1. 1. Winning the War of Attrition: Keeping & Building Your Donor Base for Annual Giving Success Jason Fisher, CFRE RuffaloCODY
2. 2. Understanding the Landscape 1) Understanding the Landscape and Challenge 2) Planning and Forecasting for Success 3) Stewardship and Marketing Arent Add-ons 4) Investing in Data Resources 5) Channel FundraisingHow Does Your Pie Look? #AligningExperts
3. 3. Understanding the Landscape #AligningExperts
4. 4. The Uphill Battle Alumni Participation (VSE) #AligningExperts
5. 5. Nonprofit Competition The Rise of the Internet Age Philanthropic Priority List Maintaining Relationships Donor Fatigue FACT: Higher education is in tremendous competition with other non-profits for discretionary, charitable spending.
6. 6. The Philanthropic Priority List Competition for the Charitable Dollar Has Never Been Greater Constituents consider many organizations before deciding where to give. Factors include: Best or most worthy charities Loyalty Nostalgia Impact of potential gift Responsibility to give back Recognition Education on subject Previous giving and investment #AligningExperts At the beginning of the internet revolution in 1995, there were 1.1 million U.S. based nonprofits. In 2008, that number was 1.5 million*- a 35% increase. Higher education must state their case emphatically! Stats courtesy of the National Center for Charitable Statistics (NCCS).
7. 7. The Gen Y Impact A Look Inside Why Young Alumni Do Not Give Phonathons Must Address and Prepare for Student Loans / Rising Tuition Objections *Sample Size- 700 students from 36 institutions *Information courtesy The Gen Y Impact - Josh Robertson, Director of Operations at RuffaloCODY.
8. 8. The Gen Y Impact Why Young Alumni Do Give Loyalty, Appreciation, and Self-Interest Stand Out for Reasons to Give. These Should Be Reflected In Phonathon Scripts and Training Materials *Information courtesy The Gen Y Impact - Josh Robertson, Director of Operations at RuffaloCODY.
9. 9. Changes to our Industry Five Certainties in Future Years 1) The smallest details matter now more than ever. A failure in planning and strategy will greatly reduce the chances for success. 2) Institutions that do not identify and gather cell phones and improve overall demographic quality will fall behind and ultimately fail. 3) Communication must be focused on relationship building before, during, and after the solicitation. Start early- before they graduate. 4) Personal, two-way communication will continue to drive successful annual funds, particularly as it relates to leadership and major gift cultivation. 5) Donor education must be a top priority to move your institution higher up on the Philanthropic Priority List. Use social media and other new technologies as a marketing and alumni relations tool.
10. 10. The Major Gift Influence The Focus in Todays Development Offices Increased Funding Needs at Institution Tighter Budgets and Fiscal Restraint Fewer Staff/Resources Increased Annual Goals Institutions must take caution not too focus too heavily on major gifts at the expense of annual giving resources. Eventually, the forest must be replanted before new trees can be harvested. During the economic challenge of the past 5 years, the trend to focus heavily on the upper level donors who can contribute significantly is increasing. Alumni participation is important and should not be overlooked, but cultivating leadership gifts is an undeniable primary outcome of annual giving.
11. 11. The Origin of Leadership Giving Cultivation Cannot Be Skipped Results from an actual institution. This clearly shows that leadership gifts take time to cultivate. A recent University reported it took an average of 26 gifts over 17 years to reach the lifetime giving threshold needed to be classified as a major gift. Annual giving program s are judged annually, while the true benefit takes much longer to materialize.
12. 12. Why Cultivation Matters A Snapshot of One Institutions Top 7 Donors #AligningExperts
13. 13. Planning and Forecasting #AligningExperts Focus on the cone, not the geographic middle of your data. There is always some forecasting error. Learn from mistakes and refine your assumptions over time. But, always have a plan.
14. 14. What Forecasting Isnt #AligningExperts Forecasting is an art form and a science. There is little guesswork involved, particularly for the established program.
15. 15. Details Matter in Forecasting The value in forecasting isnt being 100% accurate, its measuring the variance from your educated decision-making. All forms of solicitation should be mapped outphonathon, direct mail, etc. Leave nothing to chance. #AligningExperts
16. 16. Dig Deeper Analyze Data In a Different Way #AligningExperts This graph shows how long it took for a direct mail gift to be receipted vs. the actual send date. Knowing this level of detail helps you more effectively time your pieces within the solicitation calendar for maximum impact.
17. 17. Statistical Analysis Grad Year Analysis #AligningExperts If youre not analyzing your previous results at a granular level, you cannot properly strategize about where to allocate your resources.
18. 18. Proximity Comparison Participation- Overall Database Example 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 2006 2007 2008 In-State Out of State 479 Area Code This analysis from the University of Arkansas several years ago (Sybunt population) shows a definitive difference in how out-of-state alumni view the UA experience.
19. 19. Visual Data Example Donor Growth Charts #AligningExperts Fiscal Year 2013 TOTAL LIVING ALUMNI: 14,706 Objectives to improve current donor volume and alumni participation: 1) Identify lost alumni and develop a research plan to increase solicitable pool. 2) Concentrate donor education most heavily on recent graduates and current students. 3) Continue stewardship and alumni relations efforts, especially the last 15 class years. 4) Analyze donor retention figures and develop a plan to maximize those efforts. Good news/bad news: 5) Continue current efforts to introduce new technologies into annual giving. Good: A full two-thirds (67%) of living alumni have given in their lifetime. 6) Concentrate on pipeline cultivation efforts to increase leadership gift opportunties. Bad: 33% last gave 6+ years ago, nearly half the total living donors. 7) Review current "dashboard" statistics and benchmark reporting to conform with critical areas. *We need to identify areas of opportunity for long-lapsed reaquisition. 8) Identify areas of reconnection within long lasped population. Key Figure-- 67% (2/3) of total alumni have given in their lifetime. *Recent graduates (1-10 years) make up 20% of total alumni, but 30% of all nondonors. NOTE: This is an estimate based on typical industry figures. Lost= No valid telephone, e-mail, or mailing address *All 3 must be missing to qualify as lost and "not solicitable". **Finding lost alumni is key to increasing volume of donors pre-campaign. XYZ University Donor Cycle Report 50% is a respectable figure for senior class giving. However, to improve alumni participation rate, we will need to increase this figure by introducing philanthropy immediately as students step foot on campus. *15% is not a poor figure if the long lapsed rate wasn't so high. Too many sybunts are dropping to a longer lapse of giving. Reacquisition of one-year lapsed will be an important component in improving donor volume. Nondonors Sybunts Long Lapsed Donors NewGrads Nondonors Lybunts Donor Aquisition Retention% LL Reaqusition % Reacquisition% Sr. Class Nons Lost Records 4,882 ?,??? 2,168 4,898 160 2,758 SeniorClass Donors 154 Sr.ClassDonors 33% 49% 19% 33% 15% 51% 15-20% ? Visually understand the flow of donors in and out of your database. Know precisely what it takes to move your program up a notch or two.
20. 20. Planning and Forecasting Donor Growth Matrix Fiscal Year Total Alumni 18.75% 19.00% 19.50% 20.00% 20.50% 21.00% 21.50% 22.00% 22.50% 23.00% 23.50% 24.0% 24.50% 25.00% FY'13 14,706 2,758 2,794 2,868 2,941 3,015 3,088 3,162 3,235 3,309 3,382 3,456 3,529 3,603 3,677 FY'14 15,001 2,813 2,850 2,925 3,000 3,075 3,150 3,225 3,300 3,375 3,450 3,525 3,600 3,675 3,750 FY'15 15,301 2,869 2,907 2,984 3,060 3,137 3,213 3,290 3,366 3,443 3,519 3,596 3,672 3,749 3,825 FY'16 15,616 2,928 2,967 3,045 3,123 3,201 3,279 3,357 3,436 3,514 3,592 3,670 3,748 3,826 3,904 FY'17 15,931 2,987 3,027 3,107 3,186 3,266 3,346 3,425 3,505 3,584 3,664 3,744 3,823 3,903 3,983 FY'18 16,256 3,048 3,089 3,170 3,251 3,332 3,414 3,495 3,576 3,658 3,739 3,820 3,901 3,983 4,064 FY'19 16,600 3,113 3,154 3,237 3,320 3,403 3,486 3,569 3,652 3,735 3,818 3,901 3,984 4,067 4,150 #AligningExperts Calculate anticipated growth in the solicitable base and factor that into your charts. How much does 1% represent? How many donors over time will it take to achieve that increase?
21. 21. Understanding the Database Know the profile of key segments or constituencies Build plans with the details that are often overlooked Challenge Assumptions #AligningExperts
22. 22. The Purposeful Jigsaw Puzzle Building a Comprehensive Solicitation Calendar #AligningExperts Multichannel Master Calendar- FY'14 XYZ University Project Title Category Medium Audience Quantity Frequency Target Launch/Drop Date Fiscal Year 2014 Kickoff E-Solicitation Solicitation E-mail All Alumni with e-mail addresses 5,000 Once Online Survey- Alumni Online Survey E-mail All non-young alumni donors with e-mail address 10,000 Once Online Survey- Young Alumni Online Survey E-mail All young alumni donors will e-mail address 15,000 Once Bad Phone Letters Solicitation Direct Mail Letter All alumni with coded response of DIS, RN, and WU 17,000 Daily CYE E-Solicitation- Alumni Solicitation E-mail All alumni with prior gift history that have not yet made FY'14 gift 21,000 Once CYE Direct Mail Letter Solicitation Direct Mail Letter All alumni with prior gift history that have not yet made FY'14 gift 30,000 Once CYE E-Solicitation- School of Business Solicitation E-mail All School of Business graduates with valid e-mail address 12,000 Once CYE Direct Mail Letter- Parents Solicitation Direct Mail Letter All parents with valid physical mailing address 7,500 Once Parent New Year E-Solicitation Solicitation E-mail All parents with valid e-mail address 4,000 Once Project Information
23. 23. Stewardship and Marketing Start with Constituent Education Build a Brand Identity Think Like a Small Nonprofit; Execute Like a Successful Business Donors Want Transparency and Tangibility, Not Simply Just a Thank You #AligningExperts
24. 24. Changing Personal Communication More channels, less direct conversation Two-way dialogue has been altered Affects ability to have conversation and negotiate Relationships must be developed first! People are choosing large networks with shorter, more to-the-point conversation, rather than smaller network with longer conversations. Soren Gordhamer, Changing Communication as We Know It: Twitter. Social media such as Twitter has altered how people communicate
25. 25. Top 5 Social Media Websites #AligningExperts
26. 26. Facebook Its Marketing 101 #AligningExperts
27. 27. Twitter Example #AligningExperts
28. 28. LinkedIn #AligningExperts
29. 29. Speak Their Language Using Cell Phones in Alumni Relations and Stewardship #AligningExperts Text Messaging Drive participation at events Reunion activities Class updates Institutional announcements Cost effective and instantaneous Coordinate solicitation calendar using all contact methods Integrate text messaging into a comprehensive annual planned calendar of stewardship and solicitation Use technology to communicate with alumni using their preferred method Recent graduates in particular Start early (when theyre students) for maximum effectiveness Using text messages to solicit alumni for contributions is not a best practice in higher education fundraising. However, it has been used successfully in alumni relations and donor education. Start by using it as a marketing and informational tool. Be sure to have them opt in to receiving texts for legal compliance.
30. 30. Investing in Data Resources 45+% of college graduates move home 130K USPS Address Changes Daily 17% Create New Email address every 6 months Todays data will be old tomorrow! Cell Phones E-mail Mailing Addresses Employer Information Matching Gift Info Increasing donor volume has to begin with strategies to increase the solicitable base. #AligningExperts *Stats courtesy Josh Robertson
31. 31. Changing Communication Investing in Data Research #AligningExperts*Graph courtesy of CDC wireless report 2012
32. 32. Overall Telephone Database Breakdown Verified or Appended Telephones Total Prospect Quantity- 2,691,144 (13 Universities) Cell Cell Phone Only- 581,206 Business Business Only- 112,289 Landline Landline Only- 1,306,573 307,462 56,359 259,916 67,339 Line Type Number Percentage Cell Only 581,206 21.6% Landline Only 1,306,573 48.6% Business Only 112,289 4.2% Cell and Landline 307,462 11.4% Cell and Business 56,359 2.1% Business and Landline 259,916 9.6% Cell, Landline, & Business 67,339 2.5% TOTAL 2,691,144 100%
33. 33. The Blueprint for Cell Phones in Phonathon 3 Steps Every Program Should Take STEP 1 Data Integrity Identify Cell Phones From Existing Database Obtain Cell Numbers from Emergency Records Use Student Callers to Verify and Capture Cell Phones Send Numbers to Cell Append Research (Lost, Landline Only, Non-contacts) STEP 2 Managerial Tactics and Strategy Segment Cell Phones into Separate Calling Pools Scripting Adjustments and Objection Techniques Text Messaging in Alumni Relations and Stewardship The Alumni Participation Problem- Cell Phones Can Help STEP 3 Statistical Analysis Measuring Cell Phones vs. Landline Results Graduation Year Region/Area Code Contact Rates All Relevant Statistics (Participation, Average Pledge, etc.) #AligningExperts
34. 34. Data Integrity Determine Opportunity How much money is your program leaving on the table?
35. 35. Channel Fundraising A Changing Landscape? Phone Direct Mail E-solicitation Leadership/Personal Solicitations Crowdfunding #AligningExperts The Demise of Personal Solicitation Has Been Greatly Exaggerated. Still, embrace the new methods and technology. It will take a comprehensive approach to be successful.
36. 36. The Death of Phonathon? Phonathon at the Margins Contacts have decreased, but have not stopped. Communication is changing, but not stopping. Diversify your portfolio of solicitations. Be smarter and more efficient with your resources. Have a plan. You must know precisely what you want your phone program to accomplish. Be realistic. Phonathon remains the dominant donor acquisition and retention tool on campus. Annual giving always requires investmentphone is no different. Phonathon is harder today than it was 10 years ago. It takes more expertise to extract the productivity potential of a program. The fish are not jumping in the boat. Be strategic.
37. 37. Crowdfunding #AligningExperts *Info courtesy ScaleFunder and UTSA
38. 38. Online Giving Strategies What Works in Higher Education? #AligningExperts
39. 39. Thank you! For more information contact: Jason Fisher, CFRE | jason.fisher@ruffalocody.com| (251) 422-2335 Please complete the session evaluation at: insert web address here