4Retain1. 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 one’s country, creed, family, friends, etc…implies unwavering devotion and allegiance to a person, principle, etc.
5political parties Who Are We Loyal To? alma maters college sports professional sports friends and familymovie & television starsour faithpolitical parties
6political parties Who Are We Loyal To? alma maters college sports Professional friends and familysportsmovie & television starsour faithpolitical parties
7Retention Versus Loyalty Constituents have multi-faceted relationships with your councilThought key, donating is only one way a constituent can interactLook for missionaries not just transactional behaviorsLife-time value is not calculated year over yearDonor retention is only one measure of loyalty
8Donor 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 purchaseWhy?Everyone agesAs we age, we enter into life-cycle phases that govern our attitudes, careers, and discretionary income spending habits
9Donor Demographics Baby Boomers—the Boom General Description Born between 1947 and 1966The “me” generation will start to shift focus to its legacyLess 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 workforceContinuing education becomes a focusCommunication FocusLegacy and leaving the world a better placeFinancial planning
10Donor Demographics Generation X—the Bust General Description Born between 1967 and 1979Fewer in numbers, also having fewer children themselvesFirst generation to have a lower quality of life than the one beforeEstimated that this generation will have on average three complete careersMore action rather than idea orientedCommunication FocusThis age cohort is more cynical and less idealistic; they seek authenticityReturn on investment is more psychic than material—don’t dwell on benefitsWant “proof” of monies well spentWell positioned to be the most loyal group in decades… will have “pet” causes
11Donor Demographics Generation Y—the Echo General Description: Born between 1980 and 1994Never knew a time before MTV and 50+ television channelsLeast religious of all prior generationsNot a rebellious group—seldom had limits to start withYoung Cosmopolitans (“Yo-Co’s”) much sought after but offer little loyaltyCommunication Focus:Very visual, prefer multi-mediaAble to consume vast amounts of informationVery short attention spans
12Evaluating Loyalty Institutional mission and objectives What is your council’s missionWhat are your long-term objectivesWhat are you short-term objectivesHow do you measure successWhy should donors support you
13Evaluating Loyalty Environmental/Competitors Who is raising money from your donors?What are their activitiesHow are they doingWhat are their strategiesWhat are their strengthsWhat are their weaknessesIs there anything you can learn from themDo they attract all of your donors or just particular segmentsIf yes, which segment(s)
14Evaluating Loyalty Donor Analysis Who are your donors? Age rangeGenderSocio/economic factorsEducationInterests/ActivitiesWhy do your donors support youDo your mid to high-range donors differ from broad-based donorsWhat characteristics do they shareWhy do these donors support youOf the two groups, who has a higher retention rateWhat do donors like about your institutionWhat aspects of your mission create the most interest
15Evaluating Loyalty Donor Analysis (continued) What kinds of communication do your donors wantAre there gapsAre you overwhelming your donors with communicationsWhat is the ratio of pure information to asks (both soft and direct)What other nonprofits do your donors supportWhy do they support themHow do they decide “what portion of the pie” they give to youWhat prompts your donors to start givingWhy do they stop
16Evaluating Loyalty Donor Relations How do you identify new donors Do you segment your databaseWhat criteria do you use for segmentationCan this be further refinedWhat is the annual attrition rate for each segmentDoes one perform significantly betterIf yes, whyWhat types of donor acquisition work
17Evaluating LoyaltyBased on the evaluation of your retention activitiesWhat are your strengthsHow would you rank themWhat are your weaknessesHow do they fit into the following bucketsFully resolvable in 0-6 monthsSignificant action taken within the yearLong-term planning required
18What are your goals for donor retention Percentage retained year over yearDollars raised from retention activitiesWhich segments will produce these resultsCosts for retention programsHow will you define success?
20What are the possible reasons why we’re not retaining these donors? 30 minute team exercise by council, flip charts, be ready to present to the group some of your thoughts.
21Reasons for Quitting No longer able to afford support No memory of ever supporting!Still supporting by other meansFeeling that other causes are more deservingX no longer needs my supportRelocatedNot reminded to give againX did not inform me how my monies were usedX’s communications were inappropriateX asked for inappropriate sums
22What are specific things we can do to better retain our 2012 donors in 2013? 30 minute team exercise by council, flip charts, be ready to present to the group some of your thoughts.
23Survey says… Please take a few moments to complete the survey… Final thoughts to consider…In March of 2012 we sent a survey to councils and had 155 respondents. We asked a number of development related questions and found the following;
24Shocking 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 don’t have a development plan or an approach to cultivating donor relationships!The 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 don’t have a development plan or an approach to cultivating donor relationships!Lewis Carroll wrote “If you don’t know where you are going, any road will get you there.”
25Donor Communication Is Infrequent and Self-centered A 2012 BSA council survey revealed:23.5 percent have board members call donors to thank them35.3 percent send a donor targeted newsletter59.5 percent send a holiday card60.1 percent mail an annual reportSome councils reported doing NOTHING to reach out to donors. Meaningful donor contacts utilized on an annual basis:More than one-half mail Annual Reports to donors (60.1%)Send holiday, Thanksgiving, or Independence Day greeting cards (59.5%)Provide a council newsletter (54.3%)Donor targeted newsletters (35.3%)Invitations to annual meeting (29.4%)Specially created cards or notes from Scouts (26.8%)Thank you calls from board members (23.5%)About one in 10 (9.2%) mentioned other contacts such as letters (5), postcards (2), dinners (2), and Christmas popcorn gift (1)One (0.7%) indicated their council does not offer any of these types of donor contacts.
26Our communication focuses on what the COUNCIL has done with the money, not on how the DONOR has made an impact on lives.In relation to communication we see that much of what we are doing in local councils focuses on what the COUNCIL has done with the funds they raise or programs they offer, not on how the DONOR has made an impact on lives.Tom Ahern a noted communications expert indicates that the word “YOU is the GLUE” that connects donors back to the mission of the organization!
27Most Councils Do Not Hold Donor Cultivation Events Only 47 percent of councils conducted a donor cultivation event in These events included:Recognition mealsHeritage Society receptionsCamp visits and open housesMajor gift dinners/receptionsThe survey revealed:Donor Cultivation Events:Almost one-half (46.8%) of Scout executives conducted a donor cultivation event in These events included;recognition meals e.g., breakfast, luncheon, dinner; (14)Heritage Society receptions (10)Camp visits and open houses (9)Major gift dinners/receptions (6)Many people believe fundraising is limited to sending out a letter, holding an event, or writing a grant proposal. Fundraising is really about the development of relationships. Relationship building takes time, whether we’re approaching individuals, corporation or foundations. We must cultivate relationships with all of our constituencies which can then result in bigger gifts, more rewarding relationships, and increased involvement of donors.
28It’s all about the donors Here’s a big idea you can take away from this session….
30Building Relationships Is Important Improves donor retentionLeads to higher giving levelsCreates higher long-term valueIncreased involvementLeads to long-term donor loyalty and legacies
31Retain Your Donors It is easier to keep a donor than find a new one. Build long-term relationships by maintaining regular communication.Don’t focus on the one-time gift; look for continued support."If you focus exclusively on the cash you receive this year — then you are exposing your organization to great risk.“ Peter DruryPeter Drury, holds an MBA from Seattle University, Masters in Social Work from University of Illinois, and a Masters in Divinity (Ethics) from Yale University. He is a well known and respected strategist and philanthropist.Drury asks the following questions:How are we setting ourselves up (or not) for future success?How are today's decisions (or not) going to impact next year's fundraising?What happens in the future when today's best donors are no longer with you?
32Donor Communication Plans Long termAnnualCalendarizedSpecific Goals for targeted groupsCommunity at largeScouting Family
33Major Donor Strategies Highly personalMeet as many as you canPersonalized proposalsRegular contact person from the councilVolunteer and Pro partnership
34Major Donors Once you go personal, you can’t go back, move carefully Labor intensive and takes timeThe more individual the strategy, the better the results
35Walk Before You Run… Phase in gradually Helps you better evaluate resultsImprove annuallyYou get better with practiceDonor feedback will help you determine you next steps
36If You Can’t 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 startedSuccess will breed success