Monthly Giving and The Next Generation of Giving

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Monthly Giving and the Next Generation of Giving Lynne Boardman, Managing Director, Harvey McKinnon Associates, lead us through the data on how different generations of donors engage differently with monthly giving and what you can do to ensure success with your monthly giving program.

Business Technology

MONTHLY GIVING
Copyright Harvey McKinnon Associates 2013

What’s a Monthly Donor?
• Someone who agrees to give every month via small gifts transferred
straight from their bank account or credit card
• Benefits Include:
Who are they?
•
•
•
•
•

Donor longevity (10-12 years)
Predictable revenue
Lower costs
Income growth over time
Convenience

- Single Gift
Donors, converted
by phone or mail
or online
- Recruited straight
to monthly via site
or street
fundraisers or TV,
or mail

Copyright Harvey McKinnon Associates 2013

What’s a Monthly Donor?
The two most important reasons to recruit monthly donors:
1. About 3-4 times the value of a Single Gift Donor
2. Fantastic source of charitable bequests (gifts to a charity in donors’
will)

Copyright Harvey McKinnon Associates 2013

Greenpeace
#

Annual value

Average
Annual
value

Number of single gift
donors

190,000

$3,500,000

$ 18

Number of monthly
donors

52,500

$6,000,000

$ 114

63% of income comes from monthlies
Copyright Harvey McKinnon Associates 2013

HAVE MADE A MONTHLY DONATION IN LAST 2 YEARS

Copyright Harvey McKinnon Associates 2013

CURRENTLY ACTIVE IN A MONTHLY GIVING PROGRAM

Copyright Harvey McKinnon Associates 2013

What can we do?
• Still room to grow:
• 20% of Canadians say they give monthly
• 18% of Americans
• 36% in the UK

• Target Boomers and Civics for higher retention
• Work to do to embed monthly giving deeper in our culture of
philanthropy

Copyright Harvey McKinnon Associates 2013

Copyright Harvey McKinnon Associates 2013

Monthly Donor recruitment channels –
what do donors prefer?

Copyright Harvey McKinnon Associates 2013

What’s okay?
Generally acceptable to all donors:
A friend approaching you about a cause or a charity
A friend’s child or grandchild approaching you
A direct mail appeal from a charity you know personally
An email from a charity you know personally
TV, radio ads
check-out “add a donation” option
Copyright Harvey McKinnon Associates 2013

What’s not okay?
Not popular:
X DM and email from an unfamiliar cause
X Telemarketing and robotic calls
X Text or SMS solicitations unacceptable to most generations, even if
the donor has subscribed to get text updates
X Street and door-to-door disliked across all generations. REALLY
disliked by Boomers and Civics

Copyright Harvey McKinnon Associates 2013

PUBLIC RECOGNITION FOR DONATION

Boomers
0%

Mature
2%

Copyright Harvey McKinnon Associates 2013

What data do we have on donor behaviour?

Copyright Harvey McKinnon Associates 2013

First, a word on retention ….
# Monthly
Donors

Net Cost
per Donor

Total Net
cost

Gross Year
One
Income at
$15/mo

Profit or
Loss at the
end of Year
1

Attrition
Rate over
Year 1

# donors
going into
Year 2

Annual
value of
remaining

Profit or
Loss at end
of Year 2

donors

1,000

$250

$250,000

$180,000

($70,000)

24%

760

$136,800

$66,800

1,000

$250

$250,000

$180,000

($70,000)

50%

500

$90,000

$20,000

1,000

$250

$250,000

$180,000

($70,000)

70%

300

$54,000

$(16,000)

Case study
Direct Mail acquired

TM acquired*

Online acquired

% of donors whose first gift was
Monthly

5.70%

43 %

8.30%

% of donors whose 1st gift was OTG
but converted to Monthly later

9.80%

15.50%

11.70%

Copyright Harvey McKinnon Associates 2013

Conversion channel

35%
63%

Copyright Harvey McKinnon Associates 2013

Conversion channel

Copyright Harvey McKinnon Associates 2013

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