How to Start Your Monthly Giving Program and Turn Your Donors into Monthly Givers - A Step-By-Step Guide

Transcription

1 ** The webinar will start at 2 minutes after the hour ** How to Start Your Monthly Giving Program and Turn Your Donors into Monthly Givers - A Step-By-Step Guide Presenter: Erica Waasdorp The slides and bonus materials can be found at this link:

2 Go To Webinar House Keeping GoToWebinar Housekeeping Your Participation Open and hide your control panel Join audio: Choose Mic & Speakers to use VoIP Choose Telephone and dial using the information provided Submit questions and comments via the Questions panel The slides and bonus materials can be found at this link:

3 How to Start Your Monthly Giving Program and Turn Your Donors into Monthly Givers - A Step-By-Step Guide Presenter: Erica Waasdorp The slides and bonus materials can be found at this link:

4 : Check In Question What is the one thing you hope to learn during today's webinar? Type your answer in the question box The slides and bonus materials can be found at this link:

5 About Erica Waasdorp Philanthropoholic President of A Direct Solution Raised millions of monthly giving dollars for her clients Reader s Digest graduate 30+ years of Direct Response experience 20+ years of Monthly Giving experience Author of Monthly Giving. The Sleeping Giant, paperback and e-book Working on her next book due out next year The slides and bonus materials can be found at this link

6 How to Start Your Monthly Giving Program and Turn Your Donors into Monthly Givers Poll Do you have a monthly Giving Program?

7 What We Will Cover Today I. How to Sell Monthly Giving to Others II. How to Organize your Monthly Giving Program III. How to Market your Monthly Giving Program IV. How to Present results V. How to Project Growth for your Program

8 I. How to Sell Monthly Giving to Others

9 I. How to Sell Monthly Giving to Others A. Who are monthly donors? monthly donor monthly donor monthly donor monthly donor monthly donors monthly donor

10 I. How to Sell Monthly Giving to Others B. Show Current Trends 21% of Baby Boomers (age years old) gives Monthly! monthly donors Source: Blackbaud Generational Giving Study

11 I. How to Sell Monthly Giving to Others C. What are monthly donors? Small Committed Automatic Ongoing Provide regular income

12 I. How to Sell Monthly Giving to Others D. Why are monthly donors important? Source: Bloomerang, 2013 AFP Fundraising Effectiveness Study

13 I. How to Sell Monthly Giving to Others Poll What is the typical retention rate of monthly donors?

14 I. How to Sell Monthly Giving to Others D. Why are monthly donors important? Retention Rates Rock!! Median Retention Rates in 2012 by Gift Type and Loyalty Donors Giving Only Single Gifts Donors Giving Both Single and Recurring Gifts 2 Years Consecutive 51% 86% 3 & 4 Years Consecutive 65% 90% 5+ Years Consecutive 79% 95% Source: donorcentrics Collaborative Benchmarking US Recurring (Sustainer) Giving

15 I. How to Sell Monthly Giving to Others D. Why are monthly donors important? They re truly Long-Term! (Special Report: Trends in Recurring Giving, Sage Software)

16 I. How to Sell Monthly Giving to Others D. Why are monthly donors important? They will give a lot more money! Current Gifts Monthly Gifts (annual) First year Cume 100 $35 $0 $3, $35 $120 $15,500

17 I. How to Sell Monthly Giving to Others D. Where do they belong?

18 I. How to Sell Monthly Giving to Others E. When can you ask donors to join? As soon as someone joins your organization! As soon as someone gives As soon as a lapsed donor is reactivated Any time of the year As often as you can

19 II. How to Organize Your Monthly Giving Program 1. Commit and make someone accountable 2. Name your program 3. Set up payment types 4. Set up back-office process 5. Set ask amount

20 II. How to Organize Your Monthly Giving Program 1. Commit and make someone accountable

21 II. How to Organize Your Monthly Giving Program 1.Commit and make someone accountable One person must own the program! Web site Online Donors Marketing YOU Donor base Programs Donor services Accounting Fundraising

22 II. How to Organize Your Monthly Giving Program 2. Name your program

23 II. How to Organize Your Monthly Giving Program 2. Name your program Finding the best name: Brainstorm Use in sentence Test it Choose Move on

24 II. How to Organize Your Monthly Giving Program 2. Name your program These Make Great Combos! Circle Friends Sustainers Partners Advocates Guardians Champions

25 II. How to Organize Your Monthly Giving Program 3. Set up Payment Types

26 II. How to Organize Your Monthly Giving Program Choose Payment Types 3. A. Define Possible Payment Types Electronic Funds Transfer (EFT / ACH) Credit card/debit card Offer both!

27 II. How to Organize Your Monthly Giving Program 3. B. Review your merchant account options Can they handle recurring gifts? If Yes, what are their fees?

28 II. How to Organize Your Monthly Giving Program 3. C. Add other options Add PayPal or other options Greater Giving Authorize.net Virtual Merchant

29 II. How to Organize Your Monthly Giving Program 3. C. Add other options

30 II. How to Organize Your Monthly Giving Program 3. C. Add other options Easy, minimum amount

31 II. How to Organize Your Monthly Giving Program 3. C. Add other options No minimum Simple ask to recur June 24th, 2014

32 II. How to Organize Your Monthly Giving Program 3. C. Add other options Add other options

33 II. How to Organize Your Monthly Giving Program 3. C. Add other options Absolutely NO end date EVER!

34 II. How to Organize Your Monthly Giving Program 3. D. Process in-house or Outsource EFT: needs tech specialist in-house or outsource Credit card/debit card: needs merchant for Time is money web or outsource Ask your donor base partner!

35 II. How to Organize Your Monthly Giving Program Advantages: 3.E. Research Outsourcing Options No technical knowledge needed in-house Vendor adjusts to PCI compliance requirements etc Can handle both EFT/ACH and Credit/debit cards Disadvantages: Cost $0.35 to $0.50 per month per donor No immediate access to rejects/declines

36 II. How to Organize Your Monthly Giving Program 3.F. Choose payment date 1 st is typical (& next business day) Based upon first charge date Make sure the payment is charged as soon as possible after joining

37 II. How to Organize Your Monthly Giving Program 3.F. Choose payment date Donation amount options Choice of gift date

38 II. How to Organize Your Monthly Giving Program 3.G. How to accept EFT/ACH information Options: 1. Check for first payment (recommend) 2. Voided check 3. Online Your donors must be ready and TRUST you

39 II. How to Organize Your Monthly Giving Program 3.G. How to accept EFT/ACH information

40 II. How to Organize Your Monthly Giving Program 3.G. How to accept EFT/ACH information Payment options

41 II. How to Organize Your Monthly Giving Program 4. Set up back-office process

42 II. How to Organize Your Monthly Giving Program 4.A. Map Out the Back-office Process Appeal to generate Innkeepers Innkeeper joins program Information Complete Thank you letter and key chain Data-entry: Enter into CHI DB Data-entry: Enter into Pine Street DB Store Innkeeper forms alpha by last name Monthly Donations updated in CHI and Pine Street DB Prepare Reports

43 II. How to Organize Your Monthly Giving Program 4.B. Organize Recognition Have everything ready to go! Thank you letter Thank you Certificate Back-end premium Special recognition Tax letter Regular updates Promises

44 II. How to Organize Your Monthly Giving Program 4.B. Organize Recognition Share options What donor can expect June 24th, 2014

45 II. How to Organize Your Monthly Giving Program 4.B. Organize Recognition Thank you for joining Send with personal letter via snail mail No need for monthly thank you s Send tax receipt in January

46 II. How to Organize Your Monthly Giving Program 4.B. Organize Recognition Make it warm and fuzzy instead

47 II. How to Organize Your Monthly Giving Program 4.B. Organize Recognition Thank you Explains what you can expect Thank you Special Phone and

48 II. How to Organize Your Monthly Giving Program 4.B. Organize Recognition Total amount given for the year

49 II. How to Organize Your Monthly Giving Program 4.C. Involve everyone Join first Ask staff and board to join Ask volunteers to join Make sure everybody knows about the program

50 II. How to Organize Your Monthly Giving Program 4.D. Develop Reports and Annualize Monthly Donors Source # of monthly donors acquired Average gift Average Yearly Gift First year Cume E $10 $120 $6,000 D $10 $120 $14,400 Totals 170 $10 $120 $20,400

51 II. How to Organize Your Monthly Giving Program 4.E. How to prevent monthly donor drop outs outs

52 II. How to Organize Your Monthly Giving Program Question Why do you think monthly donations stop?

53 II. How to Organize Your Monthly Giving Program 4.E. Prevent monthly donor drop outs Check payments processed against expected Monthly Donors # of monthly donors charged Average gift Average Yearly Gift First year Cume MG $10 $120 $6,000 MG $10 $120 $5,520 Monthly code

54 II. How to Organize Your Monthly Giving Program 4.E. Prevent monthly donor drop outs Letters asking them to call you or mail you new info s asking them to call you Call to ask them to call you Before card expires As soon as you find out Implement Account Updater/Account Recycling

55 II. How to Organize Your Monthly Giving Program 4.E. Prevent monthly donor drop outs Implement Account Updater/Recycling Outdated cards Declined cards

56 II. How to Organize Your Monthly Giving Program 4.E. Prevent monthly donor drop outs Good word.. Clear reason Image, clear link to renewal page

57 These Bonus Materials Are Included with Your Webinar Account Updater/Recycling contacts Resources Sample letters

58 II. How to Organize Your Monthly Giving Program 5. Set your ask amounts

59 II. How to Organize Your Monthly Giving Program 5.A. Choose your initial ask level $5? $10? $16? $29?

60 II. How to Organize Your Monthly Giving Program Set up ask amount 5.A. Choose your initial ask level Use Rule of Thirds Take your Average One time gift Use 1/3 for first Monthly Ask For example $35 becomes: $10, $15, $20, $35, Other $15 becomes: $5, $10, $15, $20, Other

61 II. How to Organize Your Monthly Giving Program 5.A. Choose your initial ask level Ask Low!

62 II. How to Organize Your Monthly Giving Program 5.A. Choose your initial ask level Source: 2014 M+R Strategic Benchmarks

63 II. How to Organize Your Monthly Giving Program 5.B. Specific vs General Just $8 a month (that s $0.25 a day), will help.

64 III. How to Market Your Monthly Giving Program 1. Grow online 2. Grow via direct mail 3. Grow via telemarketing

65 III. How to Market Your Monthly Giving Program 1. Grow online

66 III. How to Market Your Monthly Giving Program 1. A. Look at trends online Online donations are growing! Source: 2014 M+R Strategic Benchmarks

67 III. How to Market Your Monthly Giving Program 1.B. Make monthly giving easy to find Add link from home page!

68 III. How to Market Your Monthly Giving Program 1.C. Integrate in donation form Link from donate button Put Monthly first Specific amounts OCTOBER 9, 2014

69 III. How to Market Your Monthly Giving Program 1.C. Integrate in donation form Local library Monthly is first

70 III. How to Market Your Monthly Giving Program 1.D. Add benefits and ask amounts amounts Benefits Video Specific amounts

71 III. How to Market Your Monthly Giving Program 1.E. Add incentive if needed Incentive: Back end premium Landing Page

72 III. How to Market Your Monthly Giving Program 1.F. Start driving to the web

73 III. How to Market Your Monthly Giving Program 1.G. Promote via Name prominently displayed Click through to landing page Back end premium: pin Urgency

74 III. How to Market Your Monthly Giving Program 1.H. Add Challenge and deadline Clear goal of 600 NO gift Deadline = Urgency # left to generate Specific amounts

75 III. How to Market Your Monthly Giving Program 1.I. Organize special segment in database Integrate with your direct mail data For thank you letter For thank you For ongoing recognition For special action if dropped out For upgrades later For additional appeals For special invitations

76 III. How to Market Your Monthly Giving Program 1.J Organize thank yous Demonstrate gift impact Thank you

77 III. How to Market Your Monthly Giving Program 1.K. Organize thank you letter via mail

78 These Bonus Materials Are Included with Your Webinar Generating monthly gifts through

79 III. How to Market Your Monthly Giving Program 2. Grow via direct mail

80 III. How to Market Your Monthly Giving Program Poll How often do you send an appeal (with ask) to your donors?

81 III. How to Market Your Monthly Giving Program 2.A. Use donor testimonials I am a widow on a fixed income but being a monthly sponsor helps people that have less. You do good work for the less fortunate. Jean, NJ

82 III. How to Market Your Monthly Giving Program 2.B. Add monthly giving to your reply

83 III. How to Market Your Monthly Giving Program 2.C. Add monthly giving to your thank you Strong teaser Incentive works with mission Clear examples of how gift helps Offer EFT and CC options

84 III. How to Market Your Monthly Giving Program 2.D. Add frequently asked questions FAQ s help build trust

85 III. How to Market Your Monthly Giving Program 2.E. Add brochure Gift or No gift for joining

86 III. How to Market Your Monthly Giving Program 2.F. Do special appeal for monthly donors Direct Mail still works! Target Target Recency Frequency Monetary Value Credit card donors Check donors Typically $5+, 2 gifts or more a year

87 III. How to Market Your Monthly Giving Program 2.F. Do special appeal for monthly donors Target Small donors Multiple Donors 0-12 Mo , Here are your future monthly donors

88 III. How to Market Your Monthly Giving Program 2.F. Do special appeal for monthly donors Monthly Option

89 III. How to Market Your Monthly Giving Program 2.F. Do special appeal for monthly donors Front of Reply Both options Back of reply

90 III. How to Market Your Monthly Giving Program 2.G. Keep communicating! Develop schedule Keep them in your annual fund appeals Except if they indicate they don t want to receive mail They ll be your most loyal donors They want to hear from you! Segment them and recognize them as special Include in thank you calls! Personalize where you can

91 These Bonus Materials Are Included with Your Webinar Generating monthly gifts through the mail

92 III. How to Market Your Monthly Giving Program 3. Grow via telemarketing

93 III. How to Market Your Monthly Giving Program Find out why your donors call you

94 III. How to Market Your Monthly Giving Program Question Why do your donors call you? For information To complain For tickets to an event To donate To praise Other

95 III. How to Market Your Monthly Giving Program 3.A. Offer monthly giving as solution Example Script I understand Mr(s), I will take care of that for you. In fact if you join our Monthly Giving Circle, you can still help promote our mission and not have to worry about all the mail. The Monthly Giving Circle consists of a special group of supporters, who make a small but meaningful monthly gift to help spread our message more effectively. Would you consider joining this Monthly Giving Circle today?

96 III. How to Market Your Monthly Giving Program 3.B. Call donors to thank them Then: Ask donors to join the monthly donor program You ll be glad you did!

97 IV. How to Present Results

98 IV. How to Present Results Always annualize Monthly Donor Results Monthly Donors Source # of monthly donors acquired Average gift Average Yearly Gift First year Cume E $10 $120 $6,000 D $10 $120 $14,400 Totals 170 $10 $120 $20,400

99 V. How to Project Growth for your Program Use a planning tool

100 These Bonus Materials Are Included with Your Webinar Download the Monthly Donor Calculator

101 V. How to Project Growth for your Program 1.A. Plug in your own numbers Monthly Donor Calculator Target group New donors Existing donors, 2x time givers, $5+ Respondents to appeals, $5+ names Donors who call in to the organization Campaign Welcome Package Special appeal Thank you letters all names, 4 times Inbound calls Grand total People Reached 750 4, , Estimated "Yes" 1.5% 2.0% 2.0% 0.5% 7.5% New Sustainers Yearly Average pledge per Sustainer $ $ $ $ $ Average annual pledge $ $ $ $ $ Cost per Sustainer $66.67 $50.00 $50.00 $0.00 $13.33 $36.04 Cost per piece $1.00 $1.00 $1.00 $0.00 $1.00 Total cost $ $4, $ $0.00 $ $ 5, Yearly Income Pledged $1, $9, $ $2, $4, $ 19, Net revenue generated after yr 1 $ $5, $ $2, $4, $ 13, A Direct Solution

102 V. How to Project Growth for your Program 1.B. Project growth 1% A Direct Solution

103 What We Covered Today I. How to Sell Monthly Giving to Others II. How to Organize your Monthly Giving Program III. How to Market your Monthly Giving Program IV. How to Present results V. How to Project Growth for your Program

104 How to Start Your Monthly Giving Program and Turn Your Donors into Monthly Givers Question What are your challenges? Time Money People Technology Other

105 How to Start Your Monthly Giving Program and Turn Your Donors into Monthly Givers The beginning is perhaps more difficult than anything else, but keep heart, it will turn out all right. Vincent van Gogh

106 Please Take a Moment to Fill out the Anonymous Survey To do: Complete survey It s quick, easy and super helpful! Thank you for your feedback!

107 For follow up questions, contact Erica Erica Waasdorp A Direct Solution PO Box 757 Marstons Mills, MA USA Tel: Fax:

108 Questions-And-Answers Q&A The slides and bonus materials can be found at this link: