Show Me The Money: Reaching Donors Across Generations

Show Me the Money: Reaching Donors Across Generations

For Audio Call: 1-408-792-6300 Event Number: 935 561 018

Presented By:

Vinay Bhagat, Founder and Chief Strategy Officer, ConvioSteven DelVecchio, Senior Director, Direct Response, AARP/AARP Foundation

Milo Sybrant, Managing Director of New Media, Amnesty International USA

Moderator: Jocelyn Harmon, Director of Nonprofit Services, Care2

May 25, 2010

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Mark Your CalendarThe Networked Nonprofit

Thursday, June 17, 2:00pm EST

Presenters:Beth Kanter, CEO of Zoetica and Blogger in Chief

at Beth’s Blog (co-author)Allison Fine, Fellow, Demos (co-author)Danielle Brigida, Social Media Outreach

Coordinator, National Wildlife FederationMark Sirkin, Chief Community Officer, Autism

Speaks


Next Generation of American Giving

Vinay Bhagat, Founder & Chief Strategy Officer, Convio

Fundraising Emphasis

Matures

Boomers

Gen X Gen Y

% Giving

Tota

l an

nu

al g

ivin

g

58% Give35.9M donors$796 yr/avg4.2 charities$28.6 B/yr

56% Give28.5M donors$341 yr/avg3.6 charities$9.7B/yr



Generational Giving

Defining Values

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

Social Media Habits (% doing regularly)

70%

49%

25%

16%Value• Lifetime value• Lower cost appeals• Active

supporters/promoters

BUT• Require multichannel

appeals• Tracking difficult

More on Gen Y

Mobile Habits

49% Mobile ONLY phone

32% Mobile primary

42% Facebook Mobile app

53% Texters

Defining 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

More on Gen X

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

More on Boomers

Defining Values

Pre-meditated giving LoyalBut guardedScrutiny Value• Largest annual contributions• Greater # of groups• Tracking/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

More on Matures

GEN Y GEN X BOOMERS MATURES

48% 57% 52% 48%

26% 43% 54% 77%

28% 35% 32% 30%

29% 35% 31% 25%

22% 28% 28% 31%

22% 22% 27% 35%

25% 27% 17% 12%

8% 10% 16% 25%

11% 17% 14% 11%

14% 13% 4% 2%

9% 6% 4% 2%

Giving Channels% donated this way in last 2 years (total)

Emerging Channels

Solicitation Channel (From charities/nonprofits with established relationship)

% say appropriate solicitation channel (rank ordered by very important –blue)

TOTAL GEN Y GEN XBOOME

RMATURE

84% 87% 89% 82% 76%

77% 77% 79% 74% 77%

65% 76% 69% 60% 51%

47% 69% 60% 38% 17%

42% 51% 42% 39% 34%

23% 38% 25% 16% 13%

Gen YMainstream media 27%Word of mouth 22%School 18%Peer to peer event 14%

Gen XMainstream media 24% Word of mouth 18%Mail 16%Peer to peer event 11% Work/job 11%Product purchase 11%

BoomersMainstream media 28%Mail 19%Word of mouth 16%Work/job 11%

MaturesMail 35%Mainstream media 24%Word of mouth 18%

52% first learned childhoodAverage time support: 4 yrs

68% first learned 30’s+Average time support: 15 yrs

32% first learned childhoodAverage time support: 7 yrs

55% first learned 30’s+24% childhood, 21% y adult Average time support: 13 yrs

Awareness (top charity)

Direct donation 42% Attended event 19%Visited website 27% Promoted to others 15%Donated goods 23% Volunteered 15%

Direct donation 51% Attended event 18%Donated good 28% Volunteered 16%Visited website 19%

Direct donation 61%Donated goods 25%Attended an event 13%

Direct donation 71%Donated goods 26%Attended an event 13%

Gen Y

Gen X

Boomers

Matures

First Engagement

Engagement TodayGEN Y GEN X BOOMERS MATURES

50% 66% 76% 81%

26% 30% 30% 23%

34% 23% 20% 13%

14% 17% 11% 7%

16% 13% 11% 6%

19% 14% 9% 5%

13% 8% 7% 4%

13% 9% 5% 3%

8% 9% 5% 2%

What does this all mean?

Fundraising is profoundly multichannel

Causation may be impossible to track

Traditional donor databases are dinosaurs

Remove the silos within your organization

Direct mail and telemarketing need to evolve

Word of mouth is critical

Social networks are important and still evolving

Boomers and Gen X hold significant value

Mobile’s time is coming

Content is king

Download the Report

The Next Generation of American Giving

An exclusive look at the multichannel preferences and charitable habits of GenY, GenX, Boomers and Matures

http://www.convio.com/nextgen

AARP: Age as a Factor in Advocacy Fundraising

Steve DelVecchio, AARP

AARP – Fundraising Overview

• AARP full membership starts at age 50

• Two fundraising programs Grassroots Advocacy (C4) Foundation (C3)

• Donors to each program are primarily acquired through the existing membership

• Best performing acquisition segments are donors to the other fundraising program – as a result there are many shared donors between Advocacy and Foundation

• Fundraising channels are primarily direct mail and online

AARP – Advocacy Fundraising

• Age is a criteria for segmentation in fundraising efforts (for acquisition and appeals)

• Mature donors (65+) respond at higher rates and generate more income from direct mail appeals than Boomers (50-64)

• 65+ members respond at higher rates to donor acquisition efforts than do 50-64 members

• Core messages (e.g., Health Care Reform, Social Security) are strongest performers in both age groups

• For some appeals, messaging will vary for each age group

AARP – Advocacy Fundraising

• RFM is the main criteria for segmenting but age is a factor

• Issue responsiveness is a strong indicator for giving• In our March Social Security appeal, previous Social

Security responders (donation & petition signers) had response rates that were 19% higher in the 65+ age group and 10% higher in the 50-54 age group than other donors

Advocacy 2009 Direct Mail

Appeal Response Rates by Age

50-64 65+0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

3.71%

5.14%

% Response

Acquisition Response by Age

50-64 65+0.00%0.20%0.40%0.60%0.80%1.00%1.20%1.40%1.60%1.80%2.00%

1.15%

1.78%

% Response


Appeal Qty by Age Appeal Income by Age

50-6416%

65+84%

% Qty 50-6414%

65+86%

% Income


Acquisition Qty by Age

50-6424%

65+76%

% Qty

Acquisition Returns by Age

50-6417%

65+83%

% Income

Cons Kit ADEA Retire Finance Soc. Sec.

65+ 0.23 0.09 0.13 0.11 0.44

50-64 0.23 0.15 0.15 0.13 0.35

5%

15%

25%

35%

45%

% of total gifts

Advocacy March Acquisition

AARP – Advocacy Fundraising MessagingSocial Security Prospect

Message Variation by Age

50-64: “Every month … as you have for many, many years … you pay into Social Security and Medicare with the expectation of receiving …” “You are fulfilling your part of the deal, and you expect …”

65+: “You paid into Social Security and Medicare for many, many years …” “You have fulfilled your part of the deal, and are now depending upon receiving the full amount …”

AARP – Advocacy Fundraising MessagingSeptember 2009 Health Care Reform Email Test

• Messaging spelling out specific benefits to those 65+ increased number of donations by 20%

• Control language• Put an end to age discrimination from insurance companies• Protect consumers and their right to chose their own doctors• Protect ANYONE – from the government and insurance companies – from coming

between you and your health care• Language specific to 65+

• Close the “doughnut hole” in Medicare Part D prescription drug coverage• Improve quality through better care management that coordinates chronic, acute

and long-term care services and prevents dangerous, costly and avoidable re-hospitalizations.

Show Me The Money: Reaching Donors Across Generations

Engaging Gen Y

Milo Sybrant, Managing Director, New Media

Overview: Fundraising strategy

Look at big picture of supporters’ engagement with Amnesty International

#1 priority = mobilize a broad base of people to bring about real human rights outcomes through: Sending online actions Visiting Members of CongressDonating to support Amnesty’s work

Challenge for Recruiting Gen Y Donors

Amnesty’s human rights message appeals to younger audiences

Our challenge is not understanding how to communicate w/Gen Y supporters

But how to: Recruit them; and Continue to engage them in our human rights

campaigns

Demonstrating Impact• Donors are more than ever

shopping for impactDonors want to make their dollars stretch Being choosy about the organizations they supportWhich organizations demonstrate clearly how

contributions will make a direct, measurable difference in the lives of beneficiaries?

Demonstrating Impact (cont.)

• Best way to persuade people to support our cause (regardless of age group):− Demonstrate that they can make a

difference for human rights− Troy Davis case: clearly showed how

public outcry could tip the scale in favor of justice

− Generated higher than average action rate − Yielded donor conversion rate 3 times

higher than any other campaign in 2009

Reaching Gen YExploring/strengthening emerging channels

Improving understanding of supporter profile

Reaching Gen YExploring/strengthening emerging

channelsMeeting younger donors where they areDevoting staff time to maintaining/growing

presence on social networks Re-allocating substantial portion of our DM

acquisition budget to online acquisition SEM, chaperoned appeals, Google image ads, blog

ads

Reaching Gen Y (cont.)• Benefit to Direct

Mail from investing in online acquisition (v. offline): − 50% of our first-time

online donors will renew offline

− Chalk this up to effective DM renewals program

Reaching Gen Y (cont.)Mobile

Mixed results with mobile fundraising; shifting focus to: Strengthen integration between our mobile platform

and eCRM Expand opportunities to take action via SMS

Setting stage to broaden engagement & improve success with fundraising

Reaching Gen Y (cont.)Improving understanding of supporter

profileMultiple databases result in incomplete picture of

supporters and less than ideal user experienceRunning quarterly email appends Improving data integrationSegmentation based on supporter-supplied

preferences Considering what other types of data we should

have access to in order to improve supporter engagement

Questions?

Technology

Show Me The Money: Reaching Donors Across Generations