Swap or Die (2005)

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Despite being three years old, this presenation is still useful addressing some of the concerns abour charities swapping their data. It is aimed at Australia fundraisers, but useful beyond Australia. …

Despite being three years old, this presenation is still useful addressing some of the concerns abour charities swapping their data. It is aimed at Australia fundraisers, but useful beyond Australia. Some of the privacy statements quotes may have been changed by the relevant charities over the past three years.

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  • 1. Swap or Die… Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
  • 2. Swap or die -overview
    • Introduction
    • What is swapping?
    • Benefits of reciprocal mailings
    • Problems and barriers
    • How it works
    • Your next steps
    • Questions and Answers
    • A useful spreadsheet & questions
    (c) Pareto Fundraising February 2005
  • 3. 1. Introduction Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
  • 4. Charity Donors
    • Talking about charity to charity reciprocal mailings
    • Australia small market –
      • Population 20 million – 3 million give by mail or monthly donation
      • NSW – 1.2 million
      • But is worth a lot
    (c) Pareto Fundraising February 2005
  • 5. Why do people give? (c) Pareto Fundraising February 2005
  • 6.
    • strings
    (c) Pareto Fundraising February 2005
  • 7. Why do people give?
    • Even when they are asked, most people still don’t give
    • Targeting people more likely to give, and asking them is obviously better
    (c) Pareto Fundraising February 2005
  • 8. What we know about donors
    • Older people more likely to respond to mail
    • Donors are promiscuous…but generous
    • Reciprocals identify people who already give via mail who are not on your database
    (c) Pareto Fundraising February 2005
  • 9. Clues we use to find new donors
    • Age, demographics, read similar magazines…
    • Say they will give to your cause (eg on a Geo Spend survey)
    • But best are charity givers already…
    • How do we find these people?
    (c) Pareto Fundraising February 2005
  • 10. Key donor identifiers (c) Pareto Fundraising February 2005 Proportional chance of someone donating to a mail appeal
  • 11. (c) Pareto Fundraising February 2005
  • 12. 2. What is swapping? Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
  • 13. What is swapping?
    • Reciprocal mailings…
    • Two charities mutually agree to mail each others’ like with like data
      • Selected by recency, frequency, value and type
    • Agree timeframes for the reciprocal
    (c) Pareto Fundraising February 2005
  • 14. What is swapping?
    • Donor Data
    (c) Pareto Fundraising February 2005 Charity A Data Charity B Data Promiscuity report Opportunity Report Mail appeals Respondent data captured Respondent data captured
  • 15. 3. The Benefits Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
  • 16. The benefits… (c) Pareto Fundraising February 2005
  • 17. The benefits…
    • Previous chart says it all AND…
    • Return On Investment can be 4 to 20 times that of cold mail
    • You can make a profit on reciprocal mailings
    • Can be cheaper because no rental fee
    (c) Pareto Fundraising February 2005
  • 18. The benefits – an example
    • Cold mailings 0.9% from 50k @ £15
    • 1.5% from top 5k @ £15
    • Reciprocals achieving 3.3% from 30k @ £15
    • 8.0% from top 5k @ £15
    (c) Pareto Fundraising February 2005
  • 19. The benefits…
    • Long-term effect on database is positive – increases number of donors
    • Donors recruited by swaps are good swap prospects AND have excellent Life Time Values
    • Australian market quite ‘virgin’ – better results for those in there first
    (c) Pareto Fundraising February 2005
  • 20. The benefits….
    • Small charities can get involved
    • Cold is declining but this can supplement
    • Other good list sources very small
    • 10+ years of UK data proves it works
    (c) Pareto Fundraising February 2005
  • 21. The benefits…
    • Reciprocal mailings identify donors who are already charity mail responsive
    • Reciprocals with corporates can cut costs but do not have the key advantage mentioned above
    (c) Pareto Fundraising February 2005
  • 22. 4. Problems and barriers Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
  • 23. Why wouldn’t you swap?
    • Tell me!!!
    (c) Pareto Fundraising February 2005
  • 24. Why wouldn’t you swap?
    • Detrimental effect on database?
    • Not legal?
    • Current database is too small?
    • Wrong ‘type’ of donors?
    • My donors are not ‘natural’ fits…
    (c) Pareto Fundraising February 2005
  • 25. Why Wouldn’t you swap?
    • Just don’t like it…
    (c) Pareto Fundraising February 2005
  • 26. Why Wouldn’t you swap?
    • Just don’t like it…
    • With all the evidence showing it raises more money, more quickly in the short term – AND increases the number of donors, bequest prospects and regular givers in your pool for the long term…
    (c) Pareto Fundraising February 2005
  • 27. Effect on your database
    • Your donors are already getting 10-50 cold mailings
    • These cold mails were less targeted – by swapping we REDUCE the amount of mailings
    • Overall income from new donors > Potential income lost
    (c) Pareto Fundraising February 2005
  • 28. Effect on your database
    • UK data shows no long term negative impact from swapping 2 or 3 times per annum
    • No evidence to show any significant increase in attrition
    • Careful with swapping board members, major donors, internal stakeholders
    (c) Pareto Fundraising February 2005
  • 29. Legalities
    • This is not legal advice - always check with your lawyer
    • Our interpretations have been checked with ADMA lawyers but each situation is unique
    • Privacy laws are relatively new and there are few test cases
      • You don’t want to be the first charity test case
    (c) Pareto Fundraising February 2005
  • 30. Legalities
    • Can charities swap data?
      • easier if primary purpose of original acquisition was fundraising and swap is with ‘like-minded’ organisation
    • Many Australian charities are not able to swap NOW
      • Because they have told their donors that they won’t
    • Privacy Statements & policies should be used wisely
    (c) Pareto Fundraising February 2005
  • 31. Legalities
    • If you have stated you will not make your list available to third parties
      • Stop stating it
    • You should mail an opt-in to those recruited with that promise
        • Only a tiny proportion will respond to this
    • Check with your lawyer to see if there is a way you can swap your data
    (c) Pareto Fundraising February 2005
  • 32. Legalities
    • If you said would not ‘sell’ the list
      • Good – you are not selling the list
      • Be more explicit in future
    (c) Pareto Fundraising February 2005
  • 33. Privacy policy statements
    • Often on web and referred to in printed materials. But hardly anyone looks.
    • Fundraising teams often not consulted
    (c) Pareto Fundraising February 2005
  • 34. Privacy statements
    • RACV (NOT THE FOUNDATION) (On Web)
    • “ From time to time, RACV may use your information to tell you about other products and services, discounts, , special offers, competitions and invitations to special events. However, we clearly recognize the importance of providing you with the choices by giving you an easy means to “Opt Out” from receiving these offers. Let us know if you do not want to receive these offers by contacting us on 131955 at anytime or by visiting an RACV Shop during business hours.
    (c) Pareto Fundraising February 2005
  • 35. Privacy statements (c) Pareto Fundraising February 2005 Eye Research Australia Foundation (On Web) “… The University will only use or disclose information: for the purpose for which it was collected (the primary purpose); for a secondary purpose that: is related to the primary purpose and, if the personal information is sensitive information, or health information directly related to the primary purpose; and the individual would reasonably expect; where there is consent of the individual concerned  to the use or disclosure; or as otherwise allowed under the Acts, or required or authorised by or under law. When a University department collects information, the purposes for which the information is collected will usually be made clear on any forms that are to be completed, or will be apparent from the circumstances. When required, we will seek your consent to use your information in a particular way. If you require more specific information about the way in which your information is used or disclosed, please contact the relevant University department or the University’s Privacy Officer..”
  • 36. Privacy statements (c) Pareto Fundraising February 2005 Eye Research Australia Foundation (On Web) “… The University will only use or disclose information: for the purpose for which it was collected (the primary purpose); for a secondary purpose that: is related to the primary purpose and, if the personal information is sensitive information, or health information directly related to the primary purpose; and the individual would reasonably expect; where there is consent of the individual concerned  to the use or disclosure; or as otherwise allowed under the Acts, or required or authorised by or under law. When a University department collects information, the purposes for which the information is collected will usually be made clear on any forms that are to be completed, or will be apparent from the circumstances. When required, we will seek your consent to use your information in a particular way. If you require more specific information about the way in which your information is used or disclosed, please contact the relevant University department or the University’s Privacy Officer..”
  • 37. Privacy statements
    • Jewish Care (on web)
    • “ All information collected will be used only for the primary purpose intended and where the intention includes confidentiality, information will be retained as such unless otherwise required by law.”
    (c) Pareto Fundraising February 2005
  • 38. Privacy statements
    • Jewish Care (on web)
    • “ All information collected will be used only for the primary purpose intended and where the intention includes confidentiality, information will be retained as such unless otherwise required by law.”
    (c) Pareto Fundraising February 2005
  • 39. Privacy statements – no info
    • Child and Family Care Network INC
    • Australian Ballet
    • Peter McCallum
    • Australian Breastfeeding Association
    (c) Pareto Fundraising February 2005
  • 40. Privacy statements
    • The Alfred Foundation (on web)
    • “ Bayside Health supports and complies with the Department of Human Services' Information Privacy Principles. Bayside Health supports and complies with the Department of Human Services' Information Privacy Principles. .”
    (c) Pareto Fundraising February 2005
  • 41. Privacy statements
    • The Alfred Foundation (on web)
    • “ Bayside Health supports and complies with the Department of Human Services' Information Privacy Principles. Bayside Health supports and complies with the Department of Human Services' Information Privacy Principles. .”
    (c) Pareto Fundraising February 2005
  • 42. Privacy Statements
    • MS Society
    (c) Pareto Fundraising February 2005
  • 43. Getting ready to swap
    • If you are saying you won’t swap your data –
    • Stop saying it.
      • It does not help recruitment
      • It does not commit you to making the list available
      • Many fundraisers are unsure of their own privacy policies, but get the opt-outs on forms correct
    (c) Pareto Fundraising February 2005
  • 44. Privacy policy / statement
    • Review all your statements
    • Take out potentially harmful statements – think about the implications of the policy
    • You do not need to guarantee data will not be swapped to be within the National Privacy Principles
    (c) Pareto Fundraising February 2005
  • 45. Developing a statement
    • Respect the donor
    • You don’t want them to opt out
    • Explain what you do, and why. They care about you and most will be happy.
    • 3-30% will opt out – but a good statement will lower that number
    (c) Pareto Fundraising February 2005
  • 46. Recommended statement
    • “ Occasionally we may organise mailings from third parties to our mailing list with information that we believe may be of interest to you. These organisations usually allow us to do the same, and by collaborating like this we can reach more people with vital information. We do not give these organisations your details and we do not sell our mailing list.
    • If you would prefer not to receive such third party mailings, please tick here and we will change your record to reflect this.”
    (c) Pareto Fundraising February 2005
  • 47. Getting ready to swap
    • On current mailings:
      • All donors who have not received such a statement previously must receive an opt-out on future communications
      • Once they respond to the communication you can swap their data
        • Unless they have opted out
    (c) Pareto Fundraising February 2005
  • 48. Reciprocal database field
    • No reciprocal - have opted out
    • Reciprocal OK - have responded to a mailing but not ticked opt-out
    • Reciprocal opt-in - have opted out
      • (probably won’t be enough to worry about)
    • Never been asked
    • Unknown – have been mailed opt out but no response
    (c) Pareto Fundraising February 2005
  • 49. Current database is too small
    • If you have only 3,000 donors…
    • Struggle to find direct partners
    • Change your privacy statements to allow swaps of newly recruited donors
    • As market develops, pools will develop
    (c) Pareto Fundraising February 2005
  • 50. Pooled data (c) Pareto Fundraising February 2005 Pool of donors Heart Foundation The Fred Hollows Foundation Wesley Mission Amnesty International Australia Heart Research Institute Leukaemia Foundation Children’s Hospital Westmead
  • 51. Wrong type of donors
    • Should swap like with like
    • Swapping 10,000 warm donors with 10,000 lottery purchasers not right
      • But consider 4,000 warm with 10,000 lottery…
    • Only swap mail responsive (this is the point)
    • Don’t swap face to face donors
    (c) Pareto Fundraising February 2005
  • 52. Natural Fit (c) Pareto Fundraising February 2005 Heart Foundation The Fred Hollows Foundation Wesley Mission Amnesty International Australia Heart Research Institute Leukaemia Foundation Children’s Hospital Westmead ?
  • 53. Natural Fit
    • Same sector do best. Medical and medical, environment and environment
    • Supporters of certain sectors overlap Eg Aged and Medical. Third World and Human rights
    • BUT the biggest indicator is people who donate to charity through the post
    (c) Pareto Fundraising February 2005
  • 54. Natural Fit
    • Very small number of Australian charities able, or willing to swap
    • Pool is very small
    • Swap with whoever you can will be the only option early on
    (c) Pareto Fundraising February 2005
  • 55. 5. How it works Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
  • 56. How it works
    • Swap partners agree in principle
    • Third party takes both databases
      • De-dupes
      • Matches like with like (using scoring system)
      • Evaluates ‘mailable’ data
      • Produces report and recommendations
    • Swap ‘windows’ agreed
    (c) Pareto Fundraising February 2005
  • 57. How it works
    • Third party arranges data from both clients to mail-houses
      • This ensures fairness and protects privacy
    • Swap data is not given to each charity. respondents are added to their database
    • Respondents should be coded to know which charity they came from
    (c) Pareto Fundraising February 2005
  • 58. The third party
    • Most data agencies can handle the logistics
    • With excellent reputation
    • Must have understanding of fundraising (eg they would need to know not to swap event participants or face to face donors)
    (c) Pareto Fundraising February 2005
  • 59. The third party
    • Ability to match the data
      • You cannot use your definitions of ‘donor’, ‘lapsed’ etc the swap data needs to be selected from all the data. It should include transactional history and the third party must understand the appeal codes to match fairly
    (c) Pareto Fundraising February 2005
  • 60. 6. Your next steps Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
  • 61. Next steps
    • Evaluate current privacy procedures
      • Ensure that your org can swap in future, even if you don’t intend to now
    • Add the opt-out to all communications
    • Do your sums
      • Use the spreadsheet to work out how much better your acquisition is going to be
    • Convince the board or your boss
    (c) Pareto Fundraising February 2005
  • 62. Next steps
    • Find out who else wants to swap
      • We have built up a list of interested parties
    • Agree the principle and approximate mail dates
    • Get data / opportunity report
    • Produce appeal
    (c) Pareto Fundraising February 2005
  • 63. Next steps
    • Your source codes should link to the name of the charity you swap with
    • Start with non-regular donors
    (c) Pareto Fundraising February 2005
  • 64. Getting ready to swap…
    • On future mailings
      • Ensure an opt out statement is provided on future acquisition materials
      • Ensure this statement is on all welcome communication for donors recruited via telemarketing
    (c) Pareto Fundraising February 2005
  • 65. 7. Questions (c) Pareto Fundraising February 2005
  • 66. 8. The spreadsheet discussion Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
  • 67. Future Masterclasses
    • March 23 rd Regular Giving VIC
    • March 31 st Charity Challenges NSW
    • April 18 th /19th Pragmatic Bequests NSW/VIC
    • May 11 th /13th How to raise $1,000 by mail
            • Are you getting your money’s worth from your Fundraising Staff/ Consultant
            • Mal Warwick
    (c) Pareto Fundraising February 2005
  • 68. Pareto Fundraising Masterclass
    • Have we met your objectives?
    (c) Pareto Fundraising February 2005
  • 69.
    • Thank you
    • Pareto Fundraising Please! Fill in feedback form
    • www.paretofundraising.com
    (c) Pareto Fundraising February 2005