December 2004
How we've grown our monthly giving program Alice Benson
How to meet (and keep) the online donor of your dreams by Madeline Stanionis
What's up online Dan Weeks
How we've grown our monthly giving program
By Alice Benson
OVER THE PAST several years, Bread for the World and Bread for the World Institute (Washington DC) have seen a marked increase in monthly sustainer income — the result of a series of steps we took to upgrade the program.
Bread and BFW Institute have had monthly check writers, called Pledge Partners, since the early 1980s. In the mid-1980s, we began accepting monthly electronic funds transfer (EFT) and credit card gifts, but most people continued to do what was familiar — and wrote checks. By 1990, we averaged $25,000/month through this program, or $300,000/year out of a combined budget of $3 million. By 1999, this program accounted for $470,000/year out of a combined budget of $6 million. We knew it could be doing better.
The back-end: the donor's front-end
We changed the company handling our pre-authorized monthly payments. There had been too many problems to continue treating complaints as anomalies. Some people were saying they had signed up but never gotten charged; others were saying they had quit and had gotten charged. Cracking down on problems in getting people into the system in the first place is a very important step.
Take my word for it: This is an important element in the success of a monthly giving program (or any fundraising program, for that matter!). In January 2004, I signed up to be a monthly credit card pledger to another national anti-hunger organization which offered an attractive premium for new pledgers. I got a thank-you for signing up right away — but no follow-up gifts were charged to me until I called in June, and I still haven't received my premium. If I weren't so interested in keeping track of the competition, do you think I would keep on giving?
Moving donors into EFT
EFT Pledgers have the very best fulfillment rate (people change banks less often than credit cards), so we began to emphasize EFT. Our redesigned sustainer brochure had EFT as the only option on the form (although we told them to call or visit our Web site for credit card gifts). We added text to the Pledge Partner notices extolling the virtues of EFT and how it saves us all time and money. And we made the form complete, so they didn't have to do anything else to sign up. While we had formerly requested a copy of a check marked "Void," we began telling them a check for their first monthly gift and authorization was good enough. After all, we knew how to make copies of checks to process the gift.
Raising the minimum gift amount
We increased our minimum monthly gift amount from $5 to $10. It's amazing what a difference that has made! We didn't, of course, tell all our $5/month contributors they had to make that change, although most have increased their gifts over time.
We renamed the EFT/credit card portion of the sustainer program: Baker's Dozen, which emphasized that 12 gifts of $10 could equal $130 in value — like a baker's dozen — because the money we saved in processing pre-authorized gifts was like an extra contribution.
Rebranding the program
We launched Baker's Dozen with a mailing in January, inviting participation in this program as part of a New Year's resolution — and explaining how 12 gifts can equal 13. This mailing is a segment of our winter appeal and goes to both new members and those who have made multiple low gifts. By joining, they would receive an attractive lapel pin and the promise they wouldn't be sent membership renewal notices, since their monthly giving would continually renew their membership. (However, we did not promise never to send them appeals.)
We followed up the mailing with a phone call from the professional callers at Share Group, who reinforced the invitation. Phoning stressed Baker's Dozen (EFT and credit cards) and allowed for check-writing as a final resort. Of course, many people just made one-time gifts and didn't sign up for the program, but they learned about the value and convenience of monthly giving.
Cultivating monthly givers
We began promoting Baker's Dozen through our thank-you program, having standard text as a tear-off at the bottom of the receipt.
When people sign up to be monthly donors, we send them thank-you letters, confirm the amount they want to give each month and the method of their gifts, and send the lapel pin.
While Baker's Dozen/Pledge Partners folks don't get a receipt for each gift, we knew it was important to thank them periodically. Each year, we offer to send them a copy of our annual Hunger Report or another publication. In 2003, we began sending them a pack of five free Bread for the World Christmas cards, along with an order form. This has served a dual purpose of thanking them and promoting card sales. We also send them special reports and our Legacy of Hope newsletter.
Increasing donors' gift amounts
We give sustainers two opportunities a year to upgrade — once by phone and once by mail. It's amazing how small increases add up!
Sustainer income from check writers varies greatly, and they send in gifts with monthly pledge forms or other devices. The 500 or so monthly pledgers who still write checks contribute about $10,000 a month. The pre-authorized income of EFT and credit cards is easier to track. The table below tracks the growth we've seen. If the second half of 2004 is equal only to the first half, total 2004 income will be $783,412.
The bottom line? If you don't have a sustainer program, you're losing out on ways to keep your best donors engaged on a regular basis. And, if you already have a program, ask what improvements you can make.
How a Monthly Giving Program Has Grown
Year 1999 2000 2001 2002 2003 2004*
Monthly EFT & CC
$30,126 $35,623 $41,540 $46,918 $51,085 $54,904
Avg # EFT/CC Gifts 2,300 2,500 2,770 2,980 3,120 3,182
Avg Amount of Gift $13.10 $14.25 $15.00 $15.74 $16.37 $17.25
Total EFT & CC/Yr $361,512 $427,476 $498,480 $563,016 $613,020 $329,424*
Monthly Checks 105,782 117,560 121,029 129,009 121,245 62,282*
Total Sustainers Income $467,294 $545,036 $619,509 $692,025 $734,265 $391,706*
*half-year figures only.
Alice Benson, CFRE, is Membership Manager, Bread for the World, 50 F Street N.W. #500, Washington DC 20001-1565, phone (202) 639-9400, fax (202) 639-9401, e-mail abenson@bread.org.
How to meet (and keep) the online donor of your dreams
By Madeline Stanionis
1. Keep the house clean in case guests drop by.
Make sure your online giving, e-mail address collection, and other online engagement tools work smoothly and are relevant to visitors. Make a test gift once a week or so.
Guard the door. Make sure your transaction pages are clearly labeled as secure.
Get them to come again. Are there good reasons for visitors to leave e-mail addresses?
Make sure they get involved: Provide relevant, topical giving opportunities.
Be a good conversationalist (i.e., be prepared for feedback).
2. Get past the first date. Think campaigns vs. appeals.
A one-time only e-mail appeal is just a date. Sometimes the chemistry is there. Sometimes it's not. Maybe you click. Or maybe your date had a busy day and you couldn't make it work. It's over as quickly as it began.
A campaign . . . well, a campaign is coffee this week, dinner next, and a movie on Saturday. Or, an e-mail this week, a mention in your e-newsletter next week, and a last chance e-mail, too.
3. Remember, you are the sum of your parts. Integrate your direct mail, telemarketing, and online efforts.
This is a service to your constituents.
It will increase mindshare with your constituents.
It will raise more money.
4. Be transparent. Answer visitors' questions.
What are you doing with my money?
Is the crisis real?
What else can I find on your site?
What will happen when I Google you?
5. Crank up that charm. Take creative risks.
Show your humor.
Show your passion.
Use gimmicks!
There's a lot of noise out there. You need to be LOUD to be HEARD.
6. Don't mail me a love letter when I just sent you an e-mail.
The Web is not print. Make sure your copy uses less rhetoric and is more casual and conversational, more personal and friendly, more visual, but not sloppy.
7. It's all about timing.
Send the right e-mail at the right time to the right person. (That's easy, right?)
When you're hot, you're hot — so take advantage of it! Hop to it when you get your 15 minutes.
Be ready for opportunities. (Systems. Procedures. Even copy and creative!)
8. We're in this thing together. Connect with your constituents.
Your donors are a part of your organization's story. You are a part of the story, too. Put the two together. Use e-mail to really talk to your supporters.
Make sure they know they're special to you and the cause.
9. Listen — really listen. Then, segment and personalize.
Not: "Dear Supporter, It's so important that we help those less fortunate . . ."
Rather: "Dear Madeline, As a longtime supporter of our work with handmade ducklings, you know how important it is that we help those less fortunate . . ."
10. Mind your manners.
Acknowledge contributions.
Be specific, be timely, and follow up. What happens . . . next week, next month?
Listen to your donors! They'll vote with their clicks. They'll tell you what they want . . . please respond!
Madeline Stanionis is Vice President and Creative Director at Donordigital, 182 Second Street, San Francisco CA 94105, phone (415) 278-9444, fax (415) 901-0112, e-mail madeline@donordigital.com, Web www.donordigital.com.
What's up online
By Dan Weeks
AARP, the Leadership Conference on Civil Rights (LCCR), and the Library of Congress have teamed up to create the "Voices of Civil Rights" — a project to collect and preserve thousands of personal stories, oral histories, and personal artifacts of the Civil Rights Movement. The collection will form the world's largest archive of personal accounts of civil rights in America and will be permanently housed at the Library of Congress.
The Web site, at www.voicesofcivilrights.org, allows you to "Add your voice" — to share your previously unpublished personal account of what you witnessed or were a part of during America's civil rights experience.
If you've got the Flash plug-in, this Web site is even better, especially the interactive map. Check it out!
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