1. BONNIE CATENA, CONNECTOR-IN-CHIEF, CATENA CONNECTS
LARRY MAY, SENIOR VICE PRESIDENT FOR STRATEGIC DEVELOPMENT, INFOGROUP
JANN SCHULTZ, SENIOR DIRECTOR INTEGRATED FUNDRAISING & COMMUNICATIONS, PROJE CT HOPE
LISA MASKA, PARTNER, LAUTMAN MASKA NEILL & COMPANY
1
2. Myth #1
Too much communication will drive people away!
Jann Schultz
Don’t ask again!
They just gave, “rest” them!
Don’t contact your sustainers,
they will cancel!!
Be afraid!!!
2
3. Fact:
Many next gifts come one to four months after the first gift.
Giving drops
when 6-11
months have
passed.
Jann Schultz 3
4. Fact
The more you connect with your donors, the more funds
you raise.
• More net revenue
• Better retention
• More complaints*
Lots of contact Much less contact
• Less net revenue
• Worse retention
• Better ROI
Jann Schultz 4
11. MYTH: Direct mail goes right to my
recycling bin…
• FACT: According to Blackbaud’s 2014 Charitable Giving report, only 6.7% of
overall fundraising revenue was raised online.
• FACT: Direct mail still accounts for the majority of fundraising revenue
contributed by individual donors.
• FACT: Direct mail drives online giving—as much as 25% of annual revenue is
from new online donors.
Bonnie Catena 11
21. MYTH
We should communicate
with our donors the way
THEY want.
FACT
Listening to donors generally
hurts income.
Myth #3
Larry May 21
22. •“If we can figure out which donors give to which
campaigns, we can mail less and stop aggravating them
with so many appeals.”
•Nice idea, but it doesn’t work.
22Larry May
23. •Few donors follow any real giving patterns.
•Donors who give to a particular appeal are more likely to
respond to that appeal again, but most don’t.
•The donors most likely to respond are those who just
made a gift.
23Larry May
24. •Given the option, many donors will ask for fewer
contacts.
•Fewer appeals = less income.
•Many donors will say “Just contact me once a year.”
•Then they won’t respond.
24Larry May
25. •Donors who ask for just one annual appeal will often
respond to that appeal at a higher rate than all other
donors.
•Maybe you’ll get 10% of donors who responded to that
package last year to give to it again, versus 5% for the
mailing overall.
25Larry May
26. •But if you don’t keep sending them mail, that’s it – you
got 10% to respond.
•Your goal for overall retention should be 60%.
•You have turned many of your best donors into lapsed
donors who will be much more difficult to reactivate.
26Larry May
27. •What people say they want and what works for
fundraising are usually opposites.
•Focus groups are usually wrong.
•People lie on surveys.
27Larry May
28. •Donors hate telemarketing, but it works.
•Everyone hates telemarketing.
•Even telemarketers hate telemarketing.
•But it works.
28Larry May
31. Fact
Donors don’t want to solve a problem because it is big.
They want to solve a problem because it is solvable.
Jann Schultz
31
32. Truth
Giving is emotional
Jann Schultz
“Thank you for making this
opportunity available by
sending an email and an easy
website for donation. I deeply
appreciate your efforts toward
Nepal as well as your outreach
to folks like me, who feel so
powerless to help. This gives me
the chance to contribute in
some way.” –Donor, 4-26-15
32
33. Truth
Giving is emotional
Jann Schultz
“Thank you for making this
opportunity available by
sending an email and an easy
website for donation. I deeply
appreciate your efforts toward
Nepal as well as your outreach
to folks like me, who feel so
powerless to help. This gives me
the chance to contribute in
some way.” –Donor, 4-26-15
33
35. MYTH: You can’t say that —
it’s off-brand!
• FACT: Marketing is about your organization.
• FACT: Fundraising is about your donor.
• FACT: Your donor is the super-hero. Your
organization is the side-kick.
35Bonnie Catena
40. Myth #6
MYTH
We know what our
donors want.
FACT
Your opinions have little
value in fundraising.
40Larry May
41. •“We all loved this package, but it bombed.”
•“I know lots of successful organizations mail those
types of packages, but they won’t work with our
donors.”
•“I talk to our donors all the time, and they hate
that direct mail stuff.”
41Larry May
42. •We are not our donors.
•The fact that we are all here at a fundraising convention in
Manhattan should be evidence enough.
42Larry May
43. •Most of us here today probably identify as “liberal.”
•But fewer than 20% of Americans do.
•“Liberal” causes like environmentalism and fighting
poverty are also supported by “conservatives” and
“moderates.”
•Have the imagination to know not everyone is like you.
43Larry May
44. •People who call to complain are not typical donors.
•They are weirdos with too much time on their hands.
44Larry May
45. •The small number of comments and complaints you hear
don’t represent the majority.
•Only testing really tells what donors respond to.
45Larry May
46. •My colleague Graham Hunter: “Don’t turn your
complainers into your focus group.”
•The late, great Don Kuhn: “Lots of complaints right after
you mail means you’ll have a great response.”
46Larry May
55. MYTH: This letter is way too long.
No one will read it.
• FACT: Testing — decades’ worth! — shows that longer letters
win.
• FACT: Psychology is at play.
• FACT: There are exceptions, so you should test!
55Bonnie Catena
60. MYTH
Our program is unique.
FACT
Within categories, most
programs are very much
alike.
Myth #9
60Larry May
61. •Categories such as health, children, international,
environmental have predictable, similar patterns.
•Unless you are doing things really wrong, the basic
dynamics don’t change much.
•BUT – small changes for the better have huge long-term
impact.
61Larry May
62. Within organization category:
• App. Same Average Gift
• App. Same Maximum donor base size
• App. Same # gifts per donor, per year
62Larry May
63. Virtually all good programs have…
•55-65% retention of current donors
•30-35% first year conversion of new donors
•50% or greater ultimate conversion of new donors
•15-20% of new donors still active in 5 years
63Larry May
64. •Increase first-year new donor conversion a few
percent upward…
•Increase year-to-year retention a little…
•Increase the average gift a few dollars…
•And you have a very big long-term impact.
64Larry May
69. P.S. The P.S. is sacrosanct!
Myth #11
69Bonnie Catena
70. MYTH: Underlining, bold type and bullet points are
gimmicks and donors know it. Take it all out.
• FACT: There’s a method to the madness of the anatomy
of a direct mail letter.
• FACT: Ditto for the envelope, reply device, inserts….
• FACT: Yes. It’s counter-intuitive. That makes it fun!
70Bonnie Catena
71. Mythbuster #11
Donors don't read the
whole letter. They read
the lead and the P.S. and
skim the rest.
71Bonnie Catena
72. Mythbuster #11
Accordingly, the best
fundraising letters are
structured as a map of
the story you are
telling.
72Bonnie Catena
73. Mythbuster #11
We call out the most
salient points with short
paragraphs, bullets,
underlining and the P.S.
73Bonnie Catena
74. More Gospel:
Envelope:
Make it look personal
Reply device:
Repeat the offer
Inserts:
Reinforce the story and the offer
74Bonnie Catena
75. MYTH
Our lapsed donors
have lost interest in
our cause.
FACT
Lapsed donors still care
and you need to make
more effort with them.
Myth #12
75Larry May
76. • Stop comparing your lapsed donors to your best
donors.
• Start comparing lapsed donors to prospects.
76Larry May
77. • Most organizations don’t invest nearly enough in
lapsed reactivation.
• Good Goal: reactivate as many lapses as you gain new
donors.
77Larry May
78. • Almost half of the new donors you acquire never
make a second contribution.
• Those who do are more valuable than a group of new
donors, even if they have lapsed.
• Donors don’t keep track of how often they give to you.
78Larry May
79. • Every lapsed donor who renews is at minimum a two-
time donor.
• Renewed lapsed donors often have 50% greater LTV
than new names.
79Larry May
80. • Use basic RFM segmentation on your 24- to 60-month
lapses.
• As you lose recency in older names, increase the
frequency and monetary (gift amount).
80Larry May
81. • Match the names that don’t make your RFM cut,
and all older names, to one or more co-op
databases to find recency.
• Applying co-op recency activity can let you identify
good prospects even among very long lapsed
donors.
• Match your long lapses, even 10+ years, to a donor
co-op and find those still active.
81Larry May
JANN/Myth #1
My passion is Donor Service – so this first myth is often a point of confusion for those who know me. However, my responsibility is to raise funds while also caring for our donors. So the first myth I want to bust is:
Myth #1: Too much communication will drive donors away
<CLICK>This myth inspires fear. We hear in our hallways “Don’t ask too often.” “They just gave, don’t contact them!” and “Don’t contact our credit card/EFT sustainers, they will cancel!”
I’d like to pose a question to the group: In your direct mail cultivation plan, how many times a year do you ask your single gift donors to give? Raise your hand: 1-5, 6-10, 11-15, 16+?
<NEXT SLIDE>
JANN (layered graphics)
It is a statistical fact: most next gifts come one to four months after the first gift - then giving drops when 6-11 months have passed.
<click>
You will see a small up-tick at 12 months – those are your annual givers.
If your donor has not given a second gift by 13 months, the likelihood they will ever give again drops off significantly.
You’ve heard it, and if you have tested it, you’ve seen it play out year after year. You have a very short window of opportunity.
<next slide>
JANN
The fact is: The more you connect with your donors, the more funds you raise.
Lots of contact = more net revenue, better retention, more complaints*
Lets talk about complaints…yes, you will hear from your donors. And it is YOUR opportunity to build a relationship with them! Customize their preferences. Don’t arbitrarily remove them from all mailings! ASK them for their preferred contact cadence. How often would they like to hear about their gifts at work? When do they like to receive mail solicitations? Don’t assume.
AND training is KEY – don’t let this responsibility fall on an admin in your office. They will take the easy road and mark everyone DO NOT MAIL. Incentivize “saving” a donor and retaining them in the mail stream. Design your database so that you can offer options – not just ALL or NONE.
Less contact = less net revenue
if you don’t ask, you don’t get
worse retention – less opportunity to give and engage with the organization
and better ROI due to reduced costs, but your overall performance metrics decline
JANN: (Layered graphics)
The truth? It’s not quantity, its quality. <click>
It is about relevance to the donor.
Do they swoon over your letters?
…well, do they at least interrupt their busy day to read your mail?
People don’t complain if they receive the content they are looking for, that validates their decision to give and continues to engage their emotions with your organization.
They don’t complain if you express your appreciation and show how their gifts are at work.
For Project HOPE we have had double digit increase in retention and improved avg gift value (up by $3 YOY) and LTV of donors over the past 18 months.
At the same time we have increased # of touchpoints (driven by organization need for NET.)
To do this successfully, we have focused on:
donor centric communication <click>
improving the value proposition of the HOPE offer through HOPE Promise <click>
Have insured that our acknowledgements were relevant to the appeal the donor gave to <click>
We launched a Donor Services call center – to move customer service away from the admin staff
And <click> initiated a Voice of the Donor project to collect donor feedback and act on it.
JANN: (Layered graphics)
The truth? It’s not quantity, its quality. <click>
It is about relevance to the donor.
Do they swoon over your letters?
…well, do they at least interrupt their busy day to read your mail?
People don’t complain if they receive the content they are looking for, that validates their decision to give and continues to engage their emotions with your organization.
They don’t complain if you express your appreciation and show how their gifts are at work.
For Project HOPE we have had double digit increase in retention and improved avg gift value (up by $3 YOY) and LTV of donors over the past 18 months.
At the same time we have increased # of touchpoints (driven by organization need for NET.)
To do this successfully, we have focused on:
donor centric communication <click>
improving the value proposition of the HOPE offer through HOPE Promise <click>
Have insured that our acknowledgements were relevant to the appeal the donor gave to <click>
We launched a Donor Services call center – to move customer service away from the admin staff
And <click> initiated a Voice of the Donor project to collect donor feedback and act on it.
JANN: (Layered graphics)
The truth? It’s not quantity, its quality. <click>
It is about relevance to the donor.
Do they swoon over your letters?
…well, do they at least interrupt their busy day to read your mail?
People don’t complain if they receive the content they are looking for, that validates their decision to give and continues to engage their emotions with your organization.
They don’t complain if you express your appreciation and show how their gifts are at work.
For Project HOPE we have had double digit increase in retention and improved avg gift value (up by $3 YOY) and LTV of donors over the past 18 months.
At the same time we have increased # of touchpoints (driven by organization need for NET.)
To do this successfully, we have focused on:
donor centric communication <click>
improving the value proposition of the HOPE offer through HOPE Promise <click>
Have insured that our acknowledgements were relevant to the appeal the donor gave to <click>
We launched a Donor Services call center – to move customer service away from the admin staff
And <click> initiated a Voice of the Donor project to collect donor feedback and act on it.
JANN: (Layered graphics)
The truth? It’s not quantity, its quality. <click>
It is about relevance to the donor.
Do they swoon over your letters?
…well, do they at least interrupt their busy day to read your mail?
People don’t complain if they receive the content they are looking for, that validates their decision to give and continues to engage their emotions with your organization.
They don’t complain if you express your appreciation and show how their gifts are at work.
For Project HOPE we have had double digit increase in retention and improved avg gift value (up by $3 YOY) and LTV of donors over the past 18 months.
At the same time we have increased # of touchpoints (driven by organization need for NET.)
To do this successfully, we have focused on:
donor centric communication <click>
improving the value proposition of the HOPE offer through HOPE Promise <click>
Have insured that our acknowledgements were relevant to the appeal the donor gave to <click>
We launched a Donor Services call center – to move customer service away from the admin staff
And <click> initiated a Voice of the Donor project to collect donor feedback and act on it.
JANN/Myth #4
Does this myth sound familiar? Educate your donors and they will give!
Myth #4 is often the point of tension between the communications department and the fundraising team.
The Comms team is yelling “this is off brand” while the fundraising team is hollering back “statistics don’t sell.”
And your programs team complains that you are over-simplifying the problem.
I picked this graphic, from 2013 because it educates you on the Syrian Refugee problem – however, as a fundraiser…”statistics don’t sell!”
<next slide>
JANN: (Layered graphics)
It is important to remember this FACT. The comms team and program staff are NOT your donors! Donors, not professionals, are your target audience.
The fact is: Donors don’t want to solve a problem because it is big. Poverty. Hunger. Access to Health Care.
<Click>
Donors want to solve a problem because it is solvable.
They want to know that their small gift can make a big difference.
Like:
Give a vaccination to save a child’s life.
Provide a meal to make a difference.
Your donor’s want to know their gift matters.
<next slide>
JANN: (Layered graphics)
It is important to remember this FACT. The comms team and program staff are NOT your donors! Donors, not professionals, are your target audience.
The fact is: Donors don’t want to solve a problem because it is big. Poverty. Hunger. Access to Health Care.
<Click>
Donors want to solve a problem because it is solvable.
They want to know that their small gift can make a big difference.
Like:
Give a vaccination to save a child’s life.
Provide a meal to make a difference.
Your donor’s want to know their gift matters.
<next slide>
JANN: (Layered graphics)
Education does not sell. The Truth is, giving is emotional. Not rational.
<click>
As Donald Caine said in his book “Within Reason” “Emotion leads to action, reason leads to conclusion.”
Yes, education has its place within your broad overall communication plan, but it is not a function of fundraising.
For Project HOPE, after almost a decade of decline in our donor file, we have seen YOY file growth through the application of this truth.
Tested out of an existing, long standing control package that did not connect the donor emotionally to the impact that their gift would make
We have developed our HOPE offer proposition. “Your gift multiplied. Always.” to demonstrate the power of a donors gift, however small it may be
Improved fundraising performance of our quarterly donor newsletters by focusing on the DONOR, not our organization.
<click>
This can best be summed up by a recent piece of feedback from a donor, part of our “Voice of Our Donor” program –
- Thank you for making this opportunity available by sending an email and an easy website for donation. I deeply appreciate your efforts toward Nepal as well as your outreach to folks like me, who feel so powerless to help. This gives me the chance to contribute in some way.
- Your work is vital! . . . Donor gifts are positively leveraged almost beyond belief . . . Here's to saving more lives in Nepal . . .
JANN: (Layered graphics)
Education does not sell. The Truth is, giving is emotional. Not rational.
<click>
As Donald Caine said in his book “Within Reason” “Emotion leads to action, reason leads to conclusion.”
Yes, education has its place within your broad overall communication plan, but it is not a function of fundraising.
For Project HOPE, after almost a decade of decline in our donor file, we have seen YOY file growth through the application of this truth.
Tested out of an existing, long standing control package that did not connect the donor emotionally to the impact that their gift would make
We have developed our HOPE offer proposition. “Your gift multiplied. Always.” to demonstrate the power of a donors gift, however small it may be
Improved fundraising performance of our quarterly donor newsletters by focusing on the DONOR, not our organization.
<click>
This can best be summed up by a recent piece of feedback from a donor, part of our “Voice of Our Donor” program –
- Thank you for making this opportunity available by sending an email and an easy website for donation. I deeply appreciate your efforts toward Nepal as well as your outreach to folks like me, who feel so powerless to help. This gives me the chance to contribute in some way.
- Your work is vital! . . . Donor gifts are positively leveraged almost beyond belief . . . Here's to saving more lives in Nepal . . .
JANN: Myth #7
I don’t know about you, but this Myth drives me nuts. At every board meeting, the board discusses a “young donor strategy” and asks how we are engaging younger “donors” on social media to raise more money.
I’m not sure what your donor file looks like, but mine is OLD. <click>
Our average age is older than many files, as we have a segment of legacy donors who still remember when the SS HOPE sailed in the 1960’s. The HOPE retired in 1974!
<next slide>
JANN: Myth #7
I don’t know about you, but this Myth drives me nuts. At every board meeting, the board discusses a “young donor strategy” and asks how we are engaging younger “donors” on social media to raise more money.
I’m not sure what your donor file looks like, but mine is OLD. <click>
Our average age is older than many files, as we have a segment of legacy donors who still remember when the SS HOPE sailed in the 1960’s. The HOPE retired in 1974!
<next slide>
JANN:
I’m interested in acquiring younger donors – however, it is the “real” definition of “young.” I’m interested in acquiring more donors in their 60’s and 50’s.
Donors who have money to give and not just support through likes and follows.
<next slide>
JANN: (layered graphics)
Truth: For fundraisers, age 55 is young!
<click>
A simple fact – a typical donor file skews older (maybe not as old as the Project HOPE file, but certainly older.) <click>
Donors over 50 have a higher retention rate that those under the age of 50. <click>
And donor’s in the age bracket 55+ give significantly more than those under 55. <click>
My job is to raise more funds for Project HOPE. I’m going where the money is!
For Project HOPE we are acquiring “younger” donors through channel diversification and moving away from a dependence on direct mail.
In the past year, we launched long-form radio fundraising and are bringing on “younger” donors (age 50+) at a higher value first time gift in the ~$80-90 range.
<next slide>
JANN: (layered graphics)
Truth: For fundraisers, age 55 is young!
<click>
A simple fact – a typical donor file skews older (maybe not as old as the Project HOPE file, but certainly older.) <click>
Donors over 50 have a higher retention rate that those under the age of 50. <click>
And donor’s in the age bracket 55+ give significantly more than those under 55. <click>
My job is to raise more funds for Project HOPE. I’m going where the money is!
For Project HOPE we are acquiring “younger” donors through channel diversification and moving away from a dependence on direct mail.
In the past year, we launched long-form radio fundraising and are bringing on “younger” donors (age 50+) at a higher value first time gift in the ~$80-90 range.
<next slide>
JANN: (layered graphics)
Truth: For fundraisers, age 55 is young!
<click>
A simple fact – a typical donor file skews older (maybe not as old as the Project HOPE file, but certainly older.) <click>
Donors over 50 have a higher retention rate that those under the age of 50. <click>
And donor’s in the age bracket 55+ give significantly more than those under 55. <click>
My job is to raise more funds for Project HOPE. I’m going where the money is!
For Project HOPE we are acquiring “younger” donors through channel diversification and moving away from a dependence on direct mail.
In the past year, we launched long-form radio fundraising and are bringing on “younger” donors (age 50+) at a higher value first time gift in the ~$80-90 range.
<next slide>
JANN: (layered graphics)
Truth: For fundraisers, age 55 is young!
<click>
A simple fact – a typical donor file skews older (maybe not as old as the Project HOPE file, but certainly older.) <click>
Donors over 50 have a higher retention rate that those under the age of 50. <click>
And donor’s in the age bracket 55+ give significantly more than those under 55. <click>
My job is to raise more funds for Project HOPE. I’m going where the money is!
For Project HOPE we are acquiring “younger” donors through channel diversification and moving away from a dependence on direct mail.
In the past year, we launched long-form radio fundraising and are bringing on “younger” donors (age 50+) at a higher value first time gift in the ~$80-90 range.
<next slide>
JANN: Myth $10
We have heard it now for years. The pronouncement that direct mail is dead.
I remember being at a conference in 2007 and listening to a charity share that they were shifting significant budget away from mail and investing primarily in email. A couple of years pass and that online-only strategy was dead and the direct response program in disarray as they learned what many of us know from our For-Profit experience – you have to build a multi-channel program.
- Diversification is key to your direct response plan.
JANN: So what is the truth? <click>
The truth is, Direct Mail is the best way to drive online giving at Project HOPE.
ASK: Is this the same for other org’s in the audience?
<click>
The simple fact is, you have to be where your donors are – and they are engaged both online and offline. You can’t do one without the other.
DM recipients research online
DM recipients give online
It’s a fact: Your online and offline messaging must be consistent. When they go to your website or social media, do they see elements of your offline campaign?
The data doesn’t lie: Donors who give both online and offline have higher long term value.
Email recipients are reminded to give offline*
You have to measure crossover activity.
*CASE: DM remains the main driver of unrestricted revenue at HOPE. Project HOPE has a segmented email file of chronic non-responders…regular match back demonstrated that this was a group that were responding offline. Despite what appeared to be a large segment of inactive online donors.
You must dig into the data before making assumptions about channel and response.
We also do match back after every direct mail acquisition campaign – to be able to properly attribute new donors to what inspired their gift – the direct mail piece.
JANN: So what is the truth? <click>
The truth is, Direct Mail is the best way to drive online giving at Project HOPE.
ASK: Is this the same for other org’s in the audience?
<click>
The simple fact is, you have to be where your donors are – and they are engaged both online and offline. You can’t do one without the other.
DM recipients research online
DM recipients give online
It’s a fact: Your online and offline messaging must be consistent. When they go to your website or social media, do they see elements of your offline campaign?
The data doesn’t lie: Donors who give both online and offline have higher long term value.
Email recipients are reminded to give offline*
You have to measure crossover activity.
*CASE: DM remains the main driver of unrestricted revenue at HOPE. Project HOPE has a segmented email file of chronic non-responders…regular match back demonstrated that this was a group that were responding offline. Despite what appeared to be a large segment of inactive online donors.
You must dig into the data before making assumptions about channel and response.
We also do match back after every direct mail acquisition campaign – to be able to properly attribute new donors to what inspired their gift – the direct mail piece.
JANN: So what is the truth? <click>
The truth is, Direct Mail is the best way to drive online giving at Project HOPE.
ASK: Is this the same for other org’s in the audience?
<click>
The simple fact is, you have to be where your donors are – and they are engaged both online and offline. You can’t do one without the other.
DM recipients research online
DM recipients give online
It’s a fact: Your online and offline messaging must be consistent. When they go to your website or social media, do they see elements of your offline campaign?
The data doesn’t lie: Donors who give both online and offline have higher long term value.
Email recipients are reminded to give offline*
You have to measure crossover activity.
*CASE: DM remains the main driver of unrestricted revenue at HOPE. Project HOPE has a segmented email file of chronic non-responders…regular match back demonstrated that this was a group that were responding offline. Despite what appeared to be a large segment of inactive online donors.
You must dig into the data before making assumptions about channel and response.
We also do match back after every direct mail acquisition campaign – to be able to properly attribute new donors to what inspired their gift – the direct mail piece.