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Monthly Giving and the Next Generation of Giving Lynne Boardman, Managing Director, Harvey McKinnon Associates, lead us through the data on how different generations of donors engage differently with monthly giving and what you can do to ensure success with your monthly giving program.
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MONTHLY GIVING
Copyright Harvey McKinnon Associates 2013
What’s a Monthly Donor?
• Someone who agrees to give every month via small gifts transferred straight from their bank account or credit card
• Benefits Include: • Donor longevity (10-12 years)
• Predictable revenue
• Lower costs
• Income growth over time
• Convenience
Who are they? - Single Gift
Donors, converted by phone or mail or online
- Recruited straight to monthly via site or street fundraisers or TV, or mail
Copyright Harvey McKinnon Associates 2013
What’s a Monthly Donor?
The two most important reasons to recruit monthly donors:
1. About 3-4 times the value of a Single Gift Donor
2. Fantastic source of charitable bequests (gifts to a charity in donors’ will)
Copyright Harvey McKinnon Associates 2013
Greenpeace
63% of income comes from monthlies
# Annual value Average Annual value
Number of single gift donors
190,000 $3,500,000 $ 18
Number of monthly donors
52,500 $6,000,000 $ 114
Copyright Harvey McKinnon Associates 2013
HAVE MADE A MONTHLY DONATION IN LAST 2 YEARS
Copyright Harvey McKinnon Associates 2013
CURRENTLY ACTIVE IN A MONTHLY GIVING PROGRAM
Copyright Harvey McKinnon Associates 2013
What can we do?
• Still room to grow: • 20% of Canadians say they give monthly
• 18% of Americans
• 36% in the UK
• Target Boomers and Civics for higher retention
• Work to do to embed monthly giving deeper in our culture of philanthropy
Copyright Harvey McKinnon Associates 2013
Copyright Harvey McKinnon Associates 2013
Monthly Donor recruitment channels – what do donors prefer?
Copyright Harvey McKinnon Associates 2013
Copyright Harvey McKinnon Associates 2013
Copyright Harvey McKinnon Associates 2013
Copyright Harvey McKinnon Associates 2013
What’s okay?
Generally acceptable to all donors:
A friend approaching you about a cause or a charity
A friend’s child or grandchild approaching you
A direct mail appeal from a charity you know personally
An email from a charity you know personally
TV, radio ads
check-out “add a donation” option
Copyright Harvey McKinnon Associates 2013
What’s not okay?
Not popular:
X DM and email from an unfamiliar cause
X Telemarketing and robotic calls
X Text or SMS solicitations unacceptable to most generations, even if the donor has subscribed to get text updates
X Street and door-to-door disliked across all generations. REALLY disliked by Boomers and Civics
Copyright Harvey McKinnon Associates 2013
What can we do?
• How can we use friends and family more creatively? • As channels? • As askers in existing channels? • Indspire example
• How can we make our charity familiar before we ask?
• How can we age profile our donors to keep them out of ‘highly unacceptable’ methods of fundraising?
Copyright Harvey McKinnon Associates 2013
PUBLIC RECOGNITION FOR DONATION
Boomers
0%
Mature
2%
Copyright Harvey McKinnon Associates 2013
Copyright Harvey McKinnon Associates 2013
What data do we have on donor behaviour?
Copyright Harvey McKinnon Associates 2013
First, a word on retention ….
# Monthly Donors
Net Cost per Donor
Total Net cost
Gross Year One Income at $15/mo
Profit or Loss at the end of Year 1
Attrition Rate over Year 1
# donors going into Year 2
Annual value of remaining donors
Profit or Loss at end of Year 2
1,000 $250 $250,000 $180,000 ($70,000) 24% 760 $136,800 $66,800
1,000 $250 $250,000 $180,000 ($70,000) 50% 500 $90,000 $20,000
1,000 $250 $250,000 $180,000 ($70,000) 70% 300 $54,000 $(16,000)
Case study Direct Mail acquired TM acquired* Online acquired
% of donors whose first gift was Monthly
5.70% 43 % 8.30%
% of donors whose 1st gift was OTG but converted to Monthly later
9.80% 15.50% 11.70%
Copyright Harvey McKinnon Associates 2013
Case study Direct Mail acquired TM acquired* Online acquired
% of donors whose first gift was Monthly
5.70% 43 % 8.30%
% of donors whose 1st gift was OTG but converted to Monthly later
9.80% 15.50% 11.70%
Number of monthly donors currently 2,428 842 102
Value of monthly gifts over last 7 years $7.5 million $1.2 million $675,000
Copyright Harvey McKinnon Associates 2013
Conversion channel
63%
35%
Conversion channel
35%
63%
Copyright Harvey McKinnon Associates 2013
Conversion channel
Copyright Harvey McKinnon Associates 2013