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Donor Development for Charity Shop Donors


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A presentation developed for eproductive's ( first conference covering best practice for charity shops.
This aims to encourage charities to examine and realise the full potential of their charity shop donors - through the data provided by the eproductive Gift Aid system - and better integrate their development and stewardship with other forms of giving, for better return on investment.

Published in: Business, Technology
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Donor Development for Charity Shop Donors

  1. 1. Donor development for charity shop donors 10 November, 2009 Rachel Beer
  2. 2. Or: How to maximise loyalty, value and return on investment
  3. 3. Impact of economic climate <ul><li>Charity shops have seen a downturn in the volume of goods donated </li></ul><ul><li>And also in the goods purchased. </li></ul>
  4. 4. What can you do to improve this?
  5. 5. How can you make sure you always raise as much as possible?
  6. 6. By looking after the donors you have as well as you possibly can…
  7. 7. By making them feel more loyal…
  8. 8. Increasing the chances of future donations…
  9. 9. Increasing the frequency of future donations…
  10. 10. Increasing the value of future donations…
  11. 11. Upping the feel- good factor!
  12. 12. Charity shop donors are special <ul><li>No one asked them directly to come and donate goods to your shop </li></ul><ul><li>They self-selected to do this </li></ul><ul><ul><li>Some of them many times over. </li></ul></ul>
  13. 13. Why is this so special? <ul><ul><li>Most of other types of fundraising involve interrupting people and asking them to donate. </li></ul></ul><ul><ul><li>E.g.: </li></ul></ul><ul><ul><ul><ul><li>Street fundraising </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Direct mail </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Telephone fundraising </li></ul></ul></ul></ul>
  14. 14. Remember: Most people wouldn’t donate if they weren’t asked directly
  15. 15. The cost of gaining support <ul><li>It costs charities tens of thousands, even millions, to recruit donors </li></ul><ul><li>Typical cost to recruit: </li></ul><ul><ul><li>By direct mail £20-50 </li></ul></ul><ul><ul><li>By telephone £100-125 </li></ul></ul><ul><ul><li>Face to face £90-125 </li></ul></ul><ul><ul><li>TV £150-200 </li></ul></ul>
  16. 16. And then… ? <ul><li>They make that money, and more, back over time </li></ul><ul><ul><li>It may take four years, or more, to get into profit </li></ul></ul><ul><li>But it’s still worth it </li></ul><ul><li>And charities have little other option if they want to be financially secure and continue with their good work. </li></ul>
  17. 17. So… <ul><li>Charities make sure they look after their donors well </li></ul><ul><ul><li>So they continue to give </li></ul></ul><ul><ul><li>And become more and more loyal </li></ul></ul><ul><ul><li>To ensure they recoup their initial investment </li></ul></ul><ul><ul><li>Through maximising the support each donor is able to give. </li></ul></ul>
  18. 18. What is lifetime value? <ul><li>It’s the total value of each donor to your charity </li></ul><ul><li>Factors: </li></ul><ul><ul><li>Repeat donations </li></ul></ul><ul><ul><li>Donors that only give to you </li></ul></ul><ul><ul><li>Donors of high value goods </li></ul></ul><ul><ul><li>Donors that support your cause in many different ways – not just by donating goods. </li></ul></ul>
  19. 19. How much is a direct mail donor worth per year? Excerpt from analysis conducted in 2009 Contact beautiful world for further details
  20. 20. How much are donors of charity shop goods worth to your charity?
  21. 21. Sample of 700 shops on EpR <ul><li>Unique donors 315,000 </li></ul><ul><li>Donations 572,000 </li></ul><ul><li>Repeat donations 257,000 </li></ul><ul><li>Repeat % 45% </li></ul><ul><li>Ave donation value £41.32 (inc GA) </li></ul><ul><li>Ave value per donor £75.66 (inc GA) </li></ul><ul><li>This value compares very favourably with other channels… </li></ul>
  22. 22. Some interesting comparisons <ul><li>Value per annum, per donor: </li></ul><ul><li>Charity shop donor c.£45 (inc GA) </li></ul><ul><li>Face to face donor c.£80-100 (inc GA) </li></ul><ul><li>Direct mail donor c.£20-50 (inc GA) </li></ul><ul><li>Telephone donor c.£60-90 (inc GA) </li></ul><ul><li>N.B. These are broad indicators </li></ul>
  23. 23. What happens if this sample of 700 shops can increase repeat donations by just 10%?
  24. 24. They make an extra: £1,061,924* *Over 20 months
  25. 25. This equates to: £910 per shop / year 20 shop chain = £18,200 50 shop chain = £45,500 350 shop chain = £318,500
  26. 26. How can you achieve this?
  27. 27. Customer service & donor care <ul><li>Can you look after your donors better? </li></ul><ul><ul><li>Especially the ones that return time and time again. </li></ul></ul>
  28. 28. Customer service & donor care <ul><li>What about sending your best donors a Christmas card? </li></ul><ul><ul><li>You have their addresses </li></ul></ul><ul><ul><li>It may cost a small amount, but likely to be tiny compared to what they have given </li></ul></ul><ul><li>They are more likely to give again if you do. </li></ul>
  29. 29. Customer service & donor care <ul><li>Do things to make them feel appreciated </li></ul><ul><li>For starters, you can make your thank you letters more personal and warm. </li></ul>
  30. 30. Here are some real examples that I reviewed…
  31. 31. <ul><li>Thank you for saying ‘Yes’ to Gift Aid </li></ul><ul><li>Thank you for your recent donation offering goods for sale at a <charity> shop and for making a Gift Aid Declaration on 2 February 2009 allowing us to reclaim the tax from HM Revenue and Customs (HMRC). </li></ul><ul><li>Please note that we are required to write to you in accordance with HMRC regulations… </li></ul>✓ ✗ ✗ ✓
  32. 32. <ul><li>Since you agreed to Gift Aid* on <SIGNUPDATE> I am pleased to tell you that your goods have raised a further £<TOTALSALE>. Gift Aid is a great opportunity to increase the value of the goods you donate to us without asking our customers to pay more for the items they purchase; we see this as good news for everyone! You need do nothing further if you wish to remain a Gift Aid donor. Should you wish to cancel your Gift Aid Declaration, are not a Tax payer or wish to claim the proceeds from the sale of your goods (for claims a charge of 2.5% plus VAT will be deducted to cover our administration costs) please contact us in writing, FAO the Gift Aid Administrator, Retail Operations, at the address above, within 30 days of the date of this letter, quoting your donor ID number. </li></ul><ul><li>At this time of year we urgently need donations of good quality autumn and winter clothing, books, footwear and accessories; any items that you can donate will once again be greatly appreciated by your local store and it’s customers. </li></ul>✓ ✗ ✗ ✓
  33. 33. <ul><li>THANK YOU FOR YOUR CONTINUED SUPPORT! </li></ul><ul><li>Thank you for bringing goods for sale to your local <charity> shop and for your continued donations. Your generosity in giving clothes, furniture and other household items is vitally important and will help <charity> to fund our essential work and make a huge difference to people affected by life-limiting illnesses. The work we do could not happen without the help of people like you. </li></ul><ul><li>I am pleased to tell you that your donated goods have so far raised £<TotalSale>. To donate this money to <charity> you need do nothing further. </li></ul>Great example! ✓ ✓ ✓ ✓ ✓
  34. 34. <ul><li>Thank you for donating items for us to sell and saying ‘Yes’ to Gift Aid </li></ul><ul><li>By donating to us and completing the Gift Aid Declaration form you have helped <charity> to build on the 4 million hours of care that we delivered last year. </li></ul><ul><li>Please remember your local shop when you next have a sort out at home and we will continue to make the most of your donations through Gift Aid to raise essential funds for those in our care…   </li></ul>Great example! ✓ ✓ ✓
  35. 35. But… <ul><li>Some letters didn’t thank until paragraph five </li></ul><ul><ul><li>after a lot of dull legalese </li></ul></ul><ul><li>Some letters began with ‘Re: Gift Aid Declaration’, others, simply, ‘Gift Aid Declaration’ </li></ul><ul><ul><li>not very personal </li></ul></ul><ul><ul><li>they needn’t sound like they’ve been written by a computer! </li></ul></ul>
  36. 36. It pays to look after the detail <ul><li>Begin by thanking </li></ul><ul><li>Follow by telling donor how their support has made a difference </li></ul><ul><li>Get to the point ASAP! </li></ul><ul><li>Emphasise ongoing need </li></ul><ul><li>Ask for further donations </li></ul><ul><li>Finish with another thank you. </li></ul>
  37. 37. So, what else might charity shop donors do? <ul><li>Give a cash donation </li></ul><ul><li>Buy merchandise </li></ul><ul><li>Pledge/ leave a legacy </li></ul><ul><li>Take part in, or organise, a fundraising event </li></ul><ul><li>Volunteer </li></ul><ul><li>Sign a petition </li></ul><ul><li>Buy raffle tickets. </li></ul>
  38. 38. <ul><li>Many of them might do one or more of these things already </li></ul><ul><li>If they don’t, there is a huge opportunity to ask them to! </li></ul><ul><li>It could be worth thousands, tens of thousands, hundreds of thousands or even millions of pounds to your charity. </li></ul>
  39. 39. Wouldn’t it be good if… <ul><li>Your shop knew who its best donors were </li></ul><ul><ul><li>you could make sure you treated them especially well when they next came in and donated or purchased. </li></ul></ul>
  40. 40. And wouldn’t it be good if… <ul><li>You knew when the last time each donor made a donation was </li></ul><ul><ul><li>you could contact them, recalling the last time they donated, thanking them, and asking if they have any further goods they could donate or asking them to bear you in mind if they are about to do a clear out </li></ul></ul><ul><ul><li>peak times for this – e.g. after Christmas, Spring, end of summer. </li></ul></ul>
  41. 41. ‘ The holy trinity’ of donor value <ul><li>Recency </li></ul><ul><ul><li>How recently a person has donated </li></ul></ul><ul><li>Frequency </li></ul><ul><ul><li>How often they have donated </li></ul></ul><ul><li>Value </li></ul><ul><ul><li>Of the goods donated (inc. Gift Aid) </li></ul></ul>
  42. 42. Quick wins <ul><li>Contact past donors again </li></ul><ul><li>Better personalisation & letter text, with variety, if possible </li></ul><ul><li>Better thanking </li></ul><ul><ul><li>Within Gift Aid letters </li></ul></ul><ul><ul><li>Every so often as a standalone exercise </li></ul></ul><ul><li>Providing other opportunities to support. </li></ul>
  43. 43. Analyse and research <ul><li>Model and profile to learn more about your donors: </li></ul><ul><ul><li>How many are already on the charity’s central supporter database? </li></ul></ul><ul><ul><li>What is their lifetime/ total value? </li></ul></ul><ul><ul><li>Profile against other data sources to learn more about them </li></ul></ul><ul><ul><ul><li>Understand how/ if the profile of donors of goods differs from other donors. </li></ul></ul></ul>
  44. 44. The BIG opportunity <ul><li>Incorporate donor details into main charity fundraising database </li></ul><ul><ul><li>Give a unique indicator to differentiate them and check on success of appeals </li></ul></ul><ul><ul><li>Flag them not to be contacted if you have recently sent out Gift Aid letters </li></ul></ul><ul><ul><li>Ensure any queries/ complaints are dealt with properly </li></ul></ul><ul><ul><li>Provide a better experience. </li></ul></ul>
  45. 45. Rachel Beer beautiful world [email_address] 0207 739 6136 07970 965577 Photos ©istockphoto / Presentation ©beautiful world UK Ltd. Please contact beautiful world if you wish to use any of the content, statistics or slides in this presentation.