making a real difference to retention norman barrett, hugh mc caw, nick pride

Donor Stewardship

Making a real difference to retention

Norman Barrett, Chief Executive, AICR

Hugh McCaw, Founder, RFundraising

Nick Pride, Managing Director, DMS

Today’s objectives

1. Show that stewardship works

2. Demonstrate that stewardship is cost-effective

3. Outline the key ingredients

4. Describe the single biggest obstacle

Context

Source: Rapidata (2011)

Context

“Thank-you notes play an important role …”

Source: Merchant et al. (2010)

Context

“… even though more frequent donors have

stronger bonds with the charitable

organisation, ignoring their patronage over

a period of time may potentially corrode

the relationship …”

Source: Merchant et al. (2010)

Context

“The quality of service provided … to donors

appears to drive the level of active

commitment”

Source: Sargeant & Woodliffe (2007)

Context

“… the UK practice of referring to regular

donors as ‘committed’ is inappropriate … a

greater proportion of these individuals feel

no real bond to the organisation at all”

Source: Sargeant & Woodliffe (2007)

Context

“On average … lapsers … were taking 2-3

months to finalise their decisions and then

cancel.”

Source: Nathan & Hallam (2009)

Context

“…ensure that [nonprofits] … give ongoing

and specific feedback to donors as to how

their funds have been put to use, in

particular the benefit that has resulted for

the beneficiary group …”

Source: Sargeant (2001)

Context

“ … a link between the extent to which a

donor might be satisfied with the feedback

received and the overall longevity of the

relationship with the organisation …”

Source: Sargeant (2001)

The journey

• Process, not a single step

• Five years so far

The journey

Integration

• Stewardship is built in – Organisation– Donor communications programme

• Who’s driving stewardship– Donor > process– What do I think is appropriate?

Multi-channel

• Prize-led direct mail– Recruitment– Donor programme

• Events• Online• Reactivation• Legacy• Home Money Box

Multi-stage

Engage Convert Care

Action Cash ask CoG conversion TQ / upgrade

Call to introduce charity and ask to take a home

money box

Send letter to ask to empty box

Call to say TQ and ask to become a

committed giver

Call to thank and upgrade (sep calls)

Multi-stage

Placement 1st ask 2nd ask Thank you/upgrade3rd ask

Empty box (cash)

Box/coin card

Yes

No

No

Yes

Responders

Non responders

Conversion to CoG

Empty box (cash)

Empty box (cash)

Thank you

Upgrade

No

Yes

Responders

Conversion to CoG

Engage Convert Care

Retention over 5 yearsRetention Rates for Committed Givers - Based on Donor Year (from date of 1st gift to month 12, 24, 36 etc)

Make 1st Payment

Active 12 Months After 1st Payment





% CG retained over 60 months 96.5% 78.6% 66.7% 57.8% 52.1% 49.7%

49.7%

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

100.0%

Make 1st Payment






Retention Rates for Committed Givers

% CG retained over 60 months

Attrition rates

Source: Rapidata (2011) and AICR (2012)

Attrition rates

Source: AICR (2012)

Cancellations %

August All direct debits HMB recruits

2010 1.6% 1.6%

2011 1.8% 1.4%

2012 1.4% 1.1%

Stewardship: thank you

Stewardship: survey

Stewardship: newsletter

Stewardship: supporter card

Stewardship: social media

Proving it works

• Results– Upgrading with and without a thank you– Effect of thank-you on Gift Aid sign-up– Supporter card– Impact of newsletter– Effect on reactivation

Summary

• What seems to be working

• You can do this

• Retention as (every) part of your organisation

Impact

• In last 3 years, additional £3.38m income, £4.04m including Gift Aid

• Reduce attrition by 0.5%

• = £100,000 for us

• = another grant funded

• What would it mean for you?

Good luck!Any questions?

making a real difference to retention norman barrett, hugh mc caw, nick pride

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