1 ©2011 Convio, Inc. | Page The Top 5 things You Need to Do to BE SUCCESSFUL Online Kenneth Kuhler – Senior Account Specialist © 2008 Convio, Inc.

2 ©2011 Convio, Inc. | Page Keys for Success – Today’s Agenda Next Generation of Canadian Giving The data and what it really means Practical Applications of the Research Understanding the multichannel approach Deeper Dive into Online Best Practices Closer look at the latest 2011 Convio Benchmarks

3 ©2011 Convio, Inc. | Page To download: Data on how four generations of Canadians give, how they want to be involved with you and the implications for nonprofits trying to reach these distinct age segments. Next Generation of Canadian Giving

4 ©2011 Convio, Inc. | Page Canadian Generational Giving Boomers Civics Gen X Gen Y 55% Give 2.7M donors $325 yr/avg 3.5 charities $.8 B/yr 61% Give 4.2M donors $549 yr/avg 4.1 charities $2.3 B/yr 66% Give 5.7M donors $725 yr/avg 4.9 charities $4.1 B/yr 73% Give 3.2M donors $833 yr/avg 5.3 charities $2.6 B/yr

5 ©2011 Convio, Inc. | Page Will we still have jobs in the future?

6 ©2011 Convio, Inc. | Page Can anyone guess when this picture was taken?

7 ©2011 Convio, Inc. | Page Applying Generational & Channel Learnings Audit online strategy and tactics to determine how we’re meeting generational needs. Create connections between the online and offline worlds to support generation “migration” and giving channel preference.

8 ©2011 Convio, Inc. | Page How are we meeting Generational Needs? Gener ation CivicsBoomersGen XGen Y Attitudes/ Values Unconditional Looking for you to be good stewards of their $ Time vs. Money Premeditated Giving Online Connection Peer Motivated Time to Give Back What’s In It For Me? Random Tactics + Strategies

9 ©2011 Convio, Inc. | Page Assessment: How do we reach Civics? Annual Tax Receipts Charity Navigator Insignia Fundraising Expenditure Disclosure E-Newsletters Unconditional Stewardship of Donor $’s

10 ©2011 Convio, Inc. | Page How are we meeting Generational Needs? Gener ation CivicsBoomersGen XGen Y Attitudes/ Values Unconditional Looking for you to be good stewards of their $ Time vs. Money Premeditated Giving Online Connection Peer Motivated Time to Give Back What’s In It For Me? Random. Tactics + Strategies Longer-form appeals Annual Tax Receipts Guidestar/BBB/Charity Navigator logos Fundraising Expenditure Disclosure E-Newsletter

11 ©2011 Convio, Inc. | Page Assessment: How do we reach Boomers? Renewal Appeals and Notices Event Fundraising Donation (vs. Participation) Basic Donation Forms Volunteer Opportunities Data Mining Planned Giving Pre-meditated Giving Time vs.. Money

12 ©2011 Convio, Inc. | Page How are we meeting Generational Needs? Gener ation CivicsBoomersGen XGen Y Attitudes/ Values Unconditional Looking for you to be good stewards of their $ Time vs. Money Premeditated Giving Online Connection Peer Motivated Time to Give Back What’s In It For Me? Random Tactics + Strategies Longer-form appeals Annual Tax Receipts Guidestar/BBB/Charity Navigator logos Fundraising Expenditure Disclosure E-Newsletter Renewal Appeals and notices Event Fundraising Donation (vs. participating) Basic Donation Forms Volunteer Opportunities Data Mining Planned Giving E-Newsletter

13 ©2011 Convio, Inc. | Page Assessment: How do we reach Gen X? Create/Donate to a Tribute Fund Make a Sustained/ Committed Gift Sign a Pledge Event Attendance Mobile Site Optimization Random, peer motivated Online connection

14 ©2011 Convio, Inc. | Page How are we meeting Generational Needs? Gener ation CivicsBoomersGen XGen Y Attitudes/ Values Unconditional Looking for you to be good stewards of their $ Time vs. Money Premeditated Giving Online Connection Peer Motivated Time to Give Back What’s In It For Me? Random Tactics + Strategies Longer-form appeals Annual Tax Receipts Guidestar/BBB/Charity Navigator logos Fundraising Expenditure Disclosure E-Newsletter Renewal Appeals and notices Event Fundraising Donation (vs. participating) Basic Donation Forms Volunteer Opportunities Data Mining Planned Giving E-Newsletter Creation of/Donation to a Tribute Fund Make a Sustained/Committed gift Sign a pledge Event attendance Mobile Site Optimization

15 ©2011 Convio, Inc. | Page Assessment: How do we reach Gen Y? Premiums/Contests Event Fundraising Participation (vs. Donation) Social Media Mobile Outreach What’s in it for me? Time to give back

16 ©2011 Convio, Inc. | Page How are we meeting Generational Needs? Gener ation CivicsBoomersGen XGen Y Attitudes/ Values Unconditional Looking for you to be good stewards of their $ Time vs. Money Premeditated Giving Online Connection Peer Motivated Time to Give Back What’s In It For Me? Random. Tactics + Strategies Longer-form appeals Annual Tax Receipts Guidestar/BBB/Charity Navigator logos Fundraising Expenditure Disclosure E-Newsletter Renewal Appeals and notices Event Fundraising Donation (vs. participating) Basic Donation Forms Volunteer Opportunities Data Mining Planned Giving E-Newsletter Creation of/Donation to a Tribute Fund Make a Sustained/Committed gift Sign a pledge Event attendance Mobile Site Optimization Premiums/Contests Event Participation (vs.. Donation) Social Media Mobile Outreach

17 ©2011 Convio, Inc. | Page How should we respond to new technologies?

18 ©2011 Convio, Inc. | Page How should we respond to new technologies? Determine gaps in existing strategy that new technology might fill. Is our strategy balanced for each generation? Set realistic goals for the type of response and constituents that technology will drive as part of investment strategy. Is donor conversion a realistic goal for Twitter? Should Facebook be used to drive awareness and outreach through peer- to-peer sharing and gift giving Would we drive visitation to a museum through Gowalla “check ins”? Ensure that constituents, particularly Gen X and Y, have the ability to respond in a channel of preference.

19 ©2011 Convio, Inc. | Page Create Online + Offline Connection Research tells us that a multi-channel approach is the only option for reaching across generational constituencies and for planning for the next generation. Key tactics will ease the migration to incorporate digital channels as Boomers come on line and younger generations make more significant financial impact. Online feeder acquisition Multi-channel campaign methodology Segmentation methodology

20 ©2011 Convio, Inc. | Page Online Feeder Acquisition In the multi-channel world the goals of any online fundraising manager should extend beyond revenue raised online, but the ability to influence the overall relationship through online campaign. Online must serve as a list acquisition channel for offline campaigning, similar to capturing an address in offline channels.

21 ©2011 Convio, Inc. | Page Multi-Channel Campaign Methodology Take a multi channel campaign approach by following an integrated fundraising calendar. Allow constituents to respond in the channel of choice, regardless of solicitation channel – and expect response to cross channels. Respect previous giving behaviors and promote offers with consistency. Don’t overlook a customized homepage experience (in addition to and direct mail) for delivering your integrated appeal. Expect to measure response on an aggregate basis. Ease tracking by using shortcut URLs in direct mail.

22 ©2011 Convio, Inc. | Page Segmentation Methodology Is it time to begin capturing birth year data and segment based on generational characteristics and assumptions? Does the offer and primary action change based on what we know about constituents? Cancer Organization Cancer Research Month GenerationCivicsBoomerGen XGen Y Call to ActionGive to all Cancer Research Give to a Cancer Tribute Fund Create a Tribute for Cancer Research

23 ©2011 Convio, Inc. | Page Let’s look at Canada more closely… Donation Channels Overall and by Generation

24 ©2011 Convio, Inc. | Page Deeper Dive into Online Best Practices

25 ©2011 Convio, Inc. | Page Traditional Direct Response Model Prospects Donors, Participators Loyal Constituents ■ Rent/exchange donor lists from similar groups ■ “Fish in the same pond” ■ Cannot access younger prospects who are not already on lists ■ Cost per dollar raised for acquisition has risen from ~$0.50 in 1950s to $1.69 today ■ Limited cross-program coordination Churn first year donors and event participants 30-50% 1% Mailing non-responders is cost prohibitive 99% 50-70% Churn multi-year donors 30-40% Sources: Estimates based on Convio experience and DMA research including 2005 DMA Response Rate Report, the Direct Marketing Association. Professor Adrian Sergeant, at Henley Management College in Great Britain

26 ©2011 Convio, Inc. | Page Fundraising Emphasis: Matures Matures Boomers Gen X Gen Y 26

27 ©2011 Convio, Inc. | Page Integrated Marketing: Annual Value 27 Coupled with lifting gift frequency and hence annual value Donors per segment: Online Only: 253 donors Offline Only No eCRM: 55,042 Offline Only eCRM: 2,844 Dual Channel: 3,143

28 ©2011 Convio, Inc. | Page Finding and Retaining Donors Source: Target Analytics donorCentrics Report

29 ©2011 Convio, Inc. | Page 1.Reach – Be everywhere they are 2.Know – Be interested in who they are 3.Welcome – Be intentional in warming them up 4.Cultivate – Be effective in communicating 5.Ask – Be bold in soliciting gifts and making sure to properly steward them after the gift. The top 5 things you need to be SUCCESSFUL online

30 ©2011 Convio, Inc. | Page #1: REACH!

31 ©2011 Convio, Inc. | Page Constituents have many different entry points to your organization

32 ©2011 Convio, Inc. | Page 85% of “Wired Wealthy” are likely to visit your website before making their first gift Your website is critical Source: Convio, Sea Change Strategies, Edge Research

33 ©2011 Convio, Inc. | Page Benchmark Results- web visitors

34 ©2011 Convio, Inc. | Page Benchmark Results- web traffic

35 ©2011 Convio, Inc. | Page Engaging Websites Canadian Breast Cancer Foundation

36 ©2011 Convio, Inc. | Page Social Media – Facebook Facebook has over 500 million active users. 50% of users log on everyday. People spend over 700 billion minutes per month on Facebook. Average user is connected to 80 community pages, groups and events. Facebook © 2011

37 ©2011 Convio, Inc. | Page Built-in Donation Forms

38 ©2011 Convio, Inc. | Page Social Media – YouTube More than 13 million hours of video were uploaded during 2010 and 35 hours of video are uploaded every minute. YouTube reached over 700 billion playbacks in More video is uploaded to YouTube in 60 days than the 3 major US networks created in 60 years. YouTube© 2011

39 ©2011 Convio, Inc. | Page Members can submit a favorite video and register to win. Open voting to members! Video Nature Canada

40 ©2011 Convio, Inc. | Page Benchmark Results- file size

41 ©2011 Convio, Inc. | Page Benchmark Results- file growth

42 ©2011 Convio, Inc. | Page Acquisition- eCards Canadian Wildlife Federation

43 ©2011 Convio, Inc. | Page Acquisition – Petitions Canadian Wildlife Foundation

44 ©2011 Convio, Inc. | Page Acquisition- Pledges Nature Canada

45 ©2011 Convio, Inc. | Page Know #2. Know Be interested in who they are, what they want, and how they relate to you. (Mind reading ability not required). Be interested in who they are, what they want, and how they relate to you. (Mind reading ability not required).

46 ©2011 Convio, Inc. | Page Getting to know your members

47 ©2011 Convio, Inc. | Page Membership

48 ©2011 Convio, Inc. | Page Who Are You? Total Recipients: 2,196 Opens: 947 (43.24%) Click-Throughs: 471 (21.51%) Recipient Actions: 386 (17.63%)

49 ©2011 Convio, Inc. | Page Survey your constituents

50 ©2011 Convio, Inc. | Page #3. Welcome Be intentional in warming them up

51 ©2011 Convio, Inc. | Page First impressions count! Supporter engagement decreases over time Source: Analysis of 3 major nonprofits

52 ©2011 Convio, Inc. | Page Welcome Series- ACHF

53 ©2011 Convio, Inc. | Page Welcome Series- ACHF

54 ©2011 Convio, Inc. | Page Ontario Association of Food Banks

55 ©2011 Convio, Inc. | Page #4. Cultivate Be effective in your online communications

56 ©2011 Convio, Inc. | Page Subject lines matter Short subject lines outperform long subject lines Source – MailerMailer LLC 2008, based on number of characters in subject line

57 ©2011 Convio, Inc. | Page Open Rate vs. Subject Line Length Analysis of 16 monthly eNewsletters

58 ©2011 Convio, Inc. | Page Source: Marketing Metrics, MailerMailer LLC 2008 based on number of characters in subject line Where are you on this chart? Longer Subject Lines Shorter Subject Lines Lower Open Rates Higher Open Rates

59 ©2011 Convio, Inc. | Page E-newsletter – Ontario Association of Food Banks

60 ©2011 Convio, Inc. | Page #5. Ask Be bold in soliciting gifts. (Wishing and waiting is not asking)

61 ©2011 Convio, Inc. | Page Benchmark Results- online revenue

62 ©2011 Convio, Inc. | Page Benchmark Results- online revenue

63 ©2011 Convio, Inc. | Page Benchmark Results- online revenue

64 ©2011 Convio, Inc. | Page What Motivates an Online Gift? Source: 2009 Convio Analysis of one Major Mailer Account

65 ©2011 Convio, Inc. | Page Donation Form– Canadian Breast Cancer Foundation

66 ©2011 Convio, Inc. | Page Donation Form– Canadian Cancer

67 ©2011 Convio, Inc. | Page Encourage sustainer giving programs…

68 ©2011 Convio, Inc. | Page Canadian Wildlife – purchase a “virtual animal”

69 ©2011 Convio, Inc. | Page End-of-Year: A Campaign Approach Sent mid-December raised 25% of total Taking a campaign approach to end-of-year fundraising can generate 4X the results Kick-off eCard Last Chance Source: Convio analysis of 17 multi-part end-of-year fundraising campaigns in 2008 Sent just before Chanukah / Christmas raised 19% of total Sent on December 30/31st raised 56% of total

70 ©2011 Convio, Inc. | Page Unexpected Events – Ability to be Timely

71 ©2011 Convio, Inc. | Page Provide a “mission related” value add premium to their gift Nature Conservancy Canada

72 ©2011 Convio, Inc. | Page Stewardship – properly thanking donors

73 ©2011 Convio, Inc. | Page Stewardship – keeping your constituents informed of results

74 ©2011 Convio, Inc. | Page Articulating what your contribution will accomplish

75 ©2011 Convio, Inc. | Page Effective storytelling – share success stories.

76 ©2011 Convio, Inc. | Page Engage them in your fundraising

77 ©2011 Convio, Inc. | Page Fundraising Performance Metrics

78 ©2011 Convio, Inc. | Page Increased competition for wallet share. Be the organization that is “15 minutes ahead”.

79 ©2011 Convio, Inc. | Page Q&A Thank you! Kenneth Kuhler – Senior Account Specialist