Donor Retention. Current Rates are Plummeting! What Every Fundraiser Can Do to Reverse the Trend! Date: 11/12/2014 Presenter: Wayne Robbins

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1 Donor Retention Current Rates are Plummeting! What Every Fundraiser Can Do to Reverse the Trend! Date: 11/12/2014 Presenter: Wayne Robbins 1

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3 Retention» Active donor commitment is the enduring passion for your nonprofit. Inspiring donors is key for loyalty Fundraising 3

4 Agenda» 1. WHY? The Case for building/improving Donor Retention 2. Addressing the Attrition Problem (Building Donor Loyalty) 3. HOW? Retention Drivers 4. Conclusion: Donor Engagement! 4

5 Do you know your retention rate? In our surveys, less than 45% of fundraisers knew their current donor retention rate.

6 Do you know your retention rate? What does a 10% increase in donor retention mean in terms of LIFETIME dollars raised? 50% 100% % 6

7 Lifetime value» Improving donor retention rates by just 10% can increase the lifetime value of your database by %! - Dr. Adrian Sergeant, Bloomerang Chief Scientist

8 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%

9 Fundraising Effectiveness Project (FEP) A project to help nonprofit organizations measure and compare. The 2012 Fundraising Effectiveness Survey Report is based on 3,184 responses for , from nonprofit organizations in the United States. The responses reflected a total amount raised of $2,049,794,709.

10 Fundraising Effectiveness Survey» Participating Donor Software Firms: Donor2/Campus Management Corporation PhilanthrAppeal (FundTrack Software) DonorPerfect Fundraising Software The Raiser s Edge (Blackbaud) etapestry Avectra Bloomerang Sage Software MatchMaker FundRaising Software Telosa Software (Exceed!) Metafile

11 The 2013 results are in» 6 out of every 10 donors do not give again!

12 New donor retention is even worse»

13 Fundraising Effectiveness Survey» Participating Donor Software Firms: Donor2/Campus Management Corporation PhilanthrAppeal (FundTrack Software) DonorPerfect Fundraising Software The Raiser s Edge (Blackbaud) etapestry Avectra Bloomerang Sage Software MatchMaker FundRaising Software Telosa Software (Exceed!) Metafile (Not a SINGLE firm above has taken any steps to address the continually increasing problem of FALLING Donor Retention!)

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 Addressing the Attrition Problem! Is It a Donor Loyalty Problem?

17 Building Donor Loyalty! 1. Listen to your donors -Find out what will compel them to further help you achieve your mission. Ask for their advice, and put it to practice. 2. Share your good news -Communication is key to building any relationship, and nonprofit relationships are no different. Think about newsletters, s and face-to-face visits to keep the flow of information open. 17

18 Building Donor Loyalty! 3. Measure your success - In general, donors like to receive regular, measurable and concrete feedback about how their money makes a difference, says Ursula Pfahl. -By sharing the impact in real measures, you solidify the good work you are doing. 4. Survey your donors -When Courtney Polster, fund development manager at Agrace HospiceCare, started surveying her donors, she discovered that a high percentage were utilizing plannedgiving vehicles to support a charity but she was surprised to see how few said hers was their charity of choice for this option. This revelation led to further research. Quality initiatives like these are helping build a stewardship and recognition program as well as a planned-giving program," Polster says. "It has been most beneficial! 18

19 Building Donor Loyalty! 5. Leverage donor loyalty -Use your board members to make calls and write thank-you notes. The power of appreciation from a strong board member can go a long way in building loyalty. 6. Involve donors in the cause -By regularly inviting donors to come and see their donations in action, Keith Greer, fundraising and membership coordinator at Popejoy Hall, has changed the way donors view his organization and increased retention rates by 14 percent and the average donation size by $500! 19

20 Building Donor Loyalty! 7. Get social -Create connections in the social networks where your donors spend their time. Connecting socially is very powerful. 8. Customize your approach - Bottom line: Loyalty comes when we show folks we know them. This means we have to really listen to them. There's no cookie-cutter approach, as donor preferences vary. We have to be sensitive to our donors particular styles, then give them what they want, says marketing and fundraising consultant Claire Axelrad. 20

21 Building Donor Loyalty! 9. Recognize repeat donors - Whether your organization is new or has been around for years, you can recognize continuous yearly donors in your annual report. Give recognition to donors who have supported you (at a set level) for three years, five years, 10 years break it down however it works for you but with recognition, if they have to drop a nonprofit one year, hopefully it won't be yours! says CFRE Debbie Joyner. 10. Say thank you - One easy element is thanking donors for every gift either with a phone call or personalized e- mail. When dealing with loyal donors, I am always sure to mention how long they have been giving and let them know how much their continued support is appreciated. Most donors haven't thought about how long they have been giving, and I think these small gestures have deepened donor relations with a pretty small investment of my time and our long-distance bill, says Daniel Blakemore, assistant director for individual giving at International House, New York. 21

University holding what is presently the world s only endowed chair in that discipline.

22 Lifetime value» Dr. Adrian Sergeant, Bloomerang Chief Scientist Professor of Fundraising at the Center on Philanthropy at Indiana University holding what is presently the world s only endowed chair in that discipline. Professor of Nonprofit Marketing and Fundraising at Bristol Business School (U.K) and an Adjunct Professor of Fundraising at the Australian Centre for Philanthropy and Nonprofit Studies. Top 10 Most Influential People in Fundraising

23 Defining Lifetime Value (LTV)» The total net contribution that a customer/donor generates during his/her lifetime in your database 23

24 Defining Lifetime Value (LTV)» LTV = Ci Where c = net contribution from each year s fundraising activity i = expected duration of each relationship in years

25 Key Decisions in Building Donor Loyalty Costs vs. Donation Revenues Average Lifetime (1-25 Years) Your Retention Rates 25

27 Key Decisions in Building Donor Loyalty Costs vs. Donation Revenues Average Lifetime (1-25 Years) Your Retention Rates Best Use of Staff Time 27

28 Value Segments» Value $ $500 - $1000 $100 - $500 Time $25 - $100 $25 and under annually

29 Key Decisions in Building Donor Loyalty Costs vs. Donation Revenues Average Lifetime (1-25 Years) Your Retention Rates Best Use of Staff Time Using Retention/Reactivation Practices 29

30 Key Decisions in Building Donor Loyalty Costs vs. Donation Revenues Average Lifetime (1-25 Years) Your Retention Rates Best Use of Staff Time Using Retention/Reactivation Practices Finding a Database that Helps rather than Hinders Loyalty! 37

31 Why customers leave» 1% - death 3% - relocation 14% - won by competitor 14% - bad service/complaint handling 68% - lack/loss of interest 38

32 Why nonprofit donors leave» 5% - thought charity did not need them 8% - no info on how monies were used 9% - no memory of supporting 13% - never got thanked for donating 16% - death 18% - poor service or communication 36% - others more deserving 54% - could no longer afford Does your Donor feel Connected?

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34 6 Key Retention Drivers (That can double lifetime value) Drip feed mission performance data

35 6 Key Retention Drivers (That can double lifetime value) Drip feed mission performance data

36 6 Key Retention Drivers (That can double lifetime value) Drip feed mission performance data

37 6 Key Retention Drivers (That can double lifetime value) Drip feed mission performance data

38 6 Key Retention Drivers (That can double lifetime value) Drip feed mission performance data

39 6 Key Retention Drivers (That can double lifetime value) Drip feed mission performance data

40 6 Key Retention Drivers (That can double lifetime value) Drip feed mission performance data

41 6 Key Retention Drivers (That can double lifetime value) Drip feed mission performance data

42 6 Key Retention Drivers (That can double lifetime value) Drip feed mission performance data Connect often (1 st 90 Days!) Be personal (SEGMENT via DB) Develop like a good personal friendship

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45 6 Key Retention Drivers (That can double lifetime value) Drip feed mission performance data Connect often (1 st 90 Days!) Be personal (SEGMENT via DB) Develop like a good personal friendship Find & use numerous human connectors Always communicate what monies are doing!

46 Donor Satisfaction Conclusion: So Strive For: Donor Commitment/Engagement 53

48 Retention Drivers 55

49 Donor Satisfaction Conclusion: So Strive For: Donor Commitment/Engagement Donor Trust Donor Loyalty Doubling your lifetime value =? 56

50 Questions? Retention Based Fundraising Date: 11/12/2014 Presenter: Wayne Robbins

Donor Retention. Current Rates are Plummeting! What Every Fundraiser Can Do to Reverse the Trend! Date: 1/15/2013 Presenter: Wayne Robbins

Donor Retention. Current Rates are Plummeting! What Every Fundraiser Can Do to Reverse the Trend! Date: 1/15/2013 Presenter: Wayne Robbins Donor Retention Current Rates are Plummeting! What Every Fundraiser Can Do to Reverse the Trend! Date: 1/15/2013 Presenter: Wayne Robbins 1 Retention» Active donor commitment is the enduring passion for