CANADIAN FUNDRAISING TODAY AND TOMORROW
AGENDA9:30-11:00Canadian Fundraising Today and TomorrowMichael Johnston
11:00-11:30 COFFEE AND NETWORKING
11:30-12:15The Constituent Engagement Journey: Growing Engagement, Loyalty, and Lifetime ValueKen Kuhler
12:15 – 1:30 LUNCH AND NETWORKING
1:30-2:00Monthly Giving and the Next Generation of GivingHarvey McKinnon
2:00-3:00Fundraising Trends in 2013Michael Johnston and Ken Kuhler
At the end of the session, we’ll ask you to go online and fill out our integration survey. We’ll select 1 WINNER to receive complimentary 1-hour hjc/hma/Blackbaud digital and integrated fundraising consulting session
http://www.surveymonkey.com/s/HBBRTHG
Take our survey at the end of the session!
“THE MORE ONE KNOWS, THE MORE ONE CAN CONTROL EVENTS.”
SIR FRANCIS BACON
• DONOR FILES AND ACQUISITION LIST SOURCES ARE SHRINKING – A MORE COMPETITIVE ENVIRONMENT
Current Fundraising Reality
Aging Donor Base
• REVENUES ARE FLAT AND – IN MANY CASES – ARE FALLING
DIRECT MAIL AND OTHER TRADITIONAL CHANNEL COSTS/ROI ARE INCREASING/ FUNDRAISING MARGINS ARE SHRINKING
Current Fundraising Reality
WWBA?
What are the preferred giving channels of each generation?
What are the preferred communications and engagement channels?
Does age influence who you give to?
What are the basic dos and don’ts for fundraisers in 2013 and beyond?
Hail Angry Peasant! what skullduggery do you intend with that pitchfork?
How could thoust deny the vital nutritional content of this fine homebrewed ale?
ONLINE BENCHMARKING(2011 AND 2012)
Other Sources of Giving Data in Canada
WHERE CAN WE IMPROVE?
• Underdeveloped Advocacy
• 8.2% of total email files in Canada are advocates vs. 12% in the United States
• Only 6.8% of online advocates are donors in Canada vs. double that in the United States
ACTION TAKERS ARE STRONGER PROSPECTS
Non-donors who’d taken action online were 2.3x more likely to donate than non-donors in the email file who hadn’t
ACTION TAKERS ARE STRONGER DONORS
Source: Charitable Memberships, Volunteering and Discounts: Evidence from a Large-Scale Online Field Experiment. May 2009, National Bureau of Economic Research, A. Lange, A. Stocking.
AMNESTY INTERNATIONAL: E-PETITION AND TELEPHONE FOLLOW UP
Phone number: Ask!
Counter: social proof
Comments: priority for calls
Subscribe:for cultivation
More info:legitimacy
CALLING ADVOCACY LISTS
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%18.50%
8%9%
11% Recent Lapsed Monthly DonorOnline Petition OnlyE-newsletter SubscriberLong Lapsed Montlhly Donor
COST PER MONTHLY DONOR $75.00
• 1000 phone calls – 74 monthly donors giving $9.66 every month
WHAT ARE WE DOING WELL?
• A Less Cluttered Market• 14.34% open rates in the United States vs. 22.98% open rates in Canada• That maintains a similar advantage the year before
• Monthly Giving• Next Generation of Giving comparison – still higher in Canada• Online monthly giving is also bigger in Canada: 14% of Canadian online
revenue is from monthly sustainer vs. 8% of US online revenue• HOWEVER… US online sustainer revenue increased from 6% the year
before while the Canadian % remained the same at 14%. • We shouldn’t be standing still!• This is paralleled in the offline, Next Gen Study
WHAT ELSE?
• Are we doing enough?• Even though the US market is more mature in online fundraising, they still
have a higher online gross revenue increase of 10% vs. 5% in Canada• Is this a parallel of our more conservative, steady economic approach to
growth?
• Are we spamming?• In the US, there was a 1.2% increase in overall charitable email volume but
there was an 18% increase in Canada• If we are sending more, is it segmented and personalized?
THE INTEGRATED, NEXT GENERATION OF GIVING IN CANADA
Prospects
One-off
Monthly
Major
Wills
One-off
Prospect
Monthly
Major
Wills
Technology
ChannelsLevels of Giving
Departments
• The cultivation survey:– Sent to 57,400 donors– 3 key segments: Monthly, Active &
Lapsed– 5,530 responses (response rate of 11%)– Raised $17,574 – a bonus!– Reactivated 30 donors– Found 85 expectances and 292 legacy
leads – 143 middle and major donor leads!– Shared budgeting!– Surveymonkey and RE
CANADA LEADING THE PACK
1. Donors from 35 to 45 were thinking of legacy gifts
2. Shown to be 300% over represented on LinkedIn
3. Open to Gifts of Stock
4. Now…. A LinkedIn Strategy for a Legacy Gift for younger donors….
HAPPY SURPRISES!
89 b
eque
sts w
orth
appr
oxim
atel
y $8.
9
milli
on
345 middle donor
gifts worth
approximately
$345,000
28 endowments gifts worth
approximately $100,000 to $2.3
million each Cost to create and
deploy online
survey: $7,500CANADA LEADING THE PACK
A recent online survey found
176
bequ
ests
wor
th
appr
oxim
atel
y $5
milli
on
25 of found
bequesters left
phone numbers to
be thanked
251 supporters ‘dying to give’
61% of respondents
open to middle and
major gift
conversations
ANIMAL WELFARE
A recent online survey found
THE NEXT GENERATION OF CANADIAN GIVING
The Canadian Fundraising Summit
% Of Generation Giving
Tota
l ann
ual g
ivin
g
55% 65% 75% 85% 95%$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
79% Give5.8 M donors$831 yr/avg4.5 charities$4.8 B/yr
62% Give4.5M donors$639 yr/avg4.0 charities$2.9 B/yr
78% Give6.9 M donors$942 yr/avg4.9 charities$6.5 B/yr
87% Give3.1 M donors$1507 yr/avg7.0 charities$4.7 B/yr
Gen Y
Gen X
Boomers
Matures
GENERATIONAL GIVING
Bubble size is ‘Estimated Annual Contributions’
An overview of annual giving by generation confirms the importance of Boomers in the charitable giving space.
26
Born: 81-91
Born: before 1946Born: 46-64
Born: 65-80
DRAW YOUR BUBBLES
A GRADE TWO QUIZ
Gen YAnimal Protection
MatureHuman Rights
Gen XDoor To Door
Boomer Arts
CAUSES – TOP TIER
GEN Y GEN X BOOMERS MATURES
PRIORITY CAUSE
45% 50% 50% 55%
21% 31% 31% 36%
32% 40% 38% 28%
18% 25% 23% 40%
15% 17% 17% 14%
12% 14% 11% 14%
Health charities
Local social service
Children’s charities
Place of worship
Animal rescue/protection
Emergency relief
50%
30%
35%
26%
16%
13%
71%
48%
46%
33%
23%
22%
Overall Giving Column1
% donating overall to causes
*Bolding indicates statistical significance among audiences. Arrows indicate statistical significance between 2010 and 2013.
• Health charities have the largest % of donors across generations
• For all top tier causes capture, at least half of donors see it as a priority. Places of worship and children’s charities have the largest %
• Emergency giving dropped as a priority cause across generations↓
↓
↓↓ ↓ ↓ ↓
↓
↓ ↓
↓
↓ ↓
CAUSES – BOTTOM TIERGEN Y GEN X BOOMERS MATURES
PRIORITY CAUSE
10% 8% 6% 10%
13% 8% 6% 9%
6% 8% 8% 10%
3% 3% 7% 10%
6% 5% 6% 4%
2% 3% 2% 6%
4% 4% 3% 4%
2% 3% 2% 7%
3% 4% 2% 3%
0% - 0% -
Education
Human rights, international dev.
Environmental, conservation
Arts/art-related
Victims of crime or abuse
Election campaigns
First responders
Troops/veterans
Advocacy
Trade union
8%
9%
8%
6%
5%
3%
4%
4%
3%
0%
18%
16%
16%
11%
10%
9%
8%
7%
6%
1%
Overall Giving Column1
% donating overall to causes
*Bolding indicates statistical significance among audiences. Arrows indicate statistical significance between 2010 and 2013.
↓
↑
↓
↓ ↓
WHAT CHANNELS ARE DONORS USING IN NORTH AMERICA?
ANOTHER GRADE TWO QUIZ
Gen YOnline Giving
MatureMobile Text
Gen XDoor To Door
Boomer Telemarketing
GEN Y GEN X BOOMERS MATURES
55% 54% 58% 55%
45% 55% 35% 31%
21% 35% 47% 56%
36% 39% 38% 30%
29% 33% 40% 37%
11% 23% 36% 58%
22% 29% 37% 34%
22% 24% 29% 29%
24% 20% 25% 20%
25% 19% 11% 9%
15% 14% 12% 14%
5% 9% 15% 18%
7% 5% 4% 9%
4% 9% 4% 4%
5% 8% 4% 3%
12% 4% 2% -
6% 4% 3% 2%
1% 2% 3% 2%
Donated this way in last 2 years
Checkout DonationOnline Donation
Honor/TributePurchase for Proceeds
Pledge at EventMailed Check/Credit Card
Door to Door*Monthly Debit
Street Canvassing*Third Party Vendor
Email*Phone
Radio/TV*Online Ad*
Will/Planned GiftMobile/Text
Social Networking SiteStocks, Bonds, Property
56%
41%
41%
36%
35%
32%
32%
26%
22%
15%
13%
12%
6%
5%
5%
4%
4%
2%
GIVING CHANNELS
Bolding indicates statistical significance among audiences. Arrows indicate statistical significance between 2010 and 2013.36
*New or changed attribute, no tracking data
↑↑
↑
↓
↑
↓
↑
↑
↓↑
↑
↓
1%
1%
5%
6%
12%
18%
25%
33%
34%
34%
35%
43%
3%
6%
9%
9%
12%
14%
25%
16%
21%
23%
25%
24%
34%
36%
36%
30%
34%
29%
22%
15%
17%
16%
12%
9%
47%
41%
23%
18%
15%
11%
4%
8%
3%
6%
2%
1%
Acceptable Solicitation Channel(from organizations with an established relationship)
Very AcceptableVery UnacceptableNET GEN Y GEN X BOOMERS MATURES
+77 +78 +87 +77 +63
+69 +70 +76 +68 +62
+46 +53 +40 +46 +47
+34 +51 +43 +30 +13
+25 +50 +41 +11 +5
+8 +45 +26 -2 -33
-24 -4 -21 -37 -24
-26 +24 -5 -46 -65
-35 -6 -29 -49 -46
-35 -26 -38 -41 -30
-46 -17 -38 -54 -67
-57 -29 -48 -76 -63
Friend
Friend's child/grandchild
Letter/message
Radio or TV program
Opt-in for extra charge on ticket/recording
Phone call
Message via social media
Voice message
Door-to-door canvassing
Street canvassing
Text message
ACCEPTABLE SOLICITATION CHANNEL
Net (Acceptable – Unacceptable)
Smwt Smwt
Channels with a personal connection are most acceptable, followed by letters or TV/radio.
*Bolding indicates statistical significance among audiences. Arrows indicate statistical significance between 2010 and 2013.
MAKING A DIFFERENCE
30%
36%
7%
14%
9%2%
Gen Y
43%
21%
7%
14%
8%1%
56%18%
7%
9%
5% 1%
Boomers
55%19%
10%
7%
4%2%
Matures
As we saw in the 2010 research, the feeling that monetary donations are the way to make the biggest difference increases with age. Gen Y – with more time than money --
is the one generational cohort that places more emphasis on volunteering.
Gen X
Money Volunteer Donate goods Spread word Fundraise Advocate
HYPER-CHOICE
IS IT THE DEATH OF UNRESTRICTED GIVING?
Directed dona-tion
Unrestricted donation
Either is fine
24%22%
49%
26%
18%
53%
23% 25%
46%
10%
40% 43%
Directed Giving Preferences
Gen Y Gen X Boomers Matures
27%
55%
7% 5%
22%
44%
6%1%
22%
34%
5%0%
14%
28%
7%2%
Would Motivate Me a Great Deal to Make a Larger Donation to
Charity
*Bolding indicates statistical significance among audiences. Arrows indicate statistical significance between 2010 and 2013.
Engagement: Directed Giving
HOW DO YOUR DONORS LOOK AT TRANSACTIONS, ENGAGEMENT, AND
OUTREACH?
TRANSACTIONAL: DIRECT MAIL
Mail from a charity is very or smwt acceptable
Mail is important way for charity to stay in touch
Receive information in the mail
Gave a donation in response to a mail appeal in the last 2 yrs
63%
56%
13%
11%
56%
50%
22%
23%
58%
55%
28%
36%
63%
64%
28%
58%
Matures Boomers Gen X Gen Y
• While donors say that direct mail is an acceptable and important way for charities to keep in touch with supporters …
• … There is a substantial drop across generations in the number who remember receiving info in the mail; and a big difference, except among Matures, in the number who say they have responded to direct mail
• Donors say that a charity’s website is an important way to stay in touch, yet far fewer report actually visiting these sites
• However, the website is an important transaction channel – especially with Gen X. More say they contributed in this way across generations in 2013 than in 2010
TRANSACTIONAL: ONLINE
Visiting website is important way to stay in touch with charity
Visit website of charities you support
Made a donation through org's website in last 2 years
85%
41%
45%
76%
29%
55%
60%
25%
35%
45%
16%
31%
Matures Boomers Gen X Gen Y
Website
Credit card 90%Paypal 38%Amazon payment 2%
Ways Would Pay
201041%
37%
29%
24%
↑
ENGAGEMENT: WORKPLACE
Have given in the workplace
Have not given in workplace
60%
36%
58%
40%
49% 50%
25%
75%
Workplace giving is more prevalent among younger workers. Gen Y is likely to give this way just once, while Boomers are more likely to give through payroll.
Workplace Giving GEN Y GEN X BOOMERS MATURES
Participated in a workplace fundraiser 30% 33% 30% 13%
Made a one-time donation through your workplace
24% 16% 20% 4%
Made a donation through payroll deduction
11% 18% 24% 4%
Volunteered through your workplace 19% 12% 16% 4%
Made a donation where your employer matched the gift
15% 15% 11% 4%
Participated in a workplace walk/run/challenge
15% 11% 13% 8%Gen Y Gen X Boomers Matures
(filtered among those employed or student)
*Bolding indicates statistical significance among audiences. Arrows indicate statistical significance between 2010 and 2013.
• Corporate Donors phoned/mailed/emailed proposal • Lead to Starbucks doing a coin collection at 90 of their retail stores. • Also led to online Employee Giving campaign (138 employees (almost
all new donors) gave over $4,000 in lieu of Christmas gifts
ENGAGEMENT: RETAIL GIVINGRetail giving, last 12
mos34%
No retail giving43%
Not sure23%
Gen Y: 54%Gen X: 38%Boomers: 29%Matures: 19%
Motivations(Single most important reason)
Total Y X B M
Cause 64% 58% 69% 64% 61%
Product 19% 28% 18% 25% 18%
Total Y X B M
Given to cause before 24% 21% 18% 31% 29%
Would have given anyway 35% 30% 39% 34% 42%
Have given since purchase 11% 17% 9% 8% 11%
Plan to give directly in future 28% 27% 30% 20% 42%
Will retail give to this charity in future 48% 40% 45% 56% 55%
None of these (1x gift) 10% 16% 12% 2% 13%
Relationship to Cause
• Gen Y & X are more likely to give by retail purchase
• All are primarily motivated by cause over product
• Responses suggest that retail is a good way to increase donations and raise awareness, but many of these will not convert into regular donations beyond retail
*Bolding indicates statistical significance among audiences. Arrows indicate statistical significance between 2010 and 2013.
ENGAGEMENT: WORD OF MOUTH
Gen Y Gen X Boomers Matures
18% 17% 13% 13%
40% 43%34% 33%
25% 16%
17% 21%
12%16%
23% 23%
1% 7% 10% 11%
53
Comfort-level Sharing Info about Charities Support
Not comfortable at all, it is inappropriate
Not too comfortable, tend to be private
Somewhat comfortable, but cautious
Very comfortable, but only bring it up if asked
Very comfortable, often tell others
Younger generations are slightly more comfortable sharing information about the charities they support than older generations.
CHANNEL ECOSYSTEMNO SILVER BULLET: FUTURE IS INTEGRATED
Work place
Retail giving
Check in the mail
Mobile
Social media
Online
Crowd funding
Text/SMS
Peer-to-Peer
Transactional OutreachEngagement
Direct mail
Website
Volunteer/Meetups
Monthly giving
Directed giving
55
KEY NEXT GEN FUNDRAISING QUESTIONS TO ASK YOURSELF
HAVE I UNDERINVESTED IN FUNDRAISING TO BABY BOOMERS, WHERE THE BULK OF
MONEY WILL COME FOR THE FORESEEABLE FUTURE?
HAVE I IGNORED THE UP AND COMING YOUNGER GENERATIONS; OR RELEGATED
THEM TO AN UN-STRATEGIC SOCIAL MEDIA EFFORT?
DOES MY FUNDRAISING CHANNEL MIX INCLUDE DIRECT MAIL FOR YOUNGER
DONORS AND DIGITAL COMMUNICATIONS FOR OLDER ONES (HINT: IT SHOULD)?
AM I PREPARING FOR THE FUTURE BY ADDRESSING THE CULTURAL DEMANDS
GENERATIONS X AND Y ARE PLACING ON INSTITUTIONS (SUCH AS TRANSPARENCY)?
AM I EMPOWERING MY MOST ENTHUSIASTIC SUPPORTERS TO
FUNDRAISE AND EVANGELIZE ON MY BEHALF?
OUR KEY RECOMMENDATIONS
KNOW YOUR DONORS’ BIRTHDAYS.
OUR KEY RECOMMENDATIONS
MAKE DONORS HAPPY.
NOW IS THE TIME TO CREATE AND TRACK DONOR SATISFACTION METRICS AND TO CLOSELY TRACK RETENTION BY CHANNEL AND BY GENERATION.
IT’S ALSO TIME TO PAY MORE ATTENTION TO INBOUND COMMUNICATIONS BY DONORS.
OUR KEY RECOMMENDATIONS
PREPARE FOR THE FUTURE TODAY. THERE ARE THINGS ORGANIZATIONS CAN AND SHOULD DO TODAY TO ATTRACT YOUNGER SUPPORTERS (GEN X, Y, Z) AND A SHARE OF THE ROUGHLY $6 BILLION THEY GIVE EACH YEAR.
IT’S NOT JUST ABOUT TWEAKING THE TACTICS. MANY OF THE BIGGEST IMPEDIMENTS TO EFFECTIVE MULTICHANNEL FUNDRAISING ARE ORGANIZATIONAL AND
POLITICAL.
HOW ABOUT YOURS?
CONCULSION
THE FUTURE HAS ARRIVED
IT IS A MULTI-CHANNEL FUNDRAISING WORLD
IT IS ALSO A FUNDRAISING ENVIRONMENT IN WHICH THE DONOR DEMANDS, AND RESPONDS TO AN INTEGRATED RELATIONSHIP
ARE YOU READY?
REMEMBER THE CHILDREN…
• 3 of the top 10 fundraisers for an organization that raises over $90 million a year are under 15
• Do you have an integrated plan for supporters under 15?
At the end of the session, we’ll ask you to go online and fill out our integration survey. We’ll select 1 WINNER to receive complimentary 1-hour hjc/hma/Blackbaud digital and integrated fundraising consulting session
http://www.surveymonkey.com/s/HBBRTHG
Take our survey at the end of the session!