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An Introduction to Direct Marketing and Legacy Fundraising


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Published in: Government & Nonprofit
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An Introduction to Direct Marketing and Legacy Fundraising

  1. 1. Karen Gallagher Consulting
  2. 2. Karen Gallagher Consulting
  3. 3. A. It is talking to your supporters so they end up responding with a donation B. It might not be immediate but it has to happen for it to be direct marketing. C. 3 Main areas of activity 1. Acquisition/Recruitment 2. Retention 3. Development Karen Gallagher Consulting
  4. 4.  helps a relationship develop between the supporter and the charity  gives enormous pleasure to the supporter  generates an income for the charity  For Example: ◦ 100,000 supporters who each give £200 in the time they support a charity = £20 Million ◦ Reduce this down for a local charity and it makes sense ◦ And£200 is a low Lifetime Value for a supporter Karen Gallagher Consulting
  5. 5.  The supporter will be happy to leave a gift in their will when they die  The average legacy gift nowadays is around £18,000  Huge benefit in getting Direct Marketing right Karen Gallagher Consulting
  6. 6. Legacies Pledgers Major Donors Mid Value Donors Committed Donors Regular Donors Donors Responders Incidental Donors Karen Gallagher Consulting
  7. 7.  Supporter Acquisition ◦ Recruiting new supporters ◦ Enquirers, members etc  Supporter Retention ◦ Welcome to the cause ◦ Keep them interested ◦ Inspire and engage them further  Supporter Development ◦ More engaged ◦ Increase the commitment of supporters by increasing or broadening their support Karen Gallagher Consulting
  8. 8. Karen Gallagher Consulting
  9. 9.  Most challenging part of developing an Individuals Giving programme ◦ Perceived as a business risk ◦ Rarely breaks even in 1st year ◦ Viewed as a long term investment  Developing your recruitment strategy ◦ Current supporters ◦ What do you know about them ◦ Male or Female ◦ Younger adults, middle-aged or mature  Use this as the basic criteria when choosing audiences for further recruitment Karen Gallagher Consulting
  10. 10.  Cold Direct Mail ◦ Lifestyle Lists ◦ Reciprocals ◦ Rented Lists ◦ Compiled Lists  Unaddressed Mail ◦ Door Drops ◦ Inserts  Take ones ◦ Leaflets ◦ Postcards  Press Ads  Telephone  Statement Stuffers Karen Gallagher Consulting
  11. 11.  Payroll Giving  Face to Face  Door to Door  Electronic ◦ Website & Email ◦ SMS  Product Despatches  Ticket Media  Social Media Karen Gallagher Consulting  Events  TV  Radio
  12. 12.  Foundations for developing a direct marketing programme ◦ Can be simple and inexpensive ◦ Spreadsheet holding names, addresses and gift history ◦ Be-spoke tailored to meet organisational needs  Raiser’s Edge  Alms  Donor Strategy  Thank You  Microsoft Dynamics Karen Gallagher Consulting
  13. 13. Karen Gallagher Consulting
  14. 14.  A focus on donor retention will raise lots of money  Everyone knows that it’s a lot more expensive to acquire a new donor than to retain an existing donor Karen Gallagher Consulting
  15. 15.  Doing everything possible to keep a donor interested in your cause after their first gift  To develop their support you must ◦ Inspire ◦ Engage them further ◦ Welcome them to your cause ◦ Thank them for their support Karen Gallagher Consulting
  16. 16.  Systems and Processes: ◦ Fast & Accurate Gift Set Up ◦ Fantastic Donor Care  As well as being: ◦ Thoughtful ◦ friendly ◦ kind to our supporters. ◦ putting ourselves in their shoes ◦ Understand what they want from us  Learn everything you can about your supporters Karen Gallagher Consulting
  17. 17.  Personally  Promptly  Creatively  Often  Is the single most important tool you have in your fundraising toolbox  Include a BRE Karen Gallagher Consulting ‘Speed and content of the first Thank You defines the future relationship with your donor’ Giles Pegram CBE
  18. 18. Karen Gallagher Consulting
  19. 19.  Is fundamental in enabling charities to differentiate themselves  You need to provide a ◦ high quality and efficient service to develop loyalty and ◦ increase overall lifetime value  Simply – maintain a meaningful dialogue  Reassure them that they have ◦ done the right thing supporting your cause, your charity ◦ and that they have made a positive impact Karen Gallagher Consulting
  20. 20. • Thank them for the gift • Provide more information about your organistion • Your Vision • Examples of your work • How the cause will benefit • It should inspire • Other ways to support, committed gift, legacy, event etc Karen Gallagher Consulting
  21. 21.  Reminds donors of benefits of supporting the cause  Informs them of success of projects supported  Helps promote other charity services ◦ Legacies ◦ Events ◦ Volunteering Opportunities  Dispatched 2 – 4 times / year Karen Gallagher Consulting
  22. 22.  Special Events ◦ Seminars ◦ Talks ◦ Tours of facilities  Open Days  Make donors feel valued  Good way to reward higher value donors Karen Gallagher Consulting
  23. 23.  Should aim to increase donor’s level of involvement with your organisation  Should offer regular opportunities to increase their level of involvement  Using your newsletter to cross sell other methods of giving without the donor feeling pressurised  Selecting frequent cash donors to receive a regular giving ask  Exiting Regular Givers could be asked to upgrade Karen Gallagher Consulting
  24. 24.  Regular monthly giving through direct debit or standing order – very cost effective  Typical values of between £2 - £10 per month ◦ Helps charity to plan (RGs stay for an average 4 years) ◦ Saves administration costs ◦ Spreads the risk, relying on large number of small gifts ◦ Supports donor recruitment, easier to commit to lower value ask ◦ Helps build a secure and sustainable income base Karen Gallagher Consulting
  25. 25.  Recruiting new supporters straight to Regular Gift ◦ Face to face ◦ Inserts ◦ Mail ◦ DRTV  Cash to Committed Gift Conversion ◦ Telephone, Mail or Email once per year ◦ Welcome packs or Newsletters Karen Gallagher Consulting
  26. 26.  Powerful fundraising tool ◦ Recruitment ◦ Regular Gift Upgrade ◦ Cash to RG conversion ◦ Lapsed RG Reactivation  Outsourced to professional telephone fundraising agencies (though some charities moving to in house)  Donors should be supporters for at least 1 year  Plan for year 2 of IG programme Karen Gallagher Consulting
  27. 27.  Letters to existing supporters to ask for gifts to support specific projects  Donors recruited through traditional methods respond better  4 x cash appeals per year (seasonal)  When building a donor base – important to get the balance of ◦ Committed givers-who will provide restricted regular income ◦ Cash supporters – who will fund specific project appeals Karen Gallagher Consulting
  28. 28. Karen Gallagher Consulting
  29. 29.  Key – good copy – great stories  Stories of NEED and how the charity is providing the perfect SOLUTION  ‘Your donation can help more people like…’  Client facing staff – don’t like providing stories/case studies – MAKE THEM – explain why Karen Gallagher Consulting
  30. 30. 1. Use I and You, especially YOU 2. Use simple English 3. Use short sentences & vary the length (Plenty of white spaces) 4. Use short paragraphs (max 7 lines) 5. Avoid Jargon Karen Gallagher Consulting
  31. 31. 6. Make sure it sounds like someone is talking 7. Ask for money not support 8. Make it Urgent – Repeat It, Use the PS (90% recipients read the PS first) 9. Be concise and to the point – but as long as it needs be to convince the reader (Tests have proven long copy outperforms short copy 10. Use emphasis – underline and bold key messages Karen Gallagher Consulting
  32. 32. Karen Gallagher Consulting - 16th March 2013
  33. 33.  Do size and shape matter?  Can size and shape break through the noise and achieve “doorstep dominance”?  Problems with unusual formats: ◦ Cost ◦ Printers ◦ Media outlets Karen Gallagher Consulting
  34. 34. Karen Gallagher Consulting Tall Long
  35. 35. Karen Gallagher Consulting Concern sandwich insert: triangle folding out to square
  36. 36.  Smart use of formats can achieve stand out from the noise  But more complex and costly  Can divert attention from other matters Karen Gallagher Consulting
  37. 37. Karen Gallagher Consulting Often rated as 2nd most important consideration after your audience Depends on the circumstance of each charity • Is this the right time for this appeal? • How often should we communicate? • When was last communication and response? • Seasonality is important • Over or under-mailing people
  38. 38. All of the above drive people to make a response at the time of reading  Response mechanism is vital – and should be planned first  Easy to read and understand  Make forms bigger  Make boxes bigger  Plenty of room on the forms  Easy to complete and donate  Provide options–phone, mail, web Karen Gallagher Consulting
  39. 39. Karen Gallagher Consulting
  40. 40. Analysis and Results  ROI  NET income  Short Term • Response Rates • Campaign Break Even • Donations Received  Long Term • Donor Acquisition Cost • Attrition Rates • Lifetime Values • Net Income Potential Karen Gallagher Consulting
  41. 41.  Number mailed  Cost per donor mailed  Number of donations  % Response Rate  Cost per response  Gross Income  Net Income  Return on investment Karen Gallagher Consulting
  42. 42. Karen Gallagher Consulting
  43. 43.  Test Stuff – lots of stuff ◦ Ask Amounts ◦ Additions  Leaflets  Stickers  Address Labels  Postcards ◦ Stamp vs PPI ◦ Cash vs Direct Debit ◦ New Pack vs Control (Banker) ◦ Plain envelopes vs teaser or photo Karen Gallagher Consulting
  44. 44.  Ensure donation option is available on website  Email your donors ◦ Primer and reminder emails  Use video in emails  Use Twitter & Facebook to engage supporters and donors  Website front page should reflect the appeal ◦ Make sure Donate Now button is obvious Karen Gallagher Consulting
  45. 45.  Data Protection ◦ Permission to hold 3rd party information ◦ Store Information correctly ◦ Check whether you need to register with the Information Commissioner ◦ Check Code of DM Practice  Gift Aid ◦ Make the most of tax effective giving ◦ Ask for declarations at every opportunity ◦ Variable tax copy Karen Gallagher Consulting
  46. 46.  Think about the Pack! ◦ Size & Weight ◦ Can create excessive postage costs and ◦ Beware of VAT on postage – work arounds! ◦ Ruin a mailing’s ROI ◦ Obtain a weight from supplier before production  Avoid mis-prints ◦ Send existing print samples ◦ Be specific re stock, weight and size etc ◦ Quantity-accurate ◦ Ask for Paper Samples Karen Gallagher Consulting
  47. 47.  Prevent Disastrous Data and Personalisation errors ◦ Work with clearly defined data fields ◦ Add For Position Only data field in a non printing colour ◦ Request Data dumps for all key fields ◦ Review data fields ◦ Request ‘live’ Proofs ◦ Ensure address block fits window Karen Gallagher Consulting
  48. 48.  Sign it off  Mail It  Be conscious of the day it will land  Sit back and wait for the response  Make sure Donor Care/Supporter Services are briefed and ready to take the calls Karen Gallagher Consulting
  49. 49. Karen Gallagher Consulting
  50. 50. A charitable legacy is a gift to charity made in an individuals will and paid by their executor when they are dead. Karen Gallagher Consulting
  51. 51. After providing for your loved ones and once all debts have been cleared, you can leave a share of the remainder of your estate. ‘The residue of my estate to be divided in equal shares between XY charity and AB Charity’ Karen Gallagher Consulting
  52. 52. This is a gift of a specific amount. ‘I give XY Charity £2,000- for general charitable purposes’. Karen Gallagher Consulting
  53. 53. Any item you leave, such as a house, a piece of jewellery or shares ‘‘I give XY Charity my house (etc) for general charitable purposes’. Karen Gallagher Consulting
  54. 54. Is a variant of the residuary legacy where the gift only takes place after the death of (most commonly) the legator’s spouse. Karen Gallagher Consulting
  55. 55. UK Legacy Foresight Research • Legacy Income currently £1.6 Billion • Estimated to be worth £5.3 Bn by mid century • Legacies account for 12% of sector’s voluntary income • Set to grow significantly Karen Gallagher Consulting
  56. 56. NfP Synergy Research (2014) • 37% of the public have made a will (down slightly from 2006) • Overwhelming majority of over 65 year olds have made a will • Last 2 years – an increase in the number of people who have included charities as beneficiaries in their wills • Timing of ask vital – most important group to target is 45-54s Karen Gallagher Consulting
  57. 57.  2013 - 1,570 charitable gifts in 510 wills  65% left by women  Down from 1,816 charitable gifts in 662 wills in 1997 (59.7% left by women)  In 2013 the top 4 causes are as follows: Cause 2013 1997 Religion 36.88% 53.4% Health/Saving Lives 25.92% 16.6% Poverty & Relief of those in need 22.25% 5.8% Animals 7.83% 4.5% Karen Gallagher Consulting
  58. 58. • Need to demystify legacies – they are simply another way of giving a gift to charities • Legacy Giving is big gift fundraising • Organisations need to communicate the legacy message both internally & externally • Legacies are a normal, effective and appropriate way to support your organisation Karen Gallagher Consulting
  59. 59. • Need to identify the handful of donors who will provide the bulk of legacy value and treat them in a manner which will motivate them to give their bequest to your organisation • Donors • Staff • Board of Trustees • Volunteers • Beneficiaries • Other Stakeholders Karen Gallagher Consulting
  60. 60. • Needs to be done in such a way to avoid alienating donors • Targeting and segmentation are critical in legacy fundraising • Legacy messages need to be integrated in other communications (but don’t dominate them) • Language is essential ‘donations in wills’ likely to be better received than ‘gifts in wills’ or ‘legacies’ Karen Gallagher Consulting
  61. 61. • Develop appropriate case studies which demonstrate how a legacy gift can contribute to the long term impact of your work • Give legacy pledgers the opportunity to inform you of their intentions to support you in this way • Post legacy pledge – relationship needs to be managed appropriately – maintaining & deepening the relationship to ensure it is fulfilled Karen Gallagher Consulting
  62. 62. • Sign up for Will to Give • Produce legacy giving materials which promote the benefits of doing so in a simple and accessible way • Include Legacy messages within donor newsletters etc • Test a solus legacy appeal • Legacy event or seminar • Offer receipt of legacy information on donation and supporter reply forms Karen Gallagher Consulting
  63. 63. • Educate staff, volunteers, trustees and patrons on legacies and their importance as a source of fundraising income • Promote legacies to stakeholders, volunteers, staff and trustees • Make some of these stakeholders advocates to promote legacies • Ensure administration support exists to deal with legacy queries either internally or externally Karen Gallagher Consulting
  64. 64. • Gifts over the inheritance tax threshold (currently £325,000) is taxed at 40% • Gifts to a registered charity are not taxable • Means loved ones could have tax bill reduced up to 40% of the amount bequeathed • Since 6th April 2012 – if a donor leaves 10% of their estate to charity the tax due may be paid at 36% • For more information go to HMRC website Karen Gallagher Consulting
  65. 65. ‘I give to Charity A of Address, registered charity number, a share /the whole of my residuary estate/a sum of money/a specific item or property (delete as appropriate) for its general charitable purposes. I direct that the receipt of the Treasurer or duly authorised officers shall be a sufficient discharge for my executors.’ Karen Gallagher Consulting
  66. 66. • A group of 37+ of NI charities working together to promote charitable gifts in wills • Wills Notification Service established in 2012 in partnership with Sector Matters (NICVA) • Aim to provide WTG member charities with advance notice of legacies when probate is granted • Probate Office forward copies to DSD who send them to Sector Matters • WTG Members receive notification • £250 & £495 per year • Karen Gallagher Consulting
  67. 67. Karen Gallagher Consulting Number of Gifts 124 No of Residuary Gifts 39 (31%) No. of Pecuniary Gifts 58 (47%) No. of Specific Gifts 7 (6%) Other Gifts 20 (16%) No. of Gifts to Faith based Organisations 78 (63%) No. of Gifts to Other Charities 46 (37%)
  68. 68. 07765251098 Karen Gallagher Consulting