Progressive Annual Fund Strategies

Sponsored by: A Service

Of:

Progressive Annual Fund Strategies / Pushing Your Program to the Next level

Ron & Sue Rescigno

October 30, 2012


Of:

Protecting and Preserving the

Institutional Memories of

Nonprofits Since 1993

www.cjwconsulting.com

(866) 598-0430

[email protected]


Of:

www.mission.do


Of:

Today’s Speakers

Ron & Sue Rescigno President & Vice President

Rescigno's Marketing Connections

Hosting:

Cheri J Weissman, CJW Consulting & Services, Inc. Assisting with chat questions: Jamie Maloney, Nonprofit Webinars

Progressive Annual Fund Strategies: Advancing Your Program

to the Next Level

Ron and Susan Rescigno

The Path to Success

Put simply, there are essentially

TWO ways to increase your success:

• Method #1 – Increase the number of

people giving

• Method #2 – Increase the average level

of support

Here’s the catch: to be as successful as possible, You Must Do Both.

Increase the Number of Donors

Laying the Groundwork for Your Success

• Major Gift Donors

• Leadership Donors

• Repeat Annual Donors

• First-time Annual Donors


Ask More People Expand the number in your

solicitation pool

– reunion committees, student

organizations, parent & alumni

groups, volunteers, regional

campaign committees, acquisition

Ask More Often Face-to-face

Social Media

Expand your circle

Friend of a friend

Ask Smarter • Increase response rates by

finding new, unusual,

different ways to engage

your audiences

Remember, the golden rule of fundraising:

If you don’t ask, you won’t get!


You must know the magic numbers or

you’ll get nowhere fast!

1,000 = # of prior year donors

600 = # of prior year donors who also have made

a gift in the current year

60% = Renewal rate based upon 600 prior year

donors who gave in current year – out of 1,000.

Industry Standard = 70% - 85% depending on the

non-profit institution


Questions You Should Be Asking

•Who is your most cost-

effective donor?

•Who is most likely to

become a long-time

consistent donor?

•Who is most likely to

increase giving?

•Do you have a leadership

donor pool?


Relationship to Institution/Organization

What is the donor’s or prospect’s relationship to

you/your organization? Group them accordingly

Establish hierarchy and dual relationships

Special/Different/Out-of-the-Ordinary/Unique Case

for Support – What’s Yours?

Segments require unique messaging

Unique Objective

Segments should have a specific objective based on

their needs or preferences

Types of Donors

Leadership – increased giving/major gift cultivation

Potential Leadership – increase gifts to Leadership Levels

Renewing Donors – increase gifts by 30% or more

Lapsed Donors – re-activate giving; increasing is secondary in

importance

Long Lapsed/Sybunts – Even if there is a decrease, re-activate giving

Special Event/Phonathon/Memorial-only Donors – Convert! Convert!

Convert! to un-restricted annual donors

Employee Donors – Renew and increase gift; good example of

need for unique messaging



It’s about Segmenting…not Fragmenting If your appeal does not have a unique message or

objective, it’s probably not a good use of your time or the resources you will spend on it!

Appeal Codes We wholeheartedly endorse tracking – as long as the group

you are tracking is large enough to produce meaningful results.

Segmentation vs. Restricted Giving Build rapport/a “case” based on donor interest. This does

not mean you have to restrict gifts. Your messaging needs to be based upon stated interests.

It is critical that you provide MULTIPLE opportunities to give throughout the year

*As long as each preceding effort has been successful, continue to solicit—with direct mail, you should expect that each successive effort will be half of your preceding effort

Suggested opportunities per year:

Leadership: 3-5 Long-lapsed and Non-donors: 1-2

Potential Leadership: 5-8 Second Gift Appeal: 1-2

Renewals: 5-8 Lapsed Donors: 3-5



Your Case for Support What does the future hold?

Stress the ‘what if’; it’s almost always more powerful than the ‘what was’ or ‘what is’

The Art of the Story The head is a regulator of facts and figures (go easy)

The heart is where giving comes from

Stories that touch the heart, that compel readers to wonder ‘what if?’, are the stories people give to

Special Offer

Peer-to-Peer is Best “ I gave because…now won’t you?”


Focus on the Donor – Not your Non-profit Find out what is important to him/her

Impact of Gift – ‘What if’ you didn’t give or never gave? Not what the money will buy; what it will mean!

Vary the Case for Support Different people give for different reasons. It’s your job to find out what these reasons are and speak to them directly


Invest in New Donors to Generate a Future

Return

• Find them through

Direct Mail

Renewals

As you move through the course of the

year, the objective changes:

INCREASING

THE GIFT

RENEWING

THE GIFT

You must Increase giving from renewing donors to balance the “loss” from those who do not renew

Increase the Average Gift

Ask For More Increase expectations

Convince people to give more

Ask Smarter

Identify your most

capable and willing donors –Asking the right people to lead the way can pay big dividends

Have a plan of attack: –Ask the right way, at the right time, with the right message, via the right communication channel)

Don’t Be “Math Shy”

Do the math

Numbers tell a story—

get comfortable with them!

The Story Is in the Numbers

Client A 9,305 donors

$114 Average Gift

Increase Average Gift by $10

=$93,050 / 8.7% increase

Client B 6,406 donors

$226 Average Gift

75,000 Names on list

Increase Response Rate by ½

percentage point

=75,000 x .005

=375 new donors x $226

= $84,750 / 5.9% increase

Increase the Average Gift Amount

Prior Year Results

# of Donors Gift Income Average Gift 1,000 $100,000 $100

Renewal Rate # of Donors Average Gift @70% 700 $143

@65% 650 $154

@60% 600 $167

The Average Gift that you must have in order to

earn another $100,000 “gift income” at different

Renewal Rates:


If you have a leadership society, establish a “Chair” for communication purposes

Sell the benefits that reinforce your case for giving

– Example: on-campus activities, leadership society, leadership emails

Target mid-range donors and ask for a leadership gift ONLY

Treat them like a leadership donor – communications, invitations, etc. that are appropriate

Quality solicitation materials – matching the significance of the gift

Ask for a specific amount


Solicit current year donors for a

second gift

• Vary the case for support; think

“special appeal”

• Combined annual giving is what

determines giving society levels

Remember: your best donor is a

current donor

Thank You!


Of:

Find listings for our current season of webinars and register at:

NonprofitWebinars.com

Business

Progressive Annual Fund Strategies