Within your donor database lies untold lifetime value. Unfortunately, many nonprofits fail to properly nurture and steward their donors, and are content with high acquisition and high churn. Why let this enormous asset go underutilized? In this session, we will cover the tenets of effective database management, no matter what program or vendor you use. We will show examples of best practices in data management, communication segmenting, engagement tracking and reporting in order to help your team work smarter, not harder. Learning Outcomes: - Be familiar with data management techniques that maximize the capabilities of your database and increase productivity - Understand segmenting strategies lead to higher response rates from your donor communications - Learn how to generate meaningful reports that will impact your internal procedures

1. Maximize Your
Donor Database for
Fundraising Success

2. Your Presenter
Jay B. Love
• 34 Years of Technology Leadership
• Over 20,000 Database Installations
• Former Founder & CEO of eTapestry
• Former CEO of Master Software/Fund-Master
• Conner Prarie Museum Board Member
• AFP Ethics Committee Chairman
• Center on Philanthropy at IU Board Member
• Innovation Fund at Butler University
• Gleaners Food Bank Board Member
• Co-Chair of Indianapolis YMCA Capital Campaign
3

3. Agenda »
• The importance of donor retention
• Your database: a 3-legged stool
• Data Management 101
• Segmenting 101
• Appeals
• Acknowledgement
• Engagement Tracking/Scoring
• Reporting

4. What is the key purpose of a database?

5. What is the key purpose of a database?
“To enable and insure the proper
funding of your organization’s mission.”

6. What is the key purpose of a database?
“To enable and insure the proper
funding of your organization’s mission.”
(Is there a secret to achieving this purpose?)

8. Do you know your retention rate?

9. In our surveys, less than
15% of fundraisers
knew their current
donor retention rate.
Do you know your retention rate?

10. Calculating Your Retention Rate »
# of Donors in Current 12 Months
(from the previous years pool)
divided by
# of Donors in Previous 12 Months

11. Fundraising Effectiveness Project (FEP)
A project to help nonprofit organizations
measure and compare
Who is Studying Donor Retention?

12. Donor retention over a decade »

13. Donor Attrition Over Five Years
# of Donors Attrition
Rate
Donors
Remaining
After 1 Year
Donors
Remaining
After 2
Years
Donors
Remaining
After 3
Years
Donors
Remaining
After 4
Years
Donors
Remaining
After 5
Years
1,000 20% 800 640 512 410 328
1,000 40% 600 360 216 130 78
1,000 60% 400 160 64 26 10
So what?
https://bloomerang.co/resources/downloadables/donor-retention-math

14. New donor retention is even worse »

15. Who to focus on »

16. 10% of your donors in the previous year
multiplied by your average gift amount
EQUALS
Potential first-year increase!
The hidden “math” of your database »

17. “The total net contribution that a
customer/donor generates during
his/her lifetime in your database”
Defining Lifetime Value »

18. Source: Philanthropy Panel Study - Lilly School of Philanthropy

19. Importance of being a chosen charity »
The number of charities supported annually:
• Income 50K – 2-3
• Income 100K – 3-4
• Income >100K – 4-5
• One is usually there church
• Second is most likely their school

20. Where Does This Leave Your Cause?

21. $1000 +
$500 - $1000
$100 - $500
$25 and under annually
$25 - $100
Value
Value Segments »
Time

22. 6 Key Retention Drivers
(That can double lifetime value)
Drip feed mission performance data
Connect often (1st 90 Days!)
Be personal (SEGMENT via DB)
Develop like a good personal friendship
Find & use numerous human connectors
Always communicate what monies are doing!

23. Engagement Begins With The Thank You!

24. 5 Acknowledgment Principles
(Drastically Improve First Year Donor Retention)
48 Hour Rule
Be Different Than the Rest
Handwritten Rule Written Communications
State Exactly What the Monies will Fund
Call or See in Person as Often as Possible

25. “Proper database usage
is the key to donor retention
and lifetime value!”

26. The 3-Legged Stool »
1. Record keeping
2. Outbound communications
3. Interactions

27. 1. Record Keeping »
• The original reason to replace 3x5 cards in the 1980s!
• Everyone in the organization should use the database
• Everyone in the organization should benefit from data

28. 2. Communications »
• The “secret sauce” of retention success!
• Offline
• Appeals
• Acknowledgements
• Newsletters
• Handwritten notes (magical!)
• Online
• Email
• Website interactions
• All must be integrated!

29. 3. Interactions »
• Types
• Phone calls
• Texts
• Meetings
• Emails
• Chat
• Notes
• The institutional memory of your organization
• Enables the highest levels of engagement
• All must be integrated!

30. Data Management »
Can you have too many names in your database?

31. 0 / 10 / 90 Rule »
• 0% of your funding
• 10% of your funding
• 90% of your funding

32. 0 / 10 / 90 Rule »
• 0% of your funding
• 10% of your funding
• 90% of your funding
What should you do with each segment?

33. 0 / 10 / 90 Rule »
• 0% of your funding
• remove all but:
• previous above-average donors
• previous board members
• previous top volunteers
• alumni
• positive replies to surveys
• 10% of your funding
• handle in an automatic manner, but research
• 90% of your funding
• focus the majority of your efforts here

34. Segmenting »
Seattle’s Lakeside Upper School counts … Bill
Gates among its alumni. Rumor has it a
fundraiser for the high school called Gates,
who asked: “How much is everyone else
giving?” About $75 he was told. “So put me
down for $75,” said Gates.
-- Forbes, Jan 22, 1996, p. 16

35. Appeal segmenting »

36. Appeal principles »
• Design a “style” for each segment
• Consider calling and mailing segments 2, 4 and 6
• Handwritten notes and/or P.S. are powerful
• Test, test, test!
• Personalize as much as possible (database fields)
• More than once a year
• Always aim for monthly donors!

37. Donor communications »
“Successful donor
communications are quite
simple.
At heart, they are love
letters to donors &
prospects, woven through
with clear cries for help.”
- Tom Ahern,
Bloomerang Donor
Communications Head Coach
http://aherncomm.com

41. Engagement factors »

42. 40

43. Reporting »

44. 1. Record keeping
• Hone in on what is truly needed
Reporting »

46. 1. Record keeping
2. Communication-related (plus results!)
• The key to proper testing
Reporting »

49. 1. Record keeping
2. Communication-related (plus results!)
3. Big picture for board (YTD and vs budget)
• Dashboards and graphics
Reporting »

51. 1. Record keeping
2. Communication-related (plus results!)
3. Big picture for board (YTD and vs budget)
4. KPIs
• Metrics that make a difference
Reporting »

52. KPI September Goal September Actual
New Donors 500 831
New Volunteer
Signups
460 652
Web Sessions 17,500 22,253
Email Signups 12,500 16,794
Cost per New
Donor
$1.00 $1.39
Cost per Return
Donor
$0.25 $0.27
Budget YTD $61,745.09 $61,638.94

53. 1. Record keeping
2. Communication-related (plus results!)
3. Big picture for board (YTD and vs budget)
4. KPIs
5. Funnel
• Moves the funding needle the most!
Reporting »

56. Free eBook »
@StevenShattuck
https://bloomerang.co/resources/downloadables/maximize-the-lifetime-value-of-your-donor-database/

57. Free educational resources »
https://bloomerang.co/resources
•Daily blog post
•Weekly webinar
•Downloadables
•Nonprofit Wrap-Up
•Bloomerang TV

58. Questions?
Jay B. Love
jay.love@bloomerang.co
@JayBarclayLove