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Virus Resistant Fundraising Tactics: Donor Advised Funds, Monthly Giving and More


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There are no guarantees in our current COVID-19 climate. But there are hints that there are steps you can take to help your program be recession resistant, if not recession-proof.

Join us to discuss what you should be thinking about – and acting upon – to jump-start your fundraising program AND build a stronger foundation for the new normal that awaits us post-pandemic.

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Virus Resistant Fundraising Tactics: Donor Advised Funds, Monthly Giving and More

  1. 1. ©2020 Charity Dynamics – Confidential & Proprietary Donor Advised Funds, Monthly Giving + More
  2. 2. 2 Your Presenter Dolores McDonagh Principal Consultant Charity Dynamics
  3. 3. How to Protect Yourself in a Pandemic • Wear Your Mask • Wash Your Hands • Practice Social Distancing • Follow Strong and Smart Leaders Protect Yourself 3
  4. 4. Get Your Mask On! 4
  5. 5. Your Mask is Your Monthly Sustainer Program • Masks – even homemade ones, help to inhibit the spread of COVID- 19 by keeping a greater proportion of droplets from getting out into the atmosphere • Sustainer programs help in much the same way – by limiting donor attrition 80% 23% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% First Year Retention Rate New Sustainers New One-Time Donors Network for Good
  6. 6. 2018 Changes in Online Giving 2018 Blackbaud Luminate Online® Benchmark Report
  7. 7. Grow Your Sustainer Program • Promote on your site • Convert one-time donors at “Point of Sale” • Invite current one-time donors to switch to recurring • Retain & Upgrade Sustainers 7 Monthly Giving callout on Navigation drop down.
  8. 8. Promote Sustainer Giving: Offer a Quick Path 8
  9. 9. Promote Sustainer Giving: High Visibility on Home Page 9
  10. 10. Promote Sustainer Giving: Ways to Give Page 10 Have a prominent call out on your ‘Ways to Give’ page.
  11. 11. Promote Sustainer Giving: Making the Case 11 Dedicated page
  12. 12. Promote Sustainer Giving: Donation Form 12 • Send people to the right ask – Sustainer lead ask – One-time lead ask • Highlight choice early in form
  13. 13. Promote Sustainer Giving: Alternative Donation Form 13 ‘Out of the box’ options often include a check box to make gift monthly. This can make it difficult to calibrate ask amounts. Simple option is to offer a link to a monthly form.‘ Sustaining gifts don’t have to be monthly!
  14. 14. Calibrate Your Ask for Your Audience 9% 4% 47% 19% 39% 45% 5% 32% 0% 20% 40% 60% 80% 100% 120% Typical Animal Welfare Typical Food Bank <$10 $10-19 $20-49 $50+ 44% give $20+ each 77% give $20+ each month 14
  15. 15. Convert One-Time Donors at “Point of Sale” 15 • Algorithm suggest a monthly amount that represents a modest annual upgrade. • If donor declines, one-time gift is still processed.
  16. 16. Invite one-time donors to support you monthly • Lead with mission, focus on convenience • Send to a monthly form • Multiple opportunities to ask – Welcome Series – Single invitation to broad audience • Segment with asks based on giving level – Smaller, ongoing targeted asks triggered by donor actions 16
  17. 17. Retain Sustainers • Provide relevant meaningful information in your monthly thank you emails • Run, read and act on ongoing reports – Cancellations – Expired Credit Cards • Empower Sustainers to manage their accounts 17
  18. 18. Upgrade Sustainers 18
  19. 19. Wash Your Hands 19
  20. 20. DAF Marketing is to Handwashing as Sustainers are to Masks Marketing Donor Advised Funds is an active way of protecting your organization from recession. • Know Your Numbers: Identify current & potential DAF users • Make it easy for donors to direct grants to you • Send targeted communications to DAF owners to facilitate campaign gifts Network for Good
  21. 21. What are Donor Advised Funds? Three major types of DAFs: • Community Foundations • Single-issue charities • National sponsor organizations 21 DAFs are intermediary philanthropic vehicles that function as personal giving accounts, like checking or savings accounts that are designated irrevocably for charitable giving. Understanding Donor Advised Funds: How Grants Flow during Recessions
  22. 22. How do Donor Advised Funds Work? 1. Donor makes a tax- deductible contribution into a donor advised fund account. 22 Donor Donor Advised Fund Nonprofit Recipient Nonprofit Recipient Nonprofit Recipient Irrevocable Contributions Income-tax deduction Advisory privileges Grants 2. DAF sponsor holds and manages assets. 3. Donor “advises’ grants out of DAF account to other nonprofit recipients.
  23. 23. Why Focus on DAFs Now? • More of your mid-level donors are moving to Donor Advised Funds • Appear to be somewhat recession proof • Tools exist to make it easier for donors to direct funds to you online 23
  24. 24. The Growth of Donor Advised Funds Source: National Philanthropic Trust The 2019 DAF Report
  25. 25. $37.12 $30.90 $25.06 $21.42 $19.91 $23.42 $19.70 $15.86 $14.22 $12.35 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 2018 2017 2016 2015 2014 Distributions from DAFs Contributions to DAFs DAFs contributions grew 19% in 2018 Distributions were up by 20%, but there is still a significant gap in DAF revenue inflow and distributions to nonprofits. Donor Advised Fund Growth 25 *Contribution and distribution figures are shown in billions
  26. 26. Know Your Numbers & Promote That You Accept DAFs • Funds – Identify top funds currently making gifts to your organization • Donors – Tag all current and lapsed donors who have made DAF gifts in your CRM • Use simple cultivation survey to ask donors if they have – or are considering a DAF • Promote DAFs in your offline marketing 26 Offline marketing includes acknowledgments, inserts and even language on direct mail reply forms
  27. 27. Make It Easy: Offer a Clear Path to DAFs 27
  28. 28. Make It Easy 28
  29. 29. Make it Easy: Event Fundraising 29 Walk to End Alzheimers offers a toggle between giving options. Dana Farber offers a text link under gift array.
  30. 30. Make it Easy: DAF Widget 30 MarketSmarts’ DAF Widget is a gateway that offers links to hundreds of DAF login pages. DAFDirect is a joint effort of Fidelity, Schwab and BNY Mellon.
  31. 31. Features of Each Widget DAF Direct DAF Widget Cost Free – requires some styling on web pages Free – may require some styling How it Works Direct requests for three funds: Fidelity, Schwab and BNY Mellon. Offers links directly to hundreds of funds’ login pages. Requires Donor Login No Yes Customizations available Widget can be programmed to recognize donors through cookies, specific URLs can be set to only show specific designation names None Learn more 31
  32. 32. Make It Easy: Go Beyond the Widget • DAFDirect offers seamless access, but only for three sponsoring funds • Offer quick links to your other top funds 32
  33. 33. DAF Email Marketing Leveraging what you know about existing DAF donors, you can target asks in email campaigns.
  34. 34. Check to see if your organization is mentioned on Fund sites • Schwab: OVID-19.html • Vanguard: https://www.vanguardcharitable.or g/supporting-disaster-relief • Fidelity: 34
  35. 35. Support Social Distancing 35
  36. 36. Support Social Distancing • CALL your donors to check in – Engage staff outside your office to touch base with donors • Organize ZOOM or other webinar briefings for targeted segments • Some of your donors may now need support from you now • Provide engagement opportunities for people stuck at home
  37. 37. Be a Leader in Your Organization 37
  38. 38. Be a Leader • Engage staff in connecting with donors • Volunteer for your organization’s COVID-19 Task Force • Provide current and relevant information to your supervisor • Participate in Employee morale activities
  39. 39. Don’t Forget • Make your Sustainer program your mask • Get your Donor Advised Fund marketing in shape well before Year End • Reach out to donors who are social distancing • Be a leader in your organization 39
  40. 40. Questions?
  41. 41. Next Webinar: Offer the Sizzle & the Steak, But make It ALL About Them: Making ‘Virtual’ Meaningful in a Humanity-Focused Environment P2P Virtual Conference April 23, 2:30 PM ET Contact us!