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Reaching Out to Donors of Other Faiths 2003 National Catholic Development Conference Los Angeles, CA September 30, 2003 Kevin Whorton, Director Direct.

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Presentation on theme: "Reaching Out to Donors of Other Faiths 2003 National Catholic Development Conference Los Angeles, CA September 30, 2003 Kevin Whorton, Director Direct."— Presentation transcript:

1 Reaching Out to Donors of Other Faiths 2003 National Catholic Development Conference Los Angeles, CA September 30, 2003 Kevin Whorton, Director Direct Response Fundraising Catholic Relief Services Baltimore, Maryland

2 Overview

3 Why Pursue “Other Faiths”…  Two simple answers: We appeal to non-Catholics We need to appeal to other non-Catholics

4 Our Appeal to non-Catholics The sensibilities of Catholic Social Teaching  Common sense appeal Dignity and equality of the Human Person Rights and responsibilities Social nature of humanity The common good Subsidiarity Solidarity Option (concern) for the poor Stewardship  Very key issues that appeal equally to non-Catholics

5 Evidence of Our Appeal  Our founding: Eastern Europe after World War II  Our donor base: 94% Catholic (Epsilon profile in 1999)  Still name recognition issues Tempting to conclude that it reduces our appeal in some sectors  Program expansion hindered Poor performance with Hispanics Odd program structure  $28-$32 average acquisition gift  $140 average value per donor per year

6 Our Culture  Diversity We work in more than 90 countries Most of our field staff are “national”—from that nation We work closely with partners in all of our work, entities in that nation including Caritas Staff are very mixed  Catholic, other Christian, Jewish, Hindu, Muslim  Many are historically “field people”  (However Catholics hold the most senior positions within countries and Baltimore) Language, attitude of economic development  In many ways, seems stronger than faith or Catholic Social Teaching

7 Facing the Challenges

8 External Challenges  Continually a more crowded field Non-Catholic organizations are successfully mining territory  No longer the “franchise” that once existed  Breakeven results on program Hard to expand outside Catholics  Working in a tough space: development organization that sounds religious  Very few advantages, many disadvantages of structure  Media/public image  Relationship for government funding  Works with many religious partners in the field (e.g., Caritas) More of a focus on cooperation within the community  Avoid redundancy, maximize efficiency of operation

9 Internal Challenges  Attitudes Distrust of “junk mail and telemarketing” Budget and staffing cutbacks in current environment (due primarily to public funding) Inadequate access to internal information  Yet, a strong program Good renewal rates  Recently, poor conversion rates of new donors  Loss of 10 percentage points on renewal  Loss greater at the low dollar, core remains strong

10 Integrated Marketing within CRS

11 Outreach Across Channels: Fundraising  Corporate We apply social screens which sharply reduces the range of organizations we can work with Sharply curtailed in-kind giving long ago  Foundations Work with some small family foundations Many of the FADICA list were not “prospects” Some of our goals are large, secular (e.g. Gates)  Major gifts/planned giving Strong Catholic focus  However, performance historically lags behind direct response

12 Outreach Across Channels: Awareness Raising  Marketing We apply social screens which sharply reduces the range of organizations we can work with Sharply curtailed in-kind giving long ago  Advertising Worked closely with a mix of commercial and Catholic publications in four test markets/SMSA Proven effect on fundraising: negative  Poor readership of diocesan publications  Increase in aided/unaided awareness  Slight increase in response rate, lower average gifts  Media Considerable focus on Catholic publications Need to maintain broader-based readership

13 Outreach Across Channels: Integrated Marketing  Web Much younger approach  Future vehicle for “the right donor”  Key to new acquisition  Best method for approaching non-Catholics  Tie-ins (Hungersite)  Advocasy  Content management initiative (micro-sites) Also allows focus on “dual constituencies”  Communicate to donors who care about an issue  Communicate to programs about what donors want/like

14 Outreach Across Channels: Church/U.S. Operations  Integrating agency strategy Potential challenge: “social justice” lens  Marketing department challenges view  Conflicts with opinion research:  Positioning study  Segmentation study  Both document less than supportive attitudes Conflict: “what works” vs. “where we’re going”  Our position: “dual constituency” provides an umbrella  A way to help donors organize how they think about us  Hurts short term, should support long-term results

15 Direct Marketing Program

16 Evidence from Our Testing Confusing mix:  We tested several packages successful enough to retest  Our standard control (six years running) Double buckslip, not much personalization Mission oriented text No premium  “Gold angel token” Very similar package, but using token as attention-getter  “Urgent letter” Traditional letter format, more text explaining what we do Different external appearance/teaser

17 Evidence from Our Testing: Package Comparison ABC # Mailed364,945150,00050,000 % Response0.71%1.23%0.77% Average Gift$36.48$23.73$55.52 Rev/M$257.26$292.99$ CPDR$1.38$1.54$0.93 A: New Refugee Control B: Control with Gold Angel Token C: Urgent Letter Package

18 Audience Selections  Mailing lists Two separate brokers  One for our “Catholic” track  One newer for “international” (secular) lists  The latter still performs poorly—  Response rates are roughly 60% that of Catholic lists  Average gifts are comparable, if a bit higher  Cost per dollar raised varies campaign to campaign  “International lists” are generally Catholic selections of lists of people chosen for non-religious behavior  Considerable use of modeling

19 Ethnic Marketing Programs  Abandoned early Spanish language approach  Dismal results, impossible to justify as an “investment”  Premium sensitive people New: present CRS activities targeted to interests  Developed first prospect package for Korean-American audiences  Colors, content, photographs all reflect Korean programs  Careful introduction to donations, charities, unrestricted gifts Branch more into international  Pro: Appeal, strong results among other orgs  Con: Many peer organizations are already there  Relationships:  Historically constrained by Caritas relationships  Practical: many are sophisticated fundraisers …

20 Our Message

21 How We Describe CRS Historical perspective  Established 1943 as War Relief Services  International Relief and Development Agency  Assist needy in more than 90 countries worldwide  Program areas include Agriculture Civil justice Child survival Small loan programs HIV/AIDS Education Emergency relief Health

22 Insight Driving Our Marketing Positioning Study (Wirthlin Worldwide) “Where we are” in the minds of donors 90 two-hur interviews with major, minor, prospective donors Laddering: taking a participant’s comment and asking WHY more to probe Often a method used to assess the brand mindset: defining CRS according awareness/attitudes of donor Concerns: “Urban legends” and “pooled ignorance”!

23 Positioning Map: Relief Organizations Religious Secular DomesticInternational Other Axis Options Relief/Development Child/Adult Specialized/General Catholic Charities International Red Cross UNICEF CRS LWR World Vision CARE Salvation Army WR Save The Children Peace Corps SVDP

24 Copy Issues  Developing more “first person” stories Added staff in Nairobi/Johannesburg  Better relationships with field staff  Easier stories, sometimes as simple as writing back to sitrep (situation report) authors Becoming more “granular” in our approach  Raising money for specific causes  Better balance between restricted and unrestricted  Adding capacity to do small volume, topical mailings/campaigns

25 Design Issues  Typical packages Crowded, everything “tests in”  Devout inserts—prayer cards  Tests of Mass cards work well Often some pushback internally  Fortunately, considerable autonomy on copy, business decisions  Loath to feature: flies, famine, undignified portrayals Ongoing concern:  CRS is very well respected in development world  Yes, aura dims with our target audiences  How to make it convey?  How to make audiences relate to us and the need?

26 In Conclusion Focusing On What We Control


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