The Donor Pyramid: Moving
Donors to New Levels of
Support
Lynne M. Wester
Yeshiva University
www.donorrelationsguru.com
COUNCIL FOR ADVANCEMENT
AND SUPPORT OF EDUCATION 2
Road Map
 Understanding the Giving Gap
 Benefits of Mid-Level Strateg...
The Collapsed Giving Pyramid
Annual FundAnnual Fund
Major Giving
No real focus on mid-level donors
The Giving Gap
10%
decl...
No real focus on mid-level Scared to
upgrade/let-go
25 donors @ $500
Promote to major gift officer
$12.5k lost revenue
350...
• Increased lifetime value of donors
• Improved donor experience
• Effective solicitation at lowered costs
• Higher revenu...
Create a Pyramid of Your Current Donors
1.Determine pyramid gift ranges
2.Export the # of donors at each level over
the pa...
• Donor Intelligence Driven
• Multi-Channel & Truly Integrated
• High Tech
• Highly Personal
• Appropriate ROI Measurement...
Determining Interest
PASSIVE DATA
• Demographics
• Historical Giving Data
• Mail – Responders Only
• Interactive / Online
...
Determining Interest
ACTIVE DATA
• Face to Face
• Survey
– What are the most
important questions to
ask?
– What can we lea...
Personal
URL
(Direct Mail)
Cultivation
Email
Pre-Call
Letter
(Direct
Microsite
Donor
Intelligence
Passive & Active
Data De...
1. Analyze current situation
2. Identify Mid-Level potential and donor interest
3. Develop Mid-Level strategies
4. Establi...
13
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2012 pyramidlmwals
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  • 90 / 10 rule; 90% of dollars coming from 10% of gifts (major giving)…10% of dollars coming from 90% of gifts (annual fund) Annual fund necessary to identify next generation major givers We know this as fundraisers, yet our structures and systems do not support the total donor pyramid.
  • Source: Adapted from Penelope Burk, Donor-Centered Fundraising
  • Analyze current situation Mid-Level donors (Do you have a pyramid or sombrero?) Real retention Identify potential and interest Find popcorn eaters; Leverage active & passive data Profile your Mid-Level prospect’s behavior, demographics, motivations Develop strategies The Matrix: Multi-Channel, Integrated High tech, highly personal Establish timelines and measures of success Set appropriate ROI, metrics Take a long-view of 3-5 years Make the Case Create the win-win; Innovate on internal politics, silos, change management External messages updated Refine for the future Data collection, analysis and management Prospect management Multi-year donor-centered focus Organizational structures to support achieving lifetime value of the donor
  • 2012 pyramidlmwals

    1. 1. The Donor Pyramid: Moving Donors to New Levels of Support Lynne M. Wester Yeshiva University www.donorrelationsguru.com
    2. 2. COUNCIL FOR ADVANCEMENT AND SUPPORT OF EDUCATION 2 Road Map  Understanding the Giving Gap  Benefits of Mid-Level Strategies – What’s in it for you!  What’s a Mid-Level Strategy Look Like  Visualizing the Future: Evidence for Success  Questions?
    3. 3. The Collapsed Giving Pyramid Annual FundAnnual Fund Major Giving No real focus on mid-level donors The Giving Gap 10% decline in major donors = averag e 30% decline in revenu e
    4. 4. No real focus on mid-level Scared to upgrade/let-go 25 donors @ $500 Promote to major gift officer $12.5k lost revenue 350 donors @ $35 = $12.5k $17.5k acquisition cost Net loss = $30k ANNUAL GIVING GAP GIVING Focus on upgrading mid-level donors 25 donors @ $500 15 (60%) upgrade @ $3k = $45k 40% remain @ $500 = $5k 15 to replace ($7.5k annually) 214 donors @ $35 = $7.5k $10.7k acquisition cost Net gain = $46.8k Focused at $25k+ 25 donors @ $500 Cannot prioritize No strategy Net gain = $0k MAJOR GIVING Source: Adapted from Penelope Burk, Donor-Centered Fundraising
    5. 5. • Increased lifetime value of donors • Improved donor experience • Effective solicitation at lowered costs • Higher revenue, ROI • Improved conversion, retention & upgrade • Increasing future major donor pipeline • No more missed opportunities
    6. 6. Create a Pyramid of Your Current Donors 1.Determine pyramid gift ranges 2.Export the # of donors at each level over the past five years 3.Export dollars raised at each level over the past five years 4.In Excel, create charts that illustrate the numbers 5.Discuss with team members “Transitional Giving for Building Strong Fundraising Pyramids” by Lawrence Henze. White Paper, www.blackbaud.com
    7. 7. • Donor Intelligence Driven • Multi-Channel & Truly Integrated • High Tech • Highly Personal • Appropriate ROI Measurements What Mid-Level Strategy Looks Like
    8. 8. Determining Interest PASSIVE DATA • Demographics • Historical Giving Data • Mail – Responders Only • Interactive / Online • Open rates • Click-thru rates • Video view rates • Multiple sessions • Response rates • Heat map
    9. 9. Determining Interest ACTIVE DATA • Face to Face • Survey – What are the most important questions to ask? – What can we learn? – Rate your loyalty, connection points, likelihood to give • Cross-Channel Integration • Involvement
    10. 10. Personal URL (Direct Mail) Cultivation Email Pre-Call Letter (Direct Microsite Donor Intelligence Passive & Active Data Determines 3 Different Long- Term Stewardship Pathways, Each with Integrated: •Mail •Phone •Face to Face •Web •Email
    11. 11. 1. Analyze current situation 2. Identify Mid-Level potential and donor interest 3. Develop Mid-Level strategies 4. Establish timelines and measures of success 5. Creating Accountability 6. Make the Case; Create win-win 7. Refine for the future Implementation Plan Steps Changing the Culture
    12. 12. 13 Join us for our next call! Date Topic Presenter

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