1. Understanding your donors to
keep them for life
Presented by
Ashok Mahapatra
Fundraising Analyst
UNICEF India Country Office
SAFRG, Fundraising Master Class
October 30, 2010

2. agenda
• Fundraising steps and channels
• Behind a successful campaign?
• What is important for a campaign?
• Key things to remember before selecting data
• Acquisition campaign analysis
• What to do with acquired donors
• Right approach: segmentation
• House campaign analysis
• LTV analysis
• Pledge?
• The ‘pledge giving’ framework
• Why pledge (pledge vs One-off)
• Things to know about a pledge programme

3. Simple fundraising Steps

4. Fundraising CHANNELS
• Direct Mail
• Telemarketing
• Face to face
• Telefacing
• Digital
• Other

5. Direct Mail

6. Telemarketing

7. Face to face

8. Telefacing
+

9. Digital

10. Behind a successful campaign?

11. Some quality work behind getting “quality lists”
• Target Audience (who to ask?)
• Budget (How much can you spend?)
• Goal (better 1st
year RoI or long term RoI)
• From where can I get the list?
• Roll out vs test
• Size of the list

12. Target Audience
who to ask?

13. (How much can you spend?)
Budget

14. Goal
Short term vs Long term
(better 1st
year RoI or long term RoI)

15. From where can I get the list?
List Owners
List vendors
List brokers

16. Type of List
Compiled Lists
Proprietary Lists

17. test
vs
roll out

18. Size of the list

19. Analyzing acquisition campaign

20. Cost per Unit
Total Cost
Cost per unit =
Quantity Mailed

21. Response Rate (RR%)
Total Response
Response Rate % = X 100
Quantity Mailed

22. Average Donation Size (ADS)
Total Donation Amount
ADS =
No of Responses

23. Cost per Donor
Total cost
Cost per Donor =
No of response

24. Return on Investment
Total Income
ROI =
Total Cost

25. What to do with acquired donors?
• Should we ask them to give MORE?
• How much to ask?
• Should we send the same ask to all donors?

26. Should we
ask them to
give MORE?

27. How much to ask?

28. Should we send the same ask to all
donors?

29. Right approach
Segmentation
of donor database

30. 30
Donor Life StagesDonor Life Stages
Prospects
Deeply lapsed Lapsed
1. New
2. Transition
3. Core

31. 31
Definitions:Definitions:

32. Segment your donors

36. Analyzing house campaign

37. LTV
analysis

38. 38
“ The Net Present Value of the income gained from an
average new recruit during a given number of years ”
“ The Net Present Value of the income gained from an
average new recruit during a given number of years ”
What is Lifetime Value?
• LTV is a measure of the long term benefit of a recruited donor
 The Lifetime value (LTV) of a donor is defined as:

39. To convince your board member
for investing in fundraising
Why LTV?

40. One-off or Pledge?
Why LTV?
Evaluate and guide our recruitment programme

41. Which Channel?
Why LTV?
Understand which media give the most profitable donors over the long term

42. Income for coming years
Why LTV?
Understand the long term value of our retention programme

43. 43
Lifetime Value
LIFETIME
VALUE
LIFETIME
VALUE
COST TO
ACQUIRE
COST TO
ACQUIRE
HOW MANY
YEARS THEY
ARE
RETAINED
HOW MANY
YEARS THEY
ARE
RETAINED
COST TO
RETAIN
EACH YEAR
COST TO
RETAIN
EACH YEAR
HOW MUCH
THEY GIVE
EACH YEAR
HOW MUCH
THEY GIVE
EACH YEAR

44. 44
Example LTV Calculation

45. Pledge

46. 46
The ‘pledge giving’ framework

47. Pledge
vs
One-off

48. Things to know about a
pledge programme
• Gross IncomeGross Income
• ROI (gross income divided by direct “non-ROI (gross income divided by direct “non-
overhead” costsoverhead” costs
• Total Number of Active Pledge DonorsTotal Number of Active Pledge Donors
• Average Pledge ValueAverage Pledge Value
• Pledge Retention Rate (% of pledge donors as ofPledge Retention Rate (% of pledge donors as of
12 months previously who are still active)12 months previously who are still active)
• Pledge Fulfillment Rate (average number ofPledge Fulfillment Rate (average number of
months income received)months income received)

50. Ashok
ashok.mahapatra@gmail.com