Recurring Donors A Winning Approach. Erica Waasdorp President, A Direct Solution
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1 Recurring Donors A Winning Approach Erica Waasdorp President, A Direct Solution
2 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
3 Question Do you have a recurring donor program? Yes No No, but I m thinking about it
4
5 Who? monthly donor monthly donor monthly donor monthly donor monthly donors monthly donor
6 monthly donors 21% of Baby Boomers (age years old) gives Monthly! Source: Blackbaud
7 You ll involve younger donors! Source: Network for Good, Recurring Giving, Spring 2014
8 What? Small Committed Automatic Provide regular income
9 Where?
10 Why? D. Why are monthly donors important? Source: Bloomerang, 2013 AFP Fundraising Effectiveness Study
11 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
12 Your donors will give a lot more Current Gifts Monthly Gifts (annual) First year Cume 100 $35 $0 $3, $35 $120 $15,500
13 They re truly Long-Term! (Special Report: Trends in Recurring Giving, Sage Software)
14 Best Practice Commit Join your own program Join Other Monthly Giving Programs
15 One person must OWN the program Web site Online Donors Marketing YOU Donor base Programs Donor services Accounting Fundraising
16 You can start with a small staff and limited resources
17 Start Online! Source: 2014 M+R Strategic Benchmarks (2013 data)
18 Best Practice Work with your Credit Card Merchant Work with your donor base vendor partner
19 Payment Types Electronic Funds Transfer (EFT / ACH) Credit card/debit card Offer both!
20 In-house or Outsourced EFT: needs tech specialist in-house or outsource Credit card/debit card: needs merchant for web or outsource Time is money Ask your donor base partner!
21 3. C. Add other options Add PayPal or Other Options Greater Giving Authorize.net Virtual Merchant
22 Easy, minimum amount
23 3. C. Add other options Add Other Options
24 Absolutely NO end date EVER!
25 Automatic Check Option Donor must fill out form and send in, Signature required for EFT
26 Best Practice Organize Recognition before you start Give Program a Name
27 Have everything ready to go! Thank you letter Thank you Certificate Back-end premium Special recognition Tax letter Regular updates Promises
28 Thank you for joining Send with personal letter via snail mail No need for monthly thank you s Send tax receipt in January
29 Make your own thank you!
30 Demonstrate gift impact Thank you
31 Share options What donor can expect
32 Best Practice Put Monthly Giving Front and Center
33 Make it easy to find menu
34 Integrate in donation page Specific amounts
35 Local Library Monthly Before One time donation
36 Continue to drive to web
37 Best practice Ask Low Get High Response Upgrade later
38 Calculate Monthly Ask Amount 1 / 3
39
40 Source: 2014 M+R Strategic Benchmarks
41 When can you ask?
42 Impact of gift Monthly front and center Ask for preferences
43 Name prominently displayed Click through to landing page
44 Typical fundraising rules apply! Challenge and Deadline Work
45 ASK with Challenge Hope Challenge
46 Goal Deadline Specific amounts
47 Benefits Video Specific amounts
48 Question Why do you think monthly donations stop? Credit card expires Donor passed away Can t do financially Don t like organization anymore Other
49 Best Practice Prevent Drop outs Bring them back as soon as possible!
50 Good word.. Clear reason Image, clear link to renewal page
51 Account Updater/Recycling Outdated cards Declined cards
52 Best Practice Use what you have Expand to Other Media
53 Add Direct mail. It still works!
54 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
55 Add brochure
56 Offer monthly giving as a solution to the donor s problem
57 Example Script REQUEST FOR LESS or NO MAIL 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?
58 3.B. Call donors to thank them 1. Call to thank 2. Ask to join recurring donor program. 3. You ll be glad you did!
59 Should you stop appealing? NO
60 Monthly Donors who give to other appeals Real Live Example: 57% of Monthly donors give to other appeals
61 Plan for Success!
62 Annualize 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
63 Download Monthly Donor Calculator bit.ly/t1dsdr
64 The beginning is perhaps more difficult than anything else, but keep heart, it will turn out all right. Vincent van Gogh
65 Resources Network for Good Guide on Recurring Giving bit.ly/1prks8d Erica Waasdorp, Monthly Giving. The Sleeping Giant. amzn.to/1jfmrmu Donate Now PayPal for nonprofits
66 Erica Waasdorp A Direct Solution Tel: Monthly Donor Calculator bit.ly/t1dsdr
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