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Annual Giving Campaigns:Chris LeBrun, MBA                 Detroit Fundraising SummitAndrews University         Sponsored b...
First GiftLegacy                Repeat Gift                  GiftMajor                 Regular Gift                 Giving...
Separating the Best from the Rest
First      Acquiring donors may be the mostGift        important function in fundraising process             Lays the fo...
First      New constituent-donorsGift         Hardest type of donor acquisition             Introduce constituents to t...
First      Keep expectations lowGift         Response rates of 1 – 2% are GREAT!             Costs $1.00 – $1.25 to rai...
First      Consider the intangibles during acquisitionGift         Age and/or reputation of the organization            ...
First      Acquisition uses impersonal methodsGift         Acquisition mailings             Online giving             ...
They Did it Once, Now Get Them to Do It Again
Repeat      Repeat gifts provide a multitude of info Gifts        Separate donors from occasional/event gifts           ...
Repeat      Only one chance to make a first impression Gifts        Processing time of first gift              Donors w...
Repeat      Renewal often impersonal but not generic Gifts        Phone solicitation              Renewal Mailings     ...
Repeat      ROI is greater for repeat than acquisition Gifts        Response rates up to 20 – 30%              Cost to ...
Ensuring the Future of the Organization
   Securing upgrade gifts helps to fulfillUpgrade       the goal of annual giving campaigns Gifts         Identify major...
   Upgrade gifts are often the result ofUpgrade       being able to engage donors Gifts         Strong stewardship progr...
Direct Advice for Direct Mail
Tips &      Response rates are higherTricks      Increased competition              Other charities              For-p...
Tips &      Segmenting takes time but it’s worth itTricks        Increases your response rate              Solicit for ...
Tips &      Variable Data Printing (VDP) allows eachTricks       donor to receive customized mailings              Perso...
Tips &      Higher costs with VDP but also higher ROITricks        5.35 % response for fundraising acquisition*         ...
Tips &    Email allows segmentation and VDPTricks    Cost is minimal and reduces over time          Response rates aren...
lebrunc@andrews.edu
Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors
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Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

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This presentation looks at the basics of an annual giving fundraising campaign, specifically how to acquire new donors, retain them year to year, and increase their annual giving.

I gave this presentation on September 10, 2008 at the Detroit Fundraising Summit (Wayne State University), sponsored by Center for Non-Profit Success.

Annual Giving Campaign: Acquiring, Renewing, and Upgrading Donors

  1. 1. Annual Giving Campaigns:Chris LeBrun, MBA Detroit Fundraising SummitAndrews University Sponsored by Center for NonProfit SuccessBerrien Springs, MI September 10, 2008
  2. 2. First GiftLegacy Repeat Gift GiftMajor Regular Gift Giving Upgrade
  3. 3. Separating the Best from the Rest
  4. 4. First  Acquiring donors may be the mostGift important function in fundraising process  Lays the foundation for all fundraising  Brings greater depth to organization  Replaces donors lost in attrition  New major donor prospects in the pipeline
  5. 5. First  New constituent-donorsGift  Hardest type of donor acquisition  Introduce constituents to the organization  Don’t focus on gift amount  Existing constituent-donors  Already in your database  Natural connection with organization  Focus on participation
  6. 6. First  Keep expectations lowGift  Response rates of 1 – 2% are GREAT!  Costs $1.00 – $1.25 to raise $1.00  Place an emphasis on introductory gifts
  7. 7. First  Consider the intangibles during acquisitionGift  Age and/or reputation of the organization  The perceived importance of the cause  Make-up of your list can effect results
  8. 8. First  Acquisition uses impersonal methodsGift  Acquisition mailings  Online giving  Special Events  Word of mouth  What doesn’t work as well  Phone solicitation  Personal visits
  9. 9. They Did it Once, Now Get Them to Do It Again
  10. 10. Repeat  Repeat gifts provide a multitude of info Gifts  Separate donors from occasional/event gifts  Identify a connection to “The Cause”  Affirm solicitation methods  Identifies donors who can give more
  11. 11. Repeat  Only one chance to make a first impression Gifts  Processing time of first gift  Donors watch how gift is received and used  Thank yous are natural renewal solicitations  Recognition can lead to personal visits
  12. 12. Repeat  Renewal often impersonal but not generic Gifts  Phone solicitation  Renewal Mailings  Special Events  Automatic giving  Recovering lapsed donors  Other methods  Personal Visits  Gift clubs (emphasis on consecutive giving)
  13. 13. Repeat  ROI is greater for repeat than acquisition Gifts  Response rates up to 20 – 30%  Cost to raise a dollar only about 20 cents  Gift amounts are higher
  14. 14. Ensuring the Future of the Organization
  15. 15.  Securing upgrade gifts helps to fulfillUpgrade the goal of annual giving campaigns Gifts  Identify major gift prospects  Increase annual support for organization  Insure the future goals of the organization are met
  16. 16.  Upgrade gifts are often the result ofUpgrade being able to engage donors Gifts  Strong stewardship program  Personal solicitations  Phone solicitations  Volunteering  Gift clubs  Segmented mailings
  17. 17. Direct Advice for Direct Mail
  18. 18. Tips &  Response rates are higherTricks  Increased competition  Other charities  For-profit direct mail marketing  How can you get them inside?  Tease them  “Handwritten” addresses  Pictures  Odd shape envelopes  Bulky mail
  19. 19. Tips &  Segmenting takes time but it’s worth itTricks  Increases your response rate  Solicit for several projects in one mailing  Ask for an appropriate gift amount  Allows an impersonal medium to feel personal  Reminds each donor of their connection to the organization
  20. 20. Tips &  Variable Data Printing (VDP) allows eachTricks donor to receive customized mailings  Personalized letters/envelopes  Demographics (age, region, history, etc.)  Target projects / areas of interest  Reminds them of their giving history  Solicit the right gift amount
  21. 21. Tips &  Higher costs with VDP but also higher ROITricks  5.35 % response for fundraising acquisition*  Compare with 1-2% for acquisition  VDP increases response rate:  +44% with one area of variable info**  +45% with color (no variable)**  +135% with color and one variable**  +500% with color and multiple variables** Sources * The Direct Marketing Association ** Romano & Broudy
  22. 22. Tips &  Email allows segmentation and VDPTricks  Cost is minimal and reduces over time  Response rates aren’t as high but response times are faster  Online acquisition gift amounts are typically higher  Multi-channel donors renew at much higher rates than single-channel donors
  23. 23. lebrunc@andrews.edu

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