Using the Fundraising Funnel to Maximize Your Fundraising

Using the Fundraising Funnel to Maximize Your Fundraising

Presented by Joe GarechtTheFundraisingAuthority.com

2

Joe Garecht Founder, The Fundraising Authority

Author of The Non-Profit Fundraising Formula and The Silent Auction Handbook

Have raised over $30 million during my fundraising career

Jay B. Love

CEO and Co-Founder of Bloomerang

• 30 Years of Technology Leadership• Over 20,000 Database Installations• Former Founder & CEO of eTapestry• Former CEO of Master Software/Fund-Master• AFP Board Member• Chairman AFP Ethics Committee • Center on Philanthropy at IU Board Member• Innovation Fund at Butler University Board Member• Gleaners Food Bank Board Member• Co-Chair of Indianapolis YMCA Capital Campaign

3

4

The Donor Funnel

Prospect

Cultivate

Ask

Steward

5

The Donor Funnel

PROSPECTING

CULTIVATION

ASKING

STEWARDSHIP

6

Step #1: Prospecting

7

Step #1: Prospecting

8

Step #1: Prospecting

9

Step #1: Prospecting

The BEST way to find new prospects:

REFERRALS

10

Step #1: Prospecting

The NEXT best way to find new prospects:

Non-Ask Events!

11

Step #2: Cultivation

12

Step #2: Cultivation

Relationships are built between

PEOPLE.

13

Step #2: Cultivation

How Do You Build Relationships?

14

Step #3: Asking

15

Step #3: Asking

16

Step #3: Asking

What is your donor thinking?

17

Step #3: Asking

What is an ASK?

18

How to Handle Donor Objections

19

How to Handle Donor Objections

Make sure you understand the objection.

Restate the question and validate the concern.

Answer the objection.

20

Step #4: Stewardship

21

Step #4: Stewardship

KeepInTouch

K.I.T.

Final Piece of the Puzzle

Effective use of a Donor Database allows the “Donor Funnel” process to be a natural

progression of the relationship . . .

“Engagement” is the Linchpin

The word "linchpin" is also used figuratively to mean "something [or someone] that holds the various elements of a structure together."

Engagement is the KEYTo Donor Retention!

Yes, your eyes read correctly:Over SIX out of every TEN Donors from the previous year did NOT

donate at all the next year!

CUE THE EXPERTS:

Dr. Adrian SargeantBloomerang Chief Scientist Professor of Fundraising at the Center on Philanthropy at Indiana University holding what is presently the world’s only endowed chair in that discipline.Top 10 Most Influential People in FundraisingRenowned expert on Donor Retention and Donor Loyalty

Mr. Tom AhernBloomerang Donor Communications Head Coach One of the world’s top authorities on donor communicationsAuthor of 4 books on Donor CommunicationsWinner of 3 prestigious international IABC Gold Quill awards

DONOR RETENTION BEST PRACTICES

Dr. Adrian SargeantBloomerang Chief Scientist

“A 10% improvement in retention can double the LIFETIME value of your donor database!”

Donor Retention Made Simple

30

6 Key Retention Drivers(That can double lifetime value)

• Drip feed mission performance data • Connect often• Be personal (SEGMENT)• Develop like a good personal friendship• Find & use numerous human connectors• Always communicate what monies are doing!

# of Donors in Current 12 Months(from the previous years pool)

Divided by # of Donors in Previous 12 Months

Calculating Your Retention Rate »

Donor Retention Meter • The Dow Jones of your database • Measures back exactly 365 days• Reflects changes daily, weekly and monthly• Automatic, no guesswork• What is watched is addressed

“The total net contribution that a customer/donor generates during his/her lifetime in your database”

Defining Lifetime Value

$1000 +

$500 - $1000

$100 - $500

$25 and under annually

$25 - $100

Value

36

Value Segments »

Time

Automatic Engagement Factors• Recency and pattern of

giving• Cash donors vs. sustaining

donors• # of years giving +• Upgrade /

Downgrade + -• Lapsed -• Event attendance +• Opens email +• Click links in emails +

• Unsubscribes from email -

• Has stated communication preferences +

• Has inbound interactions +

• Has soft credits +• Volunteers +• Social Media

(coming soon)• …and a whole lot more!

Engagement Level Graph • The Donor “thermometer” of your database • Updated automatically daily• Adrian’s expert formulas/algorithms • No user set-up required!• Easy to filter and report on• Springboard for major/legacy giving

What is the donor’sengagement over time!

Highlight vital “retention” information---

Timeline Highlights • If you use Facebook you know it • Everyone can use• Adrian’s expert formulas/algorithms • No user set-up required!• Perfect for a smart phone or tablet• Access ever donor “touch point” in seconds

Engagement Begins With The Thank You!

DONOR COMMUNICATION BEST PRACTICES

Mr. Tom AhernBloomerang Donor Communications Head Coach

"Successful direct mail appeals are quite simple. At heart, they are love letters to donors & prospects, woven through with clear cries for help."

5 Acknowledgment Principles(Drastically Improve First Year Donor Retention)

• 48 Hour Rule • Be Different Than the Rest• Handwritten Rule Written Communications• State Exactly What the Monies will Fund • Call or See in Person as Often as Possible

5 Communication Strategy Practices(Involve Your Entire Fundraising Team)

• Fully Map a Track for Each Key Segment • Survey in 1st 90 Days, Then “Honor”• Involve Human Connectors• Nurture Means Personal • Never Forget the “You” Test for EVERY “Touch”

Questions?

51

Joe GarechtThe Fundraising Authority

www.TheFundraisingAuthority.com215.839.9085

joe@thefundraisingauthority.com

Jay B. LoveBloomerang

www.bloomerang.co317-513-8000

jay.love@bloomerang.co

Next Webinar

10/22 – 1pmKeith Curtis

Recruiting and Building a Strong Board

https:bloomerang.co/resources/webinars