Segmenting Diocesan Database for Major Givers vs. Planned Givers James S. Friend, Jr . Director, Office of Stewardship and...
Who Are Your Donors? <ul><li>What are their Philanthropic priorities? </li></ul><ul><li>What are their personal needs? </l...
Who Are Your Donors?   Matching their Needs with Our Mission <ul><li>Bequests </li></ul>IRA Gifts Gift Annuity Gift of Pro...
Segmentation <ul><li>Segmentation defined:  classify groups and target messages based on profile attributes, participation...
Elements of a Major and Planned Gift Development  system <ul><li>Base Development Program </li></ul><ul><li>Prospect ident...
Base Development <ul><li>Parishioner program </li></ul><ul><li>Entering the system as a donor is the beginning of prospect...
Goal of Prospect Identification <ul><li>From    To </li></ul>How do we get there?
Identify and Prioritize Who are my best prospects for…?? Major Giving High end Engagement Volunteering Planned Giving
Diocesan Initiatives Catholic Education Education of Seminarians Catholic Charities Diocesan Endowment
Getting Started <ul><li>What question(s) are you trying to answer? </li></ul><ul><ul><li>Examples: Who are my underperform...
Identifying Prospects for Major and Planned Gifts.  <ul><li>Prioritization is the key.  </li></ul><ul><li>Major and planne...
Previous giving behavior <ul><li>Outright giving vs. cumulative giving </li></ul><ul><li>RFM: Analyze how Recent, Frequent...
RFM is Nothing New… <ul><li>Has been used by direct marketers for over 40 years as a segmentation tool to increase marketi...
Capacity Indicators <ul><li>Geodemographics </li></ul><ul><ul><li>PRIZM or other scores available via vendors </li></ul></...
Capacity Indicators  (cont.) <ul><li>Demographic </li></ul><ul><ul><li>Family characteristics (partnered/married vs. singl...
Inclination Indicators <ul><li>Giving </li></ul><ul><ul><li>Years of giving </li></ul></ul><ul><ul><li>Total giving </li><...
Inclination Indicators  (cont.) <ul><li>Engagement (with your diocese / other orgs) </li></ul><ul><ul><li>Special event at...
<ul><li>WARNING: </li></ul><ul><li>The following methods are not statistically </li></ul><ul><li>significant, but they are...
What Do You Do With the Data? <ul><li>Simple searches </li></ul><ul><ul><li>Who has X data point in their record? </li></u...
Simple Searches <ul><li>Geodemography </li></ul><ul><ul><li>Who lives in wealthy areas? </li></ul></ul><ul><ul><li>In whic...
Simple Searches  (cont.) <ul><ul><li>Which local companies have the most employees who donate to your organization? Which ...
Simple Searches  (cont.) <ul><li>Inclination </li></ul><ul><ul><li>Who has given the most? </li></ul></ul><ul><ul><li>Who ...
How do we get there? <ul><li>A process of filtering or refinement, based on: </li></ul><ul><li>Previous giving behavior </...
Digging Deeper: Exploring their Capacity to Give <ul><li>Individual electronic screening, exploring significant career exp...
Digging Deeper: Exploring their Propensity to Give <ul><li>Personal Visits / Surveys </li></ul><ul><li>Peer evaluation </l...
Your Introspective vs. Their Interest  <ul><li>Define and internalize the impact of your diocese </li></ul><ul><li>Align i...
Profile of one Planned Giving Donor <ul><li>John Jones – Age  62 </li></ul><ul><ul><li>Recently chose early retirement fro...
Sample Profile of Major Donor <ul><li>Joe and Kristin Jackson – Ages 41/38 </li></ul><ul><ul><li>Dual career family </li><...
Questions for the Group <ul><li>What are the characteristics of our major and planned giving donors? </li></ul><ul><li>Wha...
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Segmenting Major Donors Versus Planned Givers

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I offered this talk in October 2009 at the International Catholic Stewardship Conference in Dallas, Texas

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Segmenting Major Donors Versus Planned Givers

  1. 1. Segmenting Diocesan Database for Major Givers vs. Planned Givers James S. Friend, Jr . Director, Office of Stewardship and Development Diocese of Allentown
  2. 2. Who Are Your Donors? <ul><li>What are their Philanthropic priorities? </li></ul><ul><li>What are their personal needs? </li></ul>
  3. 3. Who Are Your Donors? Matching their Needs with Our Mission <ul><li>Bequests </li></ul>IRA Gifts Gift Annuity Gift of Property Unitrust Lead Gifts Transformational Gift Naming Opportunity
  4. 4. Segmentation <ul><li>Segmentation defined: classify groups and target messages based on profile attributes, participation, or other defined metrics. </li></ul><ul><li>Starts with good data – Information is power! </li></ul><ul><li>Gathering the proper data </li></ul><ul><ul><li>Parish Census </li></ul></ul><ul><ul><li>Raiser’s Edge </li></ul></ul>
  5. 5. Elements of a Major and Planned Gift Development system <ul><li>Base Development Program </li></ul><ul><li>Prospect identification </li></ul><ul><li>Feeding and maintaining an active prospect pipeline </li></ul><ul><li>Major and planned gift cultivation </li></ul><ul><li>Donor relations and stewardship </li></ul>
  6. 6. Base Development <ul><li>Parishioner program </li></ul><ul><li>Entering the system as a donor is the beginning of prospecting </li></ul><ul><li>Tracking donor behavior </li></ul><ul><ul><li>Giving consecutively </li></ul></ul><ul><ul><li>Increasing in amount </li></ul></ul><ul><li>Building donor awareness at the diocesan level </li></ul><ul><li>Encouraging involvement at the diocesan level </li></ul>
  7. 7. Goal of Prospect Identification <ul><li>From To </li></ul>How do we get there?
  8. 8. Identify and Prioritize Who are my best prospects for…?? Major Giving High end Engagement Volunteering Planned Giving
  9. 9. Diocesan Initiatives Catholic Education Education of Seminarians Catholic Charities Diocesan Endowment
  10. 10. Getting Started <ul><li>What question(s) are you trying to answer? </li></ul><ul><ul><li>Examples: Who are my underperforming annual fund prospects? Which of my constituents has the capacity to make a major gift? Who is a good candidate for a planned gift? </li></ul></ul><ul><li>What will my final result look like (segmentation vs. prioritization)? </li></ul><ul><li>What data points do I have that I can use in my prospecting project? (Diocesan Appeal / Stock Gifts / Access to Diocesan ParishSoft / Previous Campaigns / ?) </li></ul>
  11. 11. Identifying Prospects for Major and Planned Gifts. <ul><li>Prioritization is the key. </li></ul><ul><li>Major and planned giving involves one-to-one relationships, with different strategies for engagement applied to each individual. Optimizing your donor list helps create efficiency and a good return on your investment. </li></ul>
  12. 12. Previous giving behavior <ul><li>Outright giving vs. cumulative giving </li></ul><ul><li>RFM: Analyze how Recent, Frequent and Monetary (Giving Amount): </li></ul><ul><ul><ul><li>How recently a donor gives </li></ul></ul></ul><ul><ul><ul><li>How frequently they give and for how long </li></ul></ul></ul><ul><ul><ul><li>How much a donor gives both cumulatively and outright </li></ul></ul></ul>
  13. 13. RFM is Nothing New… <ul><li>Has been used by direct marketers for over 40 years as a segmentation tool to increase marketing Return On Investment (ROI). </li></ul><ul><li>The basic premise of RFM is that customers who have purchased more recently , more frequently and have spent more with your company are your best prospects for future direct marketing campaigns. </li></ul><ul><li>The goal of RFM is to increase marketing ROI by communicating only with customers that are likely to respond. What do you do with a limited budget to communicate with Major/Planned Donors? </li></ul>
  14. 14. Capacity Indicators <ul><li>Geodemographics </li></ul><ul><ul><li>PRIZM or other scores available via vendors </li></ul></ul><ul><ul><li>Zip codes </li></ul></ul><ul><ul><li>Census tract </li></ul></ul><ul><li>Employment </li></ul><ul><ul><li>Title </li></ul></ul><ul><ul><li>What sector do they work in? </li></ul></ul><ul><ul><li>Employer Name </li></ul></ul>
  15. 15. Capacity Indicators (cont.) <ul><li>Demographic </li></ul><ul><ul><li>Family characteristics (partnered/married vs. single, presence of children) </li></ul></ul><ul><ul><li>Age </li></ul></ul><ul><li>Giving </li></ul><ul><ul><li>Amounts </li></ul></ul><ul><ul><li>Methods (Cash vs. Stock) </li></ul></ul><ul><li>Volunteer </li></ul><ul><ul><li>Board Positions with other organizations </li></ul></ul><ul><ul><li>? </li></ul></ul>
  16. 16. Inclination Indicators <ul><li>Giving </li></ul><ul><ul><li>Years of giving </li></ul></ul><ul><ul><li>Total giving </li></ul></ul><ul><ul><li>Frequency of giving </li></ul></ul><ul><ul><li>Last gift date </li></ul></ul>
  17. 17. Inclination Indicators (cont.) <ul><li>Engagement (with your diocese / other orgs) </li></ul><ul><ul><li>Special event attendance </li></ul></ul><ul><ul><li>Volunteer roles </li></ul></ul><ul><ul><ul><li>Boards </li></ul></ul></ul><ul><ul><ul><li>Other volunteer activities </li></ul></ul></ul><ul><ul><li>Survey responses </li></ul></ul><ul><ul><li>Other activities with your diocese </li></ul></ul>
  18. 18. <ul><li>WARNING: </li></ul><ul><li>The following methods are not statistically </li></ul><ul><li>significant, but they are superior to drawing </li></ul><ul><li>names from a hat. </li></ul>
  19. 19. What Do You Do With the Data? <ul><li>Simple searches </li></ul><ul><ul><li>Who has X data point in their record? </li></ul></ul><ul><li>Analysis </li></ul><ul><ul><li>Which groups do X behavior? </li></ul></ul><ul><li>Scoring </li></ul><ul><ul><li>Rank your constituents by the presence of particular attributes. </li></ul></ul><ul><li>Mapping </li></ul><ul><ul><li>Visually represent geodemographic data. </li></ul></ul>
  20. 20. Simple Searches <ul><li>Geodemography </li></ul><ul><ul><li>Who lives in wealthy areas? </li></ul></ul><ul><ul><li>In which Metropolitan Areas are my major givers located? </li></ul></ul><ul><li>Which clusters give the most to my organization? </li></ul><ul><li>Employment </li></ul><ul><ul><li>Who has a title or employer that indicates wealth? </li></ul></ul><ul><ul><li>Who is in a sector that is performing well (or not)? </li></ul></ul>
  21. 21. Simple Searches (cont.) <ul><ul><li>Which local companies have the most employees who donate to your organization? Which clusters give the most to my organization? </li></ul></ul><ul><li>Demographic </li></ul><ul><ul><li>Who is married? </li></ul></ul><ul><ul><li>Who does not have children? </li></ul></ul><ul><li>Giving </li></ul><ul><ul><li>Who has given the most (money and/or frequency)? </li></ul></ul><ul><ul><li>Who gives stock gifts? </li></ul></ul>
  22. 22. Simple Searches (cont.) <ul><li>Inclination </li></ul><ul><ul><li>Who has given the most? </li></ul></ul><ul><ul><li>Who gives most frequently? </li></ul></ul><ul><ul><li>Who has given for many years? </li></ul></ul><ul><li>Engagement </li></ul><ul><ul><li>Who attends the events? </li></ul></ul><ul><ul><li>Who volunteers the most? </li></ul></ul><ul><ul><li>Who has responded favorably toward your diocese in surveys? </li></ul></ul><ul><li>Demographic </li></ul><ul><ul><li>Who is related to other constituents in our database? </li></ul></ul>
  23. 23. How do we get there? <ul><li>A process of filtering or refinement, based on: </li></ul><ul><li>Previous giving behavior </li></ul><ul><li>The ability or “capacity” to give at a major level </li></ul><ul><li>The likelihood or “propensity” to give to your diocese or specific ministry </li></ul><ul><li>Interests aligning to the mission and impact of your ministries </li></ul>
  24. 24. Digging Deeper: Exploring their Capacity to Give <ul><li>Individual electronic screening, exploring significant career exploits, other donations </li></ul><ul><li>Specifically: Find actual assets and income held by a constituent </li></ul><ul><ul><ul><li>Database screening </li></ul></ul></ul><ul><ul><ul><li>Peer evaluation </li></ul></ul></ul><ul><ul><ul><li>Prospect research </li></ul></ul></ul><ul><li>Evaluate and validate this research with a Team Approach </li></ul>
  25. 25. Digging Deeper: Exploring their Propensity to Give <ul><li>Personal Visits / Surveys </li></ul><ul><li>Peer evaluation </li></ul><ul><li>Incorporate “Likelihoods” or “Propensity Ratings” into Team Approach </li></ul>*Source: www.fundraisingresearch.inf
  26. 26. Your Introspective vs. Their Interest <ul><li>Define and internalize the impact of your diocese </li></ul><ul><li>Align interest characteristics to these impact areas </li></ul><ul><li>Create custom surveys for constituents to self identify an area of interest </li></ul><ul><li>Align ministry preferences to interests </li></ul><ul><li>Use the depth of Team Approach to code constituent interests </li></ul>
  27. 27. Profile of one Planned Giving Donor <ul><li>John Jones – Age 62 </li></ul><ul><ul><li>Recently chose early retirement from management level job at manufacturing plant </li></ul></ul><ul><ul><li>Has given consistently to the Diocesan Appeal at a moderate giving level of $150 per year. </li></ul></ul><ul><ul><li>Attends Catholic Charities functions with some regularity </li></ul></ul><ul><ul><li>Gave $5,000 to the Diocesan Capital Campaign, paid out over 5 years. </li></ul></ul><ul><ul><li>Was active in his parish before his wife passed away </li></ul></ul><ul><ul><li>Widower </li></ul></ul><ul><ul><li>3 grown children </li></ul></ul><ul><ul><li>Chose Charitable Gift Annuity Option </li></ul></ul>
  28. 28. Sample Profile of Major Donor <ul><li>Joe and Kristin Jackson – Ages 41/38 </li></ul><ul><ul><li>Dual career family </li></ul></ul><ul><ul><li>Have given sporadically over the years to the Diocesan Appeal, usually with an outright gift of 1,000 </li></ul></ul><ul><ul><li>Attends no diocesan activities that we’re aware of </li></ul></ul><ul><ul><li>Made a one time gift of $5,0000 to the Diocesan Capital Campaign </li></ul></ul><ul><ul><li>Not active in their parish </li></ul></ul><ul><ul><li>Have 2 small children </li></ul></ul><ul><ul><li>Kristin is on the Board of a local nonprofit </li></ul></ul><ul><ul><li>Made $10,000 Gift to last year’s Appeal </li></ul></ul>
  29. 29. Questions for the Group <ul><li>What are the characteristics of our major and planned giving donors? </li></ul><ul><li>What distinguishes our lifelong donors from our top outright donors? </li></ul><ul><li>Our major donors tend to be of a generation that is passing; what is different about the next generation? </li></ul><ul><li>Which types of people do your gift officers cultivate most efficiently and effectively? </li></ul>

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