Sustainable Revenue -Monthly Giving- Valerie Arganbright Linda Billman

2013 Fundraising Effectiveness Survey done by the AFP Infographic by

2013 Fundraising Effectiveness Survey done by the AFP Infographic by

2013 Fundraising Effectiveness Survey done by the AFP Infographic by

Fundraising Effectiveness Survey done by the AFP Taking positive steps to reduce gift and donor losses is the least expensive strategy for increasing net fundraising gains.

Typically anchored by a one-time annual contribution Supplemented by one or two additional gifts within a 12-month time period Predetermined end date is usually within a fiscal year or 12 months after the initial gift Contribute by credit card, bank account (EFT or debits) or check. Use of channels/technology is not integrated Traditional Giving

It’s referred to as monthly, recurring, evergreen, perpetual Donors make a fixed monthly gift that recurs without a predetermined end date Gift is incurred by automatic bank account withdrawal (electronics fund transfer – EFT – or debits) or credit card Continues until the donor opts out Think “no more renewals” or “annual” or “12 months” Monthly Giving

Sustaining Our Sustainers Program Survey Question: Do you ask your members to become sustainers? Yes or No?

On average, a donor will make monthly gifts to three organizations.

Why Monthly Giving Matters Higher Retention Rates 2 to 3 times the retention rate of new single-gift donors Higher retention rate of multi- year donors too

Higher Revenue per Donor Median Revenue per New Single Gift Donor - $73 Median Revenue per New Monthly Donor - $104 Data from Target Analytics donorCentrics Sustainer Benchmarking Report Why Monthly Giving Matters

Monthly Giving is so powerful because of the combined effect of: Higher Retention X Higher Revenue per Donor = Higher Lifetime Value

MONTHLY DONOR COMPARED TO ANNUAL DONOR - RETENTION & REVENUE DIFFERENCE Yr 1Yr 2Yr 3Yr 4Yr 5 500Retention Rate75% 85% 90% Monthly Donors# of Donors # of Donors Average Gift$60$100$120 $180Five Year Total TOTALS$22,500$28,125$28,688$24,384$32,919$136, Retention Rate23%50%61% Annual Donors# of Donors # of Donors Average Gift$60$70$100 $120Five Year Total TOTALS$6,900$4,025$3,508$2,140$1,566$18,138

Predictable Revenue Long-term Financial Stability Incredible Donor Loyalty Great Upgrade and Additional Gift Potential Fabulous Planned Giving Prospects Focused Fundraising Resources on Revenue Increased Net Income Benefits

Sustaining Our Sustainers Program Survey Question: What is your biggest hurdle that stops you from recruiting more sustainers?

Creating a Robust Monthly Giving Program at WDVX

East Tennessee’s Own WDVX is a 200 watt station licensed to Clinton, TN We are a music station with a diverse playlist – bluegrass, blues, local and emerging artists, early jazz, gospel, Celtic, swing, live performance WDVX serves East Tennessee and parts of southeast Kentucky Our cume is 39,300 We produce about 31 live radio shows each month We had a little over 600 donors during our last on-air fund drive. Of those donors 11% opted to become “WDVX Sustainers”

Average new donor retention rate is 20.5% Repeat donor retention rate is 68% WDVX Donor Retention Rates

The Transition to Monthly Giving Making the option available – PayPal – Bank Draft Explaining the concept – Benefits to donors – Benefits to the station Simplifying the donation process – One-click donations – Donate button on main page

Sustaining Our Sustainers Program Anyone involved should be an expert One message across the board Make monthly giving the first or most prominent option Troubleshoot everything

Sustaining Our Sustainers Program Survey Question: What percentage of your members are sustainers?

Some create tremendous results with a monthly giving program while others don’t. Question

Willing to adopt new best practices and use of technologies. Willing to dump old outdated best practices and old technology uses. To succeed…

New Best Practices – #1 Implement monthly giving as the primary fundraising model within your individual giving program.

This….

Close but not quite…

Not this…

New Best Practices – #2 & #3 Make “monthly” the standard frequency of donations. Each donor’s monthly gift should be set up as recurring without a predetermined end date.

This….

Close but…

Not This….

Make monthly the default giving option Offer a concise explanation Simplify the ask string Eliminate landing pages Monitor conversion rates TEST, TEST, TEST Optimize the Online Giving Experience

New Best Practice #4 Take a Multi-Channel Approach Monthly Giving is not just a payment option – it’s a new way of doing business.

New Best Practice #5 Create a new back end for processing monthly gifts and adapt your technology to accommodate this new program.

Target conversion efforts at recent givers Rate of conversion falls longer donor is on file Test Timing (30 days after gift, 60 days, 90 days) Telefundraising: most effective channel for conversion Conversion: link donor to a donation form optimized for monthly giving Start with a Solid Conversion Program

Timely Short & Sweet Engage staff, board members, volunteers or call center Great opportunity to educate donors about monthly giving and ask them to convert Thank You Calling Research shows… Thank You Calling increases BOTH: Donor Retention Average Gift Source: Penelope Burk Donor-Centered Fundraising Research shows… Thank You Calling increases BOTH: Donor Retention Average Gift Source: Penelope Burk Donor-Centered Fundraising

Be Prepared

The MILLION DOLLAR Question

How do we stay on top of all these Credit Card Declines???

Recapture Strategies Account Updater Services Get ahead of expiration dates Multi-Channel Recapture Series

Credit Card Account Updater Service

Get ahead of Expiration Dates

Multi-Channel Recapture Series Mail Phone – Get My Attention – Subject Lines and Teasers – Ask Monthly Donors if they want to make “catch- up” payments for missed installments.

But Wait, There’s More…

Upgrades: The Gift that Keeps on Giving Utilize Multiple Channels Monthly Donor Branding Swag—increase response & loyalty Modest upgrade ask string Reinforce impact of monthly gift Test, test, test

Upgrades: Let’s Do the Math 500 Monthly Givers 20% Upgrade = 100 givers Average upgrade: $5/month 100 x $60 = $6,000 $6,000 $12,000 $18,000 $24,000 $30,000 Year 1 Year 2 Year 3 Year 4 Year 5

Monthly Donors Are Special... Your communication with them has to be special as well Two cardinal mistakes: Sending them everything Sending them nothing Create a special communications plan for them.

Linda Billman #225 Valerie Arganbright Appleby Arganbright LLC