasional donation Why? Their cost of fundraising is really low and I am impressed by their effective admin systems... © Pareto Fundraising 2009
    63. 64. My favourite Charity: The Sumba Foundation How you support: Regular gift from credit card & occasional donation Why? I went to see them at Christmas last year and met loads of the kids. It was fantastic, we met .... © Pareto Fundraising 2009
    64. 65. © Pareto Fundraising 2009 Use data to make informed and strategic decisions.
    65. 66. <ul><li>ANALYTICAL </li></ul><ul><li>Your Growth </li></ul><ul><li>Your donor </li></ul><ul><li>behaviour </li></ul><ul><li>ENVIRONMENTAL </li></ul><ul><li>How much is given </li></ul><ul><li>Growth </li></ul><ul><li>Competition </li></ul><ul><li>PERSONAL </li></ul><ul><li>Transactions </li></ul><ul><li>Bequest status </li></ul><ul><li>Pet name </li></ul><ul><li>Motivations </li></ul>STRATEGIC DATA - informs TECHNICAL DATA - used © Pareto Fundraising 2009
    66. 67. © Pareto Fundraising 2009 Look around and see what others are doing.
    67. 68. How do we measure up? © Pareto Fundraising 2009
    68. 69. Pareto Benchmarking © Pareto Fundraising 2009
    69. 70. Become a voyeur: mystery shop © Pareto Fundraising 2009
    70. 71. © Pareto Fundraising 2009
    71. 72. © Pareto Fundraising 2009 Remember that donors give to organisations that MEET needs.
    72. 73. What’s your story <ul><li>I am a donor and I want to know what you do. </li></ul><ul><li>Write down in a few short paragraphs what you do and why I should support you with a donation. </li></ul><ul><li>You have six minutes. </li></ul>© Pareto Fundraising 2009
    73. 74. © Pareto Fundraising 2009
    74. 76. Messages that stick S U C C S E imple nexpected oncrete redible motional tories © Pareto Fundraising 2009
    75. 77. Case for support – its got to have heart © Pareto Fundraising 2009
    76. 78. What’s your story <ul><li>I am a donor and I want to know what you do. </li></ul><ul><li>Write down in a few short paragraphs what you do and why I should support you with a donation. </li></ul><ul><li>You have six minutes. </li></ul>© Pareto Fundraising 2009 © Pareto Fundraising 2009
    77. 79. © Pareto Fundraising 2009 Summary. © Pareto Fundraising 2009
    78. 80. <ul><li>“ Relationship fundraising is an approach to the marketing of a cause which centres not around raising money but on developing to its full potential the unique and special relationship between a charity and its supporter.” </li></ul><ul><li>Burnett (1992) </li></ul>
    79. 81. <ul><li>“ If you are really nice to your donors </li></ul><ul><li>they are more likely to give you more </li></ul><ul><li>money for more time.” </li></ul><ul><li>Triner (2007) </li></ul><ul><li>www.seantriner.blogspot.com </li></ul>
    80. 82. Board and management © Pareto Fundraising 2009
    81. 83. The Pareto Principle © Pareto Fundraising 2009
    82. 84. Look after your donors © Pareto Fundraising 2009
    83. 85. Get more donors © Pareto Fundraising 2009
    84. 86. … people are good; they care © Pareto Fundraising 2009
    85. 87. Karen Miller, Benevolent Society © Pareto Fundraising 2009
    86. 88. Last year The Benevolent Society received a copy of a receipt sent from our organisation to a donor – what’s so great about that you ask?  © Pareto Fundraising 2009
    87. 89. Well…the letter was dated Christmas Eve 1920 and it was sent to a little girl aged 5 called Gwen. © Pareto Fundraising 2009
    88. 90. Gwen had kept her receipt all these years, in her little box of treasures and her daughter found it recently. © Pareto Fundraising 2009 Gwen had done some fundraising for us, and raised 10 shillings.
    89. 91. Gwen is now 93 years old and would have accumulated much in her time, imagine keeping a donation receipt from when you were 5!!  © Pareto Fundraising 2009
    90. 92. © Pareto Fundraising 2009 The thank you letter reads: ‘ I have just heard that your daddie has been reading you the stories in our Christmas book, and that you then started off to get money to send us, so that we could buy things for poor children to eat at Christmas time.
    91. 93. © Pareto Fundraising 2009 Do you know what was done with the ten shillings?  They brought bread, wheat, milk, porridge, jam, golden syrup, tinned fruit, and a plum pudding, for some children whose mother had no money to go to the shops. 
    92. 94. © Pareto Fundraising 2009 You did not know that when you were making pin-holes in those flowers you were going to make some poor mother glad because she could make Christmas day a happy one, for her little children.  But you have done so”
    93. 95. Isn’t that gorgeous?  I know the language is old fashioned, but what a lovely receipt – it acknowledges how she came to make her gift and lets her know just what a difference it’s made. © Pareto Fundraising 2009
    94. 96. Just today I met Gwen’s daughter and got to see the original letter – she also brought a photo of her mum aged about 5, in what looks like her Sunday best complete with ringlets. © Pareto Fundraising 2009
    95. 97. © Pareto Fundraising 2009 She’s happy for me to share the story which is why I’m telling you now. Her daughter made a donation to us too!
    96. 98. © Pareto Fundraising 2009 It is all about a relationship between a donor and the beneficiary
    97. 99. The Pareto Group exists to make the world a better place, by expanding the not-for-profit sector's capacity worldwide to ensure as many beneficiaries are helped as possible. sean.triner@paretofundraising.com www.paretofundraising.com

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