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hjc & HMA: Integrated Monthly Giving
Who Are We?




         Harvey McKinnon                                            Mike Johnston
                     Founder,                                                 Founder,
      Harvey McKinnon Associates (HMA)                         Hewitt and Johnston Consultants (hjc)
Monthly Giving, Integrated Fundraising, Direct Mail   Online Fundraising, Integrated Fundraising and Marketing
             Dancer Extraordinaire,                                     Aerobics Instructor,

         Thinks ‘Medium’ is a word you                         Believes that you can be 50 years old
       use to describe a seer not a channel              and still play computer games without being a nerd
What we’ll cover in an hour

                                                       Proof that you
      Channel and             What’s stopping                                   New Innovations
                                                        can improve
      Demographic               integrated                                        in Monthly
                                                       your monthly
        context               monthly giving                                         Giving
                                                           giving

Next Generation Survey   The barriers           How 2 hospital             Multi-Step Monthly
                                                foundations beat their     Conversion
                                                industry average
                         The current reality
                                                                           Community based
                                                Making online more         monthly giving
                         What happens when      effective
                         you stick in one                                  Mobile and Monthly
                         channel                Benefits and Privileges    Giving
                                                that sell monthly giving

                                                Monthly donor surveys
                                                to find bigger gifts
“I’m all for progress. It’s
change I can’t stand.”

           Mark Twain
Take our survey at the end of
        the session!
 At the end of the session, we’ll ask you to go online and fill out
 our integration survey. We’ll select 2 WINNERS to receive
 complimentary 1-hour integrated monthly giving consulting
 session


     http://www.surveymonkey.com/s/3QC6FRP
It’s not all about technology
•   Strategy
•   Leadership
•   Culture
•   Budget
•   Commitment
•   Analysis
ALL AGES ARE GIVING
MONTHLY – AND ALL
CHANNELS ARE INVOLVED…
Case Study – Small Animal Charity



Canada’s                                      Vancouver
most                                          Island
endangered                                    Marmot
mammal



         There are only 35 left in the wild
Marmot Recovery Foundation

Single gift donors      7,382

Monthly donors          1,164

Average monthly gift   $12.95

Annual monthly total   $155.40
Marmot Recovery Foundation


Annual average gift
                      $25.38
single gift donors
Average annual
                      $155.40
gift monthlies
Ratio                  6.12
Fundraising is profoundly
 multi-channel




Source: Next Generation of Canadian and American Giving
More channels available for monthly conversion with younger donors…

                                                  % Who Agree, Appropriate Solicitation Channel


                                   GEN Y                   GEN X              BOOMER              CIVIC


            MAIL                    77%                     79%                 74%               77%

          EMAIL                     76%                     69%                 60%               51%

SOCIAL MEDIA                        69%                     60%                 38%               17%

         PHONE                      51%                     42%                 39%               34%

            TEXT                    38%                     25%                 16%               13%


 Source: Next Generation of Canadian and American Giving
OUR ‘TAKE’ ON WHAT’S
STOPPING INTEGRATED
MONTHLY GIVING
Harvey: What’s Stopping
 Integrated Monthly Giving
• Fear of risk
• Lack of vision
• Personal Ego
• Lack of shared goals
Mike: What’s Stopping
 Integrated Monthly Giving
• Lack of budget
• Lack of skill sets
• Internal competition
• Lack of exploration of opportunities
  (testing)
Current Reality
1)   Offline donors are aging
2)   Donor files and acquisition sources are shrinking
3)   Donor Fatigue
4)   Revenues are flat and/or falling
5)   Direct mail costs are increasing/ fundraising margins are shrinking
6)   Online – when kept in a silo - underperforms




                      Nonprofits need younger more valuable donors
                       More personal relationships with loyal donors
                          Investment in a multi-channel approach
Online donor retention of single gift donors can be terrible...




                                                12% average
                                                retention rate




Solution: Integrated Monthly Giving
PROOF THAT YOU CAN
IMPROVE YOUR MONTHLY
GIVING PROGRAM
Some non-profit verticals have
lower percentages than others –
but you can change that!
         What is closest to the average size of your recurring monthly
                                     gifts?

                                         4%   8%
                             11%                   4%

I don't know
Less than $10
$10                                                                $10
                       15%
$15
                                                        31%
$20
$25
$35 or more


                                   27%
One hospital -Monthly gift range


•   $0-$9.99     7%
•   $10-$14.99 39%
•   $15-$24.99 29%
•   $25-$49.99 15%
•   $50-$99.99   7%
•   $100-$499.99 3%

•   Average $21/month. Attrition 7% per year
You can change your monthly
giving circumstance
               Approximately what percent of your annual fundraisinig
                   revenue comes from recurring monthly giving?

                                       4%

                                                19%




                           31%
I don't know
0%-5%
6%-10%
31% or more




                                               46%
What percentage of your file is giving
monthly?
• One hospital has 12.7% giving monthly
• One of our clients has more than 50%
  giving monthly
Don’t do this!




10/29/2012   proprietary and confidential
Create a visual monthly giving
program brand and use it
consistently
 • Make it mission and brand related – not
   generic monthly giving
• Create a monthly brand that is
  relevant to the experience of the
  individual e.g. Relay for Life
  participant
• Create a relevant, passionate
  premium
• Use multi-channels:

a) Face to face at the event
b) Email, telephone follow up

How can your organization create
more
relevant, passionate, evocative
monthly giving programs?
A form that
makes
monthly
upfront
and
important
https://secure2.convio.net/cco/site/SPageServer?pagena
me=on_donationapi&s_locale=en_CA&s_src=Cancer.ca&u
tm_source=Cancer.ca&utm_medium=Header&utm_conte
nt=DonateOnline&utm_campaign=DONATIONS_ON




                                                         26
27
“We are up 10% in overall # of
online monthlies since the new
forms launched. We didn’t have a
tonne of online monthlies to begin
with, so it’s a nice bounce."




                           28
Creating not just an improved
giving form, but a more
evocative monthly brand…




                        29
10/29/2012   proprietary and confidential
hjc & HMA: Integrated Monthly Giving
You get what you ask for – even in
integrated monthly giving

           So, don’t be shy about
 soliciting monthly gifts first – online too!
A look back at 1999... Greenpeace International makes
MONTHLY THE WAY TO GIVE!
Greenpeace online fundraising growth
    over 10 years
                       11,848
    12000
N
u
m   10000
b
e
r    8000


o
f     6000


d
      4000
o
n
o
r
      2000                               2,324
s
                 111            883
             0


                 Monthly
                                Single
Create unique benefits and exclusivity around
being a monthly donor and give channel
options…
WSPA and some iron bars…
MONTHLY DONORS CAN
REVEAL LARGER GIFTS
How can you find more value from monthly donors… just ask!


The cultivation survey:
• Sent to 57,400 donors
• 3 key segments: Monthly, Active & Lapsed
• 5,530 responses (response rate of 11%)
• Raised $17,574 – a bonus!
• Reactivated 30 donors
• Found 85 expectances and 292 legacy leads
• 143 middle and major donor leads!
• Key: shared budgeting!


FOUND INFORMATION TO IMPROVE
ON MONTHLY CONVERSION
Survey Learning: Target Recently
Lapsed early
Survey Learning: Using interests in improve
lapsed reactivation scripts…
NEW INNOVATIONS IN
MONTHLY GIVING
Integrated Monthly Giving
includes ‘chugging’…
                      Cost to acquire a
                      monthly donor
                      ($17/month) is currently
                      standing at 14-16 month
                      breakeven

                      It has a chance to
                      increase their annual
                      campaign database by
                      3000%.
Channels make a difference
Be open to multi-step, multi-
     channel Monthly Donor
     Acquisition
Lead Acquisition & Conversion

  Games                             Email


                 Advocacy             Direct mail
                            LEADS
                                        Telemarketing
       Enews

                                                        DONORS
  Social Media
Amnesty Canada: multi-channel and
      multi-stage monthly giving conversion

                                      More info:
                                      legitimacy



                                Comments: priority for
     Counter: social            calls
     proof



Phone number: Ask!               Subscribe:
                                 for cultivation
The different constituencies
 called…

20.00%   18.50%
18.00%                        Recent Lapsed
16.00%                        Monthly Donor
14.00%                        Online Petition Only
                       11%
12.00%
                  9%
10.00%       8%               E-newsletter
 8.00%                        Subscriber
 6.00%                        Lapsed Single Gift
 4.00%                        Donor
 2.00%
 0.00%
                             CPMD $75
A 9-step checklist for conversion of
online warm leads to monthly
donors
 1. Set criteria for campaign
 2. Ask for phone numbers,
    mailing address, email address
 3. Get traffic
 4. Manage data
 5. Send email prior to call
 6. Write script
 7. Training
 8. Pledge packs
 9. Assess results
And if you don’t use the
phone, you can still use email
alone…
HOW DOES MOBILE FIT IN?
DONOR EXPERIENCE
Mobile texts and monthly conversion…

                    •   Gaza conflict early 2009: Save the
                        Children UK run National press
                        campaign - text support for a
                        ceasefire.

                    •   Call to action – ‘text CEASEFIRE’ -
                        pass details onto friends and family .

                    •   Campaign goes viral - 182,000
                        people text - petition taken to
                        Downing Street.

                    •   All supporters were called on their
                        mobile phones and prior to the call
                        we had no information
                        (name, address, etc) about these
                        prospects. 5% conversion to monthly
                        giving of those reached –
                        approximately 4,700 new monthly
                        donors
Take our survey!
At the end of the session, we’ll ask you to go online and fill out
our integration survey. We’ll select 2 WINNERS to receive
complimentary 1-hour integrated monthly giving consulting
session


    http://www.surveymonkey.com/s/3QC6FRP
Thank you!
• Mike Johnston
  mjohnston@hjcnewmedia.com
• Harvey McKinnon
  harvey@harveymckinnon.com

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hjc & HMA: Integrated Monthly Giving

  • 2. Who Are We? Harvey McKinnon Mike Johnston Founder, Founder, Harvey McKinnon Associates (HMA) Hewitt and Johnston Consultants (hjc) Monthly Giving, Integrated Fundraising, Direct Mail Online Fundraising, Integrated Fundraising and Marketing Dancer Extraordinaire, Aerobics Instructor, Thinks ‘Medium’ is a word you Believes that you can be 50 years old use to describe a seer not a channel and still play computer games without being a nerd
  • 3. What we’ll cover in an hour Proof that you Channel and What’s stopping New Innovations can improve Demographic integrated in Monthly your monthly context monthly giving Giving giving Next Generation Survey The barriers How 2 hospital Multi-Step Monthly foundations beat their Conversion industry average The current reality Community based Making online more monthly giving What happens when effective you stick in one Mobile and Monthly channel Benefits and Privileges Giving that sell monthly giving Monthly donor surveys to find bigger gifts
  • 4. “I’m all for progress. It’s change I can’t stand.” Mark Twain
  • 5. Take our survey at the end of the session! At the end of the session, we’ll ask you to go online and fill out our integration survey. We’ll select 2 WINNERS to receive complimentary 1-hour integrated monthly giving consulting session http://www.surveymonkey.com/s/3QC6FRP
  • 6. It’s not all about technology • Strategy • Leadership • Culture • Budget • Commitment • Analysis
  • 7. ALL AGES ARE GIVING MONTHLY – AND ALL CHANNELS ARE INVOLVED…
  • 8. Case Study – Small Animal Charity Canada’s Vancouver most Island endangered Marmot mammal There are only 35 left in the wild
  • 9. Marmot Recovery Foundation Single gift donors 7,382 Monthly donors 1,164 Average monthly gift $12.95 Annual monthly total $155.40
  • 10. Marmot Recovery Foundation Annual average gift $25.38 single gift donors Average annual $155.40 gift monthlies Ratio 6.12
  • 11. Fundraising is profoundly multi-channel Source: Next Generation of Canadian and American Giving
  • 12. More channels available for monthly conversion with younger donors… % Who Agree, Appropriate Solicitation Channel GEN Y GEN X BOOMER CIVIC MAIL 77% 79% 74% 77% EMAIL 76% 69% 60% 51% SOCIAL MEDIA 69% 60% 38% 17% PHONE 51% 42% 39% 34% TEXT 38% 25% 16% 13% Source: Next Generation of Canadian and American Giving
  • 13. OUR ‘TAKE’ ON WHAT’S STOPPING INTEGRATED MONTHLY GIVING
  • 14. Harvey: What’s Stopping Integrated Monthly Giving • Fear of risk • Lack of vision • Personal Ego • Lack of shared goals
  • 15. Mike: What’s Stopping Integrated Monthly Giving • Lack of budget • Lack of skill sets • Internal competition • Lack of exploration of opportunities (testing)
  • 16. Current Reality 1) Offline donors are aging 2) Donor files and acquisition sources are shrinking 3) Donor Fatigue 4) Revenues are flat and/or falling 5) Direct mail costs are increasing/ fundraising margins are shrinking 6) Online – when kept in a silo - underperforms Nonprofits need younger more valuable donors More personal relationships with loyal donors Investment in a multi-channel approach
  • 17. Online donor retention of single gift donors can be terrible... 12% average retention rate Solution: Integrated Monthly Giving
  • 18. PROOF THAT YOU CAN IMPROVE YOUR MONTHLY GIVING PROGRAM
  • 19. Some non-profit verticals have lower percentages than others – but you can change that! What is closest to the average size of your recurring monthly gifts? 4% 8% 11% 4% I don't know Less than $10 $10 $10 15% $15 31% $20 $25 $35 or more 27%
  • 20. One hospital -Monthly gift range • $0-$9.99 7% • $10-$14.99 39% • $15-$24.99 29% • $25-$49.99 15% • $50-$99.99 7% • $100-$499.99 3% • Average $21/month. Attrition 7% per year
  • 21. You can change your monthly giving circumstance Approximately what percent of your annual fundraisinig revenue comes from recurring monthly giving? 4% 19% 31% I don't know 0%-5% 6%-10% 31% or more 46%
  • 22. What percentage of your file is giving monthly? • One hospital has 12.7% giving monthly • One of our clients has more than 50% giving monthly
  • 23. Don’t do this! 10/29/2012 proprietary and confidential
  • 24. Create a visual monthly giving program brand and use it consistently • Make it mission and brand related – not generic monthly giving
  • 25. • Create a monthly brand that is relevant to the experience of the individual e.g. Relay for Life participant • Create a relevant, passionate premium • Use multi-channels: a) Face to face at the event b) Email, telephone follow up How can your organization create more relevant, passionate, evocative monthly giving programs?
  • 27. 27
  • 28. “We are up 10% in overall # of online monthlies since the new forms launched. We didn’t have a tonne of online monthlies to begin with, so it’s a nice bounce." 28
  • 29. Creating not just an improved giving form, but a more evocative monthly brand… 29
  • 30. 10/29/2012 proprietary and confidential
  • 32. You get what you ask for – even in integrated monthly giving So, don’t be shy about soliciting monthly gifts first – online too!
  • 33. A look back at 1999... Greenpeace International makes MONTHLY THE WAY TO GIVE!
  • 34. Greenpeace online fundraising growth over 10 years 11,848 12000 N u m 10000 b e r 8000 o f 6000 d 4000 o n o r 2000 2,324 s 111 883 0 Monthly Single
  • 35. Create unique benefits and exclusivity around being a monthly donor and give channel options…
  • 36. WSPA and some iron bars…
  • 38. How can you find more value from monthly donors… just ask! The cultivation survey: • Sent to 57,400 donors • 3 key segments: Monthly, Active & Lapsed • 5,530 responses (response rate of 11%) • Raised $17,574 – a bonus! • Reactivated 30 donors • Found 85 expectances and 292 legacy leads • 143 middle and major donor leads! • Key: shared budgeting! FOUND INFORMATION TO IMPROVE ON MONTHLY CONVERSION
  • 39. Survey Learning: Target Recently Lapsed early
  • 40. Survey Learning: Using interests in improve lapsed reactivation scripts…
  • 42. Integrated Monthly Giving includes ‘chugging’… Cost to acquire a monthly donor ($17/month) is currently standing at 14-16 month breakeven It has a chance to increase their annual campaign database by 3000%.
  • 43. Channels make a difference
  • 44. Be open to multi-step, multi- channel Monthly Donor Acquisition Lead Acquisition & Conversion Games Email Advocacy Direct mail LEADS Telemarketing Enews DONORS Social Media
  • 45. Amnesty Canada: multi-channel and multi-stage monthly giving conversion More info: legitimacy Comments: priority for Counter: social calls proof Phone number: Ask! Subscribe: for cultivation
  • 46. The different constituencies called… 20.00% 18.50% 18.00% Recent Lapsed 16.00% Monthly Donor 14.00% Online Petition Only 11% 12.00% 9% 10.00% 8% E-newsletter 8.00% Subscriber 6.00% Lapsed Single Gift 4.00% Donor 2.00% 0.00% CPMD $75
  • 47. A 9-step checklist for conversion of online warm leads to monthly donors 1. Set criteria for campaign 2. Ask for phone numbers, mailing address, email address 3. Get traffic 4. Manage data 5. Send email prior to call 6. Write script 7. Training 8. Pledge packs 9. Assess results
  • 48. And if you don’t use the phone, you can still use email alone…
  • 49. HOW DOES MOBILE FIT IN?
  • 51. Mobile texts and monthly conversion… • Gaza conflict early 2009: Save the Children UK run National press campaign - text support for a ceasefire. • Call to action – ‘text CEASEFIRE’ - pass details onto friends and family . • Campaign goes viral - 182,000 people text - petition taken to Downing Street. • All supporters were called on their mobile phones and prior to the call we had no information (name, address, etc) about these prospects. 5% conversion to monthly giving of those reached – approximately 4,700 new monthly donors
  • 52. Take our survey! At the end of the session, we’ll ask you to go online and fill out our integration survey. We’ll select 2 WINNERS to receive complimentary 1-hour integrated monthly giving consulting session http://www.surveymonkey.com/s/3QC6FRP
  • 53. Thank you! • Mike Johnston mjohnston@hjcnewmedia.com • Harvey McKinnon harvey@harveymckinnon.com

Editor's Notes

  1. Break down thes - bullets
  2. Win a multi-channel consulting session
  3. A
  4. Mike
  5. All generations much more guarded with direct communications if no relationship in place, gets worse as gets older. Mass media the one accepted channel (74% appropriate). Big theme heard in focus groups is Control -- skepticism about getting manipulated. Feel like traditional solicitation channels – phone and mail – are manipulative. They want to feel like they made the choice/they are in control. Giving after hearing a mass media story, and/or being solicited by a friend makes them feel like they made a choice.Q22 :Below are a variety of different ways that a charity may approach you and ask for a monetary donation. For each, please indicate how appropriate that approach is.Bold numbering in the table on the right indicates significance at the 95% confidence level
  6. A
  7. A
  8. MWe are going to ask the group for participation here.Cost of donor acquisitionNeed to increase donor retention ratesConstituent expectations / Constituent serviceCompetition for donor dollarsNeed to reach new audiencesNeed to cultivate constituents with multiple relationships to our organization (e.g. volunteer + donor, donor + advocate, etc.)Other (if they can type something in…)
  9. Organizations can maximize the value of donor relationships with the use of multi-channel strategies.
  10. A
  11. Since the monthly giving program brand has been up and running, ccs sk has been steadily increasing the number of monthly donors
  12. A
  13. When we look more closely at the time lapsed v. the likelihood to reactivate we see about a 3-5% decrease in the ‘very likely’ category each subsequent year of not giving. This is consistent with reactivating donors early at 12-24 months.
  14. A
  15. Mike
  16. The recipients were sent to an epetition directed at key Parliamentarians who were on the Committee that reviewed the bill.Note some important aspects to the petition:#1 phone number – we asked. Does this suppress signatures? That’s a debate. We make it a non-mandatory field – and find that about 30% fill it out anyway. It’s worth it#2 counter - why? “social proof”. participants see that 1000s are doing this#3 comments – these are streamed – they build momentum and act as examples – they give participants the confidence to write their own words#4 subscribe – this builds a list for e-cultivation – you can’t use your big list all the time – this filters out the best activists for higher touch cultivation#5 more info – a minor link so as not to distract, but important for legitimacy to show the depth of research/legitimacy of actionother – use of photo, clear action statement, target is obvious, message is clear, opportunity to add personal comments, required fields clearly indicated, link to more comments to increase comfort level of participants3 weeks later, on November 1st, there were 2792 signatureshttp://www.amnesty.ca/urgentappeal/2009/CorpAcct/
  17. Of all petition-signers, we discovered there were four main segments within the data: -people who only signed the petition, which made up the bulk of the list-people who had also received an on-line newsletter, -those who were once a single-gift donor, and -lapsed monthly donors. Not surprisingly, the lapsed monthly donors had the highest response rate at 18.5 % followed by deep lapsed donors at 11%. Petition signers responded at 7.6% and the people who had also received an e-newsletter had a 9% monthly donor rate.
  18. A
  19. ChrisBlackbaud offers a mobile experience for both supporters/donors and staff.- Supporters/Donors access a mobile-optimized version of your website- Staff accessed an optimized version of The Raiser’s Edge on their mobile device.
  20. Win a multi-channel consulting session