everything you wanted to know about integrated fundraising for the 21st century but were afraid to...
TRANSCRIPT
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Presented by:
Mike Johnston
Everything you wanted to
know about integrated
fundraising for the 21st
century - but were afraid to
ask!
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A virtual tour
• What is integrated fundraising?
• Why do integrated fundraising?
• What are donors telling us? Generations…
• How do we get more out of our traditional, older donors?
• How do we get more from younger donors?
• We will cover case studies from Chile, France, Canada, US, UK, Spain, Argentina, Australia and Mexico
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Integrated Fundraising
• The use of multiple channels (online,
direct mail, telephone, mobile) to
support one another to raise more
money and build better donor
relationships
• The connection of all channels with
all different ways to give e.g up and
down the donor pyramid
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MULTI-CHANNEL Fundraising
• Why do it?
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MULTI-CHANNEL Fundraising
• What are donors telling us –
two studies in Canada and
the US
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© 2010 Convio, Inc.
Methodology
• Phase 1 – Focus Groups among Gen Y
and X donors, December 2009
• Phase 2 – Online Survey of 1500+ US
Donors, January 2010
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7© 2010 Convio, Inc.
Generational Giving
$0.
$100.
$200.
$300.
$400.
$500.
$600.
$700.
$800.
$900.
$1,000.
$1,100.
$1,200.
30% 40% 50% 60% 70% 80% 90%
% Giving
To
tal a
nn
ua
l g
ivin
g
Boomers:50-64
Gen X: 35-49
Matures: 65+
Gen Y: 18-34
58% Give35.9M donors
$796 yr/avg
4.2 charities
$35.9 B/yr
56% Give28.5M donors
$341 yr/avg
3.6 charities
$9.7B/yr
67% Give52.2M donors
$901 yr/avg
5.2 charities
$47.1 B/yr
79% Give30.8M donors
$1066 yr/avg
6.3 charities
$32.7 B/yr
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© 2010 Convio, Inc.
Mobile Habits
49% Mobile ONLY phone
32% Mobile primary
42% Facebook Mobile app
53% Texters
Defining Values
Time to give back
What’s in it for me?
Online connection
Social Media Habits (% doing regularly)
70% 49% 25% 16%Value
• Size
• Lifetime value
• Lower cost appeals
• Active supporters/promoters
BUT
• Require multichannel appeals
• Tracking difficult
More on Gen Y
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© 2010 Convio, Inc.
Defining Values
Peer-motivated
Support random, emotional
Time vs. money
Online connection
Value
• Size of gifts to top charities
• Lifetime value
• Lower-cost appeals
• More than dollars
• Viral promoters
• Most Educated, Higher Income
BUT
• Harder to secure
Social Media Habits (% doing regularly)
56% 30% 13% 11% 11%
Mobile Habits28% Mobile ONLY phone
37% Mobile is primary
27% Facebook mobile app
40% Texters
More on Gen X
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© 2010 Convio, Inc.
Defining Values
Giving more planned
Efficiency/overhead concerns
2-in-10 retired
Value
• Largest cohort
• Size and dollars
• Income
Tech/Media Profile29% Facebook (reg)
(60% Total)
17% Texters
47% E-newsletters
55% Bank online
33% Shop online
More on Boomers
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© 2010 Convio, Inc.
Defining Values
Pre-meditated giving Loyal
But guarded
Scrutiny
Value
• Largest annual contributions
• Greater # of groups
• Tracking/Direct mail responsive
BUT
• Smallest cohort and shrinking
• Less open to new appeals
Tech/Media Profile17% Facebook (reg)
(50% Total)
5% Texters
48% E-newsletters
57% Bank online
34% Shop online
More on Matures
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12© 2010 Convio, Inc.
GEN Y GEN X BOOMERS MATURES
48% 57% 52% 48%
26% 43% 54% 77%
28% 35% 32% 30%
29% 35% 31% 25%
22% 28% 28% 31%
22% 22% 27% 35%
25% 27% 17% 12%
8% 10% 16% 25%
11% 17% 14% 11%
14% 13% 4% 2%
9% 6% 4% 2%
% donated this way in last 2 years (total)
52%
49%
32%
31%
27%
26%
20%
14%
14%
8%
5%
Checkout Donation
Check by Mail
Gift Shop
Website
Fundraising Event
Honor/Tribute Gift
Third Party Vendor
Phone
Monthly Debit
Mobile/Text
Social Networking Site
Giving Channels
Emerging
Channel
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13© 2010 Convio, Inc.
52%
41%
28%
22%
15%
8%
Peer toPeer
SocialMedia
Phone
Text
Solicitation Channel Appropriateness (From charities/nonprofits with established relationship)
% say appropriate solicitation channel
(rank ordered by very important –blue) TOTAL GEN Y GEN X BOOMER MATURE
84% 87% 89% 82% 76%
77% 77% 79% 74% 77%
65% 76% 69% 60% 51%
47% 69% 60% 38% 17%
42% 51% 42% 39% 34%
23% 38% 25% 16% 13%
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14© 2010 Convio, Inc.
Heard a lot, 57%
Heard some, 20%
23%
Yes No
Awareness of Haiti Text-to-Donate
77% total
Heard a lot
Gen Y: 60%
Gen X: 64%
Boomers: 52%
Matures: 50%
Seen/heard anything recently about making a donation via
text for earthquake relief in Haiti?
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15© 2010 Convio, Inc.
Gen YMainstream media 27%
Word of mouth 22%
School 18%
Peer to peer event 14%
Gen XMainstream media 24%
Word of mouth 18%
Mail 16%
Peer to peer event 11%
Work/job 11%
Product purchase 11%
BoomersMainstream media 28%
Mail 19%
Word of mouth 16%
Work/job 11%
MaturesMail 35%
Mainstream media 24%
Word of mouth 18%
52% first learned childhood
Average time support: 4 yrs
68% first learned 30’s+
Average time support: 15 yrs
32% first learned childhood
Average time support: 7 yrs
55% first learned 30’s+
24% childhood, 21% y adult
Average time support: 13 yrs
Awareness (top charity)
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16© 2010 Convio, Inc.
Direct donation 42% Attended event 19%
Visited website 27% Promoted to others 15%
Donated goods 23% Volunteered 15%
Direct donation 51% Attended event 18%
Donated good 28% Volunteered 16%
Visited website 19%
Direct donation 61%
Donated goods 25%
Attended an event 13%
Direct donation 71%
Donated goods 26%
Attended an event 13%
Gen Y
Gen X
Boomers
Matures
First Engagement
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17© 2010 Convio, Inc.
68%
28%
23%
13%
12%
12%
8%
7%
6%
Donate directly charity
Donate goods (clothing, food)
Visit their website
Volunteer
Support friend walk/run/etc
Promote them online
Fundraise
Participate in walk/run/event
Advocacy campaigns
Engagement Today
GEN Y GEN X BOOMERS MATURES
50% 66% 76% 81%
26% 30% 30% 23%
34% 23% 20% 13%
14% 17% 11% 7%
16% 13% 11% 6%
19% 14% 9% 5%
13% 8% 7% 4%
13% 9% 5% 3%
8% 9% 5% 2%
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18© 2010 Convio, Inc.
41% 45%55%
66%
12%12%
7%
6%18% 13%
13%
10%16% 18% 17%11%
7% 4% 2% 1%
Gen Y Gen X Boomers Matures
“Making a Difference”Where do you think you can make the most difference with (top charity)?
Money
Volunteer
Donate goods
Spread word
Fundraise
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19© 2010 Convio, Inc.
Donations plans to top charity next year
Future Giving
31%
46%
4%
19%
24%
48%
4%
24%
17%
54%
2%
27%
8%
61%
3%
28%
Increase Same Decrease DK
Gen YGen XBoomersMatures
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20© 2010 Convio, Inc.
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© 2010 Convio, Inc.
Some Canadian
Comparisons• For Canadian
organisations – and
US organisation
that fundraise in
Canada there are
some important
differences and
similarities you
should know.
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© 2010 Convio, Inc.
Channel
Comparison
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5%
8%
14%
14%
20%
26%
27%
31%
49%
52%
2%
3%
14%
17%
18%
31%
39%
33%
23%
59%
Social NetworkingSite
Mobile/Text
Phone
Monthly Debit
Third Party Vendor
Honor/tribute Gift
Fundraising Event
Website
Mailed gift
Checkout Donation
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© 2010 Convio, Inc.
How much do people
give?
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
< $100 $100-$499 > $500
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© 2010 Convio, Inc.
Monthly Giving
Comparison
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0%
5%
10%
15%
20%
25%
30%
Gen Y Gen X Boomers Civics
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Always Check Website Before
Donation
1/30/2015 25
19%
11%
6%
8%
16%14%
12%
7%
25%24%
19%
14%
21%
25% 25%
22%
14%
21%
33%
42%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Gen Y Gen X Boomers Matures
Perfectly Very well Pretty well Not too well Not well at all
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Email Address
Collection
1/30/2015 26
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Promote Causes Through
Email & Social Networks?
1/30/2015 27
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© 2010 Convio, Inc.
How do donors first engage?
• Across all generations, in the US and
Canada – mainstream media is the first
channel through which the donor becomes
engaged
• Word of mouth is the next most important
channel
• Consistent across US and Canada
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© 2010 Convio, Inc.
Fundraising is profoundly
multichannel and multi-
level
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© 2010 Convio, Inc.
Traditional donor
databases are dinosaurs
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But what kind of dinosaur
depends on your channel
combinations…
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© 2010 Convio, Inc.
Remove the
silos within your
organization
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One organization’s goal to
better integrate online and
offline fundraising:
A new staff person is being
put into the fundraising
department who will
coordinate ALL web related
activities
They will report to the
Director of Advancement –
Fundraising
But this can only happen
with the buy-in of the CEO
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Success Factors for Transforming an
online and integrated fundraising
operation
• Strategic and Tactical development
– Integrated multi-channel approach
• Alignment of structure, culture and
skills with strategy
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© 2010 Convio, Inc.
Direct mail and
telemarketing
need to evolve
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Web Triggers Direct Mail Response
When you received a mail solicitation from a charity,
which of the following places on the Internet do you
look at before deciding whether to give money
All respondents 2005 2008
Look up 25% 44%
Do not look up 61% 47%
Don’t know/none 13% 10%
2005 2008
Org’s web site 19% 37%
Independent rating
organization
11% 24%
Online discussion
group
3% 10%
Blogs 2% 8%
NPT Research: 1,000 calls
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If 37% of direct mail donors...
Press Advertisement
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Cross-channel integration
Magazine Advertisement
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Direct Mail integration
(coordinating messaging)
There were three test cells:
1. Received only mailing
2. Received email before the mailing
3. Received email after the mailing
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Direct Mail integration
(coordinating messaging)
Pre-DM
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Direct Mail integration
(coordinating messaging)
Post-
DM
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Direct Mail integration
(coordinating messaging)
107
172
196
0
20
40
60
80
100
120
140
160
180
200
Received onlymailing
Received emailbefore the mailing
Received emailafter the mailing
DM Integration (with email)
# of petition signers (inhundreds)
# of donations
Response rate (%)
Average Donation (euros)
ROI
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Paper catalogue in support of
an online symbolic giving
campaign…
In 2005, an online only symbolic gift
catalogue was introduced, it raised
approximately $48,000 in its first year.
The second year, a simple catalogue
was sent to direct mail donors in
November of 2006 introducing them to
the symbolic giving catalogue.
It was sent to approximately 10,000
donors and raised an additional
$74,180.00
And a comparison of Nov 05 dm
donors receiving a holiday appeal
without a catalogue the month before
vs. the 06 donors who received the
catalogue showed a $15,000
reduction in income vs. $74,180
increase – for $59,180 net return on
more integrated offline/online
approach
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Giving Year Giving Channel Number of Donors Percentage
2007/2008Mail GTM Specific
3176
Tracking specifically these 3176 Mail 07/08 GTM donors by channel in 08/09
2008/2009 Online GTM specific39
1.23%
Mail GTM Specific 1073 33.78%
combined both channels GTM specific 1112 35.01%
Giving Year Giving Channel Number of Donors Percentage
2007/2008 Online GTM Specific 400
Tracking specifically these 400 online 07/08 GTM donors by channel in 08/09
2008/2009 Online GTM specific 146 36.50%
Mail GTM Specific 16 4.00%
GTM Specific - both mail online and mail 162 40.50%
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New York Public Library:
cross channel acquisition
One segment of advocates we’re mailed before the end of the year to ask
for a gift supporting essential services at the Library.
3.24% direct mail response rate
$59 direct mail average gift
Average response on prospecting packages 0.30%
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Putting direct mail and online together
makes money...
An email was sent along with
some of the direct mail
packages
Average gift
• DM only = $49
• DM and email = $105
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© 2010 Convio, Inc.
Word of
mouth is
critical
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If traditional media is driving a
prospective donor to your web
site…are you ready?
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What happens when the online
prospective donors are called?
• 30% Positive response
• Annual average per donor: $130.00
• 94% monthly donors
• ROI 1:2
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Banners and Pop ups through paid media...
• NGO web sites
• Sports
• Women and family sites
International Development NGO
• 25% Positive response
• Annual average per donor: $135 dollars
• 92% monthly donors
• ROI 1:3
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© 2010 Convio, Inc.
Social networks
are important and
still evolving
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2009 was about learning Social
Media. 2010 and 2011 will be
about figuring out how to use it
well – especially through
integrated marketing.
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And of course…what
about social media!
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Greenpeace Chile
• Outbound calling for warm leads
– 1,510 calls (May-December 2009)
• Inbound calling for warm leads
– 503 people filled the form
• Result –10% conversion
– 193 people converted to paid monthly
donors
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Boomers and Gen X hold
significant value
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Cycle event for health related
charity – raising millions of
dollars per year
Gen X, Gen Y, and Boomers
are the leaders in this
fundraising endeavour.
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And what happens when you use
cross channel to increase the
value of those Gen Xers and
Boomers?
$722.18
$920.09
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Not Called Called
Av
era
ge R
ev
en
ue (
$)
Action Taken
Yoga In MotionImpact of Calling
Participants
Avg. RevenuePer Participant
Up 27.4%
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Mobile’s time
is coming
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One million text leads in 51 days.
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What do you do with 800,000 new contacts?
You knock down some walls to make room for
another channel…
9.65% conversion
to monthly giving:
15,388
170,658 called
on their mobile
phones
50% converted
to monthly
giving7.6 million
dollars LTV
(over 5 years)
Average gift 3.28
dollars/month
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Gaza conflict early 2009: Save the
Children ran 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 the government
All supporters were called on their mobile
phones and prior to the call we had no
information (name, address, etc) about
these prospects.
4.7% converted to monthly giving -
approximately 5,000 new donors
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Content is king
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Proprietary and Confidential
• tracking the impact that sites like Facebook
make to fundraising and campaigning
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As a fundraiser they
received…
• Field Blogs
– Personal reflections
and anecdotes from
actual MSF field staff
who lived and worked
through a crisis –
specific to a role the
supporter chose
– Posted continuously
throughout the
campaign
– Comments welcome
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hjcProprietary & Confidential 68
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It seems to work!
• It raised 20% over
it’s goal
• It even received
an online $50,000
donation!
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Use the whole
donor pyramid
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Online will be increasingly
important for major gifts and
legacy giving
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Country Legacies
revealed
Legacy leads
Canada 15 103
Canada 22 232
United States 52 164
Mexico 9 1,043
Four Legacy Online Surveys
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In the end, is it all
worth it?
Offline w/ No Email
Offline w/ Email
Online Only Online/Offline
Value/Donor $43 $54 $57 $156
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
Value/Donor
Multi-channel donors are nearly 3x more valuable
than single channel donors. Source: Defenders of Wildlife Jul08-Jun09
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Creating an integrated
schedule might be the
place to start...
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What have I learned about making
integrated fundraising and
campaigning work?
1. Get buy-in at the senior level
2. Have departments work together
(maybe for the first time)
3. Create an integrated team
4. Create an integrated goal (with
different metrics of success for each
department)
5. Create an integrated plan
6. Matrix reporting structure MAY
make sense with individuals
temporarily reporting cross-
department
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Questions?