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San Juan RPD
June 2017
Trends in Charitable Giving and Strategies for Using These to Keep
your Donors Engaged
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Agenda for Today• Snapshot of Colorado’s nonprofit operating environment• IRS charitable deduction statistics• Generosity Survey
– Overall findings– Donor profiles
• Landscape• Donor Retention• Opportunities for Engagement• Capitalizing on Colorado Gives Day• Implications
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2016 Year In Review
27%
51%
14%
7% 1%
Demand for your nonprofit's programs/services has...
Significantly Increased
Somewhat increased
stayed the same
somewhat decreased
significantly decreased
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2016 Year In Review
29%
23%
30%
26%
11%
17%
47%
49%
34%
42%
35%
35%
21%
22%
13%
19%
15%
17%
1%
3%
18%
9%
37%
27%
2%
3%
5%
3%
2%
5%
0% 20% 40% 60% 80% 100%
Overall revenue
Individual donations
Corporate giving
Foundation grants
Government grants
Earned income/fees for service
In terms of revenue for 2016, you expect your organization to...
Fall short of our revenue goals Meet our revenue goals Exceed our revenue goals
Not applicable I don't know/I'd prefer not to say
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2016 Year In Review
16%
13%
8%
10%
10%
6%
12%
9%
14%
4%
4%
5%
2%
3%
55%
35%
24%
4%
14%
8%
12%
9%
6%
25%
20%
27%
9%
0% 10% 20% 30% 40% 50% 60%
Cut back programs
Eliminate programs
Turn away clients
Cut staff pay or hours
Lay off staff
Try new strategies to increase revenue
Create a new program/service
Try new strategies to reduce expenses
Restructure (such as a merger or a majorchange in strategy/focus)
Has your nonprofit done or is considering doing any of the following...
We may do this in 2017 We expect to do this in 2017 We've done this in 2016
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2016 Year in review
26%
55%
12%
6% 1%
When considering your outlook for your organization in 2016, you are...
Very Optimistic Somewhat Optimistic
Neutral Somewhat Pessimistic
Very pessimistic
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Revenue Sources by SectorSector Private
DonationsPrivate Payments
Govt. Grants/payments
InvestmentIncome
Other revenue
Arts, culture, humanities
44 34 16 < 1 6
Education 20 65 15 3 2Environment/animals
51 28 15 < 1 5
Health care 4 59 35 < 1 2HumanServices
17 28 51 1 3
Source: Evaluating the Charitable Deduction and Proposed Reforms, Urban Institute, June 2012
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Coloradan’s Charitable GivingYear Total Charitable
Deductions (billions)Ave. Contribution per Return
2014 $3.487 $5,109
2013 $3.293 $4,758
2012 $3.376 $4,753
2011 $3.244 $4,477
2010 $3.050 $4,144
2009 $2.777 $3,839
2008 $2.981 $3,993
2007 $3.313 $4,278
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Coloradan’s Charitable GivingAGI % of
taxpayers claiming deduction
Of those deducting,% by income category
Ave. contributiondeduction
Under $25,000 7.7 5 $1,508$25,000 to $49,999 13.4 12 $2,188$50,000 to $74,999 30.6 16 $2,540$75,000 to $100,000 45.5 16 $3,002$100,000 to $200,000 67.7 35 $3,916$200,000 to $500,000 87.3 13 $7,139$500,000 to $1 million 90.2 2 $19,457$1 million and more 90.2 0.95 $123,399
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Key Findings
Generosity Survey 2014
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Giving Decision
Generous Spirit
Generosity Environment
Generosity Resources
Generosity Priorities
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Generous Spirit
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Generosity Environment
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Generosity Environment
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Generosity Environment
Of those who have heard, 32% statewide made a gift.
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Giving Resources
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Ways People Give
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Ways People Give
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Faithful FriendsDonor Profiles
loyal
plannersreligious
Free Spirits
socialtrusting
spontaneous
Mavericksindependent
skeptical
Occasional Donors
rarely giveunconnected
Free Spirits
socialtrusting
spontaneous
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Donor Profiles
Based on people who feel similarly about whether:
Family and friends support charitable causes Feels a responsibility to support charitable causes Believes that most charities are ethical Thinks of herself/himself as a charitable person Gives as a part of religious beliefs Is a planed or spontaneous giver Gives mostly to same or new charities Gives to charities that do or do not contact her or him
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The Faithful FriendsDonor Profiles
Giving is part of my religious beliefs
…and everyone else
Most of my giving is planned in advance
My charitable spending tends to go to the same charities every year
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The Faithful FriendsDonor Profiles
Household donations, past 12 months
Causes Supported(Past 12 months)
Environmental
Religious
Youth
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The Faithful FriendsDonor Profiles
Looked at the organization’s financialscompared with 14% of everyone else
Learned about the organization from a friend or family membercompared with 45% of everyone else
Question: Did you do any of the following before making your most recent donation?
Researched how effective the organization is
compared with 35% of everyone else
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The Faithful FriendsRepublican Household income $100,000 or moreGen X
Donor Profiles
Politically Independent/UnaffiliatedMillennials
Race/EthnicityBaby Boomer, Silent GenerationsGender
MOR
EAB
OUT
AVER
AGE
LESS
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The Free SpiritsDonor Profiles
Most charities are honest and ethical in their use of donations
…and everyone else
I tell my friends and family about the charitable causes I support
Most of my charitable spending is spur-of-the-moment donations
67%
87%
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Donor Profiles
Question: Did you do any of the following before making your most recent donation?
The Free SpiritsSearched online for information about the
organization
Researched how effective the organization is
In the past 12 months, have you donated as a result ofan email from someone you know?
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Donor ProfilesThe Free Spirits
Number of charities supported, past 12 months
I tend to pick different charities to support each year
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Donor ProfilesThe Free Spirits
Causes Supported(past 12 months)
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The Free SpiritsDemocratHousehold income between $30,000 and $50,000
Donor Profiles
Republican
Generations (All)Politically Independent/UnaffiliatedHousehold income between $30,000 and $50,000Gender
MOR
EAB
OUT
AVER
AGE
LESS
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The MavericksDonor Profiles
…and everyone elseMost charities are honest and ethical
in their use of donations
Giving is part of my religious beliefs
Politically Independent/ Unaffiliated
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Donor Profiles
Question: Did you do any of the following before making your most recent donation?
The Mavericks
Looked at the organization’s website
Searched online for information about the organization
Researched how effective the organization is
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Donor ProfilesThe Mavericks
In the past 12 months, have you donated as a result of…
My friends and family support
charitable causes
I feel a responsibility to support
charitable causes
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Donor ProfilesThe MavericksCauses Supported(past 12 months)
Top Charities SupportedHumane Society
Goodwill
Salvation Army
Disabled Veterans
Wounded Warrior
Food Banks
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Donor ProfilesThe MavericksWhen they make donations:
More likely than average to donate more than $1,000 annually (27% vs. 24% statewide)
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Politically Independent/UnaffiliatedMaleMillennials, Baby Boomers
Donor Profiles
Democrat, RepublicanFemaleGen XHousehold income more than $75,000
Household income $75,000 or lessSilent Generation
MOR
EAB
OUT
AVER
AGE
LESS
The Mavericks
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Occasional DonorsDonor Profiles
My friends and family support charitable causes
…and everyone else
I think of myself as someone who supports charitable causes
I feel a responsibility to make charitable donations
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Donor Profiles
Total Household Donationspast 12 months
Occasional Donors
Number of Nonprofits Supportedpast 12 months
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Donor ProfilesOccasional Donors
Causes Supported(past 12 months)
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Donor Profiles
In the past 12 months, have
you made a donation as a
result of…?
Occasional Donors
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Donor Profiles
Household Income
Occasional Donors
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Income $30,000 or lessGen X
Donor Profiles
Baby BoomersDemocrats
Millennials, Silent GenerationRepublicans, Politically Independent/Unaffiliated
MOR
EAB
OUT
AVER
AGE
LESS
Occasional Donors
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Regional Comparisons
Western Slope donors are: Most likely to give as result of being asked by someone
they know (69.2%) Have volunteered for organization
(34.1%) Had a good experience with
organization (71.8%) Could use or benefit from services (61.7%)
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Regional Comparisons
Western Slope donors are: Most likely to name a charity in their will (12.9% vs. 5.5% overall)Least likely to: give through a website (14.9%), look at an organization’s website (32.1%)search for information online (22.2%) prior
to donating.
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Renny Fagan, President and CEO,[email protected] Sherman Street, Suite 200
Denver, CO 80203303-832-5710
www.coloradononprofits.org
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5855 Wadsworth Bypass, Unit A • Arvada, CO 80003720.898.5900 • CommunityFirstFoundation.org
Strategies for Using These to Keep your
Donors Engaged
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5855 Wadsworth Bypass, Unit A • Arvada, CO 80003720.898.5900 • CommunityFirstFoundation.org
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ColoradoGives Team
Dana Rinderknecht, Director of Online Giving
Bryce Wilkinson, Senior Online Giving Specialist
Lisa Lujan, Online Giving Coordinator
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Making the Pie Bigger!
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2017 Landscape
• Micro Moments
• Check phones 150 times per day
• Spend an average of 1 min 10 secs
• Embracing Mobile
• Tipping point has been reached
• Start focusing on mobiles design first
• Video & Live Streaming
• Average person views 206 videos per month
• 69% of all consumer traffic driven by this (2017)
• Content is predominant to everything!
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Let’s Talk Retention Stats
• 70% of first time donors, don’t give again
• Top reasons why
• 54 percent said they could no longer afford it
• 36 percent said others were more deserving
• 18 percent said poor service or communication
• 16 percent said death
• 13 percent said they never received a thank you
• For every $100 gained, $95 lost (didn’t give again, decreased donation)
• 2015/2016 Retention Rate = 45%
• What is your cost of donor acquisition vs retention (Lifetime Value of a Donor)?
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Creating a Personalized Donor Experience
• Are you putting more emphasis on revenue than donor satisfaction and the giving experience?
• Are you sending too many emails and/or direct mail pieces?
• Do you track opt-outs on your email list?
• Are you checking click through rates to see what is engaging your donors?
• Industries’ best, most responsive donors are being bombarded
• Evidence that the donor pool is down 13%
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What do donors want
• Hands on service
• Meaningful engagement in the mission
• Words of affirmation
• 3 to 1 ratio of You vs We
• Accurate and correct name, spelling, grammar, gift amount
• Tokens of appreciation
• Inexpensive, mission related
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What do donors want (part 2)
• Quality Time
• Feel valued and appreciated
• Gratitude Reception
• Proof of impact
• Exclusive insider experience
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Breakdown by Donor Profiles (One Way to Segment)
• Faithful Friends
• Loyal, Religious, Planners
• Free Spirits
• Spontaneous, Trusting, Social
• Mavericks
• Independent, Skeptical
• Occasional Donors
• Unconnected, Rarely Give
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• Doesn’t have to be about money
• How else can a donor progress?
• Advocate
• Volunteer
• Fundraiser (Fundraising Pages)
• A networker bringing you more donors
Progression of a Donor
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• You are Building a Relationship
• Like a love relationship where he leaves you because you ignore him, lie, don’t return calls, are late/not timely, don’t appreciate him
• Are you asking for too much without thanking the donor?
• Is it all about you?
From Blackbaud webinar featuring Adrian Sargeant (the Robert F. Hartsook Chair in Fundraising at the Center on Philanthropy at Indiana University and consultant)
Cultivating New Donors
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• Instill a Gratitude Culture
• Write a note card a day
• Set aside 15 minutes each day for a thank you call, text, tweet
• Give your board members assignments to call and thank donors
• Give your program staff assignments to call and thank donors
• Institute a practice of TYIF (Thank You It’s Friday)
Delighting Your Donors
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Opportunity:
Monthly Donors
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Monthly Donors
• Blackbaud Study – These work!
• Average gift size higher then one time donors ($143 vs $43)
• More likely to retain donors who gave by bank transfer
• Covert loyal multi-year single gifts to monthly gifts helps long term retention (29% vs 14%)
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Monthly Donors
• Is this part of your overall plan?
• When is the best time to ask?
• Should you do a special mailing?
• Is this an option on every mailing?
• Do you include this in your welcome information?
• What is your goal? $ vs Donors
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Opportunity:
Mobile Donors
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Colorado Gives Day Mobile Device Hits
• Overall 31.9% of the Sessions were Mobile/Tablet
• Operating Systems
• iOS = 72%
• Android = 25%
• Windows, BlackBerry = 3%
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ColoradoGives.org Mobile Device Hits
• Overall YTD thru Aug 29.3%
• Operating Systems
• iOS = 66%
• Android = 31%
• Other = 3%
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Mobile Strategy
• Do you have one?
• Are you using Google Analytics?
• What are your numbers?
• How are they changing?
• When is the last time you went through the process to interact with your nonprofit via your mobile device?
• Have a new board member try it!
• EMAIL!!!
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Opportunity:
Peer to Peer
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Fundraising Pages
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• Your supporters fundraise on your behalf
• Increases involvement
• Brings you more first-time donors
• Drive immediacy
• Focuses giving for donor
Online Tools – Fundraising Pages
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Peer-to-Peer Fundraising
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Crowdfunding – Peer to Peer
• How much are your event gift amounts compared to your general gifts?
• Does your average gift amount change by the participation type or the participant's connection to your nonprofit?
• What's your average self-donation?
• What events have been most successful for your organization?
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Capitalizing on Colorado Gives Day
• Have a post Gives Day Plan
• Incorporate Colorado Gives Day into your year round fundraising plans
• Review your donor information from your ColoradoGives.org report
• Acknowledge the donation based on information from the report
• Involve board and staff in year round donor gratitude
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Implication for Generosity Environment – Before Gift
• 46% learned about the organization from a friend or family member• How could you learn about this?
• Did you acknowledge that?
• 47% looked at your website
• What does it say?
• Can I donate on that page?
• 38% looked at effectiveness of your nonprofit
• How do you show this?
• Do you talk about it in your marketing, fundraising?
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Implication for Generosity Environment – Result of
• 56% asked in person by someone they know• 30% email from someone you know
• Are you asking your supporters to tell their friends/family?
• Does your newsletter have information that is forward worthy?
• 24.8% phone call
• When is the last time you called donors?
• Who makes these calls?
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Dana RinderknechtDirector of Online Giving
www.CommunityFirstFoundation.org
www.ColoradoGives.org