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Cgvt presentation 1210 abc ext

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This Powerpoint is part of the presentation by Mike Spencer of the SpencerGroup, given on October 11th, 2012 in partnership with Common Good Vermont and People's United Bank at the "Achieving Sustainability Through Annual Giving" Training.

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Cgvt presentation 1210 abc ext

  1. 1. Achieving Sustainability Through Annual Giving October 11, 2012 Special Thanks to Common Good Vermont People’s United Bank © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  2. 2. Agenda© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  3. 3. Agenda• Introduction• Understanding the key indicators of annual giving success• Break• Strategies to maximize performance indicators• Luncheon & funders panel• Hands-on clinic – turning ideas into actions• Final Q&A © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  4. 4. What Is Annual Giving? © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  5. 5. What Is Annual Giving?• Donations that are renewable from year to year• Fund annual operations budget• Can be unrestricted or restricted• Typically from individuals• Annual should mean EVERY year … NOT just ONCE a year © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  6. 6. Show of hands:© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  7. 7. Show of hands:• How many of you have an annual giving program? © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  8. 8. Show of hands:• How many of you have an annual giving program?• How many solicit their donors only once per year? … 2 times? … 3+ times? © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  9. 9. Show of hands:• How many of you have an annual giving program?• How many solicit their donors only once per year? … 2 times? … 3+ times?• Who feels that their annual giving program is achieving its full potential? © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  10. 10. Feedback:© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  11. 11. Feedback:• What are main obstacles preventing you from reaching full potential? © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  12. 12. Feedback:• What are main obstacles preventing you from reaching full potential?• What do you think are the biggest opportunities to raise more money on an annual basis? © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  13. 13. Understanding the Key Indicatorsof Annual Giving Success © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  14. 14. Annual Giving Comparison of 9 Organizations in Chittenden County © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  15. 15. Leadership $1000+ Donors as % of All Donors Giving 14% 7% 3% LOW MEDIAN HIGH © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  16. 16. Leadership $1000+ Donors as % of All Donors Giving 14% 7% 3% LOW MEDIAN HIGH $1000+ Gifts as % of All Revenue 88% 52% 16% LOW MEDIAN HIGH © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  17. 17. Leadership Renewal Rate of $1000+ Donors Giving 75% 78% 63% 46% TARGET LOW MEDIAN HIGH © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  18. 18. Leadership Renewal Rate of $1000+ Donors Giving 75% 78% 63% 46% TARGET LOW MEDIAN HIGH Average Gift of $1000+ Donors $8,172 $2,600 $1,079 $2,677 TARGET LOW MEDIAN HIGH © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  19. 19. Active Renewal Rate of 1st-Time Donors DonorRetention 35% 27% 22% 14% TARGET LOW MEDIAN HIGH © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  20. 20. Active Renewal Rate of 1st-Time Donors DonorRetention 35% 27% 22% 14% TARGET LOW MEDIAN HIGH Renewal Rate of Multi-Year Donors 70% 69% 62% 25% TARGET LOW MEDIAN HIGH © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  21. 21. Lapsed Recapture Rate - Lapsed 1 Year Donor 33%Recapture 25% 23% 8% TARGET LOW MEDIAN HIGH © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  22. 22. Lapsed Recapture Rate - Lapsed 1 Year Donor 33%Recapture 25% 23% 8% TARGET LOW MEDIAN HIGH Recapture Rate - Lapsed 2 Years 15% 15% 9% 0% TARGET LOW MEDIAN HIGH © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  23. 23. Lapsed Recapture Rate - Lapsed 3+ Years Donor 5%Recapture 5% 2% 0% TARGET LOW MEDIAN HIGH © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  24. 24. A Profile of a Typical Donorbase and the Impact of Key Indicators© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  25. 25. Giving Pyramid Goal Donors Revenue Donor Pyramid Revenue PyramidChampions 6 $60,000 Champion $25,000 1 $25,000 Leader 6 $10,000 2 $20,000 35 $5,000 3 $15,000 Champion Advocate $60,000 100Leaders 35 $47,500 $2,500 5 $12,500 $1,500 10 $15,000 Leader $1,000 20 $20,000 $47,500 SupporterAdvocates 100 $40,000 359 Advocate $250-$999 $40,000Supporters 359 $28,720 $1-$249 Supporter $28,720TOTALS 500 $176,220 © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  26. 26. Donor Growth Trends Donors Median TargetActive Donor Retention & New Donors 70 80Lapsed Donor Recapture Active 1st Year 70 22% 35%Rates ----------------------------> Active Multi-Year 280 62% 70% Lapsed 1 Year 155 23% 25% Lapsed 2 Years 310 9% 15% Lapsed 3+ Years 800 2% 5% Total Donorbase 1,615 Active Donors 350 © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  27. 27. Donor Growth Trends Donors Median Target Active Donor Retention & New Donors 70 80 Lapsed Donor Recapture Active 1st Year 70 22% 35% Rates ----------------------------> Active Multi-Year 280 62% 70% Lapsed 1 Year 155 23% 25% Lapsed 2 Years 310 9% 15% Lapsed 3+ Years 800 2% 5% Total Donorbase 1,615 Active Donors 3505-Year Donor Growth Trends Current Target 498 519 475 451 426 350 350 339 321 311 305 302 Current Year 1 Year 2 Year 3 Year 4 Year 5 © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  28. 28. New Donor AcquisitionMail Performance Indicators Target Scenario 2 Scenario 3Annual Mail Quantity 10,000 10,000 10,000Response Rate 1.0% 0.5% 1.0%Average Gift $50 $50 $35Cost per Name $0.60 $0.60 $0.60 © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  29. 29. New Donor AcquisitionMail Performance Indicators Target Scenario 2 Scenario 3Annual Mail Quantity 10,000 10,000 10,000Response Rate 1.0% 0.5% 1.0%Average Gift $50 $50 $35Cost per Name $0.60 $0.60 $0.60New Donors 100 100 50 Target Scenario 2 Scenario 3 © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  30. 30. New Donor AcquisitionMail Performance Indicators Target Scenario 2 Scenario 3Annual Mail Quantity 10,000 10,000 10,000Response Rate 1.0% 0.5% 1.0%Average Gift $50 $50 $35Cost per Name $0.60 $0.60 $0.60Net Revenue Target Scenario 2 Scenario 3 -$1,000 -$2,500 -$3,500 © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  31. 31. New Donor AcquisitionMail Performance Indicators Target Scenario 2 Scenario 3Annual Mail Quantity 10,000 10,000 10,000Response Rate 1.0% 0.5% 1.0%Average Gift $50 $50 $35Cost per Name $0.60 $0.60 $0.60Cost to Acquire A Donor $70 $10 $25 Target Scenario 2 Scenario 3 © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  32. 32. Feedback:• What are main obstacles preventing you from reaching full potential? © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  33. 33. Feedback:• What are main obstacles preventing you from reaching full potential? • Attracting the attention and support of new leadership donors/funders • Maintaining consistent support from leadership donors/funders • Acquiring other new donors • Lack of resources © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  34. 34. Feedback:• What do you think are the biggest opportunities to raise more money on an annual basis? © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  35. 35. Feedback:• What do you think are the biggest opportunities to raise more money on an annual basis? • Strengthening leadership relationships • Increasing donor retention and value • Recapturing lapsed donors • PLANNED GIVING! © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  36. 36. Break© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  37. 37. Strategies to Maximize PerformanceHow lessons of dating can be applied to a successful annual fund © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  38. 38. 5 Lessons: © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  39. 39. 5 Lessons:#1 – Who to Ask#2 – How to Communicate#3 – Dating Tips#4 – Learn from Friends © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  40. 40. 5 Lessons:#1 – Who to Ask#2 – How to Communicate#3 – Dating Tips#4 – Learn from Friends#5 – The Big Proposal © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  41. 41. Lesson 1: Who to Ask© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  42. 42. Lesson 1: Who to Aska) Hot stranger © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  43. 43. Lesson 1: Who to Aska) Hot stranger © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  44. 44. Lesson 1: Who to Aska) Hot stranger b) Good friend © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  45. 45. Lesson 1: Who to Aska) Hot stranger b) Good friend c) Angry Ex © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  46. 46. Lesson 1: Who to Ask 0.5%-3.0%a) Hot stranger b) Good friend c) Angry Ex © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  47. 47. Lesson 1: Who to Ask 0.5%-3.0% 50%-80%a) Hot stranger b) Good friend c) Angry Ex © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  48. 48. Lesson 1: Who to Ask 0.5%-3.0% 50%-80% 5%-30%a) Hot stranger b) Good friend c) Angry Ex © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  49. 49. Lesson 1: Who to AskSpecial Treatment: © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  50. 50. Lesson 1: Who to AskSpecial Treatment:• Super Donors (incl. Loyals!)• Major Donor Downgrades• Major Donor Upgrades• Remaining Major Donors• Lapsed Major Donors• First-time Donors• Lapsed Donors © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  51. 51. Lesson 1: Who to AskLapsed Donors …Rekindling Old Flames © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  52. 52. Lesson 1: Who to AskLapsed Donors …Rekindling Old Flames Chance of getting back together: 5%-30% © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  53. 53. Lesson 1: Who to AskLapsed Donors …Rekindling Old Flames Chance of getting back together: 5%-30% Chance of finding someone new: .5%-3.0% © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  54. 54. Lesson 1: Who to AskLapsed Donors …Rekindling Old Flames• It’s easier to get back together than to find someone new.• Usually it just takes a little TLC. Chance of getting back together:• A handwritten note or 5%-30% phone call makes a big Chance of finding someone new: difference! .5%-3.0% © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  55. 55. Lesson 2: How to Communicate © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  56. 56. Lesson 2: How to Communicate• One-on-One: nothing beats it – if you’re good at it © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  57. 57. Lesson 2: How to Communicate• One-on-One: nothing beats it – if you’re good at it• Events: great for meeting and mingling © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  58. 58. Lesson 2: How to Communicate• One-on-One: nothing beats it – if you’re good at it• Events: great for meeting and mingling• Direct Mail: effective way to ask many people © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  59. 59. Lesson 2: How to Communicate• One-on-One: nothing beats it – if you’re good at it• Events: great for meeting and mingling• Direct Mail: effective way to ask many people• Phone: good for follow-up © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  60. 60. Lesson 2: How to Communicate• One-on-One: nothing beats it – if you’re good at it• Events: great for meeting and mingling• Direct Mail: effective way to ask many people• Phone: good for follow-up• Email: efficient for keeping in touch © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  61. 61. Lesson 2: How to Communicate• One-on-One: nothing beats it – if you’re good at it• Events: great for meeting and mingling• Direct Mail: effective way to ask many people• Phone: good for follow-up• Email: efficient for keeping in touch• Social Media: opportunity to spread the word © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  62. 62. Lesson 3: Dating Tips© SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  63. 63. Lesson 3: Dating Tips• Have an engaging conversation.• Tell a compelling story.• Make a good case for a second date.• Don’t be too desperate … or aggressive.• Follow up with a note and/or phone call. © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  64. 64. Lesson 3: Dating Tips• Be personal.• Show appreciation.• Give good reasons to stay in the relationship.• Keep it simple.• Stay in touch.• Make someone feel good! © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  65. 65. Lesson 4: Learn from Friends © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  66. 66. Lesson 4: Learn from Friends © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  67. 67. © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  68. 68. © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  69. 69. LiveStamp
  70. 70. GIFT REPLY FORM Puppets in Education Kids on the Block - VT • Friend 2 Friend Programs - VTYes, I support the puppets! Jane Sample 130 South Willard StreetEnclosed is my gift to help reach the $30,000 goal by Dec. 31, 2011 at Burlington, VT 05401the Community Sponsor level checked below:o $2,500 for full-day program reaching 200+ kids o I am interested in learning about Planned Giving options.o $1,250 for half-day program reaching 100+ kids o Please keep me informed via the email address below:o $500 for workshop of 40+ kidso $250 for class of 20+ kids Please return with your gift to:o $120 for 10 kids Puppets in Educationo $60 for 5 kids 294 No.Winooski Avenue, Suite 125 - Burlington, VT 05401o kids at $12 each = $ You may also give online at www.PuppetsInEducation.org Design and printing donated by Spencer Group Inc.
  71. 71. Lesson 5: The Big ProposalPG Conversion Rates Based On Loyal Giving Patterns © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  72. 72. Lesson 5: The Big Proposal• A planned gift is the ultimate commitment in a donor relationship PG Conversion Rates Based On Loyal Giving Patterns © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  73. 73. Lesson 5: The Big Proposal• A planned gift is the ultimate commitment in a donor relationship• Loyalty is the biggest key to a “YES” © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  74. 74. Lesson 5: The Big Proposal• A planned gift is the ultimate commitment in a donor relationship• Loyalty is the biggest key to a “YES” 7.6% 3.0% 1.3% 1.3% 0.7% 15+ Consec. 10-14 Consec. 9 of Last 10 8 of Last 10 6-7 of Last 10 Years Years Years Years Years PG Conversion Rates Based On Loyal Giving Patterns © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  75. 75. Luncheonwith Funders
  76. 76. Hands-on Clinic Turning Ideas into Action• 3 challenges – 15 minutes each• 5 minute time limit for response• 10 minute follow-up discussion © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  77. 77. Challenge #1:Establish a Case for Support• The “Elevator Speech”• A story of someone who benefited• Compelling statistics © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  78. 78. © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  79. 79. Challenge #2: Assess Opportunities & Resources• List of opportunities• Prioritize each one (scale of 1 to 5)• Grade the resources you have to pursue each opportunity (A-F) © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  80. 80. © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  81. 81. Challenge #3: Create a To-Do List• Task• What is the purpose/objective?• Who/what can help?• Deadline date © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  82. 82. © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  83. 83. Annual Giving Resource Kit © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  84. 84. Annual Giving Resource Kit• Affordable option to add resources without adding staff• Provides essential deliverables for a successful annual fund• By joining forces, participating organizations can benefit from significant cost-savings © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  85. 85. Annual Giving Resource KitIncludes:• Annual Fund template design• Web-based donor management system• Analytic reports• Donor demographic overlay• Custom ask amounts based on past giving• VIP target lists and solicitation forms © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  86. 86. Annual Giving Resource KitIncludes:• Copywriting for 2 appeal letters & follow-up appeals• Direct mail production and coordination for 2 appeals and follow-ups• Strategic guidance © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100
  87. 87. Q&AThank you for your participation! © SPENCER GROUP INCORPORATED – www.spencergroupinc.com – 802.865.4100

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