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Bite-Sized Deep Dives

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Bite-Sized Deep Dives

  1. 1. Critical Direct Response Updates You Need to Know
  2. 2. Jon Dartley, Ph.D Attorney, Perlman & Perlman, LLP Joseph Gomez Business Development Director, Production Solutions Rayna Clarke Senior Account Manager, Tripi Consulting Lisa Maska, CFRE Partner, Lautman Maska Neill & Company
  3. 3. Our First Morsel…
  4. 4. GDPR What You Need to Know and Do Today Presented by Jon Dartley, Ph.D Attorney, Perlman & Perlman, LLP Please be advised that the information provided in the presentation is for general information purposes only and is not to be construed as legal advice.
  5. 5. 5 General Data Protection Regulation (GDPR) Providing individuals with more control of their privacy
  6. 6. 6 What you need to know about GDPR now To whom does GDPR apply? What are the penalties for noncompliance? ! The regulation applies to all organizations collecting, processing, using and/or storing the personal data of affected individuals, regardless of the organization’s location. This includes U.S.-based companies who touch EU citizen and resident personal data such as: name, address information, email address, racial or ethnic data, political opinions, religious or philosophical beliefs, trade union membership, health and genetic data, biometric data, political opinions and sexual orientation. While certain clients have been working on their compliance approaches for some time, others may not yet realize GDPR’s applicability and, either way, they may need our help to gain assurance on their progress or to jump-start their compliance efforts. Why are we just discussing this now? After May 25, 2018, fines for non- compliance are €20 million or 4 % of global revenue – whichever is greater. The enforcement posture remains to be seen, but expectations are that, at a minimum, organizations experiencing any type of a (publicly known) breach may be likely enforcement targets.
  7. 7. Myth or Fact? The GDPR doesn’t apply to my organization because… We have no offices or employees in the EU Our EU membership / contact lists is small We are a nonprofit We are a service provider The information we hold is anonymous The bottom line is that the GDPR applies to any organization that collects and holds “personal data” of individuals residing in the EU, regardless of the organization’s location. 7 GDPR Applicability
  8. 8. Risk of Noncompliance  Reputational concerns  Loss of opportunities  Disruption due to regulator inquiries  Fines 8 GDPR Applicability
  9. 9. 9 Nuts and Bolts The Main Requirements of GDPR
  10. 10.  Transparency  Right of Access  Right to Erasure  Right to Restrict Processing  Right to Data Portability  Right to Object 10 New Obligations Related to Personal Data
  11. 11. 11 Higher Bar for “Consent” A clear, affirmative act Ticking a box Technical settings that record/verify acceptance Silence Pre-ticked boxes Inactivity Too broad -
  12. 12. Example of Acceptable Consent  👎 I hereby consent to the processing of my personal data for the prize draw, and for general marketing purposes, and other related activities.  👍 I hereby consent to the processing of my personal data for the prize draw.
  13. 13. Additional Requirements  Responsibility for Third-Party Vendors  Controller vs. Processor  Limits on Data Retention  New Data Security and Breach Notification Obligations
  14. 14. 14 What Steps Can I Take to Comply / Mitigate Risk?
  15. 15. Immediate Actions to Take in Light of GDPR 1) Evaluate current compliance – Review compliance across the organization 2) Update website and applications: privacy policy and cookie notices 3) Vendor contracts: complete data processing addendum and review for additional changes 4) Explicit consent: Review past and current practices to determine compliance 5) Design and implement compliance systems to comply with the GDPR: the right to be forgotten; portability, etc.
  16. 16. Privacy is here to stay Organizations Must be Proactive Canada PIPEDA – Personal Information Protection and Electronic Data Act (2000) European Union • GDPR – General Data Protection Regulation (2016) • Privacy Shield • E-Privacy (2002) • EU Member Regulations United States • CCPA – California Consumer Privacy Act (2018) • COPPA – Children’s Online Privacy Protection Act (2000) • HIPAA – Health Insurance Portability and Accountability Act (1996) • GLBA – Gramm-Leach-Bliley Act (1999) • Other U.S. state regulations China CSL - Cybersecurity Law of the People’s Republic of China (2017) United Kingdom • Data Protection Act (2018) • PECR – Privacy and Electronic Communications Regulation (2003) Australia APP – Australian’s Privacy Principles (1988) India PDPB – Personal Data Protection Bill Philippines Data Privacy Act (2012) Brazil • Brazilian Internet Act (2014) • LGGP - General Data Privacy Law (2018) effective 2020 Malaysia PDPA – Personal Data Protection Act (2010) New Zealand Privacy Act (1993)
  17. 17. Wake–up Call Organizations Experiencing Loss of Personally Identifiable Information Grows Each Year According to a report from the Identity Theft Resource Center and CyberScout, despite organizations faced a greater risk than ever of having their data stolen Total number of personal records exposed more than doubled in 2018, according to a new report. Costs also continue to rise: Global average cost of a data breach is up 6.4 percent over the previous year to $3.86 million. The average cost for each lost or stolen record containing sensitive and confidential information also increased by 4.8 percent year over year to $148.
  18. 18. Why is Protecting Data Important?  Data is a valuable organization asset, like any other  Data is at a higher risk of theft or misuse than ever before  Loss of data can have long-lasting consequences  Reputational harm  Loss of donor trust  Financial penalties and costs  Legal liability  Organizations have obligations to protect data  Laws, regulations, guidelines  Contracts with third parties  Privacy policies
  19. 19. Best Practice – PII Audit What Why Who Where When How DATA What data does your organization collect? Why is the data collected? Who has access to the data? Where is the data stored? How is the data protected? When is the data deleted?
  20. 20. Best Practice – Review Vendor Agreements  Organizations are increasingly relying on third parties to provide critical services, and to host PII of their donors and employees.  Unfortunately, these vendor contracts are typically extremely one sided in favor of the vendor.  Review contracts with vendors that collect, process of hold your PII  Privacy and Security  Limitation of Liability  Indemnifications  Breach Notification
  21. 21. Best Practice - Implement Data Retention and Destruction Policy Get Organized First step in any retention policy process is to organize the data you already have. Get Informed State, federal, and tax laws may vary with respect to what data and communication you are expected to retain and for how long. You will certainly want to consult legal counsel at this point. Get Backed Up No policy in the world can help you if you don’t implement physical methods of ensuring that data is protected until you decide to take action on it. Get Destructive Backing up takes care of the stuff you need to retain indefinitely; you need to have equally robust procedures for destroying data that you decide not to retain
  22. 22. Best Practice - Cybersecurity Insurance  Identify your unique risks  Match your insurance to your company’s risks  Beware of exclusions  Consider coverage for acts by third parties  Negotiate for an early retroactive date  Understand the “triggers”  Evaluate coverage for data restoration costs  Consider coverage for loss of information on unencrypted devices  Consider coverage for regulatory actions
  23. 23. Where to Go for More Information/Updates iapp.org/news/daily-dashboard/ jon@perlmanandperlman.com
  24. 24. Q & A
  25. 25. www.perlmanandperlman.com jon@perlmanandperlman.com
  26. 26. Next Up…
  27. 27. Postage & Production A changing volatile world for your direct mail program. Joe Gomez, slide 1
  28. 28. Joe Gomez, slide 2 Being Prepared is Your Best Plan Effective research, planning and preparation insulates your direct mail program. ✓ Why the paper market has changed and how it is affecting you ✓ How to save money on postage ✓ China Tariffs - What’s Next? ✓ Planning for the future - risk management ✓ USPS Informed Delivery ✓ Marketing Mail & Flats Requirements
  29. 29. The Paper Market Joe Gomez slide 3
  30. 30. What Is Causing Our Current Paper Market Woes? Joe Gomez Slide 4 ❏ Consolidation ❏ Paper Manufacturers ❏ Converting to more profitable products ❏ No longer stocking low use items ❏ China ❏ Simple Economics - Supply & Demand
  31. 31. ❏ Pre-planning Is the First Step ❏ One year out if possible ❏ Adding estimated increases to annual budget is a double edged sword ❏ Give longer lead times on specialty stocks ❏ Work closely with your production partner ❏ Print full tints rather then order colored stocks ❏ Stay informed, use that information strategically Navigating the Paper Market Joe Gomez Slide 5
  32. 32. Postage Cost Containment Joe Gomez Slide 6 Start with a Postal Audit ❏ Goal – Compare cost to delivery time ❏ Different products based on program volume ❏ Options: ➢ Standard Presort ➢ Drop ship / Co-pal / Comingle ❏ *Additional – re-test 1st class segments & paying for reply mail
  33. 33. USPS 2019 Mailing Incentives ➢ Tactile, Sensory & Interactive Promotion ➢ Emerging and Advanced Technology Promotion ➢ Earned Value Promotion ➢ Personalized Color Transpromo Promotion Joe Gomez Slide 7 Mobile Shopping Promotion •Active: August 1 – December 31 •Registration Period: June 15 – December 31 •Up to 2% of eligible postage Informed Delivery Promotion •Active: September 1 – November 30 •Registration Period: July 15 – November 30 •Up to 2% of eligible postage
  34. 34. China Tariffs - What’s Next ➢ The Office of the United States Trade Representative (USTR) ➢ May 10th Increase ➢ Some items that already had an additional 10% tariff applied were hit with another 15% ➢ What you need to know: ➢ Not all items are subject to the additional tariffs ➢ Work with your partners to review import items. ➢ What’s next? ➢ Potentially new 25% tariff on additional items, hitting previously spared goods such as apparel, electronics, toys, and other household goods. A public hearing will be held on June 17th Joe Gomez Slide 8
  35. 35. Joe Gomez, slide 9 Mail Tracking Information Tool & Risk Management ✓ Complete transparency on distribution ✓ Launch E-mail or TM campaigns ✓ Return mail tracking – budget forecasts ✓ Warm blanket when issues arise ✓ Inexpensive
  36. 36. Joe Gomez, slide 10 USPS: Informed Delivery ✓ Simple and inexpensive ✓ Get additional impressions to donors and prospects ✓ Still in its infancy with plenty of opportunities on the horizon!
  37. 37. Joe Gomez, slide 11 USPS Decision on Marketing Mail and Flats Requirements! Bonus for 2019 ✓Grass roots effort of NPO’s & fundraising associations were heard by the USPS ✓Over 4700 opposition letters sent ✓Results – No changes to current requirements
  38. 38. The Last Bite…
  39. 39. Tooting Your Horn to Build Trust: EVERYTHING YOU NEED TO KNOW ABOUT FEATURING WATCHDOGS, ENDORSEMENTS, AND TESTIMONIALS Rayna Clarke, Slide 1
  40. 40. Why Feature Endorsements? • Build trust with your donors and prospects. • Announce new awards or ratings. • Communicate that you value transparency. • Give a quick snapshot of your financials. • May boost response. Always test! Rayna Clarke, Slide 2
  41. 41. Watchdog Rundown • America’s Best Charities • BBB Wise Giving Alliance • Charity Navigator • CharityWatch • GuideStar • Other Endorsement Options Rayna Clarke, Slide 3
  42. 42. America’s Best Charities • ABC is a nonprofit that works as a liaison between charities and the Combined Federal Campaign (CFC); ABC uses the CFC’s application process for their membership. • Any ABC member can use their “Best in America” seal. • ABC’s only DM-related requirement for application is: “Applicants' fund raising materials and other information to the public must be truthful and nondeceptive.” • Cost: requires both an application fee and (if approved) a listing fee; these are per the CFC, are updated each year, and use a sliding scale based on the organization’s budget. Rayna Clarke, Slide 4
  43. 43. BBB Wise Giving Alliance • Standards 8 and 9: Program Expenses and Fund Raising Expenses Maximum 35% of total expenses to fundraising, minimum 65% to programs. • Standard 18: Donor Privacy Must offer an exchange opt-out at least once per year for all donors who are solicited via the mail. Must also offer a comprehensive privacy policy on the website. • Standard 15: Accurate Materials Relevant info: solicitations must not be misleading or outdated. Rayna Clarke, Slide 5 STANDARDS MOST RELEVANT TO DIRECT RESPONSE:
  44. 44. Rayna Clarke, Slide 6 STANDARD 15: ACCURACY OF MATERIALS Source: www.give.org/for-charities/How-We-Accredit-Charities/ BBB Wise Giving Alliance
  45. 45. Rayna Clarke, Slide 7 STANDARD 15: ACCURACY OF MATERIALS So how does this affect our acquisition control? For any photos or stories in your control package, ensure nothing is presented in a misleading way, and identify the year that the photo or story is from. This can be done most easily and unobtrusively in a photo credit or caption. The same strategy can be used in renewal appeals to ensure accuracy, and is overall a good practice to maintain transparency. BBB Wise Giving Alliance
  46. 46. Rayna Clarke, Slide 8 SEAL LICENSING COSTS: Annual fees are on a sliding scale, “based on the level of total contributions received by the national charity in the past fiscal year” (excluding government grants and in-kind gifts). BBB Wise Giving Alliance Total Contributions Annual Seal Licensing Fee Total Contributions Annual Seal Licensing Fee < $1 Million $1,000 $100M - $124.9M $16,000 $1M - $4.9M $2,000 $125M - $149.9M $17,500 $5M - $9.9M $3,500 $150M - $174.9M $20,000 $10M - $19.9M $4,750 $175M - $199.9M $22,500 $20M - $39.9M $6,000 $200 M - 299.9M $25,000 $40M - $49.9M $6,750 $300M - 499M $27,500 $50M - $74.9M $11,000 $500M + $30,000 $75M - $99.9M $12,500
  47. 47. Charity Navigator Rayna Clarke, Slide 9 • Rating system is one through four stars. • Rating criteria based on two broad areas of a nonprofit: financial health and accountability and transparency. • Charity Navigator does not accept any fees from the nonprofits it rates, in order to remain objective.
  48. 48. Charity Navigator • Website Privacy Policy Nonprofits should have a written donor privacy policy on their website, which informs the donor how their data will be used. Charity Navigator categorizes privacy policies in three ways: yes, opt- out, and no. If a nonprofit rents or exchanges its donor list, it should specify this in the privacy policy and provide a way for donors to opt-out. Rayna Clarke, Slide 10 STANDARDS MOST RELEVANT TO DIRECT RESPONSE:
  49. 49. Charity Navigator Rayna Clarke, Slide 11 Source: www.charitynavigator.org/index.cfm?bay=content.view&cpid=1093
  50. 50. CharityWatch Rayna Clarke, Slide 12 • Rates on a letter scale, A to F. • Rating is based on two metrics: program % (total percent of expenses spent on programs) and cost to raise $100, within the rating year. • Receiving a rating is free for nonprofits, and CharityWatch chooses whom to rate based on member requests. Source: www.charitywatch.org/charitywatch-criteria-methodology
  51. 51. CharityWatch Rayna Clarke, Slide 13 • In CW’s evaluations, joint cost allocation (i.e., educational content) within fundraising appeals are adjusted out of program expense totals. • Highly-rated organizations must have a clear privacy policy and way for donors to opt-out of data exchange. Source: www.charitywatch.org/charitywatch-criteria-methodology STANDARDS MOST RELEVANT TO DIRECT RESPONSE:
  52. 52. GuideStar Rayna Clarke, Slide 14 • Assigns seals of transparency, which rank from worst to best as: bronze, silver, gold, platinum. • Seals are cumulative; a nonprofit must have bronze to become silver, etc. • Each new seal is gained when a nonprofit enters more information into their GuideStar profile • There is no cost to create a profile or gain a seal.
  53. 53. Examples of Other Endorsement Options Rayna Clarke, Slide 15 INDUSTRY-SPECIFIC GROUPS & AFFILIATIONS PRIZES & ACCOLADES
  54. 54. Examples of Other Endorsement Options Rayna Clarke, Slide 16 “BEST OF” LISTS TESTIMONIAL QUOTES & MEDIA FEATURES • Praise from public figures with good name recognition (always test this!) • Article quotes from prominent media organizations AND DON’T FORGET TO SHOUT OUT YOUR FINANCIALS … as long as they’re good!
  55. 55. Endorsement Audit Our office conducted an audit of the following for all endorsement and financial information: • Renewal appeals we received in the mail over several months from November 2018 to early 2019 • Acquisition packages we received in the mail during the same time period • Website donation pages of organizations featured on Charity Navigator and Consumer Reports top/best charities lists Rayna Clarke, Slide 17
  56. 56. Rayna Clarke, Slide 18 AUDIT FINDINGS: Renewal Appeals 6% 7% 4% 4% 4% 20% 31% 41% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Testimonial Quote Financial Info Other Endorsement CharityWatch GuideStar Charity Navigator BBB Any Endorsement Sample: 54 unique renewal packages across 27 organizations. Tripi Consulting clients not included.
  57. 57. Rayna Clarke, Slide 19 AUDIT FINDINGS: Renewal Appeals ENDORSEMENT LOCATION WITHIN AUDITED PACKAGES • Outer envelope: 4% • Reply coupon front: 7% • Reply coupon back: 22% • Letter: 4% • Insert: 11% • Reply envelope: 4% Sample: 54 unique renewal packages across 27 organizations. Tripi Consulting clients not included.
  58. 58. Rayna Clarke, Slide 20 AUDIT FINDINGS: Acquisition Packages 5% 24% 14% 15% 17% 29% 31% 51% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Testimonial Quote Financial Info Other Endorsement GuideStar CharityWatch Charity Navigator BBB Any Endorsement Sample: 100 unique packages across 80 organizations. Tripi Consulting clients not included. Other Endorsements: • ECFA • Nobel Prize • America’s Best Charities • Hilton Prize • InterAction • The Life You Can Save • Media endorsements
  59. 59. Rayna Clarke, Slide 21 ENDORSEMENT LOCATION WITHIN AUDITED PACKAGES • Outer envelope front: 3% • Outer envelope back: 11% • Reply coupon front: 1% • Reply coupon back: 29% • Letter front: 4% • Letter back: 7% • Insert: 13% (incl. label sheet back) • Reply envelope back: 5% AUDIT FINDINGS: Acquisition Packages Sample: 100 unique packages across 80 organizations. Tripi Consulting clients not included.
  60. 60. Rayna Clarke, Slide 22 AUDIT FINDINGS: Website Donation Pages 4% 14% 10% 27% 30% 39% 50% 66% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Testimonial Quote Financial Info Other Endorsement CharityWatch GuideStar BBB Charity Navigator Any Endorsement Sample: 98 unique nonprofit organization donation pages.
  61. 61. Rayna Clarke, Slide 23 PLACEMENT: OUTER ENVELOPE
  62. 62. Rayna Clarke, Slide 24 PLACEMENT: REPLY COUPON
  63. 63. Rayna Clarke, Slide 25 PLACEMENT: LETTER
  64. 64. Rayna Clarke, Slide 26 PLACEMENT: LETTER NAME ADDRESS CITY STATE ZIP
  65. 65. Rayna Clarke, Slide 27 PLACEMENT: SPECIAL INSERTS
  66. 66. Rayna Clarke, Slide 28 PLACEMENT: SPECIAL INSERTS
  67. 67. Rayna Clarke, Slide 29 PLACEMENT: SPECIAL INSERTS
  68. 68. Rayna Clarke, Slide 30 PLACEMENT: REPLY ENVELOPE
  69. 69. Considerations If your rating changes next year, will you need to reprint stock? Rayna Clarke, Slide 31 Will this endorsement resonate with my audience? How many endorsements do we need to get the message across? What cost is worth it for our organization to secure an endorsement? Icons designed by Freepik via flaticon.com
  70. 70. Jon Dartley, Ph.D Attorney, Perlman & Perlman, LLP Joseph Gomez Business Development Director, Production Solutions Rayna Clarke Senior Account Manager, Tripi Consulting Lisa Maska, CFRE Partner, Lautman Maska Neill & Company

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