1. Presented by Kathleen E. Pavelka, CFRE, President Telecomp, Inc. ADVANCED ANNUAL GIVING TECHNIQUES: Taking Your Program to the Next Level

2. Formula for Success There are only TWO ways to Increase your Success: #1 Increase the number of people giving #2 Increase the average level of support Do BOTH

3. Your Foundation for Success

4. #1 Increase the Number of Donors Ask More Expand your solicitation pool (Ask More People) Increase the number of times you ask (Ask More Often) Ask Smarter Increase response rates (A Higher Percentage of your prospects become donors)

5. #2 Increase the Average Gift Ask More Increase your Expectations (Ask people to give more) Ask Smarter Determine most capable and willing donors (Ask the right people) Method (Ask the right way)

6. Embrace the Power of Math You are smarter than a 5 th Grader There is no test at the end This isn’t Rocket Science Numbers tell a story – get into your comfort zone

7. The Power of Math Client A 9,305 Donors $114 Average Gift Increase Average Gift by $10 = $93,050 (8.7% increase) Client B 6,406 Donors $226 Average Gift 75,000 Patients Increase Response Rate by ½ point = 75,000 x.005 = 375 new donors x $226 = $84,750 (5.9% increase)

8. Expand your Pyramid Increase your Success

9. Know what it is or...... You’ll spend a lot of time running in place #1 Increase the Number of Donors Maximize Renewal Rate

10. How to calculate Number of Prior Year Donors = 1,000 Number of Prior Year Donors who also have made a gift in the current year = 600 Renewal Rate = 60% (600/1,000) Benchmark Renewal Rate = 70% - 85%* *Depending on type of institution

11. #1 Increase the Number of Donors Maximize Renewal Rate Most cost-effective donor Most likely to increase giving Most likely to become long-term consistent donors Prospective leadership donor pool

12. #1 Increase the Number of Donors Segmentation Relationship to Institution/Organization Group prospect/donors based on their relationship to you Establish hierarchy and dual relationships Unique Case for Support Segment should require a unique message Unique Objective Segment should have a specific objective

13. #1 Increase the Number of Donors Segmentation Sample Donor Objectives Leadership: Increased giving/Major gift cultivation Potential Leadership: Increase gift to Leadership Level Renewing Donors: Increase gift by 30% or more Lapsed Donors: Reactivate giving; increasing is secondary Long Lapsed/Sybunts: Reactivate giving (even if decrease) Special Event/Telethon/ Memorial-only Donors: Convert to unrestricted Annual Donors Employee Donors: Renew and increase gift; good example of unique message

14. #1 Increase the Number of Donors Segmentation Segmentation versus Fragmentation If it doesn’t require a unique message and/or have a unique objective then it is likely a waste of resources Segmentation versus Tracking Codes Track all you want; just make sure group is large enough for meaningful result

15. #1 Increase the Number of Donors Segmentation Segmentation versus Restricted Giving Build rapport/case based on their interest, but does not mean that you have to restrict their gift -- two separate and distinct issues

16. #1 Increase the Number of Donors Solicitation Opportunities Must provide multiple opportunities to give throughout the year Solicit as long as each successive effort is cost effective In direct mail, expect the successive effort to cut in half Suggested Opportunities per year: Leadership: 3-5 Long-Lapsed/Non-Donors: 1-2 Potential Leadership: 5-8 Second Gift Appeal: 1-2 Renewals: 5-8 Lapsed Donors: 3-5

17. #1 Increase the Number of Donors Solicitation Opportunities Renewals Different objective as you move through the year Increasing → Renewal

18. #1 Increase the Number of Donors Solicitation Opportunities

19. #1 Increase the Number of Donors Case for Support Talk about the Future The “What If” is almost always more powerful that the “What Was” or “What Is” Tell a Story Giving comes from the heart; the head is a regulator Peer-to-Peer is Best A major gift rule that applies to all giving

20. #1 Increase the Number of Donors Case for Support Focus on the Donor What is important to him/her? Impact of Gift Not what the money will buy; what it will mean Vary the Case for Support People give for different reasons

21. #2 Increasing the Average Gift Objective for Renewals Increase giving from renewing donors to equal the “loss” from those who do not renew

22. #2 Increasing the Average Gift Objective Illustration Number Average of Donors Gift Income Gift Prior Year Results 1,000 $100,000 $100 Average Gift needed to generate the same $100,000 gift income at different Renewal Rates: @ 70%700$143 @ 65% 650$154 @ 60% 600$167

23. #2 Increasing the Average Gift Create New Leadership Donors Establish a “Chair” of your leadership society for communication purposes Benefits that reinforce your case for giving On-campus activities AFP Leadership Society – great example Leadership Emails Target mid-range donors and ask for a leadership gift ONLY

24. #2 Increasing the Average Gift Create New Leadership Donors Treat them like a leadership donor Communications, invitations, etc. Quality solicitation materials Must match to the significance of the gift Be specific – ask for a specific amount

25. #1 Increase the Average Gift Creating Leadership Donors Invitation-Style Leadership Package

26. Gannon University Targeted Leadership Solicitation Method: Telephone OutreachPledge Rate Average Pledge Percent Increase Targeted Solicitation for $1,000+ gift Calling period ended 12/15 9%$1,681232% Renewal Solicitation to remaining group Calling period began 12/22 53%$321

27. Rochester Philharmonic Orchestra Targeted Leadership Solicitation Method: Telephone OutreachPledge Rate Average Pledge Percent Increase Targeted Solicitation for $600+ gift Calling period ended 12/11 7.7%$69646% Renewal Solicitation to remaining group Calling period began 12/12 53%$354

28. McDaniel College Targeted Leadership Solicitation Method: Telephone Outreach Pledge Rate Average Pledge Percent Increase First Year Targeted Solicitation for $1,000+ gift 7%$903154% First Year Renewal Solicitation to remaining group 55%$2633% Second Year Targeted Solicitation for $1,000+ gift 11%$1,02351% Second Year Renewal Solicitation to remaining group 67%$255-2%

29. #1 Increase the Average Gift Creating Leadership Donors Leadership Lead Letter Series: Letter #1

30. #1 Increase the Average Gift Creating Leadership Donors Leadership Lead Letter Series: Brochure

31. #1 Increase the Average Gift Creating Leadership Donors Leadership Lead Letter Series: Letter #2

32. New York Presbyterian Hospital Targeted Leadership Solicitation Method: Telephone Outreach Pledge Rate Average Pledge Percent Increase First Year Donors $250 - $999 56%$48734% Second Year Donors $250 - $999 46%$50642%

33. Method: Telephone Outreach Number of Pledges Number of $1,000+ Pledges Percent of New $1,000+ Pledges First Year Donors $250 - $999 1122119% Second Year Donors $250 - $999 701826% New York Presbyterian Hospital Targeted Leadership Solicitation

34. New York Presbyterian Hospital Source of $1,000+ Donors

35. #2 Increasing the Average Gift Second Gift Program Solicit current year donors for a second gift The old adage applies: Your best donor prospect is a current donor Vary case for support; “special appeal” Combined annual giving determines giving society level

36. #2 Increasing the Average Gift Second Gift Program

38. #1 Increase the Number of Donors Acquisition Investing in new donors to generate a future return

39. #1 Increase the Number of Donors Acquisition Set reasonable to high expectations for giving New low-end donors generally DO NOT serve your organization

40. Children’s Memorial Hospital Results by Donor Giving Level

41. Acquisition Minimizing your loss and achieving your goal as effectively as possible RESULTS

42. Children’s Memorial Hospital Acquisition Response Rates Telephone Outreach and Direct Mail Telephone Outreach Direct Mail Response Rate 5.9%.64% Gifts per 10,000 Prospects 59064 Gifts per 50,000 Prospects 2,950320 Average Gift $70.01$62.80 Income per 10,000 Prospects $41,306$4,019 Income per 50,000 Prospects $206,530$20,096

43. Children’s Memorial Hospital Cost of Acquisition Telephone Outreach and Direct Mail Telephone Outreach Direct Mail Year 1 Loss per New Donor $16.74$13.88 Year 2 Renewal Response Rate 39%22% Year 2 Average Gift $95.36$67.64 Year 2 Net Income per Donor $72.21$44.49 Year 1 & 2 Cumulative Net Income per Donor $55.47$30.61 Cumulative Net Income per 10,000 Prospects $12,763$431 Cumulative Net Income per 50,000 Prospects $63,818$2,155

44. New York Presbyterian Hospital Comparative Results of Rated Prospects in an Acquisition Effort

45. Morristown Memorial Hospital Target America Comparative Results

46. MEASURE EVERYTHING After all, you must Know Your Math MEASURE EVERYTHING After all, you must Know Your Math

47. Barriers to Getting It Done Budget Restrictions Short-Staffed Management Approval Board Approval Philosophy IT

48. Show them The Power of Math

49. And take your institution to new heights!