© 2014 Tom Ahern | Donor Communications 202 Making Real $$$ Tom Ahern | Berkshire Taconic CF |...

Donor Communications 202

Making Real $$$

Tom Ahern | Berkshire Taconic CF | Sept 2014

The following letter was written by a volunteer with zero

experience. It raised $55,926 for a small-town library.

Why us?What are we doing that’s so uniquely wonderful that the

world should want more of it and support our new plans?

Why us?

Why now?What’s the big hurry?

What changed? Why is this URGENT?2

Why now?

Why you, the donor, might care?3

Why donor cares? “I’m needed.”

Why donor cares? “It’s mine.”

Why donor cares? “I can honor someone.” Greed.

“We support a charity or a soccer team or a perfume because it gives us a chance to love something about ourselves.”

Source: Seth Godin

“We support a charity or a soccer team or a perfume because it gives us a chance to love something about ourselves.”

Source: Seth Godin

The world as we know it

Over the past decade the number of US nonprofits has shot up by 47% to a whopping 1,056,000 organizations. Yet private giving as a percentage of the US national income dropped by 11.7% in the same period. Clearly, too many organizations chasing too little money.

Source: January 2013, The Agitator

Appeals, thanks, & newsletters work together.

You ask. You thank. You report.You ask. You thank. You report.You ask. You thank. You report.

The virtuous circle...

Appeals, thanks, & newsletters work together.

You ask. You thank. You report.You ask. You thank. You report.You ask. You thank. You report.

The virtuous circle...

A.k.a.,

LOVERIZING: Wooing, Winning and Keeping Individual Donors

“Loverizing” equals “donor centricity.”“Indiscriminate donor hugging” is

another synonym.

1993 2003 2004

The “F” pattern

? Really?

The story’s about the donor...every time someone donates to a good cause, they're buying a story, a story that's worth more than the amount they donated.

It might be the story of doing the right thing, or fitting in, or pleasing a friend or honoring a memory, but the story has value.

For many, it's the story of what it means to be part of a community.

Source: Seth Godin

Pixar PitchOnce upon a time ________________.Every day, _______________________.One day ______________________.Because of that, ________________.Until finally_____________________.

Source: Daniel Pink, To Sell Is Human, via Joanne Fritz

A donor showed up. Someone JUST like you!

visionenemyhero

servedSource: Stephen Pidgeon and Tangible

Yes, I donate....

Jane | Age 89 | Widowed

Every 15 minutes someone in the UK begins to lose their sight. Today, with your help, we can give them the practical support needed to rebuild their shattered lives.

Source: Stephen Pidgeon and Tangible

Vision

Served

hero defeats enemy

donors make sad happy

So, why?

70+% of first-time donors in the U.S. do NOT make a second gift.

A 10% improvement in your donor retention improves your revenue 50% immediately.

And that’s just the beginning....

Source: Adrian Sargeant, 2010

“A three-minute thank-you call will boost 1st year retention by 30%.”

Source: The Agitator, 2013

First-time donors who receive a personal thank you within 48 hours are 4 times more likely to give again.

Source: Damian O’Broin via Bluefrog presentation at IFC

Calculating donor retention

Step 1: Count the total number of donors who gave in your most recent calendar or fiscal year.

Step 2: Divide the number of donors who made a donation in year 2 by the total in Step 1.

Step 3: Multiply the result from Step 2 by 100 to obtain your retention rate as a percentage.

Source: Roger Craver, 2014

Communications are a mirror held up to donors. They see themselves in

what you say.

Welcome tothe family

St. Jude’s welcome package

• #10 envelope: THANKS! Your St. Jude welcome materials are enclosed.

• Personalized, one-sided letter (for $10 gift) gushes, “I’ve just received the marvelous news – you’re the newest member of the St. Jude family.” Marlo Thomas

• P.S.: “I know there are many worthy charities that ask for your help. Please know how honored we are that you’ve chosen to support the work of St. Jude.”

• Inserts: thank you from patient, thank you from parent, small notepad, reply slip with a gentle ask for “extra gift”

LOVERIZING

“Does my stuff passthe ‘you test’?”

Step One in Your Recovery

If you haven't yet made Sharp one of your charities, I am writing to sincerely ask that you ...

.... Please consider making your first gift today!

Since my treatment, I've learned just how important donors are to Sharp.

Year after year, donors have helped Sharp build new facilities, buy new equipment, fund scholarships, research, community outreach ... and more.

When you hear the worst diagnosis in your life, you quickly appreciate why all those years of donor support matter.

"Diane, your tonsils are full of cancer," I heard the doctor say. And that wasn't all of it. I had cancer in my jaw and the roof of my mouth as well.

I'd already lost a year because an earlier doctor, not at Sharp, had misdiagnosed my sore-throat symptoms and sent me home with a remedy from the drug store.

At Sharp, I was rushed into surgery immediately.

As you might imagine, it could have been a very, very bad scene for me.

The word “you” is a

profoundemotional trigger.

Hello, I'm Ken Hackett, president of Catholic Relief Services. Welcome to our 2009 interactive annual report.

The generosity of you, our donors, is one of Catholic Relief Services greatest blessings. Your support gives us the resources we need to bring innovative solutions to tough humanitarian problems. Your compassion transforms lives.

Donors:Why they’re justnot that into you

ABOUT US

ABOUT USABOUT US

ABOUT US ABOUT US

ABOUT US

ABOUT USABOUT US

ABOUT US

ABOUT US ABOUT US ABOUT US

ABOUT US

ABOUT USABOUT US

ABOUT US ABOUT US

ABOUT US

ABOUT USABOUT US

ABOUT US

ABOUT US ABOUT US ABOUT US

ABOUT THE DONOR

A lot of charities could be mistaken for

egomaniacs.

Corporate communications are about how great the organization is. Favorite pronoun:

Donor communications are about how great the donor is. Favorite pronoun:

Thanks to youand other generous donors like you,

we were able to turn...

Your donors will never tire of hearing how useful they are.

LOVERIZING

Sore throat? My tonsils had filled with cancer.

But thanks in part to donors like you,Sharp cancer care had the cure.

Dear Tom,

My name's Diane York.

I'm a mother, a wife, a career fashion designer ... and, thanks to the magnificent care I received at Sharp, I am also now a cancer survivor.

If you are, or have been, a donor to Sharp, I want to take this special opportunity to thank you personally for your contribution to my recovery.

ETC....

Donor love

Giving increased75% over previous

letter

Actually...

You ask (and flatter).You thank (and flatter).You report (and flatter).

You cannot flatter too much.

Source: Neuromarketing blog

“Even when people perceive that flattery is insincere, that flattery can still leave a lasting and positive impression of the flatterer.”

Curiosity builder Exclusivity trigger

Flattery trigger

Dear Jane Doe,

Welcome ... I hope.

I’m writing today to request the pleasure of your acquaintance.

There’s a place reserved for you on The Rhode Island Foundation’s mailing list ... but only if you agree and check, “Yes, I’m interested” on the enclosed reply card.

You’ll be in good company, that I can promise.

[etc.]

Do they even know you’re a charity?

Or do they assume someone else’s

money does the job?

Anatomy of a failed front page...

...and a good time was had by all 34...

How many kids depicted?

One. Teensy.

How many donors excluded?

17,966 out of 18,000

Your newsletter is not the society pages.

Stay on mission.

“Donor, who art thou?”

“A young donor is 60.” Jeff Brooks

Yes, I donate....

Jane | Age 89 | Widowed

Average donor age at Sharp?

Donors by age (percentage)

For eyes over 60...

AIGA recommends 14 pt. for body copy.

Boomers (those born between 1946 and 1964) began to outnumber their elders in the donor-aged population starting in 2010. This monster demographic group is going to be the backbone of charitable giving from now until the mid-2030s.

Source: Jeff Brooks, Future Fundraising Now, 2011

Thought for today...

Baby boomers aren't digital natives. They grew up with paper. Print will always be a big and romantic part of their lives. Boomers are expected to dominate donations until 2035

reporting on Jeff Brooks’ data

Why Merchant’s Quay went from 3 printed issues a year to 4. Donor newsletter response rates:

2011, response rates of 6.35%, 6.59% and 8.00%.2012, response rates of 7.40%, 7.33%, and 12.08%.2013, response rates of 9.90%, 12.38%, and 12.73%.

For the record, this hasn't killed their donor retention rate. Au contraire. It now stands at 60%, double that of most U.S. nonprofits. (And no, their file is not dying. We do acquisition rollouts 2-3 times per year. The database has grown 5X in as many years. Five times.)

Source: Denisa Casement & Lisa Sargent, 2014

Why Merchant’s Quay went from 3 printed issues a year to 4. Donor newsletter response rates:

2011, response rates of 6.35%, 6.59% and 8.00%.2012, response rates of 7.40%, 7.33%, and 12.08%.2013, response rates of 9.90%, 12.38%, and 12.73%.

For the record, this hasn't killed their donor retention rate. Au contraire. It now stands at 60%, double that of most U.S. nonprofits. (And no, their file is not dying. We do acquisition rollouts 2-3 times per year. The database has grown 5X in as many years. Five times.)

Source: Denisa Casement & Lisa Sargent, 2014

https://www.mqi.ie/newshttps://www.mqi.ie/newshttps://www.mqi.ie/news

Paper or electrons?

!Both!Print is for money. Both are for love.

You need a “Poster Anecdote”~~~

Or 3. It’s a “micro-case” that’s easy to remember and repeat. Board members

will love you for it.

When she entered our 3rd grade, she couldn’t spell “cat.”

At the end of the year, she could spell “Tchaikovsky.”

Whatis YOUR “poster anecdote?

Break!Break!93

Who’s got a good one?

“Did I get them into a fight?”

“Giving is not about a calculation of what you are buying,” Yale

economics professor, Dean Karlan, proved. “It is about

participating in a fight.”

The New York Times | March 9, 2008

“We need to educate our donors.”

NO, YOU DON’T!

“Donors are staggeringly ignorant of the causes

they support.”

-- Richard Radcliffe, dean of UK donor researchers

Direct mail secret to success.......

You’re trying for “mental nods.”

A. Lee Edgar, M.D.

If you believe inHospice as much as Ido, open immediately....

Authority figure

Mental nod

What should I do next?

www.AHERNCOMM.com

What they do have, though, are:

feelings

FIGHTTO TURN SAD INTO

values

FIGHTFOR TRUTH

interests

FIGHTFOR BIRDS

connections

FIGHTFOR KAREN’S FRIEND

IN SIERRA LEONE

“Tom, this is Nellie!”

debts to repay

FY13: “Donors support UChicago priorities with historic $459 million fundraising year” including a $300 million gift from Trustee David Booth

Why getting donor centricity right doesn’t matter for a donor like David Booth....

“By using the efficient markets hypothesis developed at the University of Chicago business school, we have been able to document clearly that you don’t have to try to outguess the market in order to have a good investment experience,” Booth said.“It would be hard to find anyone who benefited more from a University of Chicago education and from the faculty at Chicago than I have,” said Booth, who has been a member of the Council on the Graduate School of Business since 1999 and a member of the University Board of Trustees since 2002.

instincts

Look up “cuteness” on Wikipedia.

FIGHTFOR ANY KID

What’sYOUR fight...“IF you care about...”

What’sYOUR fight...

Why they stay

In fundraising,

the donor is the “customer.”

Your job is to make that customer happy.

Why bother?

UNhappy customers give ELSEwhere.

Loyalty factor #1

Good customer service

Do you anticipate questions, for instance? Do you acknowledge

gifts promptly?

Source: Dr. Adrian Sargeant

“Did they getmy gift?”

“What’s this?”

Your thanks and your newsletters are the hug!

Anticipating questions and answering them is

a big service issue

“Do they even know my name?”

What’s wrong with this picture?

“Tom”not

Consequences of “Tom” not “Thomas”

“Are they grateful?”

• 25,000 of highest donors received a simple EXTRA thank you at the beginning of the year, for their past generosity; no reply device included

• 25,000 did not

Source: from Angel Aloma, Food for the Poor, reported by The Agitator, May 2012

Both groups gave the same number of gifts during the year. But the group that received the simple thank you note was more generous: they gave almost $450,000 more that year.

What’s an extra “thanks” worth?

Thank You! You’re our hero. You’ve changed the lives of our students, their grandmothers, and the communities we serve by investing in The Nyaka AIDS Orphans Project – thank you! Your contribution is moving the mountains of poverty and paving the way toward success for the most vulnerable children living in your lifetime. Thank you for supporting...

They share your beliefs

Loyalty factor #2

Source: photo by Paul Lamb

They’re aware of consequences

Believing“Someone might be hurt if I don’t

give.”Believing

“Someone will be helped if I do give.”143

Loyalty factor #3

Source: Jeff Brooks, June 2013

You’ve established a personal link

You give the donor credit. You speak directly – and frequently –

to the donor.

Loyalty factor #4

LOVERIZING

Angel Aloma, ED of Food for the Poor, a $1 billion dollar charity, to Tom Ahern:

"I want to reiterate that much of what we are doing now in regards to donor centricity was inspired by your wonderful presentation.... I am convinced that the reason why we have grown in the last years of tough economic conditions in the country is because of that wonderful switch that you inspired [in our communications]."

Loyalty factor #5

They’re learning

Are you taking them on a journey?

www.AHERNCOMM.com

Journey to another country

Journey to street level, to witness the animal’s plight

Take me to a world I don’t

For every $1 spent on this donor newsletter, $7 comes back in gifts.

Loyalty factor #6

Multiple engagements

“I’ve helped bring in almost $16 million in

new funds since 2010.”

“I’ve helped bring in almost $16 million in

new funds since 2010.”

Successful campaign in the New Yorker and the New York Times.

OfferOffer

Tabs are offers

They trust you

Oddly, if you’re seen as smart in one area, people assume you’re

smart in all.

Loyalty factor #7

Get the other 6 right and this one takes

care of itself.

“Fundraising is NOT about

Source: Alan Clayton

The gift of joy:

You make the stories in this newsletter possible!

The gift of joy:

You make the stories in this newsletter possible!

At least once per page in the BIG TYPE, love thy donor loud and clear

From you....They want to belong.They want to see their values in

action.They want to win!They want to feel good.They want to feel loved.They want to feel smart.They want to feel needed.They want to feel important.They want to feel something.

How much are these GUIDELINES

actually worth$$$$?

How great the ORGANIZATION is = $4,470 in gifts

CORPORATE communications

DONOR communications

How great the ORGANIZATION is = $4,470 in gifts

How great the DONOR is = $49,600 in gifts

1,000%

IMPROVEMENT!!!

Myfreehow-toe-newsletter…www.aherncomm.com

I subscribe!

© 2014 Tom Ahern | Donor Communications 202 Making Real $$$ Tom Ahern | Berkshire Taconic CF |...

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