“Creating an Annual Fund Program that Works” by Patrick B. Mulvey, CFRE Vice President for Development The University of Texas M. D. Anderson Cancer Center National Association of Cancer Center Development Officers Annual Conference

2 Gift Pyramid Marry Become Engaged Meet & Date Annual Gift and First Time Donor Major Gift Donor Ultimate Gift Donor (Estate)

3 Direct Mail Grateful Patient Referrals Special Events Etc. Meet and Date

4 Direct Mail - Why Bother? Largest annual source of unrestricted dollars Identifies new donors Replaces lost donors

5 Direct Mail - Meeting and Dating Direct Mail is targetable - great precision Direct Mail is predictable Direct Mail is like a laboratory - it allows you to test lists, offers, copy themes, price points, postage options, package formats, seasonality, upgrades, follow-ups, signers, premiums, personalization, frequency. What you learn is “translated” rapidly to your program improving it and moving it forward

6 Direct Mail - Meeting and Dating Direct Mail is a good investment. You get your money back within months and then enjoy highly profitable economics over the life of the donor Direct Mail has volume-driven economics (cost/piece drops as quantity increases) Direct Mail delivers a consistent, cohesive message Direct Mail is a great brand builder and brand enhancer Direct Mail (properly executed) can build a dialog with your donors

7 Direct Mail - Meeting and Dating Direct Mail builds a donor base - one of the most valuable assets your institution can have. It can be overlaid and enriched with all kinds of data giving you a powerful marketing tool Direct Mail feeds all of your other programs  Identifies donors with the potential to make larger commitments.  At M. D. Anderson (over the past eight years 826 major gifts worth approximately $6 million have been received from individuals who were acquired through the direct mail program)

8 Annual Fund Direct Mail Program Acquisition Package

9 Welcome to a Partnership THAT IS Making Cancer History ® Annual Fund Direct Mail Program Welcome Package Includes: Letter with reply section Brochure - “Annual Fund and You a Unique Partnership” Donor Bill of Rights Matching Gift insert

10 Annual Fund Direct Mail Program Fall Renewal Package

11 Annual Fund Direct Mail Program November Thank You Package

12 Annual Fund Direct Mail Program August Thank You Package Insert

13 Field Officer/Donor Strategy Plan 3 Decisions: Gift Given: # 1 # 2 Assign to Staff? Pool? How Acknowledge? Qualify #3 Donor Strategy

14 Field Officer/Donor Strategy Plan Computer screening Development research Donor history A.S.P.I.R.E. Annual Fund - Planned Giving - Special Events – Boards - Recommendations 20,000 New donors/Year Staff/Board Qualification Through personal contact Implementation Donor Strategies GOAL Top Donors 700/yr. 2 nd Qualification Stage Qualified prospects 3,000 1 st Qualification Stage

15 10 Questions to be Answered 1. Motivation for first gift? 2. Motivation for large amount of gift? 3. Motivation for length and consistency of giving? 4. Why did you stop donating? Did we upset you? 5. Have you been touched by cancer? Were you/loved one treated at U.T. M. D. Anderson Cancer Center? Was it a good experience? Why/Why not? (Possible to reinforce/rectify?) 6. Given your long donor history, have you ever thought about placing M. D. Anderson in your estate plan (will, trust, insurance, etc.?) 7. Are you receiving our materials/mailings (Conquest, Pathways, Annual Fund, etc.?) 8. Can I provide you any information/do anything for you back at campus? Do you have a particular area of interest in cancer and M. D. Anderson Cancer Center? 9. Do you have any friends who may be interested in hearing about M. D. Anderson Cancer Center? 10. Do you work for a matching gift company?

16 Days of Science at your institution Days of Science in donors home town Institutional visits Letter of thanks six months after gift given Birthday card Engagement Thank you note from board member Personal visit Newspaper clippings Report on use of funds on its anniversary date Anniversary card Quarterly magazine

17 Engagement

18 Proposal for next gift, and next and next... Board membership Direct personal relationship with the institution Ultimate gift –Identified by number of years he/she has given number of gifts he/she has given returned a postcard or asked for information on the “buck slip” Marry

19 YEAR OF ACQUISITION # of Donors Total Acquired Revenue 20,511$884,114 21,402$901,025 18,571$805,948 19,762$803,382 20,729$863,642 17,816$677,681 17,824$710,220 19,099$865,000 19,196$757,000 19,950$775,000 15,632$618,000 12,781$505,000 12,044$431,000 11,805$411,000 12,101$437, ,223$10,445,012 Initial Year of Acquisition Acq. Investment CPDR** $948,794$1.07 $926,251$1.03 $977,115$1.21 $997,226$1.24 $939,405$1.09 $814,698$1.20 $708,112$1.00 $837,577$0.97 $666,713$0.88 $668,000$0.86 $547,000$0.88 $472,000$0.94 $470,000$1.09 $490,000$1.19 $457,000$1.05 $10,919,891$1.05 FISCAL 2008 # of DonorsCumulative RemainingRevenue* 20,511$884,114 6,414$2,016,245 4,178$2,041,811 3,800$2,835,686 3,188$2,928,565 2,745$3,865,662 2,698$3,856,508 2,523$4,573,911 2,130$3,709,329 2,194$6,356,255 1,786$6,309,314 1,386$4,278,433 1,116$5,159,011 1,005$4,239, $4,352,345 56,644$57,407,089 *Total cumulative revenue from year of acquisition through FY08. **Cost Per Dollar Raised FY08 FY07 FY06 FY05 FY04 FY03 FY02 FY01 FY00 FY99 FY98 FY97 FY96 FY95 FY94 “Direct Mail - Becoming a Major Donor” -- Long Term Donor Value Statistics

20 Planned Giving Questions to be Answered 1. What interest/prompts donor about planned giving vehicle? 2. What is donor’s long-term goal? 3. What are assets the donor is considering using with planned giving? 4. What is donor’s time frame? 5. Would donor consider another vehicle that’s perhaps a better fit? 6. What is specific M. D. Anderson/cancer interest (qualify level of dollars being discussed, too?) 7. Will donor allow personal visit?