I think there is little doubt now that consumer confidence with regard to the economy in Australia has led to a more challenging fundraising market place. As many predicted, corporate and events fundraising seems to have been hit the most (see previous blogs) and regular giving (automatic payments from credit cards and bank accounts) the least.
But clients and staff at Pareto Fundraising wanted to know about direct mail appeals to warm (donors that have given before). Twenty eight charities agreed to self report their results from tax mailings (around May/June) in 2009 v 2010.
The results showed a total increase in income of about 2% which was much less than Australian inflation (3.1%).
When we looked into why, we saw a decrease in average donations and average response rates. The only reason the total was up was that more people were mailed - ie volumes were up.
Interestingly, about half the charities actually grew and half declined. A key factor in growth seemed to be a shift in tactics - mailing more people, mailing more often, conducting high value donor reminder calls, high value donor packs and using better copy techniques all helped explain growth for many of the charities. Charities that had implemented these tactics in years gone by didn't reap the rewards in additional growth in 2010 but to be fair to them, they were already ahead of the game.
It seems to me that there are only three factors in growing direct mail appeals income:
1) Realise the potential of your current database through what you mail.
Make sure you are doing best practice direct mail that has been around for years, and is in all the books and blogs: Thank properly, target properly, use personal one to one copy, have an engaging case study or story, use specific ask amounts, longer letters, lots of 'lifts' (relevant additional information), seperate response coupons etc.
2) Realise the potential of your current database through how often you mail.
Jeff Brooks (Future Fundraising Now) reckons you should aim to build up to about thirty asks per year. With the size of Australian databases and staff resources, I reckon aiming for at least twelve a year would make more sense. I have never seen a case where mailing more often decreases total income. It is a matter of balancing costs and time for you, rather than pushing donors away.
3) Get more donors. Simple - if you are getting the most of your donors, then get more donors. And now is a great time; many charities are getting their best ever cold direct mail results.
Sean
Wednesday, September 29, 2010
Tuesday, August 31, 2010
Counter intuitive ideas
I am blogging live from Pareto Fundraising with Jeff Brooks of Future Fundraising Now fame presenting fundraising ideas to our staff. We are discussing donor retention for mail and email appeals. One advantage Jeff has over us is that his clients have much, much bigger data files so he is able to get more testing done.
Testing is great because lots of best practice fundraising is counter intuitive. For example, longer letters tend to work better, more frequent mailings asking for money increase retention and total lifetime giving, calling people at dinner time and asking them to upgrade their monthly gift works.
If you were to ask donors, in advance - perhaps in a focus group - about the tactics above they would suggest that these tactics won't work. But they do.
So here is a new counter intuitive idea that he says works, and we don't do here.
With the volumes of data available to him, he has been able to test the use of thank you letters as asking delivery mechanisms. This is not done by charities in Australia, and Penelope Burke who wrote Thanks! advises against it. But, according to Jeff, her research is based on opinion through surveys etc. He, however, has tested it on data and over many years has found that it does not increase attrition, but does increase income by 10-15%.
So, if you may appeals and ask for money here are some tips.
1) If you send more than one wave, do not remove donors who give to wave 1 from the subsequent waves. You are reducing your income now and in the future.
2) Test including an additional ask in the actual thank you letter. For example, a tear off option on the thank you letter, or a self mailer envelope. Always include a return envelope.
We have seen some recent success in sending a regular giving ask with thank you letters to newly acquired donors based on an American idea, so this cash ask approach seems an obvious thing to test, even it if feels wrong. More forward thinking charities could try testing a regular giving self mailer or 'pack' which goes out with all thank yous to non-regular givers, not just new donors.
If you try it in the future, or already have - please let me know the outcome!
Sean
Testing is great because lots of best practice fundraising is counter intuitive. For example, longer letters tend to work better, more frequent mailings asking for money increase retention and total lifetime giving, calling people at dinner time and asking them to upgrade their monthly gift works.
If you were to ask donors, in advance - perhaps in a focus group - about the tactics above they would suggest that these tactics won't work. But they do.
So here is a new counter intuitive idea that he says works, and we don't do here.
With the volumes of data available to him, he has been able to test the use of thank you letters as asking delivery mechanisms. This is not done by charities in Australia, and Penelope Burke who wrote Thanks! advises against it. But, according to Jeff, her research is based on opinion through surveys etc. He, however, has tested it on data and over many years has found that it does not increase attrition, but does increase income by 10-15%.
So, if you may appeals and ask for money here are some tips.
1) If you send more than one wave, do not remove donors who give to wave 1 from the subsequent waves. You are reducing your income now and in the future.
2) Test including an additional ask in the actual thank you letter. For example, a tear off option on the thank you letter, or a self mailer envelope. Always include a return envelope.
We have seen some recent success in sending a regular giving ask with thank you letters to newly acquired donors based on an American idea, so this cash ask approach seems an obvious thing to test, even it if feels wrong. More forward thinking charities could try testing a regular giving self mailer or 'pack' which goes out with all thank yous to non-regular givers, not just new donors.
If you try it in the future, or already have - please let me know the outcome!
Sean
Monday, August 23, 2010
The Best Fundraising Resource Online
I have mentioned Jeff Brooks' and his Future Fundraising Now blog before, but here is a reminder about how brilliant it is.
In fact, if you manage fundraisers and they don't subscribe to the blog, you should get them in your office and have a stern word.
At a recent consulting session at World Vision, I mentioned how great it was, and we signed up about a dozen new subscribers there and then - all will be better fundraisers for it!
Recent blogs from Jeff include:
* Why young fundraisers get it wrong
* What to consider before you blog
* Why stories are so important
Not so recent, but brilliant...
* Stupid non profit ads, featuring WWF, Movember, Red Cross Spain, United Methodist Church and more.
Jeff is flying out to Australia next weekend, to present at the F&P conference (and spend a day with Pareto staff having some fun) - if you are in Sydney 1 & 2 September, come along to the conference and see him live. But whatever happens, please subscribe to his blog!
Sean
In fact, if you manage fundraisers and they don't subscribe to the blog, you should get them in your office and have a stern word.
At a recent consulting session at World Vision, I mentioned how great it was, and we signed up about a dozen new subscribers there and then - all will be better fundraisers for it!
Recent blogs from Jeff include:
* Why young fundraisers get it wrong
* What to consider before you blog
* Why stories are so important
Not so recent, but brilliant...
* Stupid non profit ads, featuring WWF, Movember, Red Cross Spain, United Methodist Church and more.
Jeff is flying out to Australia next weekend, to present at the F&P conference (and spend a day with Pareto staff having some fun) - if you are in Sydney 1 & 2 September, come along to the conference and see him live. But whatever happens, please subscribe to his blog!
Sean
Thursday, August 19, 2010
Very clever stuff
How clever is this? My colleague at Pareto Fundraising is trying to tell me to move on I think. But check this out, and think about how you could use this technology to communicate with your donors or customers.
Sean Triner is about to become Australia's Prime Minister
Sean Triner is about to become Australia's Prime Minister
Friday, August 6, 2010
Ted Hart at Pareto Fundraising
Digital Integration, Ted Hart
Following Kate from Google, Ted Hart from p2pfundraising.org is telling us all about social media and fundraising.
Some key points:
- for all the technology out there, it doesn't change the fact that people give because they are asked. Online you kneed to ask or you can't fundraise.
- it is all about integration. You need a real strategy; these free tools - Google, Facebook etc are free but they are not the strategy.
- Think about your donors. He says that, in Canada (and probably same here) only 30% of online donors are gen X. Nearly all the other 70% were born before 1962.
- Regardless of how good your online stuff is, it is no good if you are not an organisation that looks after donors, and understands the importance of relationships
- Whatever you do or don't do online, on social networking sites someone else is talking about you. And on these sites people have a desire to connect.
- Good communications online give you an instant larger audience - if they are good communications they could get forwarded
- True measure of a fundraising professional is not shaking people down for $1000 now, it is getting them giving $25,000 over the years
- Don't worry about about the fact that non email based communications (like Facebook)are growing. Be aware, plan for it but for now your audiences are still using email.
- Amazing tool for Outlook, xobmi.com, when an email comes in it tells you if they are on Facebook etc
- Forget social networking completely, until you have a proper website strategy. He was lovely here and plugged Pareto to help charities do that, thanks Ted!
- Reckons that of the $15.48bn raised online in 2009, a third was generated online the rest was things like people following up an offline promotion and just signing up online, or printing out a form and sending it in
- Website should give the full complement of you, not just your online stuff
- ASPCA shows that people who supply their email give 112% more on and offline. He thinks because they've received more communications. They also gave 85% more donations and 15-20% higher average donation
- Nearly half of annual giving happens in December, in America
- Ted says email is not direct mail, electronically. It is more than that, use it to build relationships, engage and inspire.
- check out Nonprofits guide to Facebook, and Executives guide to Twitter
- Facebook, according to iStrategylabs has plenty of old people on it. Old people = good donors, but reiterated that you need to get the basics right first. Like website design....
- Websites have ten seconds to get across to the browser who we are, what we do and what we want you to do
- Note that according to Marketing Sherpa 79% of visitors don't come in through home page
- Privacy policy does not need to be complex, but should be here. Saying what information is collected, who can access it and how it will be used
Ted then went on to 'review' (slaughter) several charities' websites. People from Vision Australia, Wilderness Society' Wild Endurance event, Starlight, Centenary Institute, Cancer Council NSW and House With No Steps were all brave enough to get publicly ripped apart, especially Martyn Hartley at Vision Australia who really got some flak!
I am not going to be cruel enough to write up here what was said, but it was very, very useful...
More information on Ted here. Bottom line, if you are 'doing social media' and are a fundraiser then read his books.
Following Kate from Google, Ted Hart from p2pfundraising.org is telling us all about social media and fundraising.
Some key points:
- for all the technology out there, it doesn't change the fact that people give because they are asked. Online you kneed to ask or you can't fundraise.
- it is all about integration. You need a real strategy; these free tools - Google, Facebook etc are free but they are not the strategy.
- Think about your donors. He says that, in Canada (and probably same here) only 30% of online donors are gen X. Nearly all the other 70% were born before 1962.
- Regardless of how good your online stuff is, it is no good if you are not an organisation that looks after donors, and understands the importance of relationships
- Whatever you do or don't do online, on social networking sites someone else is talking about you. And on these sites people have a desire to connect.
- Good communications online give you an instant larger audience - if they are good communications they could get forwarded
- True measure of a fundraising professional is not shaking people down for $1000 now, it is getting them giving $25,000 over the years
- Don't worry about about the fact that non email based communications (like Facebook)are growing. Be aware, plan for it but for now your audiences are still using email.
- Amazing tool for Outlook, xobmi.com, when an email comes in it tells you if they are on Facebook etc
- Forget social networking completely, until you have a proper website strategy. He was lovely here and plugged Pareto to help charities do that, thanks Ted!
- Reckons that of the $15.48bn raised online in 2009, a third was generated online the rest was things like people following up an offline promotion and just signing up online, or printing out a form and sending it in
- Website should give the full complement of you, not just your online stuff
- ASPCA shows that people who supply their email give 112% more on and offline. He thinks because they've received more communications. They also gave 85% more donations and 15-20% higher average donation
- Nearly half of annual giving happens in December, in America
- Ted says email is not direct mail, electronically. It is more than that, use it to build relationships, engage and inspire.
- check out Nonprofits guide to Facebook, and Executives guide to Twitter
- Facebook, according to iStrategylabs has plenty of old people on it. Old people = good donors, but reiterated that you need to get the basics right first. Like website design....
- Websites have ten seconds to get across to the browser who we are, what we do and what we want you to do
- Note that according to Marketing Sherpa 79% of visitors don't come in through home page
- Privacy policy does not need to be complex, but should be here. Saying what information is collected, who can access it and how it will be used
Ted then went on to 'review' (slaughter) several charities' websites. People from Vision Australia, Wilderness Society' Wild Endurance event, Starlight, Centenary Institute, Cancer Council NSW and House With No Steps were all brave enough to get publicly ripped apart, especially Martyn Hartley at Vision Australia who really got some flak!
I am not going to be cruel enough to write up here what was said, but it was very, very useful...
More information on Ted here. Bottom line, if you are 'doing social media' and are a fundraiser then read his books.
Thursday, August 5, 2010
Digitial Integration Day - Google Adwords
I am writing this at Pareto Fundraising's Digital Integration Day. Right now Kate Conroy from Google is explaining how to get Google AdWords up and running.
Google gives charities $10,000 per month to spend on AdWords. Combined with goodSearch Engine Optimization (SEO) it is great way to drive people to your website or a landing page.
It doesn't take long to set up, just go to Google Grants and click on apply now. You will need a scan of your DGR certificate - evidence that you a 'deductible gift recipient' which is how Google defines an eligible charity in Australia.
Interestingly, there are fifty odd people here, all fundraisers from more than 30 diverse organisations from giants Red Cross to the new to Fundraising Indigenous Community Volunteers. Only two organisations actually have a grant. We are hoping that by the end of next week there will be a lot more.
If you are reading this outside of Australia, then don't despair, they are available in other countries too. For the full list click here.
She is showing us how it all works by creating some ads and keywords live. Really useful stuff and she has given us a link so we can have a look at how it looks and feels inside. If you want to have a look, then log in as grantsdemoview@gmail.com, password charitiesonline (from 6 August).
One of the main criticisms of Google Grants is how long it takes to get approved. Although I am still not happy about the delay, at least I now know why. Amazingly, Google runs the whole scheme by asking it's staff to volunteer time to work on Google Grants.
Good on Kate and others for putting in their time, and knowing that, I would ask charity staff to be gentle on these Google volunteers. Thanks!
Google gives charities $10,000 per month to spend on AdWords. Combined with goodSearch Engine Optimization (SEO) it is great way to drive people to your website or a landing page.
It doesn't take long to set up, just go to Google Grants and click on apply now. You will need a scan of your DGR certificate - evidence that you a 'deductible gift recipient' which is how Google defines an eligible charity in Australia.
Interestingly, there are fifty odd people here, all fundraisers from more than 30 diverse organisations from giants Red Cross to the new to Fundraising Indigenous Community Volunteers. Only two organisations actually have a grant. We are hoping that by the end of next week there will be a lot more.
If you are reading this outside of Australia, then don't despair, they are available in other countries too. For the full list click here.
She is showing us how it all works by creating some ads and keywords live. Really useful stuff and she has given us a link so we can have a look at how it looks and feels inside. If you want to have a look, then log in as grantsdemoview@gmail.com, password charitiesonline (from 6 August).
One of the main criticisms of Google Grants is how long it takes to get approved. Although I am still not happy about the delay, at least I now know why. Amazingly, Google runs the whole scheme by asking it's staff to volunteer time to work on Google Grants.
Good on Kate and others for putting in their time, and knowing that, I would ask charity staff to be gentle on these Google volunteers. Thanks!
Wednesday, July 21, 2010
Australian Tax Appeals and the GFC recovery
Get a free copy of our Tax 2010 benchmarking special report*
Whilst many charities in the UK, USA, Canada and other countries had a really tough time over the global financial crisis, Australia seemed to come off pretty lightly.
Our in depth data analysis of millions of donations across 33 charities showed a reduction in the rate of growth of income over the past two years, but it still grew. However, our analysis of mail appeals sent last Christmas showed a lot of charities performing worse than the year before.
So how did we Australians do in the last tax / winter appeals?
We don't yet, but if you are an Australian fundraiser, please help us find out by completing a cool little Survey Monkey here. You'll need top level information on the performance of tax 2010 and tax 2009 so that we have a context.
We will then compile the results and produce a report. Those participating will receive a very useful, full report allowing you to benchmark yourself against all the others. You can use the report as a great context tool in your report on performance to your boss, use it to help plan and budget, and also see if your growth or decline was due to GFC, or maybe your pack was just brilliant or, um, not so brilliant.
Thanks!
Click here for the Survey.
* Full report available to all charities who complete the survey. Sent as a PDF to the email address provided.
Sean
Whilst many charities in the UK, USA, Canada and other countries had a really tough time over the global financial crisis, Australia seemed to come off pretty lightly.
Our in depth data analysis of millions of donations across 33 charities showed a reduction in the rate of growth of income over the past two years, but it still grew. However, our analysis of mail appeals sent last Christmas showed a lot of charities performing worse than the year before.
So how did we Australians do in the last tax / winter appeals?
We don't yet, but if you are an Australian fundraiser, please help us find out by completing a cool little Survey Monkey here. You'll need top level information on the performance of tax 2010 and tax 2009 so that we have a context.
We will then compile the results and produce a report. Those participating will receive a very useful, full report allowing you to benchmark yourself against all the others. You can use the report as a great context tool in your report on performance to your boss, use it to help plan and budget, and also see if your growth or decline was due to GFC, or maybe your pack was just brilliant or, um, not so brilliant.
Thanks!
Click here for the Survey.
* Full report available to all charities who complete the survey. Sent as a PDF to the email address provided.
Sean
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