Donor Centered Fundraising Presented by Sonya Campion CFRE

Donor Centered Fundraising Presented by: Sonya Campion, CFRE The Collins Group Based on the research and principles of Penelope Burk: Donor Centered Fundraising -- Penelope Burk, Cygnus Applied Research, 2003 www. donorcentered. com

Five Assumptions for today 1) Money, people, and fundraising are changing – know the facts and how they apply to you 2) We have to get past the same 10 people 3) We have to raise money smarter, be more costeffective, and keep the donors we have 4) This is a profession: We know what works – don’t mess around 5) Donors aren’t asking for much…just good manners before you hit them up again

Sustainable Fundraising: what it is and what it isn’t • 89% of American give • But we are losing 90% • • • 50 % drop off rate after first gift 30% after second gift and so on…

Sustainable Fundraising • Cost-effective and transparent • Acquisition vs. sustaining ØIt costs 6 x more to acquire a new donor than to sustain a current one • Best Practices: ØStrategic plan = organizational efforts = fundraising plan ØBottom line: Donors need to know what their money is making possible

Our Approach to Today

Donor Centered Fundraising • Everybody thinks they are a major donor! • Donor Centered Fundraising -Penelope Burk, Cygnus Applied Research, 2003 www. donorcentered. com

Donor Centered Fundraising “Puts satisfying donors’ need for meaningful communication at the top of the agenda” – Penelope Burk, Donor Centered Fundraising

Paradigm Shift • How we [need to] view them: ØA partner in our mission: they have the money, we have the program. We both need each other. • How they view us: Ø“People give to organizations that meet needs, not because they have needs. ” » Kay Sprinkel Grace, Beyond Fundraising

Current Fundraising: A Vicious Cycle • Strong direct mail response rates are between. 5 - 1% • On average, 50% of new donors do not renew • Within five years, 90% will have stopped giving ØReminder: It costs 6 x more to acquire than renew a donor ØMore work, less to show for it, expensive fundraising Source: Donor Centered Fundraising, Penelope Burk

Donors Don’t Stop Giving • They stop giving to you Ø 86% of all households give ØAverage donor supports 10+ organizations ØOver 34% of donors support 20+ organizations ØOf these, they really value three to four • If you fail to meet their expectations, they will go elsewhere

How Regular Donors Must Feel Bummer of a birthmark Hal…

Why Donors Stop Giving To You ØPoor or lack of information (46%) ØMismanagement of funds (37%) ØMultiple solicitations (38% turned off – 28% not likely to give again) ØNo progress in mission (28%) ØHigh overhead (15%) ØNegative media (14%) ØAggressive fundraising (12%) ØOther causes (10%) Source: Donor Centered Fundraising, Penelope Burk

What All Donors Want (BEFORE you ask them again!) 1) Prompt acknowledgement that the gift was received *Two weeks from receipt of the gift 2) Confirmation that the money was used in the way they intended it to be used (information) 3) Updates on progress made because of the donation (information) Charities that provide these three things are “donor centered”

Donor Centered Fundraising “Donor centered fundraising puts satisfying donors’ need for meaningful information at the top of the agenda, enhancing donor communication, with intermittent recognition designed to reflect the unique aspects of the individual charity. ” Penelope Burk Donor Centered Fundraising

What if You Give Donors What They Want? • 93% of donors say they would definitely or probably give again • 74% would continue to give continuously • 64% would give more Source: Donor Centered Fundraising, Penelope Burk

Communicating Impact • 55% of donors do not receive information on the measurable impact of their donations • 65% of donors don’t read newsletters ØContent ØToo long ØNo time ØGetting 20 newsletters, 4 x/year 8 pages each!

Communicating Impact • 68% would prefer one-page updates of progress • Nearly half would like to receive info by email • 77% enjoy receiving invitations to visit charities they support to see work firsthand Source: Donor Centered Fundraising, Penelope Burk

Stewardship…how hard can it be?

Three Kinds of Recognition 1) Acknowledgement 2) Communication of results 3) Recognition Donors want # 1 & 2 Non-profits spend their time on #3

The Power of Personal Thanks • 95% would be very appreciative if a member of the Board of Directors called them within a day or two of receiving their gift to just say thanks • 85% would support again • 86% would give more

Saying Thanks • • • Personalized Hand signed Acknowledges prior giving or volunteer work Sincerely communicates excitement & gratitude Indicates when a progress update will be given to the donor and how • Contact information included • Two paragraphs maximum (first line most important!) • If appropriate, hand-written

How Not to Say Thanks • • Send a pre-printed post card Ask for more money Continue to “sell” the cause Send an obvious form letter Misspell the donor’s name Send a letter with spelling and grammar errors Focus on the IRS tax language Send the letter more than two weeks after the gift

Recognition • 90% want to be asked before their name is made public as a donor • Most effective recognition according to donors Ø Thank you letter 78% Ø Name in newsletter 32% Ø Name in annual report 31% Ø Recognition event 30% Ø Donor club/honor roll 25% • 86% dislike tokens (fridge magnets, etc. ) Source: Donor Centered Fundraising, Penelope Burk

Case Study: Canadian Paraplegic Association • Board members called 1 in 10 new mail donors • Results over five subsequent mail appeals ØTest group gave 39% more than control group ØAfter 14 months, average gift was 42% higher than control group Ø 4% indicated a desire to learn more about major giving opportunities in phone calls

Giving donors community “Never doubt that a small group of thoughtful people can make a difference, in fact it is the only thing that ever has. ” ~Margaret Mead

Bottom line: We are going to have to grow a new base of donors every year if we want to survive (which no one has the resources to do) or We can give ‘em what they want