Sustainers in Focus: The Real Value of Monthly Giving Programs. Chuck Longfield, Chief Scientist, Blackbaud May 1, 2017
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1 Sustainers in Focus: The Real Value of Monthly Giving Programs Chuck Longfield, Chief Scientist, Blackbaud May 1,
2 Facebook.com/chuck.longfield linkedin.com/in/chucklongfield
3 A principal driver of health care expense is the variability in medical practices. Ellen Zane, former CEO Tufts Medical Center 3
4 Agenda or Section Slide Subtitle if needed
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12 Research Question Does monthly giving improve revenue retention?
13 What is revenue retention? Revenue Retention is the % of prior year revenue given again by a donor or group of donors Example 100 new donors gave $10,000 last year 30 of those donors gave $4000 this year; the other 70 did not give. Donor Retention is 30% (30 / 100) Revenue Retention is 40% ($4,000 / $10,000) Average Retained Revenue per Original Donor is $40 ($4,000 / 100 original donors)
14 $ Average Annual Retained Revenue for Donors Acquired in 2006 Source: Sustainers in Focus $ $80.00 $60.00 $40.00 $20.00 $ ,982 new donors gave a single gift in 2006; just 3% were still giving in ,143 new donors gave a sustainer gift in 2006; 13% were still giving in 2015
15 $3,500,000 $3,000,000 Annual Revenue from Donors Acquired in 2006 Sustainers vs Single Gift Donors $38 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $80 $238 $ $67 76,982 new donors gave a single gift in 2006; just 3% were still giving in ,143 new donors gave a sustainer gift in 2006; 13% were still giving in 2015
16 If Sustainers are so good, then what are the practices that have proven to increase revenue?
17 Proven Practice #1 Ask new donors to give on a monthly basis Improve new donor retention by ~150% and revenue retention by ~70% 100% 80% 60% 40% 20% 0% New 2012 Donors to 10 National Nonprofits (895,000 single gift donors, 17,000 sustainers) 22% 54% % Donors Retained in % Single Gift Donors ($43 AG) 77% % Revenue Retained in 2014 Monthly Gift Donors ($143 AG)
18 Proven Practice #2 Make monthly giving the default option on your web site Improve average web gift by 20-30% while increasing donor and revenue retention (see prior slide) 100% 80% 60% 40% 20% 0% % Split of New Donor Online Gifts ( ) Sustainer vs. Single-Gift Single-Gift Sustainer
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24 Average Annual Retained Revenue for Donors Acquired in 2006 and Giving in 2008 Proven Practice #3 Convert multi-year, single gift donors to sustainers, in all channels Increase revenue retention by % $ $ $ $ $ $80.00 $60.00 $40.00 $20.00 $ new donors gave a single gift in 2006 & a sustainer gift in 2008; 29% were still giving in ,286 new donors gave a single gift in 2006 & a non-sustainer gift in 2008; 14% were still giving in 2015
25 $ $ Average Annual Retained Revenue for Donors Acquired in 2006 and Giving in 2008 Source: Sustainers in Focus $100 per original donor $ $66 average first gift $50.00 $20 per original donor $54 average first gift $ new donors gave a single gift in 2006 & a sustainer gift in 2008; 29% were still giving in 2015
26 Proven Practice #4 Encourage donors to use EFT over credit card Increase donor retention by ~13% and revenue retention by 6% 100% 80% 60% 40% 20% 0% Annual Retention of Sustainers by Payment Method Local NonProfit National NonProfit 1 Credit Card EFT National NonProfit 2
27 Proven Practice 5 Use a credit card updater service and update invalid credit card data Increase sustainer retention rates by 3% per month, while significantly reducing donor outreach efforts 98.0% 96.0% 94.0% 92.0% 90.0% 88.0% 86.0% 84.0% 82.0% Increased Retention of Sustainers with Credit Card CC Updater In FY 16, 11k CCs fixed $200k recovered 87.5% 90.1% Credit Card Before CC Updater 95.7% 95.7% EFT After CC Updater
28 Additional Proven Sustainer Practices Practice 6 - Be aggressive in collecting missed payments Practice 7 - Survey sustainers who stop giving Practice 8 - Encourage sustainers to upgrade to higher giving levels Practice 9 - Include sustainers in traditional communication stream Practice 10 - Provide monthly donors with phone# & of a program manager
29 How to get started?
30 Resources Hidden Gold, Harvey McKinnon Monthly Giving, Erica Waasdorp Sustainers in Focus Parts 1 and 2 Sustainer Case Study Recurring Gift Overview Remember, much of what is presented is the art. Remember the science.
31 Thank you!
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