The document discusses the American Heart Association's efforts to standardize and improve its donations processing systems. It describes how the AHA worked with CDS Global to implement centralized caging, capture, and acknowledgement processes to provide consistency, improve security and data quality, and increase donations. The new system helped process over $425 million in donations and saved over $52,000 in bank fees while improving the donor experience. The AHA then expanded the program to additional revenue streams and piloted remote deposit capture.

1. Donations Processing: Embracing
Efficiency, Security, and Data to
Build Your Future
#12NTCAHCDS
Chip Sugrue -- @ChipSugrue
Brett Ridge – @BanterwithBrett

2. The American Heart Association
Chip Sugrue
Vice President of Customer Strategies/
Affiliate Management Consultant

3. Mission
Building healthier lives, free of
cardiovascular diseases and stroke
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@BanterwithBrett
@ChipSugrue

4. 2020 Goal
“By 2020, to improve the cardiovascular health of all
Americans by 20% while reducing death from
cardiovascular diseases and stroke by 20%.”
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

5. AHA Affiliates
A
K
Founders Affiliate
WA Michael Weamer, EVP
MT ND CT, ME, MA, NH, NJ, *NY, RI & VT
M ME
N VT NH
OR M
RI
SD
SD WI NY NYC A
W CT
ID MI
Y PA
IA OH NJ
Western States Affiliate NE
Midwest Affiliate
Roman J. Bowser, EVP IL Great Rivers Affiliate
IN DE
Kevin Harker, EVP
AK, AZ,*CA, HI, ID, MT, NV, OR, UT & WA
IA, IL, IN,*KS, MI, MN, MO, ND,
Nicole Aiello Sapio, EVP
CO DE, KY, OH, *PA W WV
& DC
NV UT NE, SD & WI VA MD
KY
CA KS M V
O Mid-Atlantic Affiliate
NC
TN
Jeremy Beauchamp, EVP
MD, NC, SC, *VA & WA, DC
OK AR SC
AZ NM
National
TX
Center MS AL GA
SouthWest Affiliate LA
FL
Midge LaPorte Epstein, EVP Greater Southeast Affiliate
AR, CO, NM, OK, *TX & WY David Markiewicz, EVP
HI AL, *FL, GA, LA, MS, PR & TN
PR
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@BanterwithBrett
@ChipSugrue

6. Chip Sugrue
5 Years National Vice President Of Customer Strategies
 American Heart Association, National Center
10 Years as CEO/Executive Vice President
 AHA Minnesota Affiliate
 AHA Northland Affiliate
 AHA Northeast Affiliate
9 Years as National Affiliate Management Consultant
 American Heart Association, National Center
34 Years Total Field/National Center Experience
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

7. CDS Global
Brett Ridge
Senior Solutions Manager, Nonprofit

8. Our parent company, Hearst
Corporation, is more than 120
years old and comprises nearly
20,000 employees spanning six
major groups
Newspapers
Magazines
Broadcasting
Entertainment/Syndication
Interactive Media
Business Media
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@BanterwithBrett
@ChipSugrue

9. CDS Global Clients
Publishing Nonprofits
Consumer Products Utilities
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@BanterwithBrett
@ChipSugrue

10. Markets
Publishing Consumer Products Nonprofits Utilities
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@ChipSugrue

11. CDS Global Locations
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@ChipSugrue

12. Brett Ridge
10 Years as CEO/Executive Director
 Make-A-Wish Foundation of Iowa
 National Multiple Sclerosis Society of Iowa
 FFA Foundation of Iowa
7 Years as VP/Director of Marketing, Public Relations,
Public Affairs (Government Relations)
 American Cancer Society, Midwest & Iowa Divisions
Numerous State and National Task Forces & Coalitions
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@BanterwithBrett
@ChipSugrue

13. More than Meets the Eye
Chip Sugrue
Brett Ridge

14. AHA Donations Processing
Beginnings
Chip Sugrue
Vice President of Customer Strategies/
Affiliate Management Consultant

15. The Problem
Differences in donations processes:
 Donations captured
 Donations acknowledged
 Donations receipted
 Donations cultivated
Could we be confident that
our donors were being
appropriately thanked,
cultivated or at a
minimum, meeting IRS
receipting regulations?
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

16. Why All the Fuss?
AHA estimates only 55% of contributions and payments
received an acknowledgement
 Lack of process consistency between Affiliates makes
acknowledgement rates an estimate
To ensure we were consistently meeting IRS guidelines
How much revenue has AHA lost due to uncultivated
relationships because contributions were not captured
for acknowledgement?
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

17. What to do?
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@BanterwithBrett
@ChipSugrue

18. Objectives
Review the mechanics of how we cage, capture and
acknowledge our donors
The solution must:
 Provide consistency across the organization
 Be cost-effective for the Association
 Allow for scalability to quantity demands
 Be “trackable” – provide the Association a means to record if,
when and what type of donation was received and
acknowledgement generated
 Improve the data quality for the Association
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

19. Our Vision
We envision a day that the AHA will:
1. Process all financial contributions into E1 according to
established guidelines
2. Achieve a donor entry turnaround of three working days from receipt
at the donor capture processing location
3. Mail an acknowledgement for a contribution with appropriate IRS
terminology within five working days of receipt of donation
4. Identify trends in giving and segment donors based upon
demonstrated behaviors
5. Design and implement an association-wide cultivation strategy
 Classifications of donors
 Creation of specific cultivation paths targeted to donor segment needs
 Example: Sending a message about us almost meeting our impact goal
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

20. Three Moving Parts
1. Caging
 How AHA deposits money
2. Capture
 How AHA collects customer
data into the AHA CRM
systems (Siebel, Kintera, etc.)
3. Acknowledgement
 The “Thank You”
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

21. Caging: What Did We Gain?
Ability to electronically upload data into existing
applications
Ability to develop a reporting infrastructure
Solution consistently applied
Ability to track batch status within caging process
Ability to adjust to future changes and invest in technology
Minimal start-up costs
Minimized ongoing training costs after implementation
Ability to add additional income sources
Minimized impact on system infrastructure
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

22. Capture: What Did We Gain?
Maximized the number of donors captured
Provided better opportunity for 360 degree view of donor
Solution consistently applied
Met data security and internal privacy requirements
Ability to identify the source of the donation and market
Disaster recovery is included
Ability to adjust to future changes in technology
Designated staff have visibility to the donation process
Minimized redundancies in processing between caging and capture
Ability to have consistent data verification
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

23. Acknowledgements: What Did We Gain?
Ability to comply with IRS reporting guidelines
Standardized process for thanking our donors
Increased cost efficiencies by comingling mailings
Ability to cultivate and re-engage donors
Customization of acknowledgements by event or
activity (phase 2)
Ability to track status of acknowledgement
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@BanterwithBrett
@ChipSugrue

24. Cost Savings/Reallocation
Existing lockbox costs would be reduced (e.g. Heart Walk) and reallocated
Reduced the number of lockboxes needed from 21 to 14
Some mail costs shifted from Affiliates to vendor
Reduction in copying costs and time spent copying checks
Staff time reallocated due to increased efficiencies
Redeployment of staff resources for some Affiliates
Depository fees savings of approximately $26,000/year with 9 deposits
from the vendor per day versus 300 deposits
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

25. Caging, Capture, Acknowledgement Impact
More donation information captured and entered into expanded
360 data warehouse
Standardized cash receipts guidelines developed
Affiliates now participating in cash pooling program
Better customer service in responding to donor inquiries
Ability now to expand standardized Donor Appreciation project
Opened up new opportunities in other business functions
(Youth Market, Work place Giving, Health Strategies)
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

26. The Impact In Numbers (27 months)
More than $425,000,000 in Savings of more than $52,000 in
income processed bank fees
3,510,379 transactions Savings of more than $24,000 by
937,905 acknowledgements eliminating 7 lockboxes
mailed
7,000 requests for information
More than 2.4 million new
donors added to CRM
More than $200,000 savings in
acquisition costs
More than $47,000 in
second gifts
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

27. Volume Donations Processing
Technology & Tools
Brett Ridge
Senior Solutions Manager, Nonprofit

28. mail receipt
PO boxes identify clients and
transaction types
STEP Regional collection offices
1 Mail is either picked up at post office or
delivered to sites
From remote locations (RDC)

29. Getting It Done
Remote Deposit Capture
 Reduce float time
 Save on costly postal fees
 Improves funds availability
 Process deposits from events, local office
 Multiple scanner options
 Easy-to-use software and implementation
 Capture data in addition to checks
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

30. STEP
2 mail processing
SORTATION EXTRACTION IMAGING &
DATA
Sort multiple Open and CAPTURE
classes of remove Imaging Systems
documents envelope Web Image
contents Archive
Handwriting
Detection &
Recognition

31. Sortation
Sorts two-piece, check only, document
only, customer service, etc.

32. Combination of automated & manual

33. Imaging & Data Capture
State-of-the-art imaging system
Capture virtually any data from any documents
Speed up processing
Ensure security, compliance, highest accuracy in industry
Increase amount of data captured about donors

34. Imaging & Data Capture

35. Handwriting Detection

36. Web Image Archive

37. STEP
depositing
3 • Balancing – No data file, check or check image leaves
CDS Global without being in balance
• Deposit
• Manual – Physical deposit of checks via bonded courier
• Electronic Check Presentment (ECP)
• Send an electronic image of check to bank for depositing
• Check 21
• ACH/ARC
• Both
• Online Bill Pay Support – Relationships with vendors to
receive data feeds when bills are paid via online banking site

38. STEP Customer Database
4 Communication/Feeds
• Customize feeds or key data directly into
donor database to suit requirements
• Highly flexible, easy to use
• Keeping valuable data safe
• Transaction data distributed via secure
FTP site (CDSFiles)

39. Donor Acknowledgements & Marketing Solutions
Recognize attract, retain donors
Seamless programs that handle the
printing, personalization and mailing of
donor acknowledgement packages
Paper and electronic methods available
Quickly and accurately
acknowledge donors
Donor solicitations
Rewards for high-value donors
Personalized, multichannel campaigns
Simple event registration capabilities
and online payment
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

40. AHA Donations Processing
Expansions
Chip Sugrue
Vice President of Customer Strategies/
Affiliate Management Consultant

41. Expanding the Program
Accounts Receivable Results
 4 of 7 affiliates participating
 4,700+ receivables processed and deposited
 Saves AHA preparation and processing time
Customized acknowledgement letter for Youth Market donors
Created customized acknowledgement for those making
additional donations
2012 – Creating customized acknowledgement for Workplace
Giving donors
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

42. Expanding the Program
Remote Data Deposit and Capture Testing
 Determine if batch headers and checks could be scanned
remotely to CDS Global for caging, capture and
acknowledgement
 Quantify cost savings from not mailing information
 Quantify additional interest earned for depositing income faster
 Identify impact of scanning on AHA workload
 Identify any issues with AHA taking on the check
destroying responsibilities
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

43. Expanding the Program
Remote Data Deposit and Capture Pilot
 Two high-volume offices within the Founders Affiliate (Framingham
and Robbinsville) were selected to participate
• Pilot ran from April 1-June 30, 2011
• CDS Global loaned one scanner to each office
• CDS Global conducted webinar to train staff on scanning machines
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

44. Expanding the Program
Remote Data Deposit and Capture Pilot
 More than 45% of the total income from the Founders Affiliate was
processed from Framingham and Robbinsville offices
 Robbinsville also processed Accounts Receivable
 More than 1/3 of the total batches processed (1,166)
 More than 1/4 of all checks (5,441) processed
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

45. Expanding the Program
Remote Data Deposit and Capture Pilot Results
 1,166 batches and more than $3,543,000 processed
 More than $845 in postal costs saved
 More than $600 in additional interest earned
 Additional cost savings of $45.60 from not having to use
Tyvek envelopes
 Information scanned in the morning/deposited the same day
 Information available in e1 and Web Image Archive within hours
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

46. Expanding the Program
Remote Data Deposit and Capture Pilot Results
 Scanning did not appear to take any more or less staff time than
manually preparing batches and prepping them for mailing
 Scanning could help speed up process for confirming donations in
event management tools
 Scanning documentation would save a step
 Positive ROI using scanners
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

47. Expanding the Program
Remote Data Deposit and Capture Pilot Results
 Potential costs savings assuming similar costs to the Founders
Affiliate offices for 25 additional AHA offices:
• Postage savings of $42,250*
• Increased income of $29,123 (1.5%)
• Decreased Tyvek envelope costs $2,280
• Estimated total savings and increased interest
income = $73,653+ per year
*FDA sending all batches Priority Mail
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

48. Stop the Guessing Game
Brett Ridge
Senior Solutions Manager, Nonprofit

49. Gathering Deeper Data
from Donations
Chip Sugrue
Brett Ridge

50. Leveraging Data
Weave Your Way into Their DNA
 Remember who they are … their context
 Be simple and direct on their level
Creative
 Simplicity … not off the wall
 Create a plan for touches
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

51. Expanding the Relationship
Growth from Increased Relationships
 3X+ and 2X donors with activity are 132% and 56% more valuable
than their average donor counterparts
 Life to Date Dollars from donors with both revenue and
non-revenue activity
Freq. Donors Activity Giving
LTD Dollars LTD $/Donor
Category w/Activity Freq. Freq.
3x+ 659,081 4.04 7.34 $589,745,418 $894.80
2x 309,174 3.04 2 $42,773,548 $138.35
1x 652,531 2.27 1 $45,220,394 $69.30
Totals 1,620,786 3.14 3.77 $677,739,360 $418.15
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

52. Gathering Data
Begin a Dialogue
 Provide information
 Ask their thoughts
 Get their opinion
 Make them feel that you care what they think …
and then actually begin to care
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

53. Gathering Data
Solicitations
 Mailed
 Emailed
 Personal calls
 Online portals
• Age, gender, creed, etc.
• Email address
• Communication
preferences, social media
information
• Interests, hobbies, event
preferences
• WHY THEY CARE
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

54. Gathering Data
Tear-Offs
 Can be scanned
PURL
 To prepopulated microsites
• Surveys, information etc.
QR Codes
 Directly to microsites, websites,
webstores, surveys, etc.
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

55. Gathering Data
Acknowledgements
 Mailed
 Emailed
 Personal calls
 Online portals
• Begin a dialogue
• Provide information
• Ask their opinion
• Ask for another donation
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

56. Gathering Data
Acknowledgement Opportunities
 Planned giving wills and estates (7,000 requests)
 Volunteer opportunities (7/1/2011 – 300+ requests)
 Research information
 Join the You’re the Cure Advocacy Network
 Soft ask for additional donation (FY 2011 – $47,000 from
689 donations = $68.21 gift average. First 7 months of FY 2012 –
$53,614 from 345 donations = $155 gift average.)
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

57. Gathering Data
Track It
 Who responded?
 What channel did they use?
 What did they tell you?
Analyze the Data
 What does it tell you about
groups? Individuals?
 Build profiles
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

58. Leveraging Data
Context
 It’s not about you
 Connect with them on their level
 Meet consumers at their destination
Enhance Data
 Add additional data
 Build profiles on individuals
 Build prospect profiles
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

59. Constituent Data 100,000
Provide Email on Send Email
Constituent File? with PURL
Age Yes
Analysis
20-60
(age, propensity
to give, etc.)
Open
No Email? Send 2nd
Age Email
60 + No
Yes
Send AgeTargeted Personalized Postcard w/QR and Tear-Off
Go To Open
Option (2 or 3 age segments)
PURL? Email?
No Yes
Yes
Utilize QR Yes
to PURL
No Microsite w/Call 2nd
Capture
Or to Action No
Email
Utilize Tear- Scan Tear-Off
No Off Yes
Positive
Acknowledge via US Mail and/or Response?
No
Email, Notify IRC for Fulfillment Yes
Record in Campaign
Manager as Record in Campaign
Unsuccessful Manager as
Record in Campaign Manager as Successful
Unsuccessful
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

60. Leveraging Data
AHA Multichannel Opportunities
 Average of 1,000 customers contact AHA Service Center via email or
phone each day for educational or donation information
 Dynamic Delivery provides opportunity to email educational or
donation information while they are on the phone
• Average more than 9,000 Dynamic Delivery emails per month
 In FY 2011, more than 110,000 Dynamic Delivery emails were sent,
saving the organization more than $220,000 in print and postage costs
while delivering outstanding service to the customer
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

61. Leveraging Data
AHA Multichannel Opportunities
 In March 2011 we created a monthly educational email to send to
our online donors to heart.org. More than 48,000 online donors
received these emails in the last year. Our 2011 year-end email
campaign to these donors increased income more than 47%.
Volunteers and staff called all $500+ year-end campaign donors.
 In FY 2011, we added a donate button to the bottom of the
Dynamic Delivery email. As a result Dynamic Delivery customers
donated more than $184,000 during the year. In FY 2012 we have
already exceeded FY2011 with more than $284,000 through the
first 7 months.
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

62. Leveraging Data
AHA Multichannel Opportunities
 In FY 2012, we added monthly opportunity to volunteer for the AHA.
Customers receive 15 days after Dynamic Delivery. February 2012, we
added a direct link to our volunteer form. The number of volunteer
submissions doubled the day the email was sent out. Local staff
follow-up with those interested in volunteering to onboard them to a
volunteer activity.
 At least 3 channels used (phone, email, personal follow-up)
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

63. Leveraging Data
Fight for it!
 Enlist marketing professionals as consultants
• Not for creative work … but to sell the ideas
 Replace, replenish, refuel
 Forward-thinking Board Members & Staff
• Positive attitude
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

64. Leveraging Data
We are not perfect, we learn as we go … We are great at
acquiring new donors, we are not as good retaining and
renewing donors
 Some of our offline cultivations have not done well
 Our donation renewal rates are not where we want them to be
 We need to be more proactive (ex: sending late breaking news about
stroke to our stroke customers after our annual Stroke Conference)
 The opportunity to volunteer from our website is new 12/1/2011 and
we are learning
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

65. Leveraging Data
“Failure is a prerequisite for great success. If you want to
succeed faster, double your rate of failure.”
̶ Brian Tracy
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

66. The Glass Is Half Full
Chip Sugrue
Brett Ridge

67. Evaluate This Session!
Each entry is a chance to win an NTEN engraved iPad!
or online using #12NTCAHCDS at www.nten.org/ntc/eval
#12NTCAHCDS
@BanterwithBrett
@ChipSugrue

68. Donations Processing: Embracing
Efficiency, Security and Data to
Build Your Future
#12NTCAHCDS
Chip Sugrue
Brett Ridge