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Pareto Talk
Behold the key proposition:
the secret of converting cash donors to regular
givers
By Jen
Gould
Fact: The lifetime value of a Regular Giver (RG) is far
greater than someone who is asked for cash donations.
Fact: Charities that focus on acquiring and recruiting
Regular Givers grow fast, with regular giving providing greater
opportunities to build and nurture a strong charity-supporter
relationship over time.
So what’s the secret – how do we capitalise on these benefits
and successfully change the giving behaviour of our donors?
Like many fundraisers, Pareto Fundraising has traditionally had
most success converting cash donors to regular giving via phone.
Conversion rates are high with personalised dialogue having maximum
impact.
At the core of what we do is a duty to help as many
beneficiaries as possible. This means maximising your charity’s net
income to its full potential. And, given that mail provides a
cost-effective method of conversion, there is an undisputable need
to further explore this channel. Results from 2007 for Médecins
Sans Frontières Australia (MSF) – the Australian branch of the
world’s leading independent organisation for medical-humanitarian
aid – show that when armed with the right proposition there now
appears to be light at the end of the regular giving tunnel.
Fundraising experts will confirm that after selecting the right
audience, a strong key proposition is crucial to the success of
your campaign. Converting your cash donors to become RGs is indeed
no exception – even more pertinent as we are effectively asking
them to change the way they give. And it is that exact sentiment
that led to the success of the MSF regular giving mail conversion
pack.
With a budget of just $70,400, our challenge was to work with
MSF to acquire 413 new committed RGs worth $114,000 a year to MSF –
whilst safeguarding $420,000 worth of immediate cash donations from
selected high value supporters.
The MSF appeal centred on Sudan where the humanitarian and
medical crisis continues unabated, and where the situation and care
required changes frequently. By asking selected cash donors to
change the way they give and become a ‘Field Partner’, we
demonstrated that the benefits of regular giving made this method
the optimum way to support MSF. Essentially the proposition brought
the donor closer to the cause – by becoming a Field Partner they
were in the best position (after their actual field staff) to
partner MSF and help them make the greatest difference.
Results revealed we’re on the right path: from the 30,897 donors
mailed, 1,099 responded and became Field Partners – 166% more than
forecasted (actual response rates were 3.56% rather than 1.34%
target). Total raised from RG support was a healthy $281,814 in the
first year.
Given this success, the National Heart Foundation (HF) were keen
to ask cash donors to change their giving behaviour. By
capitalising on the fact that research takes time, the largest
medical heart research charity in Australia has the perfect
opportunity to promote the benefits of regular giving to their
donors. It’s only by providing long-term funding for crucial
research projects that we will make the medical breakthroughs of
tomorrow.
Again we’re bringing the donors closer to the cause – they are
providing researchers with the tools they need to beat this killer
disease. Whilst still early days, it’s a campaign we’re eagerly
keeping our eyes on. To date we’re happy to have welcomed 644 new
RGs to HF.
Making the benefits of regular giving about your charity’s
beneficiaries is vital. If you’re interested in talking to Pareto
about developing regular giving conversion propositions, we’d love
to hear from you. Contact us on
masterclass@paretofundraising.com
Expertise|Integrity|Passion | 