Generate Major Gifts with Low-Cost Engagement Fundraising

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PRESENTER: GREG WARNER
Greg Warner is CEO and Founder of MarketSmart, a
revolutionary marketing software and services firm
that helps nonprofits raise more for less.
MarketSmart's innovative products and services use
Internet tracking technologies to help fundraisers
zero-in on the donors most likely to support their
organizations with large, major or legacy gifts. In
2013, Greg coined the phrase "Engagement
Fundraising" to encapsulate his breakthrough
fundraising formula for achieving extraordinary
results.
Greg lives with his wife and two children in Bethesda,
Maryland. He answers his own phone and can be
reached easily at info@imarketsmart.com.

AN INTRODUCTION TO
ENGAGEMENT
FUNDRAISING
HOW TO GENERATE
PLANNED GIFTSWITH
LESS MONEY
REDUCED
RESOURCES
MOR
E AND

1- WHO IS THIS GUY?
2- ENGAGEMENT FUNDRAISING
• Strategy
• Tactics
3- EXAMPLES & LOW-COST IDEAS
TODAY’S AGENDA

WHO IS THIS GUY?
AND WHY SHOULD WE LISTEN TO HIM?
greg warner
CEO & FOUNDER
BLOG

WHO IS THIS GUY?
greg warner
CEO & FOUNDER

Wacky “marketing”? • Tons of direct mail
• Spray marketing
• One-way
• Impersonal
• Poor “customer” service
• Sold my name
• Hard to opt-out
• Challenge volunteering
• Insulting/offensive
WHO IS THIS GUY?
greg warner
CEO & FOUNDER

Donor
Marketer Caller
WHO IS THIS GUY?
greg warner
CEO & FOUNDER

Lack of time
Qualifying prospects is very difficult
What do you want to know
Who to call?
When to call?
Why they care?
What to say?
Not enough staff
Travel is time-consuming and expensive
Tight budgets
Empathy for your challenges

STRATEGY
ENGAGEMENT FUNDRAISING

PARETO PRINCIPLE
Just 20% of the people own
80% of the land
THE 80/20 RULE

PARETO PRINCIPLE
THE 80/20 RULE
Among tax returns claiming
charitable donations
17.3% accounted for
65.4% of U.S. charitable
donation dollars
2012 U.S. Tax Returns Claiming
Noncash Charitable Donations
Internal Revenue Service
MAJOR GIFTS &
PLANNED GIFTS

DOES THE PYRAMID REALLY EXIST?
Legacy Gifts
New high-dollar donors are more loyal
Repeat high-dollar donors are more loyal

DOES THE PYRAMID REALLY EXIST?
Legacy Gifts Other Legacy Gifts
• Staff
• Volunteers
• Facebook likes
• Twitter followers
• Infrequent donors
• Non-donors
• Others

8.5%
MARKETING BUDGET?

PLANNED GIFTS

DONOR
CHURN
www.fundraisingreportcard.com

WHY?
NOT GETTING WHAT THEY WANT!

HOW CAN YOU
GIVE DONORS WHAT THEY WANT?
GROW REVENUE
AT LOWER COST?
ENGAGEMENT
FUNDRAISING

STRATEGY
FOCUS ON 80/20 PARETO PRINCIPLE
MAJOR GIFTS & PLANNED GIFTS
MAKE HI-CAPACITY DONORS
FEEL GOOD
MATCH WHAT YOU HAVE TO OFFER
WITH WHAT SUPPORTERS WANT & NEED
LEVERAGE TECHNOLOGY
FOR EFFICIENT ENGAGEMENT

9 Similarities
“Marketing” Relationships & “Real” Relationships
1. Trust is key nothing happens without it
2. Relevant personalized
3. Conversational human, not formal
4. Two-way talking and listening
5. Respectful polite, considerate and fair
6. Valuable/meaningful benefits for both
7. Easy and comfortable convenient and relaxed
8. Multi-channel phone, email, face-to-face
9. Strategic bad strategies = bad results
ENGAGEMENT FUNDRAISING BASICS

Mark Knapp’s Relationship Model
Mark Knapp
literally wrote
the book on
interpersonal
communication
theories
Stages of a relationship

Awareness
Interest
Desire
Action
Reconsider
Gift received
$
Lead generation Gift discovery
Cultivation Gift discovery
Stewardship
Closure
FundraiserMarketing
Marketing
expertise?
Marketing
budget?
Annual
fund?
Events?
Other?
Gift discovery

Awareness
Interest
Desire
Action
Gift discovery & lead generation
Cultivation/stewardship
Closure
Fundraiser
Reconsider
Giftreceived
$
Gift
stewardship
CONSIDERATION CONTINUUM
ENGAGEMENT
FUNDRAISING

ENGAGEMENT
FUNDRAISING
Traditional
FUNDRAISIN
G
PERMISSION&
INBOUND
MARKETING
INTERRUPTION
MARKETING

STRATEGY
BASICS
TACTICS

LIST
OFFER
TIMING
CREATIVE

CONVENTIONAL WISDOM
✓ Frequency of giving?
✓ Recency of giving?
✓ Longevity of giving?
✓ Total dollars given?
UNCONVENTIONAL WISDOM
✓ Engagement?
✓ Involvement?
✓ Family-oriented connection?
✓ Passion / Why they care?
✓ Commitment?
✓ Childlessness?
✓ Level of education?
✓ Age?
LIST / CASELOAD SELECTION

Past giving
and affinity
history
Wealth &
demographic
screening
Who is most likely to act

Scoring360º
donor profile
Engagement
&
survey data
Past giving
and affinity
history
Wealth &
demographic
screening
Who is most likely to act now
WHO WHY

“Actionable intelligence”
“Digital body language”
Tracked online &
email engagement
“Verbatims”
Self-reported
donor data
……………........…………………………
BETTER ENGAGEMENTS

LIST / CASELOAD SELECTION
Actionable intelligence
Capture verbatims and monitor digital body language
Recency, frequency & depth of engagement
Involvement
Volunteering? On the board or in a committee?
Life story & relationship with mission
Clinical connection? Family story? Personal history?

PROVIDE
AN OFFER
LIST
OFFER
TIMING
CREATIVE

Offer value to get and keep prospects engaged

CONVENIENT
Offer value to get and keep prospects engaged

WEAK OFFERS VS. STRONG OFFERS
WEAK
OFFERS
Update you
Buy you a cup of coffee
Download this helpful
widget, calculator or
tool
Take a donor survey to
share your opinion
See the video about Jeff
and why he made a gift
STRONG
OFFERS
Tell your story
Honor, pay tribute to,
commemorate someone
you love dearly
Return address labels
Recipe

TIMING
LIST
OFFER
TIMING
CREATIVE

GOOD OFFER + BAD TIMING = POOR RESULTS
BAD OFFER + GOOD TIMING = POOR RESULTS
GOOD OFFER + GOOD TIMING = BEST RESULTS
Timing

Timing
OFFER A OFFER B OFFER C
Match the right
offers with each
stage of the
consideration
process
DONOR
SURVEY
VOLUNTEERING
OPPORTUNITY
MEETING OR
AGREEMENT

Valuable offers –> Build awareness and
generate interest for more engagement
More engagement –> Builds desire
Timing
Intense desire –> Leads to action

2017 201920182016 2020
Timing
When should you reach out to a prospect?
CONSIDERATION CONTINUUM
Engaged and
considering?

CREATIVE
LIST
OFFER
TIMING
CREATIVE

Get them into the giving state of mind
HELP THEM FEEL GOOD!
9 Similarities
“Marketing” Relationships & “Real” Relationships
1. Build trust
2. Be relevant
3. Be conversational
4. Enable two-way communication/feedback
5. Be Respectful
6. Provide valuable/meaningful offers
7. Make it easy and comfortable
8. Use multiple channels
9. Think strategically – Be smart!

Get them into the giving state of mind
Symbolic immortality
Desire to continue to live on after death
Autobiographical heroism
Desire to be perceived favorably after death
Visualized autobiography
Seeing one’s life from a third person perspective
Commemorative immortality
Honoring, recognizing or paying tribute to others
HELP THEM FEEL GOOD!

FOR LEGACY GIVING
Help them get past their
avoidance of the subject
Give them the “medicine”
with good offers
(like a spoonful of sugar)

Examples of creative that works!

1

21

321

LOW-COST
IDEAS

NEW
CONCEPTS
Employ “3-to-1 fundraising”
Report Offer Ask
Supporter name Thank ‘em results engagement again
Michelle Brown
www.imarketsmart.com/321

LOW-COST IDEAS
PIZZA PARTY MAJOR GIVING
STEWARDSHIP,
CULTIVATION & LEAD
GENERATION

LOW-COST IDEAS
INSERTS IN DONATION RECEIPT LETTERS
BUILDING
AWARENESS &
GENERATING
LEADS

LOW-COST IDEAS
SOCIAL MEDIA ANNOUNCEMENT
BUILDING
AWARENESS

LOW-COST IDEAS
PLANNED GIFT MARKETING
LARGE VISUAL DISPLAYS
BUILDING
AWARENESS

LOW-COST IDEAS
PLANNED GIFT MARKETING
UBIQUITOUS MESSAGES
• on emails;
• business cards;
• letterhead;
• mailers;
• reply forms;
• booklets;
• magazines;
• articles;
• photos;
• banners;
• invitations;
• research reports;
• website pages, etc.
Many of our supporters have made a
gift to [organization name] in their
will or estate plan.
Would you consider such a gift?
If so, it is important that you please
be sure to use the following legal
language:
[Place language here]
[Tax ID # here]
BUILDING
AWARENESS

LOW-COST IDEAS
ASK YOUR BOARD AND VOLUNTEERS
BUILDING
AWARENESS &
GENERATING
LEADS

LOW-COST IDEAS
ADS IN PERIODICALS WITH A REPLY DEVICE
BUILDING
AWARENESS &
GENERATING
LEADS

LOW-COST IDEAS
BANNER ADS
BUILDING
AWARENESS

Leverage technology
• Be more efficient
• Engage more people at lower cost
• Deliver relevant, personalized messages
• Automate the cultivation process
• Zero-in on the right people at the right time
• Do more with less time & reduced resources
NEW
CONCEPTS

SUMMARY
✓ Build awareness > Generate interest > Develop desire > Motivate action
✓ Use “unconventional wisdom” for list selection
✓ Construct an offer that delivers value
✓ Try to send the right offer to the right person at the right time
✓ Develop creative that entices engagement
✓ Leverage technology to track and score engagement
✓ Start with low-cost ideas and stewardship

greg warner
CEO & FOUNDER
THANK YOUFREE RESOURCES AVAILABLE AT:
imarketsmart.com

Generate Major Gifts with Low-Cost Engagement Fundraising

Generate Major Gifts with Low-Cost Engagement Fundraising

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