NEW DONOR TRENDS        Target Analytics Seminar @ 2013 DMA Non-Profit Conference in DC        February 6, 20132/12/2013  ...
D ECLIN E IN N EW D ON OR ACQ UISITION   2001-2010                                                              % Change  ...
D ECLIN E IN FIRST YEAR RETEN TION   2001-2010    Sector                       Retention Rate       Retention Rate    % Ch...
SUMMARY OF CHALLENGES       • Acquisition is increasingly more expensive       • First year retention rates are declining ...
2/12/2013   Customer & Market Insights   5
EMPHASIZE DONOR RETENTION OVER ACQUISITION       • View donors as valuable assets!       • When acquiring new donors, fact...
2/12/2013   Customer & Market Insights   7
EMPHASIZE DONOR RETENTION OVER ACQUISITION       • View donors as valuable assets!       • When acquiring new donors, fact...
2/12/2013   Customer & Market Insights   9
EMPHASIZE DONOR RETENTION OVER ACQUISITION       • View donors as valuable assets!       • When acquiring new donors, fact...
FOCUS ON LIFETIME VALUE, NOT RESPONSE RATES       • Be willing to invest in your donors, e.g. thank you calls.         See...
2/12/2013   Customer & Market Insights   12
FOCUS ON RESULTS, NOT EFFORT       • Set goals and measure your results       • Find peer groups and benchmark your result...
INVEST IN YOUR MOST PASSIONATE SUPPORTERS       • Organize yourself to recognize a donor’s passion for your         missio...
2/12/2013   Customer & Market Insights   15
KEY TAKE-AWAYS       1. Emphasize donor retention over donor acquisition       2. Focus on a donor’s lifetime value, not a...
THE BLACKBAUD INDEX       Get up-to-date data on fundraising trends and valuable analysis by leaders in the sector.       ...
WWW.SOFII.ORG A unique online resource of everything you could want to know about fundraising from c.1500 BC to the presen...
QUESTIONS?     Chuck Longfield, Chief Scientist     chuck.longfield@blackbaud.com2/12/2013   Customer & Market Insights   19
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2013 dc dma seminar new donor trends & stewardship

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  • Use of premiums2/3 yr ROI not list response rates and cpdrInclude planned giving in long term return
  • Adrian Sargeant, When people stay around, they do things like upgrade their gifts, [give more often], contribute to galas and even volunteer. All those things you can put a dollar value on.”
  • Most donors aren’t trying to hide their interest in your organization.They are waving their arms to be noticed. Tell story of someone calling to change their address
  • 2013 dc dma seminar new donor trends & stewardship

    1. 1. NEW DONOR TRENDS Target Analytics Seminar @ 2013 DMA Non-Profit Conference in DC February 6, 20132/12/2013 Customer & Market Insights 1
    2. 2. D ECLIN E IN N EW D ON OR ACQ UISITION 2001-2010 % Change % Change Sector Total # New Donors New Donors/Year New Donors/Year (# of organizations) 2001-2010 2001-2007 2007-2010 Advocacy (16) 6.6 million -9.5% 14.4% Hospitals (23) 1.2 million 17.2% -0.4% Cultural (16) 2.2 million 5% -2% Environmental (37) 16.4 million -23.1% -11.0% Health Research (30) 117 million 12.5% -14.8% Human Services (36) 6.7 million 4.7% 2.5% Colleges (34) * 350,000 -18.9% * The % Change for colleges is for the period 2006-2011 SOURCE: TARGET ANALYTICS2/12/2013 Customer & Market Insights 2
    3. 3. D ECLIN E IN FIRST YEAR RETEN TION 2001-2010 Sector Retention Rate Retention Rate % Change % Change (# of organizations) 2001 2010 2001-2007 2007-2010 Advocacy (16) 34.0% 27.4% -19.5% 0.1% Hospitals (23) 21.2% 18.1% -2.7% 0.6% Cultural (16) 33.3% 26.8% -13.7% -6.5% Environmental (37) 29.7% 24.0% -18.2% -1.4% Health Research (30) 20.9% 19.3% -11.7% 0.4% Human Services (36) 30.8% 26.3% -10.9% -4.2% Colleges (34) * 30.8% 28.1% -8.8% * The % Change for colleges is for the period 2006-2011 SOURCE: TARGET ANALYTICS2/12/2013 Customer & Market Insights 3
    4. 4. SUMMARY OF CHALLENGES • Acquisition is increasingly more expensive • First year retention rates are declining • Trends started prior to downturn and will likely continue after recovery • Younger donors are less loyal than older donors • Low ROI on new donor acquisition (and getting lower). - too costly to acquire new donors to replace lapsing donors • WHAT CAN WE DO? !!!2/12/2013 Customer & Market Insights 4
    5. 5. 2/12/2013 Customer & Market Insights 5
    6. 6. EMPHASIZE DONOR RETENTION OVER ACQUISITION • View donors as valuable assets! • When acquiring new donors, factor in whether you will retain the donor, and at what dollar level • Fill the holes in your leaky bucket! • Why did the donor give? Stop giving? • According to Adrian Sargeant, Ph.D. from Indiana University’s Center on Philanthropy “A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200% .”2/12/2013 Customer & Market Insights 6
    7. 7. 2/12/2013 Customer & Market Insights 7
    8. 8. EMPHASIZE DONOR RETENTION OVER ACQUISITION • View donors as valuable assets! • When acquiring new donors, factor in whether you will retain the donor, and at what dollar level • Fill the holes in your leaky bucket! • Why did the donor give? Stop giving? • According to Adrian Sargeant, Ph.D. from Indiana University’s Center on Philanthropy “A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200% .”2/12/2013 Customer & Market Insights 8
    9. 9. 2/12/2013 Customer & Market Insights 9
    10. 10. EMPHASIZE DONOR RETENTION OVER ACQUISITION • View donors as valuable assets! • When acquiring new donors, factor in whether you will retain the donor, and at what dollar level • Fill the holes in your leaky bucket! • Why did the donor give? Stop giving? • According to Adrian Sargeant, Ph.D. from Indiana University’s Center on Philanthropy “A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200% .”2/12/2013 Customer & Market Insights 10
    11. 11. FOCUS ON LIFETIME VALUE, NOT RESPONSE RATES • Be willing to invest in your donors, e.g. thank you calls. See Donor-Centered Fundraising – Penelope Burk • Determine a donor’s potential early in your relationship and allocate resources accordingly • Be Donor-Centric, not Campaign-Centric2/12/2013 Customer & Market Insights 11
    12. 12. 2/12/2013 Customer & Market Insights 12
    13. 13. FOCUS ON RESULTS, NOT EFFORT • Set goals and measure your results • Find peer groups and benchmark your results • Checklist Manifesto, by Atul Gawande • Identify best practices • Find ways to collaborate to maximize results2/12/2013 Customer & Market Insights 13
    14. 14. INVEST IN YOUR MOST PASSIONATE SUPPORTERS • Organize yourself to recognize a donor’s passion for your mission • See yourself through the eyes of your donors • Be willing to invest in your donors • Test investments and track results carefully2/12/2013 Customer & Market Insights 14
    15. 15. 2/12/2013 Customer & Market Insights 15
    16. 16. KEY TAKE-AWAYS 1. Emphasize donor retention over donor acquisition 2. Focus on a donor’s lifetime value, not a campaign’s response rate 3. Focus on results, not effort 4. Identify & invest in your most passionate supporters2/12/2013 Customer & Market Insights 16
    17. 17. THE BLACKBAUD INDEX Get up-to-date data on fundraising trends and valuable analysis by leaders in the sector. Subscribe to free monthly updates by texting "index" to 69866 or via email by signing up at www.blackbaud.com/blackbaudindex.2/12/2013 Customer & Market Insights 17
    18. 18. WWW.SOFII.ORG A unique online resource of everything you could want to know about fundraising from c.1500 BC to the present day • Over 300 of the best fundraising ideas ever, at your fingertips 24/7…for free! • Contribute your own exhibit. • Sign up to receive hot news and updates. • What three things will you do differently, starting next week?2/12/2013 Customer & Market Insights 18
    19. 19. QUESTIONS? Chuck Longfield, Chief Scientist chuck.longfield@blackbaud.com2/12/2013 Customer & Market Insights 19

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