donations processing: embracing efficiency, security, and data to build your future

Donations Processing: Embracing Efficiency, Security, and Data to Build Your Future#12NTCAHCDS

Chip Sugrue -- @ChipSugrueBrett Ridge – @BanterwithBrett

The American Heart Association

Chip SugrueVice President of Customer Strategies/Affiliate Management Consultant

#12NTCAHCDS@BanterwithBrett

@ChipSugrue

Mission

Building healthier lives, free of cardiovascular diseases and stroke


@ChipSugrue

2020 Goal

“By 2020, to improve the cardiovascular health of all Americans by 20% while reducing death from cardiovascular diseases and stroke by 20%.”


@ChipSugrue

AHA Affiliates

SD

NE

SouthWest Affiliate Midge LaPorte Epstein, EVP AR, CO, NM, OK, *TX & WY

Mid-Atlantic AffiliateJeremy Beauchamp, EVPMD, NC, SC, *VA & WA, DC

Greater Southeast AffiliateDavid Markiewicz, EVPAL, *FL, GA, LA, MS, PR & TN

WY

AK

WA

MT

OR

ID

CO

AZ

CANV UT

NM

TX

ND

IA

MO

AR

IL

MN

WI

IN

TN

LAMS AL GA

SC

FL

NC

VA

Great Rivers AffiliateNicole Aiello Sapio, EVPDE, KY, OH, *PA & WV

MI

KY WV

OHPA

DE

NJ

CTNY RI

VT NH

ME

MDDC

PR

HI

KS

OK

National Center

Founders AffiliateMichael Weamer, EVPCT, ME, MA, NH, NJ, *NY, RI & VT

NYCMASD

Western States AffiliateRoman J. Bowser, EVPAK, AZ,*CA, HI, ID, MT, NV, OR, UT & WA

Midwest AffiliateKevin Harker, EVPIA, IL, IN,*KS, MI, MN, MO, ND, NE, SD & WI


@ChipSugrue

Chip Sugrue

5 Years National Vice President Of Customer Strategies American Heart Association, National Center

10 Years as CEO/Executive Vice President AHA Minnesota Affiliate AHA Northland Affiliate AHA Northeast Affiliate

9 Years as National Affiliate Management Consultant American Heart Association, National Center

34 Years Total Field/National Center Experience

CDS Global

Brett RidgeSenior Solutions Manager, Nonprofit


@ChipSugrue

Our parent company, Hearst Corporation, is more than 120 years old and comprises nearly 20,000 employees spanning six major groups

Newspapers

Magazines

Broadcasting

Entertainment/Syndication

Interactive Media

Business Media


@ChipSugrue

CDS Global ClientsPublishing

Consumer Products

Nonprofits

Utilities


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Publishing Consumer Products Nonprofits Utilities

Markets


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CDS Global Locations


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Brett Ridge

10 Years as CEO/Executive Director Make-A-Wish Foundation of Iowa National Multiple Sclerosis Society of Iowa FFA Foundation of Iowa

7 Years as VP/Director of Marketing, Public Relations, Public Affairs (Government Relations) American Cancer Society, Midwest & Iowa Divisions

Numerous State and National Task Forces & Coalitions

More than Meets the Eye

Chip SugrueBrett Ridge

AHA Donations Processing Beginnings

Chip SugrueChip SugrueVice President of Customer Strategies/Affiliate Management Consultant


@ChipSugrue

The Problem

Differences in donations processes: Donations captured Donations acknowledged Donations receipted Donations cultivated

Could we be confident that our donors were being appropriately thanked, cultivated or at a minimum, meeting IRS receipting regulations?


@ChipSugrue

Why All the Fuss?

AHA estimates only 55% of contributions and payments received an acknowledgement Lack of process consistency between Affiliates makes

acknowledgement rates an estimate

To ensure we were consistently meeting IRS guidelines

How much revenue has AHA lost due to uncultivated relationships because contributions were not captured for acknowledgement?


@ChipSugrue

What to do?


@ChipSugrue

Objectives

Review the mechanics of how we cage, capture and acknowledge our donors

The solution must: Provide consistency across the organization Be cost-effective for the Association Allow for scalability to quantity demands Be “trackable” – provide the Association a means to record if,

when and what type of donation was received and acknowledgement generated

Improve the data quality for the Association


@ChipSugrue

Our Vision

We envision a day that the AHA will:1. Process all financial contributions into E1 according to

established guidelines2. Achieve a donor entry turnaround of three working days from receipt

at the donor capture processing location3. Mail an acknowledgement for a contribution with appropriate IRS

terminology within five working days of receipt of donation4. Identify trends in giving and segment donors based upon

demonstrated behaviors 5. Design and implement an association-wide cultivation strategy

Classifications of donors Creation of specific cultivation paths targeted to donor segment needs Example: Sending a message about us almost meeting our impact goal


@ChipSugrue

Three Moving Parts

1. Caging How AHA deposits money

2. Capture How AHA collects customer

data into the AHA CRM systems (Siebel, Kintera, etc.)

3. Acknowledgement The “Thank You”


@ChipSugrue

Caging: What Did We Gain?

Ability to electronically upload data into existing applications

Ability to develop a reporting infrastructure

Solution consistently applied

Ability to track batch status within caging process

Ability to adjust to future changes and invest in technology

Minimal start-up costs

Minimized ongoing training costs after implementation

Ability to add additional income sources

Minimized impact on system infrastructure


@ChipSugrue

Capture: What Did We Gain?

Maximized the number of donors captured

Provided better opportunity for 360 degree view of donor

Solution consistently applied

Met data security and internal privacy requirements

Ability to identify the source of the donation and market

Disaster recovery is included

Ability to adjust to future changes in technology

Designated staff have visibility to the donation process

Minimized redundancies in processing between caging and capture

Ability to have consistent data verification


@ChipSugrue

Acknowledgements: What Did We Gain?

Ability to comply with IRS reporting guidelines

Standardized process for thanking our donors

Increased cost efficiencies by comingling mailings

Ability to cultivate and re-engage donors

Customization of acknowledgements by event or activity (phase 2)

Ability to track status of acknowledgement


@ChipSugrue

Cost Savings/Reallocation

Existing lockbox costs would be reduced (e.g. Heart Walk) and reallocated

Reduced the number of lockboxes needed from 21 to 14

Some mail costs shifted from Affiliates to vendor

Reduction in copying costs and time spent copying checks

Staff time reallocated due to increased efficiencies

Redeployment of staff resources for some Affiliates

Depository fees savings of approximately $26,000/year with 9 deposits from the vendor per day versus 300 deposits


@ChipSugrue

Caging, Capture, Acknowledgement Impact

More donation information captured and entered into expanded 360 data warehouse

Standardized cash receipts guidelines developed

Affiliates now participating in cash pooling program

Better customer service in responding to donor inquiries

Ability now to expand standardized Donor Appreciation project

Opened up new opportunities in other business functions (Youth Market, Work place Giving, Health Strategies)


@ChipSugrue

The Impact In Numbers (27 months)

More than $425,000,000 in income processed3,510,379 transactions937,905 acknowledgements mailed7,000 requests for informationMore than 2.4 million new donors added to CRMMore than $200,000 savings in acquisition costsMore than $47,000 in second gifts

Savings of more than $52,000 in bank feesSavings of more than $24,000 by eliminating 7 lockboxes

Volume Donations Processing Technology & Tools


mail receiptPO boxes identify clients and transaction typesRegional collection officesMail is either picked up at post office or delivered to sitesFrom remote locations (RDC)

STEP

1


@ChipSugrue

Getting It Done

Remote Deposit Capture Reduce float time Save on costly postal fees Improves funds availability Process deposits from events, local office Multiple scanner options Easy-to-use software and implementation Capture data in addition to checks

STEP

2 mail processingSORTATIONSort multiple

classes of documents

EXTRACTIONOpen and remove

envelope contents

IMAGING & DATA CAPTUREImaging Systems

Web Image Archive

Handwriting Detection & Recognition

SortationSorts two-piece, check only, document only, customer service, etc.

ExtractionCombination of automated & manual

Imaging & Data CaptureState-of-the-art imaging systemCapture virtually any data from any documentsSpeed up processingEnsure security, compliance, highest accuracy in industryIncrease amount of data captured about donors

Imaging & Data Capture

Handwriting Detection

Web Image Archive

depositingSTEP

3 • Balancing – No data file, check or check image leaves CDS Global without being in balance

• Deposit• Manual – Physical deposit of checks via bonded courier• Electronic Check Presentment (ECP)

• Send an electronic image of check to bank for depositing• Check 21• ACH/ARC • Both

• Online Bill Pay Support – Relationships with vendors to receive data feeds when bills are paid via online banking site

Customer DatabaseCommunication/Feeds

• Customize feeds or key data directly into donor database to suit requirements

• Highly flexible, easy to use• Keeping valuable data safe• Transaction data distributed via secure

FTP site (CDSFiles)

STEP

4


@ChipSugrue

Donor Acknowledgements & Marketing Solutions

Recognize attract, retain donorsSeamless programs that handle the printing, personalization and mailing of donor acknowledgement packagesPaper and electronic methods availableQuickly and accurately acknowledge donorsDonor solicitations Rewards for high-value donorsPersonalized, multichannel campaignsSimple event registration capabilities and online payment

AHA Donations Processing Expansions

Chip SugrueVice President of Customer Strategies/Affiliate Management Consultant


@ChipSugrue

Expanding the Program

Accounts Receivable Results 4 of 7 affiliates participating 4,700+ receivables processed and deposited Saves AHA preparation and processing time

Customized acknowledgement letter for Youth Market donors

Created customized acknowledgement for those making additional donations

2012 – Creating customized acknowledgement for Workplace Giving donors


@ChipSugrue


Remote Data Deposit and Capture Testing Determine if batch headers and checks could be scanned

remotely to CDS Global for caging, capture and acknowledgement

Quantify cost savings from not mailing information Quantify additional interest earned for depositing income faster Identify impact of scanning on AHA workload Identify any issues with AHA taking on the check

destroying responsibilities


@ChipSugrue


Remote Data Deposit and Capture Pilot Two high-volume offices within the Founders Affiliate (Framingham

and Robbinsville) were selected to participate• Pilot ran from April 1-June 30, 2011• CDS Global loaned one scanner to each office• CDS Global conducted webinar to train staff on scanning machines


@ChipSugrue


Remote Data Deposit and Capture Pilot More than 45% of the total income from the Founders Affiliate was

processed from Framingham and Robbinsville offices Robbinsville also processed Accounts Receivable More than 1/3 of the total batches processed (1,166) More than 1/4 of all checks (5,441) processed


@ChipSugrue


Remote Data Deposit and Capture Pilot Results 1,166 batches and more than $3,543,000 processed More than $845 in postal costs saved More than $600 in additional interest earned Additional cost savings of $45.60 from not having to use

Tyvek envelopes Information scanned in the morning/deposited the same day Information available in e1 and Web Image Archive within hours


@ChipSugrue


Remote Data Deposit and Capture Pilot Results Scanning did not appear to take any more or less staff time than

manually preparing batches and prepping them for mailing Scanning could help speed up process for confirming donations in

event management tools Scanning documentation would save a step Positive ROI using scanners


@ChipSugrue


Remote Data Deposit and Capture Pilot Results Potential costs savings assuming similar costs to the Founders

Affiliate offices for 25 additional AHA offices:• Postage savings of $42,250*• Increased income of $29,123 (1.5%)• Decreased Tyvek envelope costs $2,280• Estimated total savings and increased interest

income = $73,653+ per year

*FDA sending all batches Priority Mail

Stop the Guessing Game


Gathering Deeper Data from Donations



@ChipSugrue

Leveraging Data

Weave Your Way into Their DNA Remember who they are … their context Be simple and direct on their level

Creative Simplicity … not off the wall Create a plan for touches


@ChipSugrue

Expanding the Relationship

Growth from Increased Relationships 3X+ and 2X donors with activity are 132% and 56% more valuable

than their average donor counterparts Life to Date Dollars from donors with both revenue and

non-revenue activity

Freq.Category

Donors w/Activity

ActivityFreq.

GivingFreq. LTD Dollars LTD $/Donor

3x+ 659,081 4.04 7.34 $589,745,418 $894.80

2x 309,174 3.04 2 $42,773,548 $138.35

1x 652,531 2.27 1 $45,220,394 $69.30

Totals 1,620,786 3.14 3.77 $677,739,360 $418.15


@ChipSugrue

Gathering Data

Begin a Dialogue Provide information Ask their thoughts Get their opinion Make them feel that you care what they think …

and then actually begin to care


@ChipSugrue

Gathering Data

Solicitations Mailed Emailed Personal calls Online portals

• Age, gender, creed, etc.• Email address• Communication

preferences, social media information

• Interests, hobbies, event preferences

• WHY THEY CARE


@ChipSugrue

Gathering Data

Tear-Offs Can be scanned

PURL To prepopulated microsites

• Surveys, information etc.

QR Codes Directly to microsites, websites,

webstores, surveys, etc.


@ChipSugrue

Gathering Data

Acknowledgements Mailed Emailed Personal calls Online portals

• Begin a dialogue• Provide information• Ask their opinion• Ask for another donation


@ChipSugrue

Gathering Data

Acknowledgement Opportunities Planned giving wills and estates (7,000 requests) Volunteer opportunities (7/1/2011 – 300+ requests) Research information Join the You’re the Cure Advocacy Network Soft ask for additional donation (FY 2011 – $47,000 from

689 donations = $68.21 gift average. First 7 months of FY 2012 – $53,614 from 345 donations = $155 gift average.)


@ChipSugrue

Gathering Data

Track It Who responded? What channel did they use? What did they tell you?

Analyze the Data What does it tell you about

groups? Individuals? Build profiles


@ChipSugrue

Leveraging Data

Context It’s not about you Connect with them on their level Meet consumers at their destination

Enhance Data Add additional data Build profiles on individuals Build prospect profiles


@ChipSugrue

Constituent Data 100,000

Email on File?

Provide Constituent

Analysis (age, propensity to

give, etc.)

Age 20-60

Yes

Record in Campaign Manager as Successful

Send AgeTargeted Personalized Postcard w/QR and Tear-Off Option (2 or 3 age segments)

Positive Response?

Send 2nd Email

Capture Email

Microsite w/Call to Action

Utilize Tear-Off

Utilize QR to PURL

NoAge 60 +

Go To PURL?

Send Email with PURL

No

Open Email?

No

Yes

Yes

Acknowledge via US Mail and/or Email, Notify IRC for Fulfillment

Or

Record in Campaign Manager as

Unsuccessful

2nd

No

No Yes

Yes

Record in Campaign Manager as

Unsuccessful

Scan Tear-Off

NoYes

Open Email?

Yes

No


@ChipSugrue

Leveraging Data

AHA Multichannel Opportunities Average of 1,000 customers contact AHA Service Center via email or

phone each day for educational or donation information Dynamic Delivery provides opportunity to email educational or

donation information while they are on the phone• Average more than 9,000 Dynamic Delivery emails per month

In FY 2011, more than 110,000 Dynamic Delivery emails were sent, saving the organization more than $220,000 in print and postage costs while delivering outstanding service to the customer


@ChipSugrue

Leveraging Data

AHA Multichannel Opportunities In March 2011 we created a monthly educational email to send to

our online donors to heart.org. More than 48,000 online donors received these emails in the last year. Our 2011 year-end email campaign to these donors increased income more than 47%. Volunteers and staff called all $500+ year-end campaign donors.

In FY 2011, we added a donate button to the bottom of the Dynamic Delivery email. As a result Dynamic Delivery customers donated more than $184,000 during the year. In FY 2012 we have already exceeded FY2011 with more than $284,000 through the first 7 months.


@ChipSugrue

Leveraging Data

AHA Multichannel Opportunities In FY 2012, we added monthly opportunity to volunteer for the AHA.

Customers receive 15 days after Dynamic Delivery. February 2012, we added a direct link to our volunteer form. The number of volunteer submissions doubled the day the email was sent out. Local staff follow-up with those interested in volunteering to onboard them to a volunteer activity.

At least 3 channels used (phone, email, personal follow-up)


@ChipSugrue

Leveraging Data

Fight for it! Enlist marketing professionals as consultants

• Not for creative work … but to sell the ideas Replace, replenish, refuel Forward-thinking Board Members & Staff

• Positive attitude


@ChipSugrue

Leveraging Data

We are not perfect, we learn as we go … We are great at acquiring new donors, we are not as good retaining and renewing donors Some of our offline cultivations have not done well Our donation renewal rates are not where we want them to be We need to be more proactive (ex: sending late breaking news about

stroke to our stroke customers after our annual Stroke Conference) The opportunity to volunteer from our website is new 12/1/2011

and we are learning


@ChipSugrue

“Failure is a prerequisite for great success. If you want to succeed faster, double your rate of failure.”

_ Brian Tracy

Leveraging Data

The Glass Is Half Full



@ChipSugrue

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Donations Processing: Embracing Efficiency, Security and Data to Build Your Future#12NTCAHCDS


donations processing: embracing efficiency, security, and data to build your future

Education

minnesota affiliate

northland affiliate

northeast affiliate

years old

customer data

donations processes

brett ridge10 years

ceoexecutive vice president