How Your Nonprofit Can Maximize Your Donor Database
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1 How Your Nonprofit Can Maximize Your Donor Database Northern Minnesota Nonprofit Summit May 12, 2015 Mitch Peterson
2 3 About Me Mitch Peterson 15 years in nonprofit sector Started w/ Bloomerang July 2014 Taylor University grad MBA, Butler University Colts & Pacers Fan
3 Agenda» The key purpose of a database The importance of donor retention Your database: a 3-legged stool Data Management 101 Segmenting 101 Appeals Acknowledgement Engagement Tracking/Scoring Reporting
4 Database Options 1. 3x5 Cards / Sticky Notes / Internal head knowledge 2. Excel Spreadsheets 3. Non-donor focused database: -- Quickbooks -- Sales CRM -- Access 4. Donor Management / Fundraising Software
5 Why Use a Fundraising Software?
6 What is the key purpose of a database?
7 What is the key purpose of a database? To enable and insure the proper funding of your organization s mission.
8 What is the key purpose of a database? To enable and insure the proper funding of your organization s mission. (Is there a secret to achieving this purpose?)
9
10 Who is Studying Donor Retention? Fundraising Effectiveness Project (FEP) A project to help nonprofit organizations measure and compare
11 The 2014 results are in» Nearly 6 out of every 10 donors do not give again!
12 New donor retention is even worse»
13 But retention is improving slightly»
14 So what? Donor Attrition Over Five Years # of Donors Attrition Rate Donors Remaining After 1 Year Donors Remaining After 2 Years Donors Remaining After 3 Years Donors Remaining After 4 Years Donors Remaining After 5 Years 1,000 20% ,000 40% ,000 60%
15 Donor retention math»
16 Proper database usage is the key to donor retention and lifetime value! - Jay Love - CEO, Bloomerang
17 The 3-Legged Stool» 1. Record keeping 2. Outbound communications 3. Interactions
18 1. Record Keeping» The original reason to replace 3x5 cards in the 1980s! Everyone in the organization should use the database Everyone in the organization should benefit from data
19 2. Communications» The secret sauce of retention success! Offline Appeals Acknowledgements Newsletters Handwritten notes (magical!) Online Website interactions All must be integrated!
20 3. Interactions» Types Phone calls Texts Meetings s Chat Notes The institutional memory of your organization Enables the highest levels of engagement All must be integrated!
21 Data Management 101» Can you have too many names in your database?
22 0 / 10 / 90 Rule» 0% of your funding 10% of your funding 90% of your funding
23 0 / 10 / 90 Rule» 0% of your funding 10% of your funding 90% of your funding What should you do with each segment?
24 0 / 10 / 90 Rule» 0% of your funding remove all but: previous above-average donors previous board members previous top volunteers 10% of your funding handle in an automatic manner, but research 90% of your funding focus the majority of your efforts here
25 Segmenting 101» Seattle s Lakeside Upper School counts Bill Gates among its alumni. Rumor has it a fundraiser for the high school called Gates, who asked: How much is everyone else giving? About $75 he was told. So put me down for $75, said Gates. -- Forbes, Jan 22, 1996, p. 16
26 Appeal segmenting»
27 Appeal principles» Design a style for each segment Consider calling and mailing segments 2, 4 and 6 Handwritten notes and/or P.S. are powerful Test, test, test! Personalize as much as possible (database fields) More than once a year Always aim for monthly donors!
28 Acknowledgement segmenting»
29 Acknowledgement principles» 48 hour rule Call ALL first-time donors Handwritten notes Be different than the rest State exactly how donation will be used Fully map a track for each segment
30 Donor communications» Successful donor communications are quite simple. At heart, they are love letters to donors & prospects, woven through with clear cries for help. - Tom Ahern, Bloomerang Donor Communications Head Coach
31
32 Engagement factors» Financial Factors: Recency & pattern of giving Cash donors vs. sustaining donors # of years giving Upgrade / downgrade of giving Lapsed giving Soft credits Non-Financial Factors: Event Attendance Opens Click links within Unsubscribes Stated communication preferences Inbound interactions Volunteer activity Social media Website visits
33 Reporting»
34 Reporting» 1. Record keeping Hone in on what is truly needed
35
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37 Reporting» 1. Record keeping 2. Communication-related (plus results!) The key to proper testing
38
39
40
41 Reporting» 1. Record keeping 2. Communication-related (plus results!) 3. Big picture for board (YTD and vs budget) Dashboards and graphics
42 Reporting» 1. Record keeping 2. Communication-related (plus results!) 3. Big picture for board (YTD and vs budget) 4. KPIs Metrics that make a difference
43 KPI September Goal September Actual New Donors New Volunteer Signups Web Sessions 17,500 22,253 Signups 12,500 16,794 Cost per New Donor Cost per Return Donor $1.00 $1.39 $0.25 $0.27 Budget YTD $61, $61,638.94
44 Reporting» 1. Record keeping 2. Communication-related (plus results!) 3. Big picture for board (YTD and vs budget) 4. KPIs 5. Funnel Moves the funding needle the most!
45 Free educational resources»
46 Free educational resources» Daily blog post Weekly webinar Downloadables Bloomerang TV
47 Choosing a Database - Resources 1. Idealware October 2013 report: 2. Software Advice 3. Buyer s Guide to Fundraising Software: 4. State Nonprofit Associations
48 Questions? Mitch Peterson
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