bbcon 2013

1. 10/7/2013 #bbcon 1
The Why, When and How of Data
Driven Fundraising
Presented by:
Jenny Cooke Smith
Page Bullington

2. 10/7/2013 #bbcon 2
• Why Data Driven Fundraising?
- Explore Macro Trends of Donors and Dollars
- Review generational shifts in donors
• When to Implement?
- Data Points to Audit
- Giving Scorecard
• How to Incorporate Analytics?
- Case Studies showing data driven approach
• Let’s Hear from the Experts:
- Panel of peers for Q&A
TODAY’S AGENDA

3. 10/7/2013 #bbcon 3
• Having data and using data are two different states
• Consider what should you be buying or building to better support
your efforts
• What should you collect to help with your analysis and segmentation
• Consider which data points should act as a trigger to change
cultivation efforts
• Embrace the value of benchmarks – try not to fix the wrong thing
POINTS TO PONDER

4. 10/7/2013 #bbcon 4
TARGET ANALYTICS
Leading Provider of Supporter Insight & Analytics to the Nonprofit Sector
 Division of Blackbaud, Inc.
 7,000+ Customers, Across All Nonprofit Segments
Key Assets:
 Cooperative Database - Industry’s largest donor database; over 2B
philanthropic transactions from 80M+ households
 NOZA Database - Industry’s largest searchable database; over 65M
uniquely identified gift records
 donorCentrics – Nonprofit’s largest & most established performance
benchmarking practice, with more than 530 participating organizations
Key Product Lines:
 Direct Marketing Solutions
 Major Gift Fundraising Solutions
 Data Enrichment Services
 Performance Benchmarking & Reporting

5. 10/7/2013 #bbcon 5
QUOTE FROM THE COURAGE CENTER
We had lots of cold prospects, so we used
modeling to find out [which prospects] were
warm enough to cultivate. Within five
months, I identified 300 people for the major
gift program and each has a target range —
which allowed our officers to spend their
time more productively.
— KRISTEN BARLOW, PROSPECT RESEARCHER

6. 10/7/2013 #bbcon 6
TWEET ABOUT YOUR SESSION
#BBCON
#TAWORKSHOP

7. 10/7/2013 #bbcon 7
WHY DATA DRIVEN FUNDRAISING?

8. 10/7/2013 #bbcon 8
WHY? IT’S NOT GETTING EASIER
Source:
National Index for
Fundraising
Performance,
Target Analytics

9. 10/7/2013 #bbcon 9
WHY? IT’S NOT GETTING EASIER
23%
8% 11%
21%
7%
11%
19%
7%
10%
Private Public Overall
2010 2011 2012
Source:
CAE, Voluntary
Survey for
Education
Source:
Higher Education
Index for Fundraising
Performance, Target
Analytics
11.70%
10.00% 9.85% 9.50% 9.20%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
2008 2009 2010 2011 2012
Participation Rates for Higher Education

10. 10/7/2013 #bbcon 10
CHANGING DEMOGRAPHICS
How they give is different too!
Better Understand Your Donors by Leveraging
Similarities and Managing Differences!
» 52% give via the mail
» 34% give in honor or tribute
Matures
» 40% give via the mail
» 30% give in honor or tribute
» 46% give via work
» 21% give monthly
» 42% give via organizational
websites
Baby Boomers
» 50% give via retail transactions
» 50%+ give via work
» Close to 50% of Gen X and
62% of Gen Y would give via
mobile
» 46%+ fundraise on behalf of
organizations
» 40%+ give via organizational
websites
Generation X & Y

11. 10/7/2013 #bbcon 11
Donor Truths we have learned for ALL types of organizations
WHO IS GIVING…
Retention
Reactivation
Acquisition
Donor Migration (i.e. pipeline to major giving)

12. 10/7/2013 #bbcon 12
. . . donors giving at higher levels are more likely to retain
WHO RETAINS?
Source: donorCentrics - two consortium groups of public and private Higher
Education institutions examining Fiscal Year 12 data.
39%
60%
65%
70%
79% 80% 79%
86% 85% 86% 87%
82%
42%
51%
60%
65%
73% 74%
77%
82% 81%
77% 76%
85%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Private
Public

13. 10/7/2013 #bbcon 13
. . . the longer a donor the more likely to continue giving
WHO RETAINS?
Source: donorCentrics – consortium group of Cultural Organizations
examining Calendar Year 2012 data
Donor Loyalty Median Retention Rate
New 35%
2 years 62%
3 -4 years 72%
5+ years 84%

14. 10/7/2013 #bbcon 14
. . . The more frequent the gift, the more likely to retain
WHO RETAINS?
Source: donorCentrics – consortium group of International Relief Organizations
examining Calendar Year 2012 data
Gifts per Year Median Retention Rate
1 48%
2 63%
3+ 86%

15. 10/7/2013 #bbcon 15
RECURRING GIVING: THE VALUE OF
SUSTAINERS
$434,304
$183,662
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
1 2 3 4 5 6
CumulativeRevenue
Years on File
6 Year Value of 1,000 New Donors
Sustainer Revenue
Single Gift Revenue
Figures are based on the Calendar Year Data for organizations (not Higher Ed) participating in
Sustainer benchmarking

16. 10/7/2013 #bbcon 16
. . . the longer a donor prior to lapsing, the more likely to reactivate
WHO REACTIVATES?
Figures are based on the Calendar Year Data for organizations (not Higher Ed) participating in
Environmental benchmarking
Donor Loyalty (before lapsing) Median Reactivation Rate
New 5%
2 consecutive years 12%
3-4 consecutive years 15%
5+ consecutive years 19%

17. 10/7/2013 #bbcon 17
HOW ACQUISITIONS ARE OCCURING?
Direct Mail
Face to Face
Online Marketing
Direct TV
Phone
Resident
Peer to Peer

18. 10/7/2013 #bbcon 18
WHY IS IT IMPORTANT TO UNDERSTAND
DONOR GIVING BEHAVIOR?
It is much easier and cost-effective to keep your
donors on file than to acquire new donors
The old standards still hold true
» Recency, Frequency, and $ still drives a program
» The downside of not managing these metrics closely
can hurt a program through lost revenue and donors
» Capitalizing on giving patterns can create new
opportunities for your organization
New donors are out there
» We are not solely relying on a few donors who give
frequently to fuel acquisition
» Newly Acquired Younger donors may not be solicited as
heavily as older donors who give frequently. Old
assumptions on channel behavior may not hold true in all
cases
• Analyze before assuming


19. 10/7/2013 #bbcon 19
I KNOW I NEED TO DO IT…
WHEN DO I IMPLEMENT?

20. 10/7/2013 #bbcon 20
• Audit your data ‘warehouse’
- What data do you have? Age, Wealth, Channel behavior, etc?
• Perform a file assessment
- What does your donor base look like?
- Where are the opportunities?
- Where are the holes/risks?
• Identify organizational goals
- Align your data leads with organizational goals
• Ask questions
- What tools exist to help you achieve your goals; utilizing internal and
external data
DATA POINTS THAT SAY “IT’S TIME”

21. 10/7/2013 #bbcon 21
Major Gift Scorecard
Leverage Your Existing Fundraising Potential
Organization The Becker Institute
Nonprofit Sector Higher Education
Constituent Records 70,000
Major Gift Level $15,000
Model Justification
The gift-level and contribution calculations identified in the prospect
screening results were based on the following types of wealth and
philanthropic information linked to your major gift prospects:
Recommendations
Based on the issues identified, Target Analytics recommends the
following solutions / techniques to convert the unrecognized
potential detailed above:
• Principal Giving (All Prospects)
• Major Gift Likelihood Modeling (All Prospects)
• Target Gift Range Modeling (All Prospects)
• Comprehensive Wealth Screening (Top 10%)
• Echelon Power Segmentation (Top 10%)
Prospect Screening
We’ve screened your current supporter base to establish their
giving potential, and have identified the individuals that are
performing optimally, are under-performing, or are severely
underperforming relative to where they should be:
Data Point Count
Number of $10,000 Gifts To Your Organization (Last 5
Years)
275
Number of $10,000 Gifts To Other Nonprofits (Last 5
Years)
435
Constituents With $1,000,000+ In Identified Total
Assets
112
Constituents With $1,000,000+ In Non-Real Estate
Assets
235
Constituents With $250K+ In Household Income 365
Constituents With $80K+ in Discretionary Spending 2,311
Optimal Gift
Level
Optimized
Donors
Under
Performers
Severe Under
Performers
$500,001 - $1,000,000 6 3 3
$200,001 - $500,000 1 2 3
$100,001 - $200,000 6 4 5
$50,001 - $100,000 14 1 1
$25,001 - $50,000 17 2 1
$10,001 - $25,000 4 1 0
$5,001 - $10,000 239 302 123
Total 53% 31% 16%

22. 10/7/2013 #bbcon 22
WHY DOES ‘WHEN’ MATTER?
Knowing When-
You won’t know ‘when’
unless you understand
your organizational
goals, areas of
opportunity and risk, and
have a sense where you
are succeeding/failing
Goals-
Understanding your
organizational goals and
benchmarking your
progress towards these
goals can help guide
where additional data
and analysis is needed
Costs-
Understanding priorities
can help align budgets
with data and analytic
needs. Sound
investment can be made
in a methodical yet
fiscally responsible way

23. 10/7/2013 #bbcon 23
HOW DO I INFUSE ANALYTICS INTO MY
PROGRAM?

24. 10/7/2013 #bbcon 24
The Challenge
• Large # of low-level donors (< $1K)
• Sub-optimal response rates
• Upcoming budget cuts & streamlining
CASE STUDY
Goals & Objectives
• Migrate lower-level donors to $1K+
• Increase response rates across gift levels
• Grow revenue while cutting costs

25. 10/7/2013 #bbcon 25
• Pre-project estimates indicated that
while the obstacles where
substantial, the goals were fully
attainable
• Projected a 65-75% increase in
known constituents likely to give
between $50 - $250
• Estimated a 500% increase in
known constituents that were likely
to give $1000+
ANALYTICS RESULTS / STRATEGY

26. 10/7/2013 #bbcon 26
Recommended Strategy
- Targeted investment increases in those
individuals identified as “most likely to give”
(largely via additional solicitations)
- Reduce or eliminate interactions with those
that are unlikely to contribute
- Apply a data-driven ask amount based on
TGR; not to exceed 25% of last gift
- Implement a specialized mailing campaign
specifically targeted at $1K-$5K prospects.
- Solicitor assignment for individuals $5K+ or
over, as defined by Target Gift Range
STRATEGY / RESULTS
35% Increase in
Revenue
22% Increase in
Responders
50% Increase in
AVG Gift Size

27. 10/7/2013 #bbcon 27
HOW: CASE STUDY- LOYALTY DATA
Results Using Loyalty Insights (Client identifies wasted mailings on unprofitable & unresponsive segments)
Example: National Relief Organization
Solution Used: Loyalty Insights (descriptive analytics model) to leverage donor loyalty that compares donor giving
behaviors to the organization with other non-profit orgs they support.
• Used to communicate differently with best segments via messaging and offer treatments and identify areas of reduced
investment for least loyal segments
Results Using Traditional RFM Model (Recency, Frequency, Monetary Amount)

28. 10/7/2013 #bbcon 28
HOW: CASE STUDY- LOYALTY DATA
Case Studies from clients and agencies identifying, developing, and finding
successful strategies using Insights
Case Study A: Client used Insights to target for their Sustainer Invite. They segmented out the LI codes
that were part of their normal data select for the invite call (i.e. they didn’t pull in other top Insights names;
only those they would have normally mailed).
Results- They saw stronger gift response rate across the three most loyal donor groups and an
increase in sustainer pledges as well. Client is crediting this strategy for turning around their phone
invite program. The # of pledges in one campaign equated to the sum of all sustainers acquired in all
3 sustainer invite calls all year.
Case Study B: Client utilized the top 3 audiences for Planned Giving mailings with success; one large gift
can make all the difference! In addition to Planned Giving usage, Client B also used Insights for ask string
testing:
TEST:
Best of the Best & New and Noteworthy- tested current membership $ (control) vs. 1.5% and
1.25% the current membership year $
Habitually Generous- tested current membership $ (control) vs. test panels of current
membership $ +$10 and current membership $ +$20
Results-
Best of the Best & New and Noteworthy-
BOB- tests resulted in RR% lift of 17% and lift in gift of 8.9%
NEW- tests resulted in RR% decrease but decrease was replaced with 18% lift in gift-
net flat
Habitually Generous- flat response (test vs. control) but 20% lift in gift

29. 10/7/2013 #bbcon 29
• Utilize predictive modeling to reactivate Lapsed universes. Lapsed Tags are a letter rating
(A-J) assigned for lapsed donors, indicating a likelihood to reactivate via a direct marketing
appeal
• This predictive solution helps an organization identify the likelihood to reactivate; enabling
better marketing focus, allocation of marketing budget, and suppression of low response
donors
HOW: REACTIVATE LAPSED DONORS

30. 10/7/2013 #bbcon 30
WELL DESIGNED AND EXECUTED
ANALYTICS…
• Uncover supporter insights that aren’t
easily derived from wealth screening
alone
• Streamline the process of interacting
day-to-day with supporters
• Direct our investment towards the
constituents & initiatives which yield
the highest ROI
• Produce results that far surpass past
performance, in terms of revenue and
efficiency

31. 10/7/2013 #bbcon 31
CLIENT PANEL

32. 10/7/2013 #bbcon 32
Kristin A. Heller
• Executive Director of Prospect Development and
Information Strategy at The College of William and Mary in
Williamsburg, VA
Jeff Lindauer
• Associate Vice President for Development at the Indiana
University Foundation
John Perell
• Director of Direct Response and Shared Services at the
Smithsonian
Sandra Miao
• Director of Direct Response at The National Wildlife Federation
PARTICIPANTS

33. 10/7/2013 #bbcon 33
AVAILABLE FREE RESOURCES FROM
TARGET ANALYTICS
Resource Examines . . . Updates
The Blackbaud Index Overall and Online Giving that
incorporates $12 Billion in US
charitable giving
Monthly
Index of National Fundraising
Performance
Giving trends from Animal
Welfare, Arts and Culture,
Environment, Health, Human
Services and International
Relief
Quarterly
Index of Higher Education
Fundraising Performance
Giving trends in Higher
Education with subsets for
Private and Public Institutions
Annually
npEngage Collection of nonprofit blogs
highlighting best practices and
industry trends
Regularly

34. 10/7/2013 #bbcon 34
Session Title Timing Presenter(s)
ResearchPoint Roadmap Monday
8:30-9:45 AM
Anthony Tomaino, David
Lamb
Annapolis 1-2
Drive Offline Response with
Online Advertising
Monday
10:00 – 11:15 AM
Richard Becker
Earning That Society-Level
Gift
Monday
10:00 – 11:15 AM
George Durney,
Page Bullington
Keys to Success for Growing
a Sustainer Program
Monday
1:30 -2:45 PM
Nicola Bach
AJ. Minogue
Addressing the 2nd-Level
Donor Pyramid
Tuesday
9:15-10:30 AM
Page Bullington
Lifetime Loyalty and Lasting
Legacies
Tuesday
10:45 AM – 12:00 PM
Lawrence Henze, Katherine
Swank
TARGET ANALYTICS AT BB CON