Next Generation of Fundraising Today and Tomorrow

CANADIAN FUNDRAISING TODAY AND TOMORROW

AGENDA9:30-11:00Canadian Fundraising Today and TomorrowMichael Johnston

11:00-11:30 COFFEE AND NETWORKING

11:30-12:15The Constituent Engagement Journey: Growing Engagement, Loyalty, and Lifetime ValueKen Kuhler

12:15 – 1:30 LUNCH AND NETWORKING

1:30-2:00Monthly Giving and the Next Generation of GivingHarvey McKinnon

2:00-3:00Fundraising Trends in 2013Michael Johnston and Ken Kuhler

At the end of the session, we’ll ask you to go online and fill out our integration survey. We’ll select 1 WINNER to receive complimentary 1-hour hjc/hma/Blackbaud digital and integrated fundraising consulting session

http://www.surveymonkey.com/s/HBBRTHG

Take our survey at the end of the session!

“THE MORE ONE KNOWS, THE MORE ONE CAN CONTROL EVENTS.”

SIR FRANCIS BACON

• DONOR FILES AND ACQUISITION LIST SOURCES ARE SHRINKING – A MORE COMPETITIVE ENVIRONMENT

Current Fundraising Reality

Aging Donor Base

• REVENUES ARE FLAT AND – IN MANY CASES – ARE FALLING

DIRECT MAIL AND OTHER TRADITIONAL CHANNEL COSTS/ROI ARE INCREASING/ FUNDRAISING MARGINS ARE SHRINKING

Current Fundraising Reality

WWBA?

What are the preferred giving channels of each generation?

What are the preferred communications and engagement channels?

Does age influence who you give to?

What are the basic dos and don’ts for fundraisers in 2013 and beyond?

Hail Angry Peasant! what skullduggery do you intend with that pitchfork?

How could thoust deny the vital nutritional content of this fine homebrewed ale?

ONLINE BENCHMARKING(2011 AND 2012)

Other Sources of Giving Data in Canada

WHERE CAN WE IMPROVE?

• Underdeveloped Advocacy

• 8.2% of total email files in Canada are advocates vs. 12% in the United States

• Only 6.8% of online advocates are donors in Canada vs. double that in the United States

ACTION TAKERS ARE STRONGER PROSPECTS

Non-donors who’d taken action online were 2.3x more likely to donate than non-donors in the email file who hadn’t

ACTION TAKERS ARE STRONGER DONORS

Source: Charitable Memberships, Volunteering and Discounts: Evidence from a Large-Scale Online Field Experiment. May 2009, National Bureau of Economic Research, A. Lange, A. Stocking.

AMNESTY INTERNATIONAL: E-PETITION AND TELEPHONE FOLLOW UP

Phone number: Ask!

Counter: social proof

Comments: priority for calls

Subscribe:for cultivation

More info:legitimacy

CALLING ADVOCACY LISTS

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%18.50%

8%9%

11% Recent Lapsed Monthly DonorOnline Petition OnlyE-newsletter SubscriberLong Lapsed Montlhly Donor

COST PER MONTHLY DONOR $75.00

• 1000 phone calls – 74 monthly donors giving $9.66 every month

WHAT ARE WE DOING WELL?

• A Less Cluttered Market• 14.34% open rates in the United States vs. 22.98% open rates in Canada• That maintains a similar advantage the year before

• Monthly Giving• Next Generation of Giving comparison – still higher in Canada• Online monthly giving is also bigger in Canada: 14% of Canadian online

revenue is from monthly sustainer vs. 8% of US online revenue• HOWEVER… US online sustainer revenue increased from 6% the year

before while the Canadian % remained the same at 14%. • We shouldn’t be standing still!• This is paralleled in the offline, Next Gen Study

WHAT ELSE?

• Are we doing enough?• Even though the US market is more mature in online fundraising, they still

have a higher online gross revenue increase of 10% vs. 5% in Canada• Is this a parallel of our more conservative, steady economic approach to

growth?

• Are we spamming?• In the US, there was a 1.2% increase in overall charitable email volume but

there was an 18% increase in Canada• If we are sending more, is it segmented and personalized?

THE INTEGRATED, NEXT GENERATION OF GIVING IN CANADA

Prospects

One-off

Monthly

Major

Wills

One-off

Prospect

Monthly

Major

Wills

Technology

ChannelsLevels of Giving

Departments

• The cultivation survey:– Sent to 57,400 donors– 3 key segments: Monthly, Active &

Lapsed– 5,530 responses (response rate of 11%)– Raised $17,574 – a bonus!– Reactivated 30 donors– Found 85 expectances and 292 legacy

leads – 143 middle and major donor leads!– Shared budgeting!– Surveymonkey and RE

CANADA LEADING THE PACK

1. Donors from 35 to 45 were thinking of legacy gifts

2. Shown to be 300% over represented on LinkedIn

3. Open to Gifts of Stock

4. Now…. A LinkedIn Strategy for a Legacy Gift for younger donors….

HAPPY SURPRISES!

89 b

eque

sts w

orth

appr

oxim

atel

y $8.

9

milli

on

345 middle donor

gifts worth

approximately

$345,000

28 endowments gifts worth

approximately $100,000 to $2.3

million each Cost to create and

deploy online

survey: $7,500CANADA LEADING THE PACK

A recent online survey found

176

bequ

ests

wor

th

appr

oxim

atel

y $5

milli

on

25 of found

bequesters left

phone numbers to

be thanked

251 supporters ‘dying to give’

61% of respondents

open to middle and

major gift

conversations

ANIMAL WELFARE

A recent online survey found

THE NEXT GENERATION OF CANADIAN GIVING

The Canadian Fundraising Summit

% Of Generation Giving

Tota

l ann

ual g

ivin

g

55% 65% 75% 85% 95%$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

79% Give5.8 M donors$831 yr/avg4.5 charities$4.8 B/yr

62% Give4.5M donors$639 yr/avg4.0 charities$2.9 B/yr



Gen Y

Gen X

Boomers

Matures

GENERATIONAL GIVING

Bubble size is ‘Estimated Annual Contributions’

An overview of annual giving by generation confirms the importance of Boomers in the charitable giving space.

26

Born: 81-91

Born: before 1946Born: 46-64

Born: 65-80

DRAW YOUR BUBBLES

A GRADE TWO QUIZ

Gen YAnimal Protection

MatureHuman Rights

Gen XDoor To Door

Boomer Arts

CAUSES – TOP TIER

GEN Y GEN X BOOMERS MATURES

PRIORITY CAUSE

45% 50% 50% 55%

21% 31% 31% 36%

32% 40% 38% 28%

18% 25% 23% 40%

15% 17% 17% 14%

12% 14% 11% 14%

Health charities

Local social service

Children’s charities

Place of worship

Animal rescue/protection

Emergency relief

50%

30%

35%

26%

16%

13%

71%

48%

46%

33%

23%

22%

Overall Giving Column1

% donating overall to causes

*Bolding indicates statistical significance among audiences. Arrows indicate statistical significance between 2010 and 2013.

• Health charities have the largest % of donors across generations

• For all top tier causes capture, at least half of donors see it as a priority. Places of worship and children’s charities have the largest %

• Emergency giving dropped as a priority cause across generations↓

↓

↓↓ ↓ ↓ ↓

↓

↓ ↓

↓

↓ ↓

CAUSES – BOTTOM TIERGEN Y GEN X BOOMERS MATURES

PRIORITY CAUSE

10% 8% 6% 10%

13% 8% 6% 9%

6% 8% 8% 10%

3% 3% 7% 10%

6% 5% 6% 4%

2% 3% 2% 6%

4% 4% 3% 4%

2% 3% 2% 7%

3% 4% 2% 3%

0% - 0% -

Education

Human rights, international dev.

Environmental, conservation

Arts/art-related

Victims of crime or abuse

Election campaigns

First responders

Troops/veterans

Advocacy

Trade union

8%

9%

8%

6%

5%

3%

4%

4%

3%

0%

18%

16%

16%

11%

10%

9%

8%

7%

6%

1%

Overall Giving Column1

% donating overall to causes


↓

↑

↓

↓ ↓

WHAT CHANNELS ARE DONORS USING IN NORTH AMERICA?

ANOTHER GRADE TWO QUIZ

Gen YOnline Giving

MatureMobile Text

Gen XDoor To Door

Boomer Telemarketing

GEN Y GEN X BOOMERS MATURES

55% 54% 58% 55%

45% 55% 35% 31%

21% 35% 47% 56%

36% 39% 38% 30%

29% 33% 40% 37%

11% 23% 36% 58%

22% 29% 37% 34%

22% 24% 29% 29%

24% 20% 25% 20%

25% 19% 11% 9%

15% 14% 12% 14%

5% 9% 15% 18%

7% 5% 4% 9%

4% 9% 4% 4%

5% 8% 4% 3%

12% 4% 2% -

6% 4% 3% 2%

1% 2% 3% 2%

Donated this way in last 2 years

Checkout DonationOnline Donation

Honor/TributePurchase for Proceeds

Pledge at EventMailed Check/Credit Card

Door to Door*Monthly Debit

Street Canvassing*Third Party Vendor

Email*Phone

Radio/TV*Online Ad*

Will/Planned GiftMobile/Text

Social Networking SiteStocks, Bonds, Property

56%

41%

41%

36%

35%

32%

32%

26%

22%

15%

13%

12%

6%

5%

5%

4%

4%

2%

GIVING CHANNELS

Bolding indicates statistical significance among audiences. Arrows indicate statistical significance between 2010 and 2013.36

*New or changed attribute, no tracking data

↑↑

↑

↓

↑

↓

↑

↑

↓↑

↑

↓

1%

1%

5%

6%

12%

18%

25%

33%

34%

34%

35%

43%

3%

6%

9%

9%

12%

14%

25%

16%

21%

23%

25%

24%

34%

36%

36%

30%

34%

29%

22%

15%

17%

16%

12%

9%

47%

41%

23%

18%

15%

11%

4%

8%

3%

6%

2%

1%

Acceptable Solicitation Channel(from organizations with an established relationship)

Very AcceptableVery UnacceptableNET GEN Y GEN X BOOMERS MATURES

+77 +78 +87 +77 +63

+69 +70 +76 +68 +62

+46 +53 +40 +46 +47

+34 +51 +43 +30 +13

+25 +50 +41 +11 +5

+8 +45 +26 -2 -33

-24 -4 -21 -37 -24

-26 +24 -5 -46 -65

-35 -6 -29 -49 -46

-35 -26 -38 -41 -30

-46 -17 -38 -54 -67

-57 -29 -48 -76 -63

Friend

Friend's child/grandchild

Letter/message

Radio or TV program

Email

Opt-in for extra charge on ticket/recording

Phone call

Message via social media

Voice message

Door-to-door canvassing

Street canvassing

Text message

ACCEPTABLE SOLICITATION CHANNEL

Net (Acceptable – Unacceptable)

Smwt Smwt

Channels with a personal connection are most acceptable, followed by letters or TV/radio.


MAKING A DIFFERENCE

30%

36%

7%

14%

9%2%

Gen Y

43%

21%

7%

14%

8%1%

56%18%

7%

9%

5% 1%

Boomers

55%19%

10%

7%

4%2%

Matures

As we saw in the 2010 research, the feeling that monetary donations are the way to make the biggest difference increases with age. Gen Y – with more time than money --

is the one generational cohort that places more emphasis on volunteering.

Gen X

Money Volunteer Donate goods Spread word Fundraise Advocate

HYPER-CHOICE

IS IT THE DEATH OF UNRESTRICTED GIVING?

Directed dona-tion

Unrestricted donation

Either is fine

24%22%

49%

26%

18%

53%

23% 25%

46%

10%

40% 43%

Directed Giving Preferences

Gen Y Gen X Boomers Matures

27%

55%

7% 5%

22%

44%

6%1%

22%

34%

5%0%

14%

28%

7%2%

Would Motivate Me a Great Deal to Make a Larger Donation to

Charity


Engagement: Directed Giving

HOW DO YOUR DONORS LOOK AT TRANSACTIONS, ENGAGEMENT, AND

OUTREACH?

TRANSACTIONAL: DIRECT MAIL

Mail from a charity is very or smwt acceptable

Mail is important way for charity to stay in touch

Receive information in the mail

Gave a donation in response to a mail appeal in the last 2 yrs

63%

56%

13%

11%

56%

50%

22%

23%

58%

55%

28%

36%

63%

64%

28%

58%

Matures Boomers Gen X Gen Y

• While donors say that direct mail is an acceptable and important way for charities to keep in touch with supporters …

• … There is a substantial drop across generations in the number who remember receiving info in the mail; and a big difference, except among Matures, in the number who say they have responded to direct mail

• Donors say that a charity’s website is an important way to stay in touch, yet far fewer report actually visiting these sites

• However, the website is an important transaction channel – especially with Gen X. More say they contributed in this way across generations in 2013 than in 2010

TRANSACTIONAL: ONLINE

Visiting website is important way to stay in touch with charity

Visit website of charities you support

Made a donation through org's website in last 2 years

85%

41%

45%

76%

29%

55%

60%

25%

35%

45%

16%

31%

Matures Boomers Gen X Gen Y

Website

Credit card 90%Paypal 38%Amazon payment 2%

Ways Would Pay

201041%

37%

29%

24%

↑

ENGAGEMENT: WORKPLACE

Have given in the workplace

Have not given in workplace

60%

36%

58%

40%

49% 50%

25%

75%

Workplace giving is more prevalent among younger workers. Gen Y is likely to give this way just once, while Boomers are more likely to give through payroll.

Workplace Giving GEN Y GEN X BOOMERS MATURES

Participated in a workplace fundraiser 30% 33% 30% 13%

Made a one-time donation through your workplace

24% 16% 20% 4%

Made a donation through payroll deduction

11% 18% 24% 4%

Volunteered through your workplace 19% 12% 16% 4%

Made a donation where your employer matched the gift

15% 15% 11% 4%

Participated in a workplace walk/run/challenge

15% 11% 13% 8%Gen Y Gen X Boomers Matures

(filtered among those employed or student)


• Corporate Donors phoned/mailed/emailed proposal • Lead to Starbucks doing a coin collection at 90 of their retail stores. • Also led to online Employee Giving campaign (138 employees (almost

all new donors) gave over $4,000 in lieu of Christmas gifts

ENGAGEMENT: RETAIL GIVINGRetail giving, last 12

mos34%

No retail giving43%

Not sure23%

Gen Y: 54%Gen X: 38%Boomers: 29%Matures: 19%

Motivations(Single most important reason)

Total Y X B M

Cause 64% 58% 69% 64% 61%

Product 19% 28% 18% 25% 18%

Total Y X B M

Given to cause before 24% 21% 18% 31% 29%

Would have given anyway 35% 30% 39% 34% 42%

Have given since purchase 11% 17% 9% 8% 11%

Plan to give directly in future 28% 27% 30% 20% 42%

Will retail give to this charity in future 48% 40% 45% 56% 55%

None of these (1x gift) 10% 16% 12% 2% 13%

Relationship to Cause

• Gen Y & X are more likely to give by retail purchase

• All are primarily motivated by cause over product

• Responses suggest that retail is a good way to increase donations and raise awareness, but many of these will not convert into regular donations beyond retail


ENGAGEMENT: WORD OF MOUTH

Gen Y Gen X Boomers Matures

18% 17% 13% 13%

40% 43%34% 33%

25% 16%

17% 21%

12%16%

23% 23%

1% 7% 10% 11%

53

Comfort-level Sharing Info about Charities Support

Not comfortable at all, it is inappropriate

Not too comfortable, tend to be private

Somewhat comfortable, but cautious

Very comfortable, but only bring it up if asked

Very comfortable, often tell others

Younger generations are slightly more comfortable sharing information about the charities they support than older generations.

CHANNEL ECOSYSTEMNO SILVER BULLET: FUTURE IS INTEGRATED

Work place

Retail giving

Check in the mail

Mobile

Social media

Online

Email

Crowd funding

Text/SMS

Peer-to-Peer

Transactional OutreachEngagement

Direct mail

Website

Volunteer/Meetups

Monthly giving

Directed giving

55

KEY NEXT GEN FUNDRAISING QUESTIONS TO ASK YOURSELF

HAVE I UNDERINVESTED IN FUNDRAISING TO BABY BOOMERS, WHERE THE BULK OF

MONEY WILL COME FOR THE FORESEEABLE FUTURE?

HAVE I IGNORED THE UP AND COMING YOUNGER GENERATIONS; OR RELEGATED

THEM TO AN UN-STRATEGIC SOCIAL MEDIA EFFORT?

DOES MY FUNDRAISING CHANNEL MIX INCLUDE DIRECT MAIL FOR YOUNGER

DONORS AND DIGITAL COMMUNICATIONS FOR OLDER ONES (HINT: IT SHOULD)?

AM I PREPARING FOR THE FUTURE BY ADDRESSING THE CULTURAL DEMANDS

GENERATIONS X AND Y ARE PLACING ON INSTITUTIONS (SUCH AS TRANSPARENCY)?

AM I EMPOWERING MY MOST ENTHUSIASTIC SUPPORTERS TO

FUNDRAISE AND EVANGELIZE ON MY BEHALF?

OUR KEY RECOMMENDATIONS

KNOW YOUR DONORS’ BIRTHDAYS.


MAKE DONORS HAPPY.

NOW IS THE TIME TO CREATE AND TRACK DONOR SATISFACTION METRICS AND TO CLOSELY TRACK RETENTION BY CHANNEL AND BY GENERATION.

IT’S ALSO TIME TO PAY MORE ATTENTION TO INBOUND COMMUNICATIONS BY DONORS.


PREPARE FOR THE FUTURE TODAY. THERE ARE THINGS ORGANIZATIONS CAN AND SHOULD DO TODAY TO ATTRACT YOUNGER SUPPORTERS (GEN X, Y, Z) AND A SHARE OF THE ROUGHLY $6 BILLION THEY GIVE EACH YEAR.

IT’S NOT JUST ABOUT TWEAKING THE TACTICS. MANY OF THE BIGGEST IMPEDIMENTS TO EFFECTIVE MULTICHANNEL FUNDRAISING ARE ORGANIZATIONAL AND

POLITICAL.

HOW ABOUT YOURS?

CONCULSION

THE FUTURE HAS ARRIVED

IT IS A MULTI-CHANNEL FUNDRAISING WORLD

IT IS ALSO A FUNDRAISING ENVIRONMENT IN WHICH THE DONOR DEMANDS, AND RESPONDS TO AN INTEGRATED RELATIONSHIP

ARE YOU READY?

REMEMBER THE CHILDREN…

• 3 of the top 10 fundraisers for an organization that raises over $90 million a year are under 15

• Do you have an integrated plan for supporters under 15?

At the end of the session, we’ll ask you to go online and fill out our integration survey. We’ll select 1 WINNER to receive complimentary 1-hour hjc/hma/Blackbaud digital and integrated fundraising consulting session

http://www.surveymonkey.com/s/HBBRTHG

Take our survey at the end of the session!

Business

Next Generation of Fundraising Today and Tomorrow