An integrated fundraising program success story
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A case study on the Kidney Foundation of Canada presented at AFP Ottawa Chapter Fundraising Day 2014, by Leah Eustace and Kelly Lachance.
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An integrated fundraising program success story
- 1. An Integrated Fundraising Program Success Story The Kidney Foundation of Canada Kelly Lachance The Kidney Foundation of Canada Leah Eustace, ACFRE Good Works
- 2. A bit about us Leah Eustace, ACFRE @LeahEustace Good Works Kelly Lachance @KelDuc Kidney Foundation of Canada #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 3. What we’ll cover • What is integrated marketing? • Where KFOC was • Where KFOC is now • How did we get there? • Where KFOC is headed • Lessons learned • Questions #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 4. What is integrated (or multichannel) fundraising? The use of multiple channels to raise money #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 5. Why should we be embracing it? #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 6. Generational differences #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 7. Where was KFOC in 2011? $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 GROSS REVENUES FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 8. Where was KFOC in 2011? DONORS FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 9. Where KFOC was in 2011 • Monthly donors represented only 1.5% of the active donor file • Donor renewal rate declining • Number of gifts per donor low • Direct mail needed review • Cultivation and stewardship didn’t exist • Separate databases for national office and regions • Staff turnover • Silos #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 10. Where KFOC is now $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 GROSS REVENUES FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 11. Where is KFOC now? DONORS FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 12. Where to start? #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 13. Where to start #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 14. Tactics: Communication and Education #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 15. Tactics: Direct Mail Then • All signed by the same person • Institutional and academic • Little segmentation • 4 house appeals • 2 prospect appeals • National separate from regional Now • Variety of signatories • Stories • Lots of segmentation/variables • 6 house appeals • 2 prospect appeals • Regions sharing lapsed data #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 16. Tactics: The Phone #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 17. Tactics: Online #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 18. Tactics: Friends and Family #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 19. Tactics: Monthly Giving #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 20. Tactics: Prospecting #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 21. Tactics: Prospecting 8000 7000 6000 5000 4000 3000 2000 1000 0 New Donors 2010 2011 2012 2013 #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 22. Segmentation • Active, inactive, lapsed, long lapsed • English, French • High end • Monthly • Once-a-years • RFM • Source (online, region) #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 23. Storytelling #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 24. Multichannel integrated program #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 25. Cross-Promotion #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 26. Lessons Learned #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 27. What does the future hold? • Legacy marketing • Matching gifts within direct marketing • Further database integration • More e-appeals • Dedicated mid-level giving program • Establishment of gift $2,100,000 $2,000,000 $1,900,000 $1,800,000 $1,700,000 $1,600,000 GROSS REVENUES $1,500,000 club program FY2011 FY2012 FY2013 #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
- 28. Questions? #FRDay14 KFOC + Good Works @KelDuc | @LeahEustace
Editor's Notes
- Over the past two years, the Kidney Foundation of Canada has focused on building a truly integrated annual giving program, to great success. In this session, Leah and Kelly will share lessons learned, tactics and best practices around moving a traditional, mail-based, direct mail program to one that includes e-appeals, online acquisition, a robust and branded monthly giving program, telephone campaigns and a solid stewardship program. All of this has led to increased revenue, and moving donors up the pyramid of giving to monthly, mid-level, major and planned giving.
- -we want to talk to you today about how we took the KFOC direct marketing program from ho-hum to great using an integrated, multichannel approach
- Leah -anyone want to take a stab at the definition?
- Leah -it’s about using multiple fundraising channels to raise money -it’s about being where the donor’s at, instead of where you decide you’re at -it’s about engagement -let’s look at a picture of what this actually looks like
- Leah - Fundraising is changing -Your Donors have a 360 degree view of the world, and you need to as well Some donors prefer mail Others prefer online channels like email Still others alternate between channels To engage all your donors, you need to pay attention to the channels they pay attention to Most donor cultivation and acquisition happens through the mail And most cross-channel giving is between mail and email But, most prospects will research your charity via your website, and often, a mail appeal will cause them to make a gift online Email often engages a younger audience, and results in a higher average gift From left: one channel donor; dual channel donors; online and offline donor; online donor; multi-contact donor; high contact donor Benefits of Multi-Channel: Deepens constituent loyalty and increases lifetime value Strengthens the brand Engage new audiences, grow revenue, and maybe even save money.
- Leah: Among Gen X and Gen Y, more donors report giving online than via postal mail in the past two years. As donors get younger, the gap between online and direct mail giving grows significantly. Boomers are about as likely to give online as they are through the mail, Civics are significantly more likely to give in the mail, although one-third of Civics still report donating online in the last two years. Online giving has grown for all generations, but the increase in online giving from Gen X donors since 2010 is dramatic, growing from 37 percent who gave online in 2010 to 55 percent who made gifts online in 2012. Telemarketing responsiveness declines sharply with younger donors. •Giving via social networks is low. •Generation Y, Generation X, and Boomers seem to favor giving methods that tie into a retail experience such as purchases where a portion of the proceeds help the organization •Door-to-door and street canvassing are popular across all ages, and street fundraising is more popular with younger donors.
- Kelly The dotted straight line shows the trajectory… where things would have gone had we not changed things up in 2011 Certain decisions were made prior to hiring both myself and my boss in 2011 , for example: They drastically reduced the prospecting budget and did not understand what that meant long term. You can’t keep doing the same thing and expect your program to grow or even just stay even keel. The market changes, your donors change/evolve.
- Kelly
- Kelly: Revenue and results Key challenges: Monthly donors: -should be atleast 10% of active database -a challenge but also a great opportunity for growth Renewal -Down by 8% in the last 4 yrs but still better then other charities Average Gift -$32.36, slightly higher then other health charities but # of gifts per donor is lower. Direct Mail program: -look and strategies have not seen much change over the past several years. REFRESH and test strategies Cultivation and Stewardship: -Current lack in strategies to move donors up the donor pyramid and renew Direct marketing not under one portfolio New staff: One person started the Direct Mail program more than 20 yrs ago and was still running the program Silos: no sharing of information from one program to the other, territorial
- Kelly Revenue and results Some challenges overcome, some not (branch data (1yr, 2yr), for example) Direct Mail program was renamed to the Direct Marketing program We created a pipeline process, working better with the branches to educate of the importance of Direct Marketing (PG prosepect, Major gifts ($20,000)) Database conversion
- Kelly: In 2012 we projected that it would be 2014 before we saw revenues go back up again but were happy to see things turning around sooner than we thought and in 2013 revenues were only 3% shy of our goal compared to 2012 and 2011 when we were almost 20% of our projections. In 2011 and 2012 projected revenue had to be revised mid year and again near the end of the year. Was not necessary in 2013. So Far 2014 is on target. We are slightly ahead of our results from last year same time frame and on target with projections.
- Leah Carefully review the program Slice and dice and analyse: look at ROI What’s worked and hasn’t worked? Throw it out and start all over again: Just because you’ve always done it ‘that way’ doesn’t mean you need to keep doing it that way Start mapping things out: look at it both from a tactical point of view and a donor segment point of view Figure out how you’re going to measure results: you can’t look at one channel in isolation anymore Connecting gifts to a specific appeal almost impossible
- Leah Mapping it out doesn’t have to be complicated Do it by channel, but also by type of donor
- Leah Importance of maintaining dialogue across the organization Continual education Board/staff presentations Celebrating results Breaking down the siloes: celebrate gifts no matter which ‘department’ they come in through
- Leah Outline the DM program Different signatories Powerful stories Testing (for example, an institutional story versus a very personal story) Segmentation (will talk about that shortly) Variable text
- Leah Outline the program Targeted to monthly upgrade, conversion… where TM works best VMB (planning for two… $0.30/each)
- Leah: Had been little online work Website now more ‘donation friendly’ E-news and e-appeals now better integrated (although there’s room for improvement,) Results are better tracked We’re working on a plan to make the website mobile friendly 8 e-appeals planned for this year
- Kelly Here’s some points about what we call Friends & Family campaign: The main purpose of the Campaign is to “Recruit new donors” The campaign strategy is based on a well-known principle in philanthropy: « People give to People ». We approach existing donors and they are invited to join the campaign as volunteers who recruit their friends and family members to become new donors to the Kidney Foundation of Canada. This is a two-fold approach, involving telemarketing and direct mail The communication sequence with the donor/canvasser consists of phone, mail or voice messaging as follows: First Call to ask them to participate Confirmation call to those that said yes Reminder Voice mail that the kits are on their way Kits are mailed Reminder letter if necessary Thank you letter at the end of the campaign letting you know how much you raised total
- Leah: Branded monthly giving Developed benefits to donors Concerted effort to grow the program You can see that the Monthly ask is prominent on coupons January renewal includes a monthly conversion panel to about 15% of the active donor file Summer TM campaign for donors whose last gift was 3-18 months ago to convert them, upgrade current monthlies and renew lapsed monthlies
- Leah: Lots of testing Multi-channel (mail, Care2, Friends and Family) Lapsed Lists Branch data Kelly to mention why not doing CARE2 this year
- Leah This is the result of some aggressive prospecting
- Leah: A critical change Used to ask everyone for the same gift (no more) Regular vs ‘high’ end Lapsed, inactive, active Once-a-years
- Leah Myth: finding stories can be a challenge Tell the same stories multiple times Sue’s story (donor mailing, prospect mailing, e-appeal, 50th anniversary)
- Leah This is what we have ended up with An integrated calendar that includes timelines, all tactics (colour coded) and segmentation (if anyone wants the handouts, I’ll remove this piece since we don’t actually want anyone to be able to read it)
- Kelly: Back end pieces Kidney car / PG Future plan: Monthly giving , promote donors to receive receipts via email and once per year
- Kelly Everything takes longer than you planned Have to build trust and show that things work (between branches, but other charities it could be with their board?) Constant testing Be prepared to work with a variety of suppliers/agencies, and make sure you pick suppliers and agencies who have a good track record of working with others, make it clear how important that is Just because you’re organization has tried something in the past, doesn’t mean it won’t work now: figure out why it didn’t work
- Leah: Legacy More e-appeals Matching gifts (Dominos) Donor surveys, engagement pieces 50th anniversary Gift club And we’ll keep an eye on best practices