swap or die (2005)
DESCRIPTION
Despite being three years old, this presenation is still useful addressing some of the concerns abour charities swapping their data. It is aimed at Australia fundraisers, but useful beyond Australia. Some of the privacy statements quotes may have been changed by the relevant charities over the past three years.TRANSCRIPT
1(c) Pareto Fundraising February 2005
Swap or Die…
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2(c) Pareto Fundraising February 2005
Swap or die -overview
1. Introduction
2. What is swapping?
3. Benefits of reciprocal mailings
4. Problems and barriers
5. How it works
6. Your next steps
7. Questions and Answers
8. A useful spreadsheet & questions
3(c) Pareto Fundraising February 2005
1. Introduction
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4(c) Pareto Fundraising February 2005
Charity Donors
Talking about charity to charity reciprocal mailings
Australia small market – Population 20 million – 3 million give by mail or
monthly donation NSW – 1.2 million
But is worth a lot
5(c) Pareto Fundraising February 2005
Why do people give?
Personal 1%
Response 1%
Asked 98%
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strings
7(c) Pareto Fundraising February 2005
Why do people give?
Even when they are asked, most people still don’t give
Targeting people more likely to give, and asking them is obviously better
8(c) Pareto Fundraising February 2005
What we know about donors
Older people more likely to respond to mail
Donors are promiscuous…but generous
Reciprocals identify people who already give via mail who are not on your database
9(c) Pareto Fundraising February 2005
Clues we use to find new donors
Age, demographics, read similar magazines…
Say they will give to your cause (eg on a Geo Spend survey)
But best are charity givers already… How do we find these people?
10(c) Pareto Fundraising February 2005
Key donor identifiers
Affinity to cause
Similar profile
Similar profile & affinity tocause
Donated (differentmethod)
Gave to other charity(same method)
Gave to you > 13 monthsago
Gave to you <13 monthsago
Proportional chance of someone donating to a
mail appeal
11(c) Pareto Fundraising February 2005
12(c) Pareto Fundraising February 2005
2. What is swapping?
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13(c) Pareto Fundraising February 2005
What is swapping?
Reciprocal mailings…
Two charities mutually agree to mail each others’ like with like data Selected by recency, frequency, value and type
Agree timeframes for the reciprocal
14(c) Pareto Fundraising February 2005
What is swapping?
Donor Data
CharityA
Data
CharityB
Data
Promiscuity report
Opportunity Report
Mail appeals
Respondentdata
captured
Respondentdata
captured
15(c) Pareto Fundraising February 2005
3. The Benefits
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16(c) Pareto Fundraising February 2005
The benefits…
1 yr net income
-$35,000
-$30,000
-$25,000
-$20,000
-$15,000
-$10,000
-$5,000
$0
$5,000
$10,000
$15,000
Co
ld li
sts
& s
urv
ey
resp
on
de
rs
Cu
rre
nt
do
no
rre
cip
roca
ls
Re
cen
t la
pse
dre
cip
roca
ls
La
pse
d r
eci
pro
cals
Based on a charity with 10k donors, 10.6k lapsed donors, swapping 70% of its donors and mailing 54,000 cold.
A total of 1,000 new donors are recruited (50% from cold, 50% from reciprocals). Donors then receive an average of 3 appeals per year.
This graph shows net income after the recruitment activities and then the net income from the three appeals.
17(c) Pareto Fundraising February 2005
The benefits…
Previous chart says it all AND…
Return On Investment can be 4 to 20 times that of cold mail
You can make a profit on reciprocal mailings
Can be cheaper because no rental fee
18(c) Pareto Fundraising February 2005
The benefits – an example
Cold mailings 0.9% from 50k @ £15
1.5% from top 5k @ £15
Reciprocals achieving 3.3% from 30k @ £15
8.0% from top 5k @ £15
19(c) Pareto Fundraising February 2005
The benefits…
Long-term effect on database is positive – increases number of donors
Donors recruited by swaps are good swap prospects AND have excellent Life Time Values
Australian market quite ‘virgin’ – better results for those in there first
20(c) Pareto Fundraising February 2005
The benefits….
Small charities can get involved
Cold is declining but this can supplement
Other good list sources very small
10+ years of UK data proves it works
21(c) Pareto Fundraising February 2005
The benefits…
Reciprocal mailings identify donors who are already charity mail responsive
Reciprocals with corporates can cut costs but do not have the key advantage mentioned above
22(c) Pareto Fundraising February 2005
4. Problems and barriers
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23(c) Pareto Fundraising February 2005
Why wouldn’t you swap?
Tell me!!!
24(c) Pareto Fundraising February 2005
Why wouldn’t you swap?
Detrimental effect on database?
Not legal?
Current database is too small?
Wrong ‘type’ of donors?
My donors are not ‘natural’ fits…
25(c) Pareto Fundraising February 2005
Why Wouldn’t you swap?
Just don’t like it…
26(c) Pareto Fundraising February 2005
Why Wouldn’t you swap?
Just don’t like it…
With all the evidence showing it raises more money, more quickly in the short term – AND increases the number of donors, bequest prospects and regular givers in your pool for the long term…
27(c) Pareto Fundraising February 2005
Effect on your database
Your donors are already getting 10-50 cold mailings
These cold mails were less targeted – by swapping we REDUCE the amount of mailings
Overall income from new donors > Potential income lost
28(c) Pareto Fundraising February 2005
Effect on your database
UK data shows no long term negative impact from swapping 2 or 3 times per annum
No evidence to show any significant increase in attrition
Careful with swapping board members, major donors, internal stakeholders
29(c) Pareto Fundraising February 2005
Legalities
This is not legal advice - always check with your lawyer
Our interpretations have been checked with ADMA lawyers but each situation is unique
Privacy laws are relatively new and there are few test cases You don’t want to be the first charity
test case
30(c) Pareto Fundraising February 2005
Legalities
Can charities swap data? easier if primary purpose of original acquisition
was fundraising and swap is with ‘like-minded’ organisation
Many Australian charities are not able to swap NOW Because they have told their donors that they
won’t
Privacy Statements & policies should be used wisely
31(c) Pareto Fundraising February 2005
Legalities
If you have stated you will not make your list available to third parties Stop stating it
You should mail an opt-in to those recruited with that promise
Only a tiny proportion will respond to this
Check with your lawyer to see if there is a way you can swap your data
32(c) Pareto Fundraising February 2005
Legalities
If you said would not ‘sell’ the list Good – you are not
selling the list Be more explicit in future
33(c) Pareto Fundraising February 2005
Privacy policy statements
Often on web and referred to in printed materials. But hardly anyone looks.
Fundraising teams often not consulted
34(c) Pareto Fundraising February 2005
Privacy statements
RACV (NOT THE FOUNDATION) (On Web)
“From time to time, RACV may use your information to tell you about other products and services, discounts, , special offers, competitions and invitations to special events. However, we clearly recognize the importance of providing you with the choices by giving you an easy means to “Opt Out” from receiving these offers. Let us know if you do not want to receive these offers by contacting us on 131955 at anytime or by visiting an RACV Shop during business hours.
35(c) Pareto Fundraising February 2005
Privacy statementsEye Research Australia Foundation (On Web)
“…The University will only use or disclose information: for the purpose for which it was collected (the primary purpose); for a secondary purpose that: is related to the primary purpose and, if the personal information is sensitive information, or health information directly related to the primary purpose; and the individual would reasonably expect; where there is consent of the individual concerned to the use or disclosure; or as otherwise allowed under the Acts, or required or authorised by or under law.
When a University department collects information, the purposes for which the information is collected will usually be made clear on any forms that are to be completed, or will be apparent from the circumstances. When required, we will seek your consent to use your information in a particular way. If you require more specific information about the way in which your information is used or disclosed, please contact the relevant University department or the University’s Privacy Officer..”
36(c) Pareto Fundraising February 2005
Privacy statementsEye Research Australia Foundation (On Web)
“…The University will only use or disclose information: for the purpose for which it was collected (the primary purpose); for a secondary purpose that: is related to the primary purpose and, if the personal information is sensitive information, or health information directly related to the primary purpose; and the individual would reasonably expect; where there is consent of the individual concerned to the use or disclosure; or as otherwise allowed under the Acts, or required or authorised by or under law.
When a University department collects information, the purposes for which the information is collected will usually be made clear on any forms that are to be completed, or will be apparent from the circumstances. When required, we will seek your consent to use your information in a particular way. If you require more specific information about the way in which your information is used or disclosed, please contact the relevant University department or the University’s Privacy Officer..”
37(c) Pareto Fundraising February 2005
Privacy statements
Jewish Care (on web)
“All information collected will be used only for the primary purpose intended and where the intention includes confidentiality, information will be retained as such unless otherwise required by law.”
38(c) Pareto Fundraising February 2005
Privacy statements
Jewish Care (on web)
“All information collected will be used only for the primary purpose intended and where the intention includes confidentiality, information will be retained as such unless otherwise required by law.”
39(c) Pareto Fundraising February 2005
Privacy statements – no info
Child and Family Care Network INC
Australian Ballet
Peter McCallum
Australian Breastfeeding Association
40(c) Pareto Fundraising February 2005
Privacy statements
The Alfred Foundation (on web)
“Bayside Health supports and complies with the Department of Human Services' Information Privacy Principles. Bayside Health supports and complies with the Department of Human Services' Information Privacy Principles. .”
41(c) Pareto Fundraising February 2005
Privacy statements
The Alfred Foundation (on web)
“Bayside Health supports and complies with the Department of Human Services' Information Privacy Principles. Bayside Health supports and complies with the Department of Human Services' Information Privacy Principles. .”
42(c) Pareto Fundraising February 2005
Privacy Statements
MS Society
43(c) Pareto Fundraising February 2005
Getting ready to swap
If you are saying you won’t swap your data –
Stop saying it.
It does not help recruitment It does not commit you to making the list available Many fundraisers are unsure of their own privacy
policies, but get the opt-outs on forms correct
44(c) Pareto Fundraising February 2005
Privacy policy / statement
Review all your statements
Take out potentially harmful statements – think about the implications of the policy
You do not need to guarantee data will not be swapped to be within the National Privacy Principles
45(c) Pareto Fundraising February 2005
Developing a statement
Respect the donor
You don’t want them to opt out
Explain what you do, and why. They care about you and most will be happy.
3-30% will opt out – but a good statement will lower that number
46(c) Pareto Fundraising February 2005
Recommended statement
“Occasionally we may organise mailings from third parties to our mailing list with information that we
believe may be of interest to you. These organisations usually allow us to do the same,
and by collaborating like this we can reach more people with vital information. We do not give
these organisations your details and we do not sell our mailing list.
If you would prefer not to receive such third party mailings, please tick here and we will change
your record to reflect this.”
47(c) Pareto Fundraising February 2005
Getting ready to swap
On current mailings: All donors who have not received such a
statement previously must receive an opt-out on future communications
Once they respond to the communication you can swap their data
Unless they have opted out
48(c) Pareto Fundraising February 2005
Reciprocal database field
No reciprocal - have opted out Reciprocal OK - have responded to a mailing
but not ticked opt-out Reciprocal opt-in - have opted out
(probably won’t be enough to worry about)
Never been asked Unknown – have been mailed opt out but no
response
49(c) Pareto Fundraising February 2005
Current database is too small
If you have only 3,000 donors…
Struggle to find direct partners
Change your privacy statements to allow swaps of newly recruited donors
As market develops, pools will develop
50(c) Pareto Fundraising February 2005
Pooled data
Pool of donors
Heart Foundation
The Fred HollowsFoundation
WesleyMission
AmnestyInternational
Australia
Heart ResearchInstitute
LeukaemiaFoundation
Children’s Hospital
Westmead
51(c) Pareto Fundraising February 2005
Wrong type of donors
Should swap like with like
Swapping 10,000 warm donors with 10,000 lottery purchasers not right But consider 4,000 warm with 10,000 lottery…
Only swap mail responsive (this is the point)
Don’t swap face to face donors
52(c) Pareto Fundraising February 2005
Natural Fit
Heart
Foundation
The Fred HollowsFoundation
WesleyMission
AmnestyInternational
Australia
Heart ResearchInstitute
LeukaemiaFoundation
Children’s Hospital
Westmead
?
53(c) Pareto Fundraising February 2005
Natural Fit
Same sector do best. Medical and medical, environment and environment
Supporters of certain sectors overlap Eg Aged and Medical. Third World and Human rights
BUT the biggest indicator is people who donate to charity through the post
54(c) Pareto Fundraising February 2005
Natural Fit
Very small number of Australian charities able, or willing to swap
Pool is very small
Swap with whoever you can will be the only option early on
55(c) Pareto Fundraising February 2005
5. How it works
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56(c) Pareto Fundraising February 2005
How it works
Swap partners agree in principle
Third party takes both databases De-dupes Matches like with like (using scoring system) Evaluates ‘mailable’ data Produces report and recommendations
Swap ‘windows’ agreed
57(c) Pareto Fundraising February 2005
How it works
Third party arranges data from both clients to mail-houses This ensures fairness and protects privacy
Swap data is not given to each charity. respondents are added to their database
Respondents should be coded to know which charity they came from
58(c) Pareto Fundraising February 2005
The third party
Most data agencies can handle the logistics
With excellent reputation
Must have understanding of fundraising (eg they would need to know not to swap event participants or face to face donors)
59(c) Pareto Fundraising February 2005
The third party
Ability to match the data
You cannot use your definitions of ‘donor’, ‘lapsed’ etc the swap data needs to be selected from all the data. It should include transactional history and the third party must understand the appeal codes to match fairly
60(c) Pareto Fundraising February 2005
6. Your next steps
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61(c) Pareto Fundraising February 2005
Next steps
Evaluate current privacy procedures Ensure that your org can swap in future, even if
you don’t intend to now
Add the opt-out to all communications Do your sums
Use the spreadsheet to work out how much better your acquisition is going to be
Convince the board or your boss
62(c) Pareto Fundraising February 2005
Next steps
Find out who else wants to swap We have built up a list of interested parties
Agree the principle and approximate mail dates
Get data / opportunity report
Produce appeal
63(c) Pareto Fundraising February 2005
Next steps
Your source codes should link to the name of the charity you swap with
Start with non-regular donors
64(c) Pareto Fundraising February 2005
Getting ready to swap…
On future mailings
Ensure an opt out statement is provided on future acquisition materials
Ensure this statement is on all welcome
communication for donors recruited via telemarketing
65(c) Pareto Fundraising February 2005
7. Questions
66(c) Pareto Fundraising February 2005
8. The spreadsheet discussion
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67(c) Pareto Fundraising February 2005
Future Masterclasses
March 23rd Regular Giving VIC March 31st Charity Challenges NSW
April 18th/19th Pragmatic Bequests NSW/VIC
May 11th /13th How to raise $1,000 by mail
Are you getting your money’s worth from your Fundraising Staff/ Consultant
Mal Warwick
68(c) Pareto Fundraising February 2005
Pareto Fundraising Masterclass
Have we met your objectives?
69(c) Pareto Fundraising February 2005
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