Things that are making regular giving programs flourish. Covering budgeting, channel opportunities, communications planning, growing value, measurement and retention

1. The State of the Regular
Giving Donation
Fiona McPhee

2. The things that are making
regular giving programs
flourish
The result of me being nosey

4. Who are these regular givers?

7. New RG Recruits - by year and channel
0
100 K
200 K
300 K
200620062006200620062006
200720072007200720072007
200820082008200820082008
200920092009200920092009
201020102010201020102010
201120112011201120112011
201220122012201220122012
201320132013201320132013
201420142014201420142014
Recruits
Direct Mail Face to Face Media Online Other Phone

8. Two Distinct Groups

9. Silent (1925-
1945)
Boomers
(1946-1964)
The sandwich
generation
The love
generation
The Depression
generation
The me generation
The Beat
generation
Trailing-edge
boomers
The beatniks The hippies
The lost generation
Breakthrough
generation
Boomers:
•Grew up with a placid childhood which
inspired their revolution
•In the 60’s they had goals of freedom,
idealism, self expression and being socially
conscious.
•By the 80’s they had jobs, families and were
becoming demanding consumers.
•Today they have come to grips with an
ethnically diverse world, their mid-life crisis,
are feeling nostalgic.
Silent:
•Financial insecurity meant people had fewer
children – so it was a smaller generation
•As children they worked very hard and kept
quiet
•They grew up in conditions complicated by
war and economic depression
•This increased their need for achievement,
power and status

10. Generation X
(1964-1979)
Generation M
(Y) (1980-2000)
Slackers Google generation
The twenty/thirty
somethings
The MySpace
generation
The generation after
The MyPod
generation
Leading-edge
boomers
iGeneration
The gap generation
The corporation
generation
Gen X:
•Grew up in the 80’s with economic strain,
AIDS, divorce & working mums
•They were also the first true tech
generation
•In the 90’s they created You Tube & My
Space for the next generation to use
•Dealt with the inheritance of racial strife,
homelessness
•They mistrust institutions, reject rules,
dislike authority but know how to work
together
Gen Y:
•Bought up as the most child centric
generation
•Highly tech literate
•Used to being in a tribe/group
•Juggle multiple interests all the time.

11. Classic Mail responsive
Less likely to move
Likely to give additional gifts via DM or TM
More likely to leave a bequest
Attrition: 5% - 50% in Yr 1
Newbies Phone responsive
Highly mobile
Tech savvy
Will upgrade but less likely to make
additional gifts in traditional ways
Attrition: 30% - 58% in Yr 1

12. Non-Face-to-Face Average Gift: $21.12
Average Gift Range: $14 to $50
Year 1 Attrition: 29%
Year 1 Attrition Range: 11% to 50%
Year 2 Attrition: 16%
Year 3 Attrition: 10%
Face-to-Face Average gift: $21.67
Average Gift Range: $15 to $30
Year 1 Attrition: 44%
Year 1 Attrition Range: 30% to 58%
Year 2 Attrition: 18%
Year 3 Attrition: 9%
Cash Converts Average gift: $13
Average Gift Range: $10 - 20
Year 1 Attrition: 25%
Year 1 Attrition Range: 5% - 34%
Year 2 Attrition: 10%
Year 3 Attrition: 5%
Phone / Lead Conversion
(Aus)
Average gift: $ $20.34
Average Gift Range: $12 - $27
Year 1 Attrition: 35%
Year 1 Attrition Range: 12% - 55%
Year 2 Attrition: 18%
Year 3 Attrition: 10%

13. It’s not just about the Regular
Gifts they make

15. It’s not just about the Regular
Gifts they make

16. Regular Giving Pledge BQ rate - by
recruitment channel
0%
1%
2%
DirectMail
Other
Media
Phone
Online
FacetoFace
ConfirmedBequestRate
Conf BQ Penetration Active Regular Givers
0
100 K
200 K
300 K
400 K
500 K
ActiveRGDonors

17. It’s not just about the Regular
Gifts they make

19. It’s not just about the Regular
Gifts they make

21. LONG RANGE BUDGET & PLAN

22. 0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2005 2006 2007 2008 2009 2010 2011 2012
Cash Regular Gift
PFBM10_Analysis_ALL_v2.xlsm
Reduction in acquisition
volumes over time.
Reduction in acquisition
volumes over time.

23. 23
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Millions
Cash Regular Gift
PFBM10WWF_AU_IncomeSummary_v4.xlsm
The consequences of this
reduction in acquisition can be
seen in 2008 - 2010, but WWF
kept some activities going.
The consequences of this
reduction in acquisition can be
seen in 2008 - 2010, but WWF
kept some activities going.

24. 0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2005 2006 2007 2008 2009 2010 2011 2012
Cash Regular Gift
PFBM10_Analysis_ALL_v2.xlsm
CCIA was more vulnerable – smaller,
with a newer program than WWF or
Oxfam, the reduction in acquisition…
CCIA was more vulnerable – smaller,
with a newer program than WWF or
Oxfam, the reduction in acquisition…

25. $0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Millions
Cash Regular Gift
PFBM10CCIA_IncomeSummary_v4.xlsm
Invested
in
acquisition
&
RG
Reduced investment in
acq
Invested
in
acquisition
…. Had a much more profound
impact on the bottom line. An
older program like WWF’s would
be more resilient to a couple of
years reduced acquisition
…. Had a much more profound
impact on the bottom line. An
older program like WWF’s would
be more resilient to a couple of
years reduced acquisition

26. BACK END

37. Decline Management

38. DIGITAL

39. Online

44. Critical factors
1. Proposition, proposition, proposition
2. Getting the landing page right
https://www.youtube.com/watch?v=n18L-Ns57F
1. Planning to run long-term campaigns
1. 6 week trial might give you your proof of
concept
2. 6 months will give you insight

45. ON BOARDING

47. Priority - Phase 1 Priority - Phase 1 Priority - Phase 1 Priority - Phase 1 Priority - Phase 1 Priority - Phase 1
MANDATORY MANDATORY MANDATORY MANDATORY MANDATORY MANDATORY
Stage SIGNUP WELCOME JOURNEY
Communication title
Thank you and welcome
email
Supporter Details Leadership Thank You Mission moment Get involved Introductory eNews
Communication #
Timeframe 0 Day 3 Day 5 Week 3 Week 6 Week 13
Channel/s Email Email Email (video) Email (picture/video) Email
Overview
Instant recognition of action
taken and welcome
Delivering high quality
supporter service and care
Personal and heartfelt thank
you from leadership
Child voice focused story to
generate emotional reward
Cross-promote other actions
to take in support of mission
Transition to ongoing
supporter communications
Donor response objective
Real-time acknowledgement
of action taken
Validation of successful
transaction and sign-up
Experience emotional reward
for action taken
Positive supporter service
experience
Establish relationship and
trust
Overcome remorse and
cognitive dissonance
Shared values, beliefs and
mission to make a difference
Recreate original emotional
connection
Reinforce donation impact
Reinforce donation impact
via focus on a single child
Demonstrate effectiveness
Build donor-beneficiary
connection
Reinforce organisational trust
Increase understanding of
organisation and activities
Inspire to take additional
steps to support
Understand the ongoing
communications and how
they'll be kept updated and
informed
Organisational objective
Easy, seamless and engaging
sign-up experience
Create great first impression
Start relationship
Reinforce product name and
proposition
Friendly and and efficient
supporter services
Introduce main contact and
offer proxy contacts
Open-up two way
communications
Drive self-identity belief
through product and brand
positioning
Build relationship through
shared values and mission
Establish 'voice' of
organisation
Reinforce product and key
beneficiary group/s
Demonstrate donation 'at
work'
Deepen relationship
Increase # supporters
engaged in multiple actions
Set clear expectations for
supporters
Increase eNews open rates
and engagement
How should Donor feel?
Acknowledged, Excited,
Enthusiastic
Valued, Respected
Affinity, Appreciated, Proud,
Gratified of self worth
Powerful, Uplifted, Inspired to do more Informed, Appreciated
Prominent Value(s)
expressed
Passion, Optimism Respect, Responsibility Trust, Determination Achievement Effective
Impactful; Expert;
Appreciative
Case Study / Story N/A
Video reel showcase of
'children in crisis' being
helped
Case study - TBC N/A
Signatory Supporter Services Supporter Services CEO CEO Supporter Services Supporter Services

48. ONGOING COMMUNICATIONS

49. Low Value – sub $10
• There is no evidence
that sending anything to
low value (Sub $10 per
month) regular givers is
worthwhile
• Test it
• Try to upgrade (test)
• Tax Receipt Donor Care
Mid to High Value
•Common practice is something
every month
•Multi channel
•Planned story – that’s about the
donor NOT you
•Includes other support and
interaction opportunities:
•Upgrade
•Cash
•Survey / feedback / comment
•Advocacy
•Tax Receipt Donor Care

50. 1. Always thank for the RG
1. Reinforce the proposition / impact the
donor is having
2. Recognise the RG relationships before
suggesting more opportunities

51. UPGRADE

52. Five year range: 45% to 0%
In Australia its 80% to 5%

55. Best in class has 80% of all
5 year plus recruits
upgraded
Average is 40%

56. REACTIVATION

58. ANALYSIS

59. The data is fixed to only look at recruits that were recruited at least 1 year prior to 01-April-2012
Channel Agency Year Payment Type Gender Value Age
1 5 9 5 4 8 13 Total Attempted Calls 36,726 Donors Lost 5,211 Ave Fst Amt $36.60
Sub Type 4 Outcome 2 Contact No 1 Ave Upg Amt $10.01
Select the variables from the drop down menus
0
50
100
150
200
250
300
350
400
450
500
0 1 2 3 4 5 6 7 8 9 10 11 12
NumberofDonors
Payments before attrition
(ALL) attrition (ALL) numbers
1.3%
2.3%
3.5%
4.7%
5.8%
6.9%
8.0%
9.1%
10.2%
11.3%
12.3%
13.3%
14.2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0 1 2 3 4 5 6 7 8 9 10 11 12
Cumulativeattrition%
Payments before attrition
Cumulative (ALL) attrition (ALL)
1.3%
1.1%
1.1%
1.2%
1.1%
1.1%
1.2%
1.1%
1.0%
1.1%
1.0% 1.0%
0.9%
0%
0%
0%
1%
1%
1%
1%
1%
0 1 2 3 4 5 6 7 8 9 10 11 12
Attrition%
Payments before attrition
(ALL) attrition (ALL)
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$3,262,
819
Upgrade Income
$0
$50
$100
$89
Year1 Upgrade Income per donor
0
2
4
6
8
5.8
Ave paymentspre attrition
$9
$10
$11
$12
1 2 3 4 5 6 7 8 9 10 11 12
Ave upgrade amtby payments

62. CUSTOMER SERVICE

65. Fiona McPhee
fiona.mcphee@paretofundraising.com
Twitter: fimcphee
Phone: +6421 336 905
Web: www.paretofundraising.com