How Your Nonprofit Can Maximize Your Donor Database Northern Minnesota Nonprofit Summit May 12, 2015 Mitch Peterson mitch.peterson@bloomerang.co
3 About Me Mitch Peterson 15 years in nonprofit sector Started w/ Bloomerang July 2014 Taylor University grad MBA, Butler University Colts & Pacers Fan
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
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
Why Use a Fundraising Software? https://bloomerang.co/blog/new-fundraising-study-provides-data-on-impact-of-technology/
What is the key purpose of a database?
What is the key purpose of a database? To enable and insure the proper funding of your organization s mission.
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?)
Who is Studying Donor Retention? Fundraising Effectiveness Project (FEP) A project to help nonprofit organizations measure and compare
The 2014 results are in» Nearly 6 out of every 10 donors do not give again!
New donor retention is even worse»
But retention is improving slightly»
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% 800 640 512 410 328 1,000 40% 600 360 216 130 78 1,000 60% 400 160 64 26 10
Donor retention math»
Proper database usage is the key to donor retention and lifetime value! - Jay Love - CEO, Bloomerang
The 3-Legged Stool» 1. Record keeping 2. Outbound communications 3. Interactions
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
2. Communications» The secret sauce of retention success! Offline Appeals Acknowledgements Newsletters Handwritten notes (magical!) Online Email Website interactions All must be integrated!
3. Interactions» Types Phone calls Texts Meetings Emails Chat Notes The institutional memory of your organization Enables the highest levels of engagement All must be integrated!
Data Management 101» Can you have too many names in your database?
0 / 10 / 90 Rule» 0% of your funding 10% of your funding 90% of your funding
0 / 10 / 90 Rule» 0% of your funding 10% of your funding 90% of your funding What should you do with each segment?
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
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
Appeal segmenting»
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!
Acknowledgement segmenting»
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
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 http://aherncomm.com
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 email Click links within email Unsubscribes Stated communication preferences Inbound interactions Volunteer activity Social media Website visits
Reporting»
Reporting» 1. Record keeping Hone in on what is truly needed
Reporting» 1. Record keeping 2. Communication-related (plus results!) The key to proper testing
Reporting» 1. Record keeping 2. Communication-related (plus results!) 3. Big picture for board (YTD and vs budget) Dashboards and graphics
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
KPI September Goal September Actual New Donors 500 831 New Volunteer Signups 460 652 Web Sessions 17,500 22,253 Email Signups 12,500 16,794 Cost per New Donor Cost per Return Donor $1.00 $1.39 $0.25 $0.27 Budget YTD $61,745.09 $61,638.94
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!
Free educational resources» https://bloomerang.co/retention
Free educational resources» Daily blog post Weekly webinar Downloadables Bloomerang TV https://bloomerang.co/resources
Choosing a Database - Resources 1. Idealware October 2013 report: http://www.idealware.org/reports/consumers-guide-donormanagement-systems. 2. Software Advice 3. Buyer s Guide to Fundraising Software: https://bloomerang.co/resources/downloadables/buyers-guide-tofundraising-software/. 4. State Nonprofit Associations
Questions? Mitch Peterson mitch.peterson@bloomerang.co