FUNDRAISING 2.0: MAXIMIZING THE EFFECTIVENESS OF YOUR COMMUNICATIONS

UNDERSTANDING TODAY’S DONORBASEHINT: IT’S NOT THE SAME AS IT USED TO BE (EVEN 5 YEARS AGO)

WHAT THEY WANT, WHEN THEY WANT IT

“[The modern, digitally-empowered consumer] is living life on [their] own terms and engaging with brands when and how it’s most convenient to [them].”

Marketo, “The Definitive Guide to Engaging Email Marketing”, 2013; IDC Workbook, “Graduating from Email to Engagement”, June 2013

With each advance in digital communication...the customer becomes more powerful. Tactics that captivated buyers yesterday lack luster today.

ALWAYS ON THE GO

9 out of 10 American adults have a cell phone

58% own a smartphone!

42% of adults own a tablet

67% find themselves checking their phone even when it doesn’t ring!

29% of cell phone owner cannot imagine living without their phone!

Pew Research Internet Project, “Mobile Technology Fact Sheet”, January 2014

“INFORMATION ABUNDANCE MEANS ATTENTION SCARCITY”

+ According to a 2013 Havas Media Study, People would not care if 73% of brands disappeared!

+ On any given day, the average customer will be exposed to 2904 media messages, will pay attention to 52 and will postively remember only four”

Marketo, “The Definitive Guide to Engaging Email Marketing”, 2013

AND IF THAT’S NOT ENOUGH! THERE ARE MASS DIFFERENCES BY GENERATION!

- Born 1981-1995 (age 18-32 as of 2013)

- Represents 11% of total giving

- 32.8 million donors in the US

- 60% give

- Born 1965-1980 (age 33-48 as of 2013)

- Represents 20% of total giving

- 39.5 million donors in the US

- 59% give

- Born 1946-1964 (age 49-67 as of 2013)

- Represents 43% of total giving

- 51.0 million donors in the US

- 72% give

- Born 1945 and earlier (age 68+ as of 2013)

- Represents 26% of total giving

- 27.1 million donors in the US

- 88% give

Generational groups, total U.S. population, and giving data (on average)

Blackbaud, Next Generation of American Giving, August 2013

Generation Y

Generation X Matures

Boomers

UNDERSTANDING TODAY’S FUNDRAISING LANDSCAPE

IT IS A CHALLENGE

SO MANY COMMUNICATION CHANNELS TODAY

Web - General Website, Campaign micropages, PURLS, Online Advertising, PPC Advertising

Social Media - Twitter, Facebook, Instagram, YouTube, Google+, Vine

Print/ Direct Mail

Email

Mobile - SMS, Mobile Apps

Phonathons

Face to Face

“Multichannel is the new normal. While all generations are multichannel in their communications habits, the ideal mix varies from generation to generation” [Blackbaud, Next Generation of American Giving, Aug 2013]

“Customers don’t consider the Web, social media, and email from the same company to be separate entities, and get confused and overwhelmed by a stream of what often appears to be contradictory messaging.” [Marketo, “The Definitive Guide to Engaging Email Marketing”, 2013]

RECENT RESEARCH

2XPlan on Increasing Giving

Blackbaud, Next Generation of American Giving, August 2013

GIV

ING

RECENT RESEARCH - NYC SURVEY

anticipated raising more m

oney in 2014 than in 2013

thought their annual fund would increase

57%

but only 42%

Crain’s/ AFP New York Metropolitan Nonprofit Survey, Spring 2014

ONLINE20

10

2013

Increase in Online Donations over

last 3 years

% of Donors Engage Online with a Non-Profit Organization

+30%

84% of Donation Pages are Not

Mobile Friendly

Blackbaud, Next Generation of American Giving, August 2013; The Chronicles of Philanthropy, “Most Charities Fail at Online Fundraising Basics”, Raymund Flandez, February 4, 2014

DIRECT MAIL

On average, direct mail accounts for 79% of donations

Blackbaud, Internet and Multichannel Giving Benchmarking Report, July 2011; Epsilon, Channel Preference for Both the Mobile and Non-Mobile Consumer Report, December 2012

Email DirectMail

Direct Mail is preferred 2 to 1 over email for non-profit communications

SOCIAL MEDIA

6%

Donate Through Social Media

36%

Survey Respondents are encouraged by social

media fundraising trends

57%

Survey Respondents see social media success

in brandraising but not fundraising

Blackbaud, Next Generation of American Giving, August 2013; Crain’s/ AFP New York Metropolitan Nonprofit Survey, Spring 2014

=Open Rates

Click Through Rates

Blackbaud, Next Generation of American Giving, August 2013; Pew Internet and American Life Project’s Generations 2010 report; Marketing Sherpa, “Email Summit”, 2013

EMAIL

of online American cite email as one

of their regular activities

92%

of adult Americans check their email first

thing in am

58%

TRANSACTION VS ENGAGEMENT

TRANSACTION

ENGAGEMENT

“Engagement channels may or may not be transaction channels, and vice versa, but both matter”[Blackbaud, Next Generation of American Giving, Aug 2013]

“Every interaction is a link within the context of a communication supply-chain. Don’t look at each discrete message, or even each campaign,

as a unique event with a direct link to the end result. MARKETING IS NOT A CANDY MACHINE.

Instead, view each as a link in a chain of events each of which leads to other actions”

IDC Technology Marketing Blog, “Data, Marketing, and Supply-chains: Insight from the IBM Smarter Commerce Conference”, Kathleen Schaub, July 15, 2013

RETENTION RATES

+10% = 2X lifetime value

40%AVERAGE

Charityinfo.ca, “Create a Warm Welcome”, Leah Eustace, April 29, 2013

PRESSURE FOR IMMEDIATE RESULTS

The Non-Profit Times, “Development Director Jobs Open for 2 Years”, March 2013; “Why Do Development Professionals Jump Ship”, Bill J. Harrison, http://www.iteachfundraising.com/articles/Jumpship.html

Philanthropy.com, “Half of Fundraisers in the Top Job would like to Quit”, January 2013Crain’s/ AFP New York Metropolitan Nonprofit Survey, Spring 2014

of Executive Directors said their previous development director was fired, citing poor fundraising performance, poor performance overall, and not fitting with organizational culture

25%

40%of development directors were unsure if they would even stay in the field of fundraising

Average tenure of a development professional within an organization2 years or less

of Executive Directors are at least lukewarm about their top development officer33%

of Fundraisers do not believe their Board can work effectively with them as fundraising conditions change42%

Crain’s/ AFP New York Metropolitan Nonprofit Survey, Spring 2014

ACCORDING TO YOUR PEERS

“We are expected to do more with less - raise significantly more money without increasing fundraising capacity in anyway (no hiring additional staff or a

consultant, not paying for the full version of a program but making do with the less effective free version”

“I am seeing exhausted fundraisers with not enough staff to do increased fundraising. There is a lot of pressure on fundraisers to help offset government funding decreases...All fundraisers I know are being asked to do more and more

with less resources, which is burning people out.”

HOW / WHERE DO YOU START?

“Fundraising underperformance is actually a failure to communicate”[“Stewardship Communication: Good Will Through Good Communications”, Patricia Malizia, Feb 2013]

DONOR IS KING!

“Remember that the best campaigns aren’t about you or what you want

subscribers to do. They’re about your subscribers and what they want.”

[Matt Blumberg, Chairman & CEO of Return Path]

Marketo, “The Definitive Guide to Engaging Email Marketing”, 2013

START PROFILING YOUR DONORSYOU HAVE MORE DATA THAN YOU THINK

Previous Gift AmountHow They GaveAddressAgePast Interactions as Volunteer, Board Member, ClientIncome RangeSometimes You Might Know Their Area of Interest

CATALOGUE YOUR DATA INTO GROUPS

Constituent GroupsCurrent/ Lapsed DonorsIncome Level OpportunitiesGenerationalGeography

GROW YOUR DATA

Append with outside lists - Wealth Studies, Education level, Lifestyle interests, charitable interests

Build data organically

Track donor engagement

START PERSONALIZING YOUR COMMUNICATIONS

PERSONALIZE WAYS TO USE PERSONALIZATION

Text Direct Mail/ PrintImages EmailDesign/ Layout WebLength Video In-Person/ Phone

SUCCESSFUL CAMPAIGNS ARE PERSONALIZED

GENERIC DIRECT MAIL

DEEPLY PERSONALIZED CAMPAIGNS

PERSONALIZATION WORKS . . .

2X RESPONSE RATE

. . . BUT MAKE SURE THE MESSAGE IS RELEVANT“...improved response rates do not magically occur when personalization is used...The [most] critical factor is the offer [message], and how relevant it is to the recipient”

Caslon Report, 1-to-1 Response Rate Report: Benchmark Information for Relevant Cross-Media Marketing”, 2012

REMEMBER - DONOR IS KING!

Relevance means knowing who your audience is and what they want from your [communications]. Impersonal and poorly timed messages make your subscribers think, You don’t know who I am. You don’t know what I want. You just don’t get me. If you aren’t relevant, your subscribers will opt-out - or emotionally opt-out.

Marketo, “The Definitive Guide to Engaging Email Marketing”, 2013

MORE RESEARCH ON RELEVANCY

Marketo, “The Definitive Guide to Engaging Email Marketing”, 2013

- Relevant segmented emails produced 30% more opens than undifferntiated messages

- In the UK, the Direct Marketing Association stated that 76% of all revenue attributed to email came from more advanced practices than generic broadcase emails.

part three: alWays relevant

A BETTER WAy TO SEGMENT:BASED ON BEhAvIORSTriggered emails and segmenting campaigns based on behaviors are the top tactics to improve email engagement.

Chart: Relevancy Improvement Tactics = Level of Effectiveness Q. Please indicate the level of effectiveness for each of the relevancy improvement tactics your organization is using.

Source: ©2013 MarketingSherpa Email Marketing Benchmark Survey - http://bit.ly/18I1O80Methodology: Fielded December 2012, N=626

Source: ©2011 MarketingSherpa Email Marketing Benchmark SurveyMethodology: Fielded September 2010, N=246

Very Effective Somewhat Effective Not Effective

Automatically send email based on triggers

Segmented email campaigns based on behavior

Automatically send email based on triggers

Allowed subscribers to specify email preferences

Segmented email campaigns based on sales cycle

Dynamically personalized email content

Segment email campaigns based on behavior

Segment email campaigns based on sales cycle

Allow subscribers to specify email preferences via a robust preference center

Use loyalty / reward programs

Dedicate resources to produce content for each stage of the buying process

Make use of animated GIF images or video in design

Include surveys, trivia or games

Dynamically personalize email content (e.g. first name in subject line, geo-location content)

39%

50%

45%

27%

23%

10% 90%

50%

55%

67% 6%

74% 3%

37%

36%

28%

21%

18%

14%

12%

11%

80% of people who stopped giving do so because they are disenchanted with the organization’s communication [Angel Aloma, “Shift Happens”, Fundraising Day New York Presentation, June 27, 2014]

print

SUCCESSFUL CAMPAIGNS ARE INTEGRATED

Emailevents

web

social media

Average Response Rate

Static direct mailPersonalized & Integrated

RESPONSE RATE COMPARISON

4XEvery level of additional integrated communication channel is shown to increase both response rate and conversion rate

InfoTrends, Understanding Vertical Markets: Enterprise Communications Requirements, Dec 2012Caslon Report, 1-to-1 Response Rate Report: Benchmark Information for Relevant Cross-Media Marketing, 2012

HOW DO YOU CREATE AN INTEGRATED CAMPAIGN?

STEP BACK AND ASK “WHY” (Remember to focus on Donor)

LOOK AHEAD TO DESIRED OUTCOME

WHAT DATA/TOOLS/RESOURCES DO YOU HAVE AVAILABLE?

ARE THERE INTERNAL OBSTACLES IN THE WAY THAT NEED TO BE ADDRESSED?

MAP OUT A PLAN

A FEW POINTERS:

- DON’T ALWAYS DO THE SAME THING THE SAME WAY

- USE DONOR ENGAGEMENT DATA

- DON’T BE AFRAID TO TRY SOMETHING NEW

- ALWAYS BE TELLING YOUR STORY

- PRESS GO, ANALYZE, TWEAK

“BEST PRACTICES ARE THOSE THAT ARE BEST FOR YOUR AUDIENCE. YOU MUST TEST TO SEE WHAT RESONATES MOST WITH YOUR SUBSCRIBERS”

Marketo, “The Definitive Guide to Engaging Email Marketing”, 2013

KEEP THE COMMUNICATION GOING

“Short-term decisions have long-term consequences. Donors cite the unending ask and lack of any kind of follow-up communications as major reasons why they stop supporting a cause.” [Blackbaud, Next Generation of American Giving, Aug 2013]

CASE STUDIES

FAMILY CONNECTIONS

MANHATTAN COUNTRY SCHOOL

RAMAZ

Strategy Direct Mail

Administrative Office7 Glenwood Ave., Suite 101East Orange, NJ 07017(973) 675-3817Fax (973) 266-1041

Main Office395 South Center StreetOrange, NJ 07050(973) 675-3817Fax (973) 673-5782

Board of Trustees

Ellen M. DavenportPresident

Bernadette Ucko, MA, LDT-CFirst Vice President

Alan P. LevineSecond Vice President

Jeff R. Harrison, CPATreasurer

Bernice ManshelSecretary

Roger L. ManshelFacilities Chair

Jethro Antoine, Esq.Beth A. Berns, LCSWVictor CiriloLisa-Renee DumasJohn R. FeldmanKathleen Fuentes, Esq.Joseph Glatt, Esq.Jennifer Griffith, MAKelly Heller, LSW, C-SSWFaith S. LefkortJody LipskyReginald Long, Esq.Diana Kyser McNeffHeidi W. MurphyClyde Otis IIIConnie Salimbeno, MA, LDTCKimberly R. Santos, M.Ed.Andrew M. ShainbergBeth Sonnenberg, LCSWJami Jacobson Thall

Paula Sabreen, LCSWExecutive Director

President’s Circle

Priscilla Barrett, LPN, LRCP Francesco BorgheseJennifer ChalstyGail KelloggRobert Corin MorrisBarbara MurrayChad Peters Shelden Ogilvy Pisani, Ph.D.Mark W. Sussman, MAI, CRELloyd Ucko

Engendering Hope, Enhancing Safety, Healing Trauma, and Strengthening Families and Communitieswww.familyconnectionsnj.org

It’s no secret that, right here in our towns, children and families face all kinds of stress and danger – from bullying and underage drinking to child abuse, mental illness, addiction and domestic violence. These may seem like insurmountable problems, but FAMILYConnections has a proven track record of overcoming them.

FAMILYConnections is helping people each and every day. Our prevention services and school-based programs give kids the skills to confront bullying and say no to alcohol and drugs. Our Reunity Houses safely reunite families broken by abuse. Our counseling services help youth and adults overcome mental illness and addiction and our DREAMS program gives domestic violence survivors the strength to nurture their children and build new lives.

What we do really works. Just look at the outcome data in our last Annual Report, which you will find on our website: www.familyconnectionsnj.org. You’ll see that, while other organizations try, we succeed!

HELP US CONTINUE THESE GREAT RESULTS. Your contribution will reduce children’s emotional problems and improve grades at local schools and keep teens away from high-risk behaviors. You’ll help people heal from trauma and abuse and train parents how to build stable homes. Every dollar you give will make our communities stronger and safer!

We invite you to visit the website to see a short video – further proof that what FAMILYConnections does really works!

Please give today. With your help, children, adults and families will heal, grow and thrive. Thank you.

Wishing you and your family all the best this holiday season.

Sincerely

Paula Sabreen, LCSW Ellen M. DavenportExecutive Director President, Board of Trustees

FPlease give today. With your help, children, adults and families will heal, grow and thrive. Thank you.

Wishing you and your family all the best this holiday season.

Sincerely

Paula Sabreen, LCSW Ellen M. DavenportExecutive Director President

00463_BoardLH.indd 1 11/18/13 1:26 PM

Dear John,

What We Do Really Works!

Every Dollar You Give Will Make Our Communities Stronger and Safer!

Yes, I want to help children, adults and families heal, grow, and thrive! Enclosed is my tax

deductible gift of:

Please send your CHECK to FAMILYConnections with this form. See reverse side to donate by CREDIT CARD. You can also

donate ONLINE by going to www. familyconnectionsnj.org. THANK YOU!Engendering Hope, Enhancing Safety,

Healing Trauma, and Strengthening

Families and Communities

Connections

Response Card (2).indd 1

11/14/13 12:26 PM

$

$

$ Other $_____________

John Doe123 Any Street

Anytown, ST, 12345

+ Looking for easy “next step” ways to increase donations on their end of year appeal.

+ Client had always separated mailings by Board member contacts vs a general house list. Majority of donations came from Board member contacts. Needed to increase overall donations and begin to attract more donors from the general house list.

+ Action suggested a simple tag line on the outside of the envelope, move from a kost kut envelope to a personalized reply envelope with variable asks based off previous gift amount. The lists were still kept separate from the Board contacts (who wrote personal messages to their contacts) and the general list.

7 Glenwood Ave., Suite 101

East Orange, NJ 07017

9608_no10.pdf 1 10/24/12 12:33 PM

What We Do Really Works!00355 No 10 w tagline.indd 4

10/31/13 12:35 PM

RESULTS

15%

Increase in # of gifts compared to 2012

18%

Increase in total $$ raised compared to

2012

59%

Increase in new donors compared to 2012

196%

Increase in dollars raised by SYBUNTS compared to 2012

Strategy Direct Mail Email Web

2013-2014ANNUAL FUND

MANHATTAN COUNTRY SCHOOL 7 East 96th Street, New York, NY 10128 212.348.0952 www.manhattancountryschool.org

First Name,

Manhattan Country School is a nonprofit organization that would not exist today without the generous support of people just like you - parents, alumni, friends, corporations, and private foundations.

Our model of independent, progressive education in the pursuit of greater equality is rare, but as supporters like you can attest, lasting and profound. Your support of the MCS Annual Fund sustains our mission and our unshakable commitment to an equitable tuition program that fosters significant cultural and economic diversity. With your help, we can continue to develop the hearts and minds of children who will grow up to become leaders who change the world.

– Michèle Solá, Director

The Immediate Need Areas of Support Make Your Gift Now Contact UsGIVENOW

Your donation supports MCS in these key areas:

Racial & Economic Diversity

Public Mission/Teacher Training

Social Justice & Activism

Sustainability

Enhancing Our Role in Progressive Education Leadership

Version: Annual Donors

YES, I want continue to support the difference Manhattan Country School is making in the

lives of our future leaders.

Here is my gift of:

Gift 1

Gift 3

Gift 2

Other $

To make your donation online, or to find out more about the Manhattan Country School

Annual Fund please visit www.supportmcs.org/johnqsample

A gift in any amount can make a difference!

Please complete information on reverse side and return to Manhattan Country School in enclosed envelope.

2013-2014ANNUAL FUND

MANHATTAN COUNTRY SCHOOL 7 East 96th Street, New York, NY 10128 212.348.0952

Dear John,

“We are in a perpetual state of learning” is how a recent Manhattan Country School graduate described her experience at the MCS Farm. I agree wholeheartedly.

Gifts to the MCS Annual Fund are critical in helping us to meet our budget and are applied directly to annual operating expenses this fiscal year, including staff salaries and benefits, at MCS and the MCS Farm.

Please support the 2013-2014 MCS Annual Fund and help us...

• Sustain our sliding-scale tuition program and the rich diversity of our community

• Support teacher salaries, benefits, and professional development

• Enrich our sustainability and social justice programs on East 96th Street and at the MCS Farm

Your donation to the MCS Annual Fund provides students and teachers at Manhattan Country School with the resources and opportunities to remain in a perpetual state of learning.

Thank you for your continued annual support! Your past Annual Fund gift of [previous cumulative annual fund gift] is deeply appreciated and already making a difference.

Sincerely,

Michèle Solá

Engaged with Action Graphics because they needed more out of their annual fund communications. Their desired outcomes were to:

-Improve understanding among donors about the Annual Fund

-Increase engagement with their communications among constituents

-Increase gift size and # of donors

RESULTS

of previous year’s donors increased

their gift size

of Major Donors increased their gift over previous year

35%

of donors did not donate the previous

year!

+31

5%

Inc

reas

e

of Online Donations vs prior year

31% 37%

212-774-8055 www.ramaz.org/dinner

for more INFORMATION

o Visionary $250,000 Diamond (full-page ad)o Innovator $150,000 Pearl (full-page ad)o Builder $100,000 Emerald (full-page ad)o Founder $50,000 Platinum (full-page ad)o Pillar $36,000 Ruby (full-page ad)o Grantor $25,000 Sapphire (full-page ad)o Pacesetter $18,000 Topaz (full-page ad)o Benefactor $10,000 Gold (full-page ad)o Patron $7,500 Silver (full-page ad)o Sponsor $5,000 Bronze (full-page ad)o Guardian $3,600 Skyblue (full-page ad)o Donor $2,500 F ull-Page Ado Friend $1,500 Half-Page Ado Participant $850 Quarter-Page Ado Contributor $425 Eighth-Page Ado Well Wisher $180 Two Line Greeting

o Other

MAKE A RESERVATION

Please make reservation(s)

Name(s) of dinner attendee(s):

Reservations can also be made atWWW.RAMAZ.ORG/DINNER

A GIFT OF $850 OR MORE ENTITLES YOU TO2 TICKETS TO THE RAMAZ ANNUAL DINNER

204661

212-774-8055 www.ramaz.org/dinner

for more INFORMATION

Name(s) of dinner attendee(s):___________________________________

____________________________________Reservations can also be made at

WWW.RAMAZ.ORG/DINNER

A GIft Of $850 OR MORE ENtItlEs yOu tO 2 tIckEtstO thE RAMAZ ANNuAl DINNERPlease make __________ reservation(s)

212-774-8055www.ramaz.org/dinner

for moreINFORMATION

MAke A ReseRvATION

Other _____________

MAke A ReseRvATION

Please make reservation(s)

Name(s) of dinner attendee(s):

Reservations can also be made atWWW.RAMAZ.ORG/DINNER

A GIFT OF $720 OR MORE ENTITLES YOU TO2 TICKETS TO THE RAMAZ ANNUAL DINNER

Well WisherAlumni ContributorAlumni ParticipantFriend

$180$360$720

$1,500

Two Line GreetingEigth-Page Ad + 1 ticketQuarter-Page Ad + 2 ticketHalf-Page Ad

405225

+ Wanted to provide a more personalized approach to their Annual Dinner - the largest contributor to their Annual Fund

+ Client asked for 3 requests from constituents - 1) donation, 2) ticket reservation, 3) journal ad; Each year their staff had to continually remind people about reserving tickets or placing a journal ad after they had given.

Strategy Direct Mail Email

RESULTS

$1 = $22SPENT

RAISED

Strategy Direct Mail Email Web

After a few years of focusing on reconnecting with alumni, the Ramaz school wanted to start appealing to their alumni better using some of the successful tools used for their Annual Dinner. The goals of the campaign were to:

- Increase alumni participation

- Begin to better understand the messages that resonated with alumni

You are Ramaz Alumni

RESULTS

72%

Increase in alumni participation

98%

Increase in young alumni donation $$

$1 = $1.95SPENT

RAISED

START FUNDRAISING SMARTER

It’s okay to ask for help - “Advancement officers are adopting more and different technologies in support of their strategic goals. But integrating these disparate technologies in a way that improves effectiveness is a challenge. We recommend that advancement officers talk with their technology partners/ providers and encourage them to explore integration outside of their traditional partnerships”

Use of Technology For Development & Alumni Constituent Relations Among Case Members, July 2012

CONTACT INFOAction Graphics

www.actiongraphicsnj.comwww.engaged-360.com

800.365.6687

Jesse Park jpark@actiongraphicsnj.com

linkedin.com/in/jessepark

Engaged360