1. Presented By:
Brian DeLaite
Executive Vice President
Belardi/Ostroy
May 14, 2014

2. Maximize performance in your key metrics.

3.  The Giving USA Foundation’s research shows that during harder
times, charitable giving falls as a percentage of the GDP. The
converse is true; during periods of strong economic growth –
revenue growth increases.
 Three steps to YOUR economic recovery: 1) Focus on acquisition 2)
Build donor retention 3) Amp up creative (Future Fundraising Now)
 “Some of the biggest advances in direct mail marketing have come
on the list side…allows marketers the ability to target better than
ever before with offerings such as modeling, analytics and
appending. “(Inside Direct Mail)

4.  Charitable Giving Report 2013 - Blackbaud
• $12.5 billion in total fundraising – 2013
• 4.9% Increase over 2012; largest since recession
• Online giving increased +13.5%; $1.7 billion
• Over one-third of giving happens Oct-Dec
• Long term overall donor declines have been mainly caused by declines
in new donor acquisition
• Increased revenue has offset donor declines
• Direct mail = Foundation of New Donor Acquisition
• Scale, endurance, impact & importance, & sensory benefits
• 70% prefer to read print & paper communications versus a
computer screen

5.  The Index of National Fundraising Performance (Q3 ‘13) – Overall
o Revenue per donor shifts tend to be largely influenced by the mix
of donors across different loyalty segments:
• Long-term donors typically contribute larger amounts than
new donors.
• Organization strategy may also be impacting overall revenue
per donor as organizations work to maximize net revenue.
 Atlas for Giving estimates that charitable giving rose 13% in 2013.
Whereas, Blackbaud reports donations rose at 4.9% which marks the
largest increase it had found since the recession.

9. Understand & reach the benchmark metric(s) established in your
budget…
Key Metrics Across Programs
• Response Rate:
= (# of Donors/Qty Mailed) * 100
= Success in matching target audience,
package & program.
• Average Gift:
= Gross Income/# of Donors
= Higher gift - better upgrade potential
• Gross Income or Total Revenue:
= # of Donors * Average Gift
= Shows productivity of mailing
• Income/M:
= (Gross Income/Qty Mailed) * 1000
= Key in list evaluation
• Cost/M:
= (Total Cost/Qty Mailed) * 1000
= Indicates cost per thousand
• Net/M:
= Revenue - Cost = Net Income.
Formula=(Net/Income/Qty Mailed)*1000
= Shows net productivity
• Cost Per Dollar Raised (CP$R):
= Total Cost/Total Revenue
The lower the better.
• Net/Donor:
= Net Income/# of Donors
= Important prospecting metric because
it takes into account donors, revenue &
cost.
• LTV = Long Term Value (Life Time)
Key retention metric for long
term planning.

10. *Traditional Mission Based * Premiums (Front and Back End)
Types of Acquisition Programs
What does it mean when you have a traditional or a premium based
program in this economic and direct mail environment?

11. Optimizing Components for Mail Plans
Packages
Seasonality – Campaign Timing
Lists
Categories

12. Analysis of Package
Mail Volume & Net/Donor by Package
953,636
198,015 195,188 241,134
793,418 735,580
8,608,770
($26.95)
($65.32)
($41.85)
($130.15)
($15.93)
($24.33)
($70.11)
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
#11 Survey Education General Health Care Supporter
Card
Survey n/a
Package
MailVolume
($140.00)
($120.00)
($100.00)
($80.00)
($60.00)
($40.00)
($20.00)
$0.00
Net/Donor
 Identify Control Package(s) – rotate if possible
 Test, Test, Test – package fatigue may be just a mailing away
 Identify best months to mail package – optimize volume accordingly
 Determine package LTV & incorporate into plans
 Identify optimal List/Package combination
Chart shows
packages
mailed over
several years w
new co-control
on horizon.

13. Analysis of Seasonality
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Seasonal Mail Trends
Fundraising Category & Mailer
 Identify strongest months in which to fundraise – may need to test
timing in months with no prior mail history. i.e. September, October,
November for above.
 Mail package with best ROI in those months
 Is LTV better during certain times of year than others? i.e. someone
who comes in over the slower summer months where there are more
outside distractions
 If more mailings are spread across year – it is more risk adverse than
fewer campaigns with higher volume

14. * House file – Lapsed and Prospect – Segmentation / Performance:
*Recency * Gift/Donation Amount
* Single vs. Multiple Actions/Gifts * Modeling
Outside
Nonprofit Commercial Modeled
House *
Lapsed
Prospects – on-line activists, non money
survey respondents, social media, merchandise
buyers, etc.
Acquisition – List Types / Segmentation

15.  Recency
 Dollar
 Gender
 Region
 Source
 Member/Donor
 Buyers
 Subscribers
 On-Line
 Direct
Acquisition – Outside List Types /Segmentation
 Response
• Subscribers
• Buyers
 Compiled
• Internet sites / registration
• Government Data
• Phone Directories
• Credits Records
• Warranty Cards, etc.
 Abacus /Epsilon
 Apogee
 Blackbaud / TAG
 DonorBase
 I-Behavior
 Wiland
 Targeted names from mailer’s file
 Additional Mailable universe
 Increased response rates
 Higher average gifts in many cases

16. Structure of Acquisition Plan & Strategy
 Know your primary, secondary & tertiary markets
 Maximize the use of your core continuation & house files
 Better target your marginal lists
 Incorporate LTV into your planning – subsequent giving analysis critical
 Maximize exchange opportunities & get aggressive net arrangements /volume
discounts
 10% to 20% of plan should be devoted to testing
 List/Package optimization – Traditional/Mission based or Premium based
 Member/Donor lists are generally most responsive
 Test lists of Nonprofits whose mission is similar
 Hotline selects – great tool to get unique names & increase response rates.
 Cooperative Databases are must tests.
 Merge optimization
• Continuations
• Retests
• Tests
Must Lay a
Solid
Foundation
for your plan

17.  Use historical results and current trends to develop projections
for each list…Rigorous, Quantifiable Metrics.
 List selection is data driven.
 Not only qualify but must also quantify the viability of our
acquisition plan and strategy.
 Defend projections with objective data.
 Objective -
 Most significant quality variable is the average gift amount
 Average gift is also a key indicator of a donor’s upgrade potential &
measurement of a stronger commitment
 Organization’s budget & goals determine the quantity to be
mailed
 Prospecting is an .
Structure of Acquisition Plan & Strategy

18. Analysis of Categories
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Buyer Compiled Disease House Files Multibuyers Other Donor Subscriber
Gifts
QuantityMailed
Quantity Mailed vs. Donors
Quantity Mailed # of Donors

19.  When the right audience is targeted, a critical component of
is met.
 Returned, unwanted and undelivered mail produces vast amounts of waste paper.
 Plan and implement the every step of the way: Reduce, Reuse, Recycle.
Planning & Strategy
◊◊ ◊◊
The ability to deliver your message to a precise audience - produces cost
effectiveness & environmental stewardship.
 Match Back Analysis is important!
On generational giving patterns - today’s donors, no matter what their
age, use all channels of marketing. “Fundraising is profoundly
multichannel” and “Message/channel integration is a more urgent
priority than ever.” (Convio report)

20. Speaker Contact Information:
Brian DeLaite
briand@belardiostroy.com
212-381-1703