Becoming Donor-Centered....what donors want and how to lead your team in adopting Donor-Centered Fundraising

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1 Becoming Donor-Centered...what donors want and how to lead your team in adopting Donor-Centered Fundraising

2 How Donors Are Changing the Ways They Give

3 Donors Are Giving to Fewer Causes Older Donors are Considerably More Likely than Middle-Age Donors to Support 11 Causes or More 45% 40% 42% 35% 30% 29% 33% Age: % 25% 20% 15% 10% 5% 16% 13% 11% 5% 19% 7% Age: % 1 to 5 6 to to to or more

4 7 Ways to Inspire More Generous Giving What not-for-profits can do to inspire increased giving in 2018: Compelling case for extraordinary need 31% Stop sending unwanted gifts/trinkets 28% A reduction in admin/fundraising expense 21% Matching gift opportunity 19% Reduce volume of appeals If someone I respected asked me to give Better information on results 15% 17% 19% 0% 5% 10% 15% 20% 25% 30% 35%

5 Do Donors Research Not-for-Profits Before Giving? We asked respondents if they spend time reviewing a not-for-profit before they give for the first time / increase their gift. Yes, with all causes I consider 55.5% Yes, with some 22.7% No, tend to give based on info in appeals 17.8% Unsure / Don't recall 4.1% 0% 10% 20% 30% 40% 50% 60%

6 How Do Donors Assess Not-for-Profits? We asked respondents Considering the not-for-profit that you most recently assessed before deciding whether or not to give, how did you go about that work? Consulted their website Consulted an online agency Searched online for info / testimonials about the org Spoke with people I trust who knew about the org Reviewed media reports Spoke with staff at the org Reached out to my social media network Looked at the org's social media pages Consulted Board members / other volunteers at the org Other Cannot recall 12.8% 10.0% 10.0% 7.8% 7.5% 26.6% 25.8% 23.2% 20.2% 41.5% 54.2% 0% 10% 20% 30% 40% 50% 60%

7 How Donors Intend to Give in 2018 by age Plan to give more Plan to give the same Plan to give less Too soon to tell / Don't know 4% 7% 9% 7% 9% 10% 18% 30% 43% 46% 53% 63% Under 35 years years and over 0% 10% 20% 30% 40% 50% 60% 70%

8 What Donors Want

9 The Three Essentials of Donor-Centered Fundraising Prompt, meaningful gift acknowledgment Designation of gift to a program, service or project more narrow in scope than the charity s overall mandate Measurable results on the last gift before being asked for another one

10 Donor-Centered Acknowledgement

11 Qualities of Exceptional Thank You Letters Made me feel like it was written for me 68% It did not ask for another gift 56% It did not ask me to do anything else It acknowledged how my gift would be used Sent by a prominent figure in the institution 42% 44% 41% It was sent promptly 37% 0% 20% 40% 60% 80% 100%

12 The Power of Personal Thanks 95% of respondents would be very appreciative if a member of the Board of Directors called them within a few days of receiving their gift just to say thank you 93% would definitely or probably give again the next time they were asked 84% of those who would give again would definitely or probably make a larger gift 74% of those who give again would continue to give indefinitely

13 Do Thank You Calls Make Money? Yes. One out of three donors who received a call and subsequently made a gift, attribute the thank you call itself for their decision to give again. 21% of those who gave again after getting a thank you call gave more generously than before as a result.

14 Influence of Caller Status on Donors Future Giving Decisions Action Influenced by the Thank You Call Gave again before being asked Gave again when asked Fundraising Staff Caller Board Members/ Deans/ Physicians/ Presidents Other Volunteers Students 6% 14% 6% 4% 26% 31% 23% 29% Made a larger gift 21% 27% 16% 17%

15 Donor-Centered Communication

16 How Younger and Older Donors Prefer to Receive Information Prefer receiving info via than mail More likely to use social media to research not-forprofits Likely to reduce support if fundraising costs are high More likely to reduce my support when solicited too frequently 9% 25% 40% 37% 43% 40% 52% 58% 64% 64% 69% 81% Under 35 years old years and over 0% 20% 40% 60% 80% 100%

17 Types of Information that Influence Repeat Giving Results achieved by donors' gifts Stories about people who have been helped Information on how charity will use donors' gifts History / General information Strategic plan for the future Upcoming fundraising events Message from CEO or Director Latest financial statement Recent fundraising events Stories about donors Message from Chair of the Board Special ways in which donors can give List of donors 26% 24% 24% 20% 18% 15% 11% 11% 11% 43% 64% 62% 75% 0% 20% 40% 60% 80% 100%

18 Are Websites Effective in Addressing Donors Needs? 1% 21% Yes 76% Somewhat No

19 Social Media and its Impact on Giving

20 Is Social Media a Viable Fundraising Strategy? Changes in respondents perceptions and experiences Issue 2011 Survey 2016 Survey % respondents with one or more social media accounts 69% 67% % respondents with social media accounts who do NOT follow any NFPs % respondents with social media accounts who follow 1-5 NFPs % respondents with social media accounts who follow 6 or more NFPs Average annual giving among respondents who follow one or more NFPs Average annual giving among respondents who DO NOT follow any NFPs 57% 20% 37% 64% 7% 16% $3,435 $9,429 $4,750 $8,161

21 What Inspires Respondents to Follow a Not-for-Profit on Social Media? Posts relevant updates on its work To see images of what the NFP is achieving To learn more about upcoming events It doesn't over-communicate Info more up to date than other media Style of info is more interactive To learn more about how my money is used To connect with like-minded followers It's an expert in its field Responds promptly to inquiries Because of endorsement by a social media friend Other 30.0% 28.8% 22.7% 21.0% 20.0% 18.2% 11.4% 4.9% 5.4% 41.0% 45.2% 65.9% 0% 10% 20% 30% 40% 50% 60% 70%

22 Donor-Centered Recognition

23 Meaningful vs. Counterproductive Recognition Thank you calls 91% Donor recognition events 83% Photographs depicting/letters from someone helped by NFP 62% Token gifts related to the mission 20% Certificates/plaques 19% Token gifts unrelated to the mission 12% Name recognition in annual reports, newsletters, online 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

24 Influence of Name Recognition on Giving 100% 80% 60% 51% 64% 86% Would have made gift at same level with or without recognition Would have made a less generous gift 40% 35% 20% 23% Would not have given without recognition 0% 13% 9% Leadership (Facility/Room Naming) Major (Donor Wall) 8% 3% Supporting (Annual report/ newsletter/online)

25 Influence of Token Gifts on Giving Decisions 100% 80% 68% 73% 72% 60% 40% 20% 0% 21% 6% 4% More likely to support campaigns including token gifts 10% 17% 18% Less likely to support campaigns including token gifts Token gifts have no impact on giving decisions 2% 5% 6% Stop giving to NFPs that send token gifts Under

26 Donors Satisfaction with Recognition Events 85% of donors who have attended an event have expressed satisfaction with their experience Factors that create a satisfying event experience: 87%: Interaction with staff / volunteers 83%: Meeting other donors of same interest 83% Event held at a convenient time 78%: Logistics of event 75%: Reassurance that gifts are put to good use 73%: Recognition made donor feel valued Lack of interest (48%) and Not being available (37%) were most often cited reasons among donors who chose not to attend an event to which they were invited

27 Donor-Centered Fundraising Second Edition FULLY UPDATED AND SUBSTANTIALLY EXPANDED $70.00 $85.00 Special Pre-Publication price available until September 30 th Pre order via: Orders will ship after October 15, 2018.

28 CYGNUS APPLIED RESEARCH, INC. Chicago Toronto York, UK