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DRIVING DONOR LOYALTY. Donor Retention Process not a Project Commitment.

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Presentation on theme: "DRIVING DONOR LOYALTY. Donor Retention Process not a Project Commitment."— Presentation transcript:


2 Donor Retention Process not a Project Commitment

3 Retention Versus Loyalty How do they relate?

4 Retain 1. to keep possession of. 2. to continue to use, practice, etc.: to retain an old custom. 3. to continue to hold or have. 4. to keep in mind; remember. 5. to hold in place or position. Loyalty [implies] a sense of duty or of devoted attachment to something or someone. Loyalty connotes sentiment and the feeling of devotion that one holds for ones country, creed, family, friends, etc…implies unwavering devotion and allegiance to a person, principle, etc.

5 Who Are We Loyal To? alma materscollege sports professional sportsfriends and family movie & television stars our faith political parties

6 Who Are We Loyal To? alma maters college sports Professional friends and family sports movie & television stars our faith political parties

7 Retention Versus Loyalty Constituents have multi-faceted relationships with your council Thought key, donating is only one way a constituent can interact Look for missionaries not just transactional behaviors Life-time value is not calculated year over year Donor retention is only one measure of loyalty

8 Donor Demographics Boom, Bust, and Echo Understanding of basic demographic dynamics can explain most of the current patterns we observe in consumer behavior. Donation is a purchase Why? Everyone ages As we age, we enter into life-cycle phases that govern our attitudes, careers, and discretionary income spending habits

9 Donor Demographics Baby Boomersthe Boom General Description Born between 1947 and 1966 The me generation will start to shift focus to its legacy Less willing to comparison shop, they seek quality and high level of service Baby-boomers are human beings, not a new species. Previous generations also had their own popular music and they too learned to appreciate classical music (Boom, Bust, and Echo) Volunteerism should increase as relatively healthy individuals leave the workforce Continuing education becomes a focus Communication Focus Legacy and leaving the world a better place Financial planning

10 Donor Demographics Generation Xthe Bust General Description Born between 1967 and 1979 Fewer in numbers, also having fewer children themselves First generation to have a lower quality of life than the one before Estimated that this generation will have on average three complete careers More action rather than idea oriented Communication Focus This age cohort is more cynical and less idealistic; they seek authenticity Return on investment is more psychic than materialdont dwell on benefits Want proof of monies well spent Well positioned to be the most loyal group in decades… will have pet causes

11 Donor Demographics Generation Ythe Echo General Description: Born between 1980 and 1994 Never knew a time before MTV and 50+ television channels Least religious of all prior generations Not a rebellious groupseldom had limits to start with Young Cosmopolitans (Yo-Cos) much sought after but offer little loyalty Communication Focus: Very visual, prefer multi-media Able to consume vast amounts of information Very short attention spans

12 Evaluating Loyalty Institutional mission and objectives What is your councils mission What are your long-term objectives What are you short-term objectives How do you measure success Why should donors support you

13 Evaluating Loyalty Environmental/Competitors Who is raising money from your donors? What are their activities How are they doing What are their strategies What are their strengths What are their weaknesses Is there anything you can learn from them Do they attract all of your donors or just particular segments o If yes, which segment(s)

14 Evaluating Loyalty Donor Analysis Who are your donors? o Age range o Gender o Socio/economic factors o Education o Interests/Activities Why do your donors support you Do your mid to high-range donors differ from broad-based donors What characteristics do they share Why do these donors support you Of the two groups, who has a higher retention rate What do donors like about your institution What aspects of your mission create the most interest

15 Evaluating Loyalty Donor Analysis (continued) What kinds of communication do your donors want Are there gaps Are you overwhelming your donors with communications What is the ratio of pure information to asks (both soft and direct) What other nonprofits do your donors support Why do they support them How do they decide what portion of the pie they give to you What prompts your donors to start giving Why do they stop

16 Evaluating Loyalty Donor Relations How do you identify new donors Do you segment your database What criteria do you use for segmentation Can this be further refined What is the annual attrition rate for each segment Does one perform significantly better o If yes, why What types of donor acquisition work

17 Evaluating Loyalty Based on the evaluation of your retention activities What are your strengths o How would you rank them What are your weaknesses o How do they fit into the following buckets o Fully resolvable in 0-6 months o Significant action taken within the year o Long-term planning required

18 What are your goals for donor retention Percentage retained year over year Dollars raised from retention activities Which segments will produce these results Costs for retention programs How will you define success?

19 Headquarters City Givers '12$ PD '12# PD '11 NR$ PD '11 NR# 10, 09, 08$ 10, 09, 08 Council A1,603314, ,8831,234147,024 Council B1,443524, ,9201,165162,539 Council C454157, , ,559 Council D777232, , ,707 Council E1,041501, , ,396 Council F1,120483, , ,479 Council G652230, , ,414 Council H1,324555, , ,109 Council I1,143312, , ,376 Council J697265, , ,717 Council K1,493344, , ,375 Council L859406, , ,734

20 What are the possible reasons why were not retaining these donors?

21 Reasons for Quitting No longer able to afford support No memory of ever supporting! Still supporting by other means Feeling that other causes are more deserving X no longer needs my support Relocated Not reminded to give again X did not inform me how my monies were used Xs communications were inappropriate X asked for inappropriate sums

22 What are specific things we can do to better retain our 2012 donors in 2013?

23 Survey says…

24 Shocking BSA Statistics A 2012 BSA survey revealed: Slightly more than half of all councils (55 percent) have a written overall fundraising/development plan with timelines and goals. Only 43 percent of councils have a systematic, year-round approach to cultivating donor relationships. 25 percent of councils report they dont have a development plan or an approach to cultivating donor relationships!

25 Donor Communication Is Infrequent and Self-centered A 2012 BSA council survey revealed: 23.5 percent have board members call donors to thank them 35.3 percent send a donor targeted newsletter 59.5 percent send a holiday card 60.1 percent mail an annual report Some councils reported doing NOTHING to reach out to donors.

26 Our communication focuses on what the COUNCIL has done with the money, not on how the DONOR has made an impact on lives.

27 Most Councils Do Not Hold Donor Cultivation Events Only 47 percent of councils conducted a donor cultivation event in These events included: Recognition meals Heritage Society receptions Camp visits and open houses Major gift dinners/receptions

28 Its all about the donors

29 Video located at er_detailpage

30 Building Relationships Is Important Improves donor retention Leads to higher giving levels Creates higher long-term value Increased involvement Leads to long-term donor loyalty and legacies

31 Retain Your Donors It is easier to keep a donor than find a new one. Build long-term relationships by maintaining regular communication. Dont focus on the one-time gift; look for continued support.

32 Donor Communication Plans Long term Annual Calendarized Specific Goals for targeted groups o Community at large o Scouting Family

33 Major Donor Strategies Highly personal Meet as many as you can Personalized proposals Regular contact person from the council Volunteer and Pro partnership

34 Major Donors Once you go personal, you cant go back, move carefully Labor intensive and takes time The more individual the strategy, the better the results

35 Walk Before You Run… Phase in gradually Helps you better evaluate results Improve annually You get better with practice Donor feedback will help you determine you next steps

36 If You Cant Do It All… Start small with five donors What could you do with five key donors this month? Next month? Start small…but do get started Success will breed success

37 Video located at 0kWpHJGqM


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