"Donor Relationship Management - Increasing Fundraising efficiency through Evaluation". Given the importance of individual donors to the sector, it is vital to understand how to cultivate relationship with donors to increase Retention.Donor Relationship can be grown and fostered to improve retention and key financial behaviors over time. What is required is a theory based view of how these relationships form and how to measure and systematically impact them in simple, straightforward ways. This session treats you to an approach which transforms your one time Donor to a Lifetime Donor.

1. Donor Relationship Management
Increasing Fundraising efficiency through Evaluation
Yogesh Aggarwal – Global Director
Yellow Umbrella

2. Acquisition A Gamble
• Donor is the winning you get…. but
– Do you know Why you won?
– Do you know Value of Win ?
– Did you win because anyone at that time would
have Won?
– Can you increase probability of Win?

3. How are you Acquiring?
• Like A Credit Card company
• Like A Time Share
• Like A Life Insurance company
• Like A Real Estate Company
• Like AN FMCG
How You are acquiring will define How your
should Retain

4. Few Questions for foundation of DRM
• Why did a Donor Give you ?
• What is in for him?
• Does he give to others?
• Is it cause ?
• Is it your name?
• Is it because of the sales person ?
• Who is He?

5. Introduction
Donor Relationship Management
is the development and
maintenance of mutually beneficial
long-term relationship with
strategically significant Donors.
It is concerned with the creation,
development and enhancement of
individualized donor relationships
with carefully targeted donors and
donor groups resulting in maximizing
their total Value association with the
NGO.

6. WE Don’t Own a Donor Base–
In fact, the opposite is true.
WE Belong to the Donor.

7. 3 Things We Need to Stop
Thinking and Stop Doing
1. We need to stop thinking we own the
relationship… because we don’t
2. We Need to stop relying on the same old
one-dimensional pyramid
3. We need to stop believing acquisition is the
main key to growing our file

8. - What you send
- When you send it
- Which channel
- Whether to open
- When to open
- Whether to read
- Whether to respond
- When to respond
- How much to give
- Which channel to use
The Fundraising Dialogue
Sender Receiver

9. BUT WE INSIST ON THINKING IT’S ABOUT US
• We ACQUIRE Donors … ‘hostage-taking’
phase
• We RECAPTURE them, if they lapse
‘Why Have You Foresaken Us?’ letter
• Put them through a CONVERSION program
Our language reflects our attitude

10. Proof the public craves a
relationship that’s more about
them?
Introducing one of the most
successful new acquisition offers in
the past 5 years…

12. Interesting, isn't it ?
The Offer that explicitly promises
We Don’t Want a Relationship,
Is Very Successful at
Starting a Relationship

13. Why Does This Work?
- Because this offer tells the donor ‘you’re
in charge of this relationship’
The donor’s need for control is that deep

14. The Results:
• More than 25% of people responded
• Generated more 10 times of the Normal
outcome.
• Giving from 20 year+ donor core has been
increasing for the first time in years

15. The Organizations
that Recognize the Donor
OWNS THE RELATIONSHIP
Will be the Biggest Winners in the
Decade Ahead.

16. A PROFOUND ATTITUDINAL SHIFT:
• Identify the people who really matter
• Commit to a true donor-centric approach
• Focus on engagement and donor service
• A zealous commitment to nurturing the
relationship

17. Transaction Pyramid
Low Value
High
Value
Giving Profile
• Recency
• Frequency
• Amount

18. Transaction and Action Pyramid
Low Value
High
Value
Giving Profile
• Recency
• Frequency
• Amount
Activity Profile
• # of channels
• Volunteer?
• Special Events
18

19. Transaction, Action and Attributes Pyramid
Low Value
High
Value
Giving Profile
• Recency
• Frequency
• Amount
Activity Profile
• # of channels
• Volunteer?
• Special Events
You Know How To Rank the Donor
Attributes
• Age
• Wealth
• Health

20. But Do You Know
How they Rank
You?

21. How Do You Rank in Donor Pyramid?
• Are you a Priority in Donor’s life?
… or just one of many?
• Does He/she give you more than He/she
gives to other charities … or less?
• Is it unusual for Donor to support you?
… or does He/she donates to everyone?

22. How He/She Supports
Other Charities
Also Tells You How Much
they Value You?
How You Rank?

23. Passion Pyramid
DONOR 2DONOR 1
• Gives to only 2-3 charities
• Gives you twice as much
as she gives to others
• Gives to lots of organizations
• Gives more to others than you

24. Who’s More Passionate About You?
Low
Passion
High
Passion
Donor 2
• Gives to lots of
organizations
• Gives more to
others than you
Donor 1
• Gives to only
2-3 charities
• Gives you
twice as much
as she gives
to others

25. • Most of the organizations Selected ‘High Passion’ names
who did NOT meet their longstanding planned giving select
criteria.
Instance #1
Value
Pyramid
Low Value
Passion
Pyramid
Low Passion
% RESPONSE FROM THAT SEGMENT?

26. We may be the
ONLY INDUSTRY
In the world
That doesn’t view
RETENTION
as the key to growth!
26

27. The most important goals for nonprofit
communications strategies in 2013
4%
7%
12%
18%
20%
22%
22%
30%
45%
52%
57%
0% 10% 20% 30% 40% 50% 60%
All Other Responses
Retaining Current Participants
Acquiring New Volunteers
Building Print or Email List
Acquiring New Program Partipants
Creating Website Traffic
Thought Leadership / Positioning as an Expert
Retaining Current Donors
General Brand Awareness
Engaging Our Community
Acquiring New Donors
NonprofitMarketingGuide.com survey

28. The most important goals for nonprofit
communications strategies in 2013
7%
30%
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35
All Other Responses
Retaining Current Participants
Acquiring New Volunteers
Building Print or Email List
Acquiring New Program Partipants
Creating Website Traffic
Thought Leadership / Positioning as an Expert
Retaining Current Donors
General Brand Awareness
Engaging Our Community
Acquiring New Donors
NonprofitMarketingGuide.com survey

29. KEYS TO RETENTION:
Commit to Greater investment, focused on:
• Truly knowing your best supporters; their
interests, their needs
• Using the Whole pyramid:
Transactions, Actions, Attributes … and Passion
• Nurturing true relationships through superior
donor service

30. The Reality:
The donor doesn’t belong to us.
We belong to them.
And unless we do more to embrace
this mindset, we are not going to
have the best Donor Relationship
Management.

31. Thank You