dma non profit conference - diversity in giving & how to reach all your supporters
TRANSCRIPT
The Changing Landscape of Philanthropy: Examining Diversity in Giving
Dennis McCarthy – BlackbaudPam Loeb – Edge Research
Adrian White Slagle – Operation SmileKevin White – Russ Reid
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Why This Study?
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Ask questions, challenge the presenters, and let’s talk!
Please use social media about this session and topic
Copies of the deck will be on the DMA site, as well as the Blackbaud and Edge websites
House Rules
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@emmettcarson: Nonprofit organizations will need to have a diverse donor base to sustain and grow operations. blackbaud.com/GivingDiversity #DMANY
Tweet This Now
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Do our current fundraising efforts reach the full spectrum of Americans who might support them?
Are we speaking the language—literally and figuratively—of tomorrow’s donors?
Do the fundraising channels we depend upon exclude some ethnic and racial groups?
Do we have the cultural competency to ask these questions?
Research Questions
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Online Survey of 1,096 U.S. Donors, conducted October 2014
Utilized the web-enabled KnowledgePanel®, the nation’s only probability-based panel, recruited to be representative of the U.S. population
Survey offered in English and Spanish
Oversamples of African-American, Asian, and Hispanic respondents
Total data are weighted to reflect the nationwide population of donors
Methodology
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The Donor Gap
9% 11%5%
73%The Donor Gap
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Donors Share Core Values
Religion and faith are both drivers and indicators of giving.
The impulse to help those in need is universal.
Wealthier individuals donate more in absolute terms than those with mid-level or
lower incomes.
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The African American Donor Community
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Religion and faith are a more important part of philanthropy than among any other group
Not as likely to give through direct response channels, but also not being asked
African American Donors – At A Glance
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More than any other group, interested in supporting their unique heritage and community
Giving is more personal and spontaneous
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African American Donors - Demographics
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African American Donors – Giving Priorities
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Place of worship
Local social service
Children’s charities
Health charities
Military/veterans
Youth development
Anti-hate/equality
50%
40%
37%
37%
23%
21%
12%
Top Charities Supported 75% say is important to support their place of
worship, far surpassing any other group
On average, say give
13% of income
to place of worship, more than any other group
(among those who give to place of worship)
↑
↑ Significantly higher than donors overall
↑
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African American Donors – Giving Habits/Attitudes
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Tend to give in small ways (toy/food drives, checkout donations, etc.)
Responsibility to support orgs positively impacting AA community
Like when orgs offer promotional giveaways
Like supporting by participating in social events
66%
57%
46%
45%
58%
43%
28%
32%
Giving Habits/Attitudes: More Likely To Agree
All Donors
African -Amer-ican Donors
↑
↑ Significantly higher than donors overall
↑
↑
↑
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African American Donors – Giving Habits/Attitudes
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Have an idea of which orgs to give to
Concerned about overhead vs the cause
Have idea of how much I will budget for donating
65%
60%
47%
79%
80%
56%
Giving Habits/Attitudes: Less Likely to Agree
All Donors African -American Donors
↓
↓ Significantly lower than donors overall
↓
↓
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African American Donors – Reaching Donors
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Have made donations at checkout
Have given to canvassers on street/at home
Have given online via org's website
Have become monthly donors to a cause
Have made a tribute/ memorial donation
49%
28%
19%
11%
18%
43%
18%
31%
19%
24%
Donation Channels: More and Less Likely to Use
All Donors
African -American Donors
↑ Significantly higher than donors overall↓ Significantly lower than donors overall
↑
↑
↓
↓
↓
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The Asian Donor Community
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Generous U.S. donors, even though this group is more likely to have been born outside the U.S.
Younger, well educated, more likely liberal and female
Most technologically connected and willing to use alternate giving channels
Asian Donors – At A Glance
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Giving priorities are different—more likely to support emergency relief efforts and education; religion not as important as driver of philanthropy
More likely to plan and research their philanthropy
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Asian Donors - Demographics
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Highly educated
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Health charities
Children’s charities
Local social service
Place of worship
Emergency relief
Formal education
Youth development
36%
35%
35%
34%
29%
24%
18%
Top Charities Supported
Asian Donors – Giving Priorities
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Place of worship noticeably absent from top three giving categories
↑
↑ Significantly higher than donors overall
↑
↑
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Asian Donors – Giving Habits/Attitudes
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Always visit a nonprofit's website before becoming a supporter
Like when orgs offer promotional giveaways
Prefer to give to orgs that change policies/laws
40%
36%
29%
27%
28%
24%
Giving Habits/Attitudes: More Likely To Agree
All Donors
Asian Donors
↑ Significantly higher than donors overall
↑
↑
↑
↑
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Asian Donors – Reaching Donors
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Have given online via org's website
Have donated through a crowdfunding site
Have made a tribute/ memorial donation
Added a donation at checkout
39%
19%
19%
38%
31%
10%
24%
43%
Donation Channels: More and Less Likely to Use
All Donors
Asian Donors
↑ Significantly higher than donors overall↓ Significantly lower than donors overall
↑
↑
↓
↓
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The Hispanic Donor Community
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Youngest of all groups and most likely to have children in their households
Strong commitment to children's causes
Much more likely to say they give spontaneously, when something pulls at their heartstrings
Hispanic Donors – At A Glance
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Give larger percentage of income to church than donors overall
Not asked for donations as frequently as others, and not as likely to give through traditional direct response channels; most interested in hearing more from nonprofits
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Hispanic Donors - Demographics
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Place of worship
Children’s charities
Health organizations
Local social service
45%
40%
31%
30%
Top Charities Supported
Hispanic Donors – Giving Priorities
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Health and local social service organizations are popular, but Hispanic
donors are still less likely to give to either than donors as a whole
↑ Significantly higher than donors overall
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Hispanic Donors – Giving Habits/Attitudes
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Most giving is spontaneous/pulls at
hearstrings
Would support more nonprofits if asked more often
Would like to support more nonprofits but don't know how
52%
18%
21%
36%
9%
10%
Giving Habits/Attitudes: More Likely To agree
All Donors
Hispanic Donors
↑ Significantly higher than donors overall
↑
↑
↑
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Hispanic Donors – Giving Habits/Attitudes
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Concerned about overhead vs. cause
Have an idea of which nonprofits will give to each year
Have an idea of how much will budget for nonprofits each year
63%
57%
39%
80%
79%
56%
Giving Habits/Attitudes: Less Likely to Identify With
All Donors
Hispanic Donors
↓
↓ Significantly lower than donors overall
↓
↓
↓
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Hispanic Donors – Reaching Donors
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Have given to canvassers on street/at home
Donated through a 3rd party vendor
Have donated in honor/memory of someone
Have donated through an organization's website
Have given in response to postal mail appeal
22%
23%
13%
23%
27%
18%
18%
24%
31%
32%
Donation Channels: More and Less Likely to Use
All Donors
Hispanic Donors
↑ Significantly higher than donors overall↓ Significantly lower than donors overall
↑
↑
↓
↓
↓
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The impulse to give is universal
Religion and Faith are indicators of giving (current and future)
Connecting with more diverse donors requires more opportunities to give in the flow of their everyday lives
Don’t ask and people don’t give!
Generational and ethnic/racial cohorts do not drive giving, but do drive channel and messaging
Overfishing results in a lower catch for all … engage everyone!
Today’s Terrific Takeaways
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Tweet This Now
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@dmccarthy104: The future of philanthropy may hinge on our ability to see the America of 2015, not 1990. blackbaud.com/GivingDiversity #DMANY
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So, what do we do to reach these diverse groups?
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Most channels under-index against African American, Asian, and Hispanic
audiences.
To reach them, we need to dig down into individual placements.
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Stations may be selected by audience reach / format
Language is also targetable in some instances
For Asian audiences, number of stations limited
Often requires market-by-market buying vs. national
Radio often has large concentrations of audiences
Radio is relatively easy to target
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African American Asian Hispanic
Inspirational 644.6 Ethnic 1,025.6 Ranchera 642.4
Black/Rhythm & Blues 603.9 Classical 189.9 Tejano 553.3
Urban Ac 586.7 Modern Rock 145.3 Mexican 546.4
Southern Gospel 535.1 Talk 134.5 Spanish Ac 517.8
Urban (Total) 458.6Chr (Contemporary Hit Radio) - Cume Aud
132.1Spanish (Inc Sp Ac,mex,tej,rnch & Ot Sp)
513.0
Urban Contemporary 422.9 All Sports 130.1 Educational 129.2
Nac Smooth Jazz-Cume Audience
368.6 Adult Contemporary 125.9Chr (Contemporary Hit Radio) - Cume Aud
121.6
Jazz 226.6 Spanish Ac 119.0 Ethnic 119.5
Religious 106.6 Hot Ac 115.0 Urban Contemporary 113.3
News/Talk/Business/Sports -Cume Audience
111.4
Top radio formats
Source: EXPERIAN SIMMONS 2015 WINTER NCS/NHCS ADULTS FULL YEAR
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Browser language setting is free and relatively easy
Other approaches require purchasing 3rd party data
Aside from these approaches, limits DSP / programmatic buying
Sites with relevant content may be purchased directly
Requires building unique/individual plans/languages
Less efficient than targeting conversions via DSP
Reaching via digital
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Current file makeup online
Source: Quantcast Measure
% Composition: proportional breakdown of overall audience within a given demographic.
Index: % likelihood of audience to a demographic bracket, relative to 1, the US Internet average. E.g. at index 1.27 the is 27% more likely than the average population to be in the $150k+ income bracket.
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African American Asian Hispanic
Shopzilla.com 379.3 Yelp.com 459.0 Lowermybills.com 428.3
Nba.com 310.5 Drugstore.com 358.7 Creditexpert.com 286.2
Blockbusternow.com 274.5 Pricegrabber.com 354.1 Classesusa.com 265.9
Equifax.com 247.1 Match.com 342.4 Shopping.com 245.9
Coolsavings.com 240.5 1800flowers.com 336.7 Citysearch.com 239.1
Creditexpert.com 219.8 Download.com 327.0 Gactv.com 223.0
Download.com 198.3 Ea.com 325.5 Lifelock.com 211.5
Myspace.com 197.8 Latimes.com 305.3 Movies.com 210.3
Careerbuilder.com 187.9 Cnet.com 273.8 Superpages.com 182.8
Shopping.com 185.9 Travelchannel.com 269.2 Equifax.com 178.8
Top websites
Source: EXPERIAN SIMMONS 2015 WINTER NCS/NHCS ADULTS FULL YEAR
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Some networks/stations target specific audiences African American (BET, TVOne, Centric) Hispanic (Univision, Telemundo, NBCUniverso/Mun2) Asian (tend to be local stations/languages)
Requires specific content and/or language
Using TV
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Network Caucasian African American Asian Hispanic
ABC 100.9 116.5 96.9 68.5
CBS 106.1 110.8 73.4 47.0
The CW 87.5 163.5 121.0 87.0
FOX 100.1 116.6 95.6 72.4
NBC 107.1 94.8 90.3 48.5
Top broadcast networks
Source: EXPERIAN SIMMONS 2015 WINTER NCS/NHCS ADULTS FULL YEAR
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African American Asian Hispanic
TV One 624.4 Travel Channel 158.7 Disney XD 160.3
BET 575.7 Sprout 149.5 Nuvo TV 149.3
OWN 394.4 Cooking Channel 143.8 MTV 135.0
NBA TV 332.5 CNN 140.8 Disney Channel 128.7
VH-1 326.1 Cnbc 132.0 Nickelodeon 125.6
WE TV 324.8 The Golf Channel 124.4 TeenNick 118.5
Oxygen 315.8 Food Network 123.1 MTV2 113.8
Esquire Network 298.3 Cartoon Network 121.8 NBA TV 112.3
Cloo 291.8National Geographic Channel
116.3 E! 111.8
TeenNick 276.1 ABC Family 114.3 Cartoon Network 109.7
Top cable networks
Source: EXPERIAN SIMMONS 2015 WINTER NCS/NHCS ADULTS FULL YEAR
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There are few lists available for each of these groups
Some have selects available
Overlays are the most prevalent source
Very little in-language availability
Some publication/subscriber lists available
Is quantity significant enough to justify cost?
Are we delivering these audiences anyway?
Most DM is via compiled sources/data
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Smaller circulations, but ultra-targeted
Local newspapers (La Opinion, Chinese Daily)
National magazines (Black Enterprise)
This approach allows good targeting, with less waste
Lower cost than TV or other approaches
Eliminates spoken language challenges
Print vehicles are strong
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Believe it or not, African Americans can be more difficult to target.
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TV networks with high concentrations
Radio station formats with high concentrations
Direct Mail lists with specific, relevant content
Websites with high concentrations
Directly through print vehicles
But we can target them via…
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Sunday mornings reach this audience
Religious lead-ins work well
Radio & TV can both combine high concentration with religious relevance
Leveraging religious programming
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MON TUE WED THU FRI SAT SUN
Focusing on our audience
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Religious programming
Call volume by day
High concentration network (BET) + Religious Programming =
Success
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“Asian” is somewhat of a misnomer – there are multiple groups and languages.
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A plethora of backgrounds
Different languages
Even within groups, languages define cultures
Which group is in your geographic sweet spot?
Fastest growing group from 2000-2010 @ 45%+
Who do we really mean?
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Because groups are so diverse, dedicated programs may be necessary
How many languages / approaches / streams are you willing to create?
Focus on most relevant region, market, geography
Perhaps start with who you’ve already been acquiring
Leverage existing relationships
Difficulty of reaching Asian audiences
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In-language communication may be necessary
Determine which group(s) to target first
Develop materials to cultivate in-language
Make certain database can accommodate
Be aware of differences in written vs. spoken language (e.g. Chinese)
Language is important
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Operation Smile: Koreatown Rotary Club Los Angeles Special Events/Galas Lifted by international focus
Some Asian audience successes
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Hispanics offer one of the largest opportunities for future fundraising.
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51.2 MM residents of the US of Hispanic origin
Economic power
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IMF estimate of buying power (in Trillions)
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Speak Some Spanish
Predominantly Spanish
Predominantly English
Bilingual0%
10%
20%
30%
40%
50%
60%
70%
80% 76%
44%52% 57%
Language spoken
Source: EXPERIAN SIMMONS 2014 WINTER NCS/NHCS ADULTS FULL YEAR
Bilingual tends to be the most successful
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0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Percent of non-converted calls (Spanish)
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4 week average = 13%
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Case Study: Operation Smile’sHispanic Program
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Start small with proven creative Adapt from English control – easy and most likely it
works!
“We just have to make the phone ring!” Chances are your call centers have bi-lingual
capabilities Any bilingual staff internally?
Simple microsite with the basics
Test: it doesn’t have to be all or nothing
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Direct Mail
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Direct Mail
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Spanish/Bilingual Test
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DRTV:English & Spanish
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DRTV
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Direct mail Higher response rates Comparable/slightly lower average gifts Lower CPD
DRTV LTDV and average gifts comparable to English CPA half of English High CC rates when compared to overall demographic Fulfillment 75-80% of English
Results
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Donor & Revenue Growth
1442% increase in donors
2229% growth in revenue
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Donor Count Revenue
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Cost 3-year Value
HispanicGeneral
Cost / value comparison
55%
96%
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Improve the donor’s experience – be bilingual on purpose, offer options
Be donor-centric, ask for preferences
Step up your digital game
Whether you’re working with an agency to do the heavy lifting or in-house, make sure you have someone on board FT that knows this demographic
Rollout
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Continued paid search and display retargeting and prospecting
Engagement – social media
Heavier focus on mobile targeting due to high indexing of usage rates with Hispanic population
Leverage corporate partnerships
Consider your mission and programs and how you can leverage content for public relations opportunities
Additional Opportunities
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An open mind
A tiny bit of risk taking
Spanish speaker (depending on scale… one may be enough)
Good translation of an English control
Requirements for test success
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Spanish speakers who understand marketing/fundraising and can make it culturally relevant
Digital experience
Commitment to follow through and growth
Requirements for rollout
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Drivers & ConvertersDrivers Converters
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Pam Loeb – Edge Research
Adrian White Slagle – Operation Smile
Kevin White – Russ Reid
Dennis McCarthy - Blackbaud
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Thank you!
Read the whitepaper here: www.blackbaud.com/GivingDiversity
For additional information, please contact:Dennis McCarthy | [email protected] Loeb | [email protected] Molina | [email protected]
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• Dennis McCarthy, Ashley Thompson and Erin Duff at Blackbaud
• Pam Loeb, Mariel Molina, Erin Wagner and Lisa Dropkin at Edge Research
• Mark Rovner at SeaChange Strategies
• And for inspiring us all: Dr Emmett Carson of the Silicon Valley Foundation
Thank you to those who helped with this project
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Adrian White Slagle
757.321.7778
https://www.linkedin.com/in/adrianwhiteslagle
Vice President, Mass Market Fundraising
Operation Smile
The Changing Landscape of Philanthropy: Examining Diversity in Giving
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Kevin White
626.463.9387
SVP, Media Insights & Integration
Russ Reid
The Changing Landscape of Philanthropy: Examining Diversity in Giving