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Implementing Integrated Fundraising Techniques

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Who Are We?

Mike Johnston

Founder, HJC,

Integrated Fundraising Specialist, Aerobics Instructor, Game Player,

and Sports Fanatic

Allison Porter

CEO, Avalon Consulting

Strategic Multi-Level and Multi-Channel Fundraiser for

Charities and Politics

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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 integrated fundraising consulting session

http://www.surveymonkey.com/s/KX8MM6J

Take our survey at the end of the session!

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1) Be better at planning and executing cross channel and integrated fundraising and communications

2) Understand that this will lead to improved cooperation between “competing” departments within your nonprofit organization

3) Look at different channel combinations and help you decide which are best for you

4) Look at how you can use integrated fundraising to help better connect ALL levels of fundraising

Learning Outcomes

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1) Our ‘take’ on Integrated FundraisingA personal interpretation from Alison and Mike

2) Integration – up, down and acrossWhat’s the value of being integrated and what are the basics?

3) Evidence – Put It All TogetherWhat does integration look like in the real world?

Today’s Agenda

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Our ‘take’ on Integrated Fundraising

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• It leads to more diverse audiences

• More effective education and cultivation

• Broader PR

• More comprehensive reach

• More seamless donor experience

• And… fundamentally, raising more money!

Allison: What’s Integrated Marketing mean to me

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• It gets more attention in a busy environment

• Donors are already integrated consumer – why not in their philanthropic consumerism?

• It can give a more complete picture of who you are as an organization

Mike: What’s Integrated Marketing mean to me

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Integration – a definition

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Integration

• Definition:

• Integrate:1) Make into a whole, complete, 2) bring together (parts) into a whole.

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Integration

• “ The whole is greater than the sum of the parts”

• A planned marketing mix is more effective than a random selection of distribution channels

• The “Halo” effect

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Integration – ‘up, down, and across’

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Integrationneeds to take place in more than one direction

• Horizontally – Theme, message & style

• Vertically• Acquisition

• Donor Development

• Renewal

In a chronological customer contact flow

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The three tactical levers in integrated fundraising

• Acquisition

• Donor Development

• Renewal

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Horizontal & vertical integration

TV DM Phone Acquisition Internet F2F Radio

1. Donor Acquired

Welcome DM

Email update

2. Donor development and 3. donor renewal

DM Newsletter

Phone upgrade call

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Principals of integration

• Understand the donor/prospect • Research & observation

• Communicate • Relevant consistent messages,

• through the right media

• Sequence your approach

• Plan, test, analyse and revise

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Integration in direct marketing fundraising• Synchronise media to deploy a cohesive, personalised,

sustained message rather than a fragmented scattergun approach

• Personalise your appeal to the needs of the donor prospect over multiple media and recruitment channels to work together for maximum effect

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Integration for maximum effect

• Increase No of qualified enquiries

• Improve fulfilment (conversion) rate

• Improve media /return on investment

• Improve donor satisfaction and lifetime value

• Improve the “Appeal” of your cause

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Integration to Grow Your Pyramid

Prospects

One-off

Pledge

Major

Wills

One-off

Prospect

PledgeMajor

Wills

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• 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!

• Key: shared budgeting!

Integration for the Whole Pyramid

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Cross departmental sharing, learning and lead generation…

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1. Collect personal preferences of donors for targeted marketing appeals

2. Collect demographic data for marketing purposes – and connect it automatically to the database!

3. Build a deeper relationship with donors – give them a platform to be heard

4. Uncover leads for other forms of giving – including legacies, middle gifts, and major donor gifts

The goals of the survey

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Country Planned Gifts revealed

Planned Giving or Major Gift leads

Canada 22 232

United States 52 164

Mexico 9 1,043

Netherlands 196 345

Australia 147 600

New Zealand 92 244

Online and Planned Gifts

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Phone and Planned Gifts

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Our Current Reality

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1) Nonprofit offline donors are aging

2) Donor files and acquisition list sources are shrinking

3) Donor Fatigue is evident

4) Revenues are flat and – in many cases – are falling

5) Direct mail costs are increasing/ fundraising margins are shrinking

6) Online – when kept in a silo - underperforms

Nonprofits need younger more valuable donors

More personal relationships with loyal donors

Investment in a multi-channel approach

Nonprofits need to work better together

Current Reality

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Silos can lead to fundraising deficiencies…

Year Acquired Number Acquired Gave in Year 22006 99 32.30%2007 1736 24.20%2008 3194 19.30%2009 2913 26.40%2010 76562011 7570

25.5% average retention rate

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DM/TM/

Site/Web

DM/TM/Site

DM/Site DM/TM DM/Web/Site

DM/TM/Web

DM/Web DM Only$0

$20

$40

$60

$80

$100

$120

73%74%75%76%77%78%79%80%81%

Income/Member Average Gift Retention

The Case for Multi-Channel Giving

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Diversifying and optimizing all available outreach channels is important—especially during challenging economic times

FY10 is incomplete

Avalon’s analysis shows that donors don’t always stick to the channel they joined with—but migrate to different channels.

This graph shows how “web joins” for one client actually gave more through mail and phone in subsequent gifts.

Subsequent income by channel for website joins

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The Donor Media Mix

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IntegrationThe Market Reality and The

Value

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Canadian Generational Giving

Boomers

Civics

Gen X

Gen Y55% Give2.7M donors$325 yr/avg3.5 charities$.8 B/yr

61% Give4.2M donors$549 yr/avg4.1 charities$2.3 B/yr

66% Give5.7M donors$725 yr/avg4.9 charities$4.1 B/yr

73% Give3.2M donors$833 yr/avg5.3 charities$2.6 B/yr

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Donations plans to top charity next year

Future Giving

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More on Gen Y

Mobile Habits

49% Mobile ONLY phone

32% Mobile primary

42% Facebook Mobile app

53% Texters

Defining Values Time to give backWhat’s in it for me?Online connection

Social Media Habits (% doing regularly)

70% 49% 25% 16%Value• Size

• Lifetime value

• Lower cost appeals

• Active supporters/promoters

BUT

• Require multichannel appeals

• Tracking difficult

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More on Gen XDefining Values Peer-motivatedSupport random, emotionalTime vs. moneyOnline connection

Value• Size of gifts to top charities

• Lifetime value

• Lower-cost appeals

• More than dollars

• Viral promoters

• Most Educated, Higher Income

BUT

• Harder to secure

Social Media Habits (% doing regularly)

56% 30% 13% 11% 11%

Mobile Habits28% Mobile ONLY phone

37% Mobile is primary

27% Facebook mobile app

40% Texters

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More on Boomers

Defining Values Giving more plannedEfficiency/overhead concerns2-in-10 retired

Value• Largest cohort

• Size and dollars

• Income

Tech/Media Profile29% Facebook (reg)

(60% Total)

17% Texters

47% E-newsletters

55% Bank online

33% Shop online

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More on MaturesDefining Values Pre-meditated giving LoyalBut guardedScrutiny

Value• Largest annual contributions

• Greater # of groups

• Tracking/Direct mail responsive

BUT

• Smallest cohort and shrinking

• Less open to new appeals

Tech/Media Profile17% Facebook (reg)

(50% Total)

5% Texters

48% E-newsletters

57% Bank online

34% Shop online

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And then there is Gen Z…

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

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Increasingly Multi-Channel Behavior

% Who Agree, Appropriate Solicitation Channel

GEN Y GEN X BOOMER MATURE

MAIL 71% 71% 75% 64%

EMAIL 67% 60% 51% 40%

SOCIAL MEDIA 59% 30% 15% 13%

PHONE 38% 38% 39% 35%

TEXT 23% 14% 9% 9%

Source: Next Generation of Canadian Giving, Convio, hjc, Stratcom 2010

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Evidence – Put It All Together

What does integration look like in the real world?

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The House of Glass: An Integrated Case Study

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Proving Integration Makes a Difference in Fundraising

• Radio 3FM - Public broadcast

• 1 week (Xmas week)

• House of glass on a public square in Utrecht

• 3 radio DJs

• 24 hours life radio for 5 day's

• No food

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Marketing Tools

• Radio announcement

• TV commercials

• TV news coverage

• Newspaper articles

• Text bar on the TV screen

• Internet

• Word of mouth

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Fundraising Tools

• How to make a song request and pay

1. Internet - www.3fm.nl

2. Telephone – 0909-1336

3. Postcard with bank authorisation

• Not related to the song request

4. Auction

5. SMS

6. Cash donations

7. Company of the day

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Channel Team Work!

40

1030

20

Donations

OnlineSMSTelephoneWalk Up

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The Halo Effect!

Year 1 Year 2 Year 30

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

220,000 240,000

915,000

Donations

Donations

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CASE STUDY: Farm SanctuaryMulti-Channel Year-End Appeal

The Problem: Farm Sanctuary wanted to increase the number of animals it would save in the upcoming year, which meant getting donors on board to generate the additional funding needed.

The Response: Farm Sanctuary’s year end appeal Campaign Strategy allowed Farm Sanctuary to alert members, raise money, and secure a matching gift challenge with a year-end deadline.

The Campaign: Avalon worked with Farm Sanctuary to implement a multi-channel campaign that included:

• Multiple E-Fundraising emails• Direct mail • Online

The Results: The multi-channel, multi-phase approach hit the mark as we hoped. The final email effort generated 37% of the total email revenue in just 24 hours! Overall, the campaign produced a 17% higher response rate and 42% more net revenue than the previous year-end effort.

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Email

December 16th December 22nd December 30th

E-AppealE-Appeal resend to non-responders

Mail

Year-End Direct Mail

CASE STUDY: Farm Sanctuary Components of a Multi-Channel Campaign

December 16th

Last chance E-Appeal

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CASE STUDY: Farm SanctuaryE-Fundraising Emails

E-Fundraising Emails

Three fundraising emails were sent to the full Farm Sanctuary email list.

While respondents to the first email were suppressed from the second email, we added them back into the third email effort.

The third email effort was dropped the day before the December 31 matching gift deadline and included a compelling video clip from Farm Sanctuary’s President and Co-Founder, Gene Baur.

As a result, we were able to encourage Farm Sanctuary’s best donors to make an additional gift to the campaign - taking advantage of both the tax deductibility and matching gift.

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CASE STUDY: Farm Sanctuary Direct Mail

Avalon worked with Farm Sanctuary to time the direct mail appeal and the first email appeal to arrive at the same time.

Avalon’s year end strategy was three-fold: increase contact frequency, maximize multi-channel communications, and emphasize urgency.

Farm Sanctuary was able to secure a matching gift challenge with a year-end deadline, which we were able to leverage for added urgency.

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Results and Learnings

Efforts Qty Gifts Gross Revenue RR AG

FY10 DM 1 52531 2553 $ 163,887.00 4.86% $ 64.19

FY10 Online 3 158120 1850 $ 162,468.00 1.17% $ 85.63

TOTAL FY10 210651 4403 $ 326,355.00 2.09% $ 74.12

FY09 DM 1 61893 2092 $ 108,790.00 3.38% $ 52.00

FY09 Online 1 39200 294 $ 40,354.00 0.75% $ 137.26

TOTAL FY09 101093 2386 $ 149,144.00 2.36% $ 62.51

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• Brand is perceived as authentic

• No integrated fundraising execution

A Public Broadcaster

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• 2nd gift conversion dropped from 83% to 30%

• Net loss of donors since 2005.

• LTV of donors decreasing significantly since 2001

• Magazine, which was the primary stewardship vehicle, stopped in 2007.

• Share of voice, i.e.number of times donors hear from TVO in a year, has decreased.

Things needed to be improved

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How Do They Do It?Team Optimization

Multi Channel Integration

Culture Committed to Service

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• Senior management support

• Cross departmental cooperation

• Create an integrated plan and stick to it

It would take an integrated solution…

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Online and offline integration

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Online and offline integration

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Launched Impact Report for Donor Loyalty

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• Promoted online and through web

• Donor direct mail piece

• Householder

• Brochure in Impact Report

• Focused direct response TV advertisements

• Streamlined online fundraising

• Launched new microsite with focused campaign feel

• Built email list through “pledge sign-up”

• Ran focused e-mail conversion strategy

• End of year e-mail appeals

Launched Symbolic Giving

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Launched Symbolic Giving

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• Highlighted 40th anniversary

• Telemarketing

• Integrated Telemarketing with DM strategy

• Follow-up post direct mail appeal

• In-bound support

• Brought in industry-leading call centre to handle inbound fundraising calls outside of regular hours (weekends/holidays etc.)

• Introduced integrated (mail, phone, online) renewal strategy

Launched cultivation mailings

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• Cost to Acquire a DRTV Donor increasing

• Small List Universe for DM Acquisition• Response Rates Dropping

• Online showing growth over past years

• Limited Phone

• Strong Conversion to Monthly from DM

Reality

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Results – 2010 and 2011

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Holiday 2011 Campaign

The campaign featured a landing page, which displayed “messages of hope”, left by constituents when they were making donations.

The landing page also featured a video with a brief explanation of what the BC Cancer Foundation is, a campaign thermometer and a promotion of the ability to send eCards.  

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Holiday 2011 Campaign

The campaign was active for about three weeks, ending on December 31, 2011. It included:

1. Google AdWords Search Network (Paid Account)

2. Google AdWords Display Network

3. Google AdWords Search Network (Google Grant Account)

4. Email

 

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Wrap Up

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Wrap UpQuestions, thoughts or reflections…

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Results and Learnings

Overall Revenue: 1,272 gifts, $275,003, $216.20 average gift

1. Big Breakthrough #1: Google Search, Adwords - $2,500 spent with a return of $58,000.

2. Big Breakthrough #2: Larger Gift array led to larger gifts

3. Big Breakthrough #3: More emails, with personalization and e-cards, led to more money online

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CASE STUDY: League of Women Voters Multi-Channel Urgentgram Appeal

The Problem: The League was under attack by a bogus organization.

The Response: The League’s September/October 2009 Emergency Urgentgram Campaign allowed the League to alert members, raise money, and highlight the League’s position on health care during the nation’s health care debate.

The Campaign: Avalon worked with the League to implement a multi-channel campaign that included:

• Multiple E-Fundraising emails• E-Engagement email• Telemarketing• Direct mail • Online and social networking strategy

The Results: The Emergency E-Appeals were by far the most successful the League had ever seen, raising more than double the online fundraising budget for the entire fiscal year from just one campaign! The unbudgeted direct mail effort brought in significant additional income on top of their traditional mail schedule.

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Email

Day 1 Day 2 Day 10Day 6 Day 12 Day 14

E-AppealE-Appeal resend to non-responders

E-Newsletter E=Engagement piece

TM

Appeal Telemarketing

Mail

Urgentgram Mail

Web

Homepage Social networksPress release

Follow-up E-Engagement piece

CASE STUDY: League of Women Voters Components of a Multi-Channel Campaign

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CASE STUDY: League of Women Voters E-Fundraising and E-Engagement

EmailsE-Fundraising Emails

Two fundraising emails were sent to the full League email list

Second E-Fundraising email was sent to non-responders; used preview pane language to convey urgency

Landing page matched look and feel of emails

E-Engagement Emails

Regularly scheduled E-Newsletter sent in addition to two E-Engagement emails

E-Engagement emails highlighted ways for citizens to get involved as well as a League PSA, which was funded by revenue raised from the E-Fundraising emails

E-Engagement emails boosted fundraising by including soft asks

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CASE STUDY: League of Women Voters Telemarketing

The League was already on the phones with sustainer, reinstatement, and appeal telemarketing campaigns.

Avalon worked to change copy in each of the three scripts to reach as many people as possible.

Changes were made to scripts within days of the issue first arising; message matched online communications.

Donors responded very generously on the phones to this tangible threat; health care – an issue dominating the news also resonated with donors.

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CASE STUDY: League of Women Voters Direct Mail

Avalon worked with the League to get an unbudgeted direct mail appeal out the door within two weeks.

A simple format and very strong teaser conveyed urgency.

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CASE STUDY: League of Women Voters Website and Social Networking

Messaging was also coordinated on the League’s website and through their social networking profiles.

Homepage included a fundraising ask, which provided extra collateral income.

Facebook status alerted fans to the situation, sparking a discussion online, and driving traffic to the League’s website.

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Results and Learnings

Efforts Qty Gifts Gross Revenue RR AG

Standard e-Appeal 2 28884 55 $ 2,275 0.19% $ 42.13

LAV e-Appeal 4 242,489 1915 $ 102,910 0.89% $ 53.35

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Wrap UpQuestions, thoughts or reflections…

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