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Slides from my MYTHBUSTERS presentation at the International Fundraising Congress, October 2014.

TRANSCRIPT

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MYTHBUSTERS!

Damian O’BroinAsk Direct

#ifc2014@damianobroin

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MYTH #1

Every presentation at #IFC2014 has to include the words “ice”, “bucket”

and “challenge”

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You can’t replicate the ice-bucket challenge

so you shouldn’tbother trying.

MYTH #2

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#icebucketchallenge

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#icebucketchallenge

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47% of Rovio’s revenue come from licensing

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2013 Profit: $568 million

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How to replicate the ice bucket challengeGuaranteed!

1. Invest very heavily in idea development - properly resource innovation teams and buy in outside expertise if necessary

2. Develop a ruthless culture of fail-fast and be prepared to fail repeatedly.

3. Practice Zen-like levels of patience. This could take 10 years.

4. (Buy a couple of lottery tickets, just in case.)

5. Implement robust online and mobile tools to be ready for when it takes off.

6. Develop top-of-the class social media strategies and tactics so that you can amplify the message when it goes viral.

7. Cross your fingers.

8. Sit back and wait for the money to roll in.

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You can’t replicate the ice-bucket challenge

so you shouldn’tbother trying.

MYTH #2

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You can’t replicate the ice-bucket challenge

so you shouldn’tbother trying.

MYTH #2

BUSTED

(Well, kind of...)

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Sending thank you letters to all your donors for every donation is a

waste of time

MYTH #3

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“It appears no one has any empirical evidence that thanking donors, promptly or otherwise,

makes the slightest difference...”

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“On average, we get more than one fifth of our net income from direct mail from our thank you letters...”

- Angel Aloma, Food for the Poor

(No ask, but envelope & reply device)

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Test Group A Test Group B

Q = 25,000 Q = 25,000

ControlAdditional thank you piece

at start of year(no ask, envelope or reply device)

– + $450,000 in gifts

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“The closest I've come to testing that was when a client of mine accidentally turned off their acknowledgement program.

It stayed off for about three months — donors not getting any thanks for their gifts — because nobody noticed. 

We saw retention drop during that time, and we had no idea why, until we learned about the missing acknowledgements. 

Of course, it wasn't a test with a control group, so we couldn't say for sure that not sending the receipts is what caused the drop in renewal.”

- Jeff Brooks, TrueSense Marketing

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The 7 Key Drivers of Donor Commitment1. Donor perceives your organisation to be effective in trying to achieve its mission.

2. Donor knows what to expect from your organisation with each interaction.

3. Donor receives timely thank yous.

4. Donor receives opportunities to make his or her views known.

5. Donor is given the feeling that he or she is part of an important cause.

6. Donor feels his or her involvement is appreciated

7. Donor receives information showing who is being helped

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The 7 Key Drivers of Donor Commitment1. Donor perceives your organisation to be effective in trying to achieve its mission.

2. Donor knows what to expect from your organisation with each interaction.

3. Donor receives timely thank yous.

4. Donor receives opportunities to make his or her views known.

5. Donor is given the feeling that he or she is part of an important cause.

6. Donor feels his or her involvement is appreciated

7. Donor receives information showing who is being helped

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The 7 Key Drivers of Donor Commitment1. Donor perceives your organisation to be effective in trying to achieve its mission.

2. Donor knows what to expect from your organisation with each interaction.

3. Donor receives timely thank yous.

4. Donor receives opportunities to make his or her views known.

5. Donor is given the feeling that he or she is part of an important cause.

6. Donor feels his or her involvement is appreciated

7. Donor receives information showing who is being helped

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ASK

THANK

REPORT

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Who’s saying thank you?

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“When people ask me what difference a donation can make, I reply that donations to Starship transform lives. “Parents have told me with tears in their eyes what it means to know their child is receiving the best possible care at Starship.

And behind every one of those children there are compassionate people like you dedicates to helping. Thank you.

Your donation will help Starship support children and their families at their moment of greatest need. It is at these moments, when a child’s life can hang in the balance, that your donation becomes truly transformational.”

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THE BIG QUESTION:

Why don’t we testthank-yous more?

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Sending thank you letters to all your donors for every donation is a

waste of time

MYTH #3

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Sending thank you letters to all your donors for every donation is a

waste of time

MYTH #3

BUSTED

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If you mail your donors too often you’ll drive

them away

MYTH #4

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“There is absolutely no evidence that frequency of solicitation negatively impacts retention and

lifetime value. Period.”

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This is at least 24 mailings per year

Lots of charities are here

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Typical response rates

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Mailing arrives from your favourite charity

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Mailing arrives from your favourite charity

Take out your cheque book and make a donation

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Mailing arrives from your favourite charity

Take out your cheque book and make a donation

Receive warm glow from beautifully penned thank you letter and satisfaction that charity has explained exactly how they’ve spent

your money

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Mailing arrives from your favourite charity

Take out your cheque book and make a donation

Receive warm glow from beautifully penned thank you letter and satisfaction that charity has explained exactly how they’ve spent

your money

Mailing arrives

from a

DIFFERENT

charity

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Mailing arrives from your favourite charity

Take out your cheque book and make a donation

Receive warm glow from beautifully penned thank you letter and satisfaction that charity has explained exactly how they’ve spent

your money

Mailing arrives

from a

DIFFERENT

charity

Write cheque to YOUR COMPETITOR

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If you mail your donors too often you’ll drive

them away

MYTH #4

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If you mail your donors too often you’ll drive

them away

MYTH #4

BUSTED

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You need to givepeople concrete facts

and figures to persuade them to give

MYTH #5

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The RokiaExperiment

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Food shortages in Malawi are affecting more than 3 million children.

In Zambia, severe rainfall deficits have resulted in a 42% drop in the maize production from 2000. As a result, an estimated 3 million Zambians face hunger.

4 million Angolans – one third of the population – have been forced to flee their homes.

More than 11 million people in Ethiopia need immediate food assistance.

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Food shortages in Malawi are affecting more than 3 million children.

In Zambia, severe rainfall deficits have resulted in a 42% drop in the maize production from 2000. As a result, an estimated 3 million Zambians face hunger.

4 million Angolans – one third of the population – have been forced to flee their homes.

More than 11 million people in Ethiopia need immediate food assistance.

23% of earnings donated

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Her life would be changed for the better as a result of your financial gift.

With your support, and the support of other caring sponsors, Save the Children will work with Rokia’s family and other members of the community to help feed her, provide her with education, as well as basic medical care and hygiene education.

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Her life would be changed for the better as a result of your financial gift.

With your support, and the support of other caring sponsors, Save the Children will work with Rokia’s family and other members of the community to help feed her, provide her with education, as well as basic medical care and hygiene education.

48% of earnings donated

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0%

10%

20%

30%

40%

50%

EmotionalRational

Combination

Small,  Loewenstein  &  Slovic

Proportion of Earnings Donated

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The Mother Teresa Principle

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The Mother Teresa Principle

If I look at the mass,I will never act.

If I look at the one, I will.

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The Joe Stalin Principle

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The Joe Stalin Principle

One man’s death is a tragedy,

but a million deaths is a statistic.

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You need to givepeople concrete facts

and figures to persuade them to give

MYTH #5

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You need to givepeople concrete facts

and figures to persuade them to give

MYTH #5

BUSTED

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You need to invest in brand awareness to drive up fundraising

income

MYTH #6

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Fundraising Spend €500,000 €300,000

Awareness Spend – €200,000

Cost per Response €125 €100

# Responses 4,000 3,000

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Fundraising Spend €500,000 €300,000

Awareness Spend – €200,000

Cost per Response €125 €100

# Responses 4,000 3,000

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Fundraising Spend €500,000 €300,000

Awareness Spend – €200,000

Cost per Response €125 €100

# Responses 4,000 3,000

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Fundraising Spend €500,000 €300,000

Awareness Spend – €200,000

Cost per Response €125 €100

# Responses 4,000 3,000

Awareness campaign would need to improve performance by 40% to justify spend

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Jeff Brooks isn’t as optimistic as me...

“...for the awareness campaign to be worthwhile it would have to improve fundraising by 67%...”

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You can’t compete with these people

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“The consumer approaches impulse items, like Coca Cola, as a PULL .i.e., they go and buy a soft drink, and Coke is (or is not) their choice of beverage. They get a new car and choose between a Ford and a Toyota.These brands spend millions on ‘Top of Mind’ marketing, which makes sense.

However, charity fundraising is different. Statistically speaking, people don’t give without being asked. The only exception is a media disaster story such as an earthquake, or, bizarrely, Princess Diana dying.

Outside of emergencies, fundraising is a pure PUSH exercise. Being top of mind definitely makes asking easier, but a charity that asks effectively and is not top of mind, beats the charity that is top of mind, but doesn’t ask effectively.”

- Sean Triner (101Fundraising.org)

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Cash  Acquisi+on  ResultsDecember  2010  –  May  2012

When Number  Mailed Response  Rate Average  GiC Number  of  new  donors

December  2010 77,000 1.8% $58 1,474

April  2011 85,000 1.9% $55 1,675

September  2011 43,500 5.8% $46 2,608

March  2012 150,000 2.7% $46 4,328

May  2012 156,000 3.9% $48 6,298

TOTAL 511,500 3.2% $51 16,383

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You need to invest in brand awareness to drive up fundraising

income

MYTH #6

BUSTED

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Take major donors out of your direct mail

programme

MYTH #7

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The Black Hole of Almost Major Donors

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1% of the response - just 21 people - generated over 35% of the total income from the appeal.

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Take major donors out of your direct mail

programme

MYTH #7

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Take major donors out of your direct mail

programme

MYTH #7

BUSTED

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There’s no point investing in direct mail unless you’re a large

charity with a big database of donors

MYTH #8

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$3,900 million

€40 million

€12 million

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4.4million 4.9million 5.4million

Ireland

Barcelona

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There are advantages to being small...

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Use thePareto principle

Personalise

Make it feel homemade

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Ask for REALLY big gifts

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€0

€200,000

€400,000

€600,000

€800,000

20072008

20092010

20112012

Annual Direct Marketing Income

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There’s no point investing in direct mail unless you’re a large

charity with a big database of donors

MYTH #8

BUSTED

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Women are from Venus and Men are from Mars

MYTH #9

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Delusions Of Gender: The Real Science Behind Sex Differences– Cordelia Fine (2010)

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Control No priming men outperformed women

Male Primed“men perform better than women in this test,

probably for genetic reasons”men outperformed women

Female Primed“women perform better than women in this test,

probably for genetic reasons”no gender difference

Delusions Of Gender: The Real Science Behind Sex Differences– Cordelia Fine (2010)

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Control No priming men outperformed women

Male Primed“men perform better than women in this test,

probably for genetic reasons”men outperformed women

Female Primed“women perform better than women in this test,

probably for genetic reasons”no gender difference

Delusions Of Gender: The Real Science Behind Sex Differences– Cordelia Fine (2010)

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Control No priming men outperformed women

Male Primed“men perform better than women in this test,

probably for genetic reasons”men outperformed women

Female Primed“women perform better than women in this test,

probably for genetic reasons”no gender difference

Delusions Of Gender: The Real Science Behind Sex Differences– Cordelia Fine (2010)

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Women students in business trying to organize a humanitarian action in Togo.

We are relying on your support

DONATING = HELPING

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Women students in business trying to organize a humanitarian action in Togo.

We are relying on your support

DONATING = LOVING

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CONTROL €0.54

DONATING €0.62

LOVING €1.04

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“One possible explanation is... the loving concept acts as a prime that leads to activation of further concepts associated

with compassion, support, or solidarity that, in turn, lead participants to offer donations more favorably”

The effect of the word “love”on compliance to a request for humanitarian aid: An evaluation in a field setting– Dr. Nicolas Guéguen & Lubomir Lamy (2011)

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Control Time-ask Prime Money-ask Prime

–“How interested are you in volunteering for HopeLab?”

“How interested are you in making a donation to HopeLab?”

$4.42 $5.85 $3.07

Activates emotional mindsetActivates value-maximization

mindset

Asking for time vs asking for money

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Women are from Venus and Men are from Mars

MYTH #9

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Women are from Venus and Men are from Mars

MYTH #9

BUSTED

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I’m buying free drink for everyone in the bar in...

oh, about 5 minutes time

MYTH #10

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I’m buying free drink for everyone in the bar in...

oh, about 5 minutes time

MYTH #10

BUSTED

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@damianobroin [email protected]

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THANKYOU

@damianobroin [email protected]