Growing The Donor BaseEarly Engagement

General AssemblyNovember 13, 2012

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Objectives

Goal to increase engagement which will: Improve retention Grow revenue

Plan based on: Welcome Kit test results (FY’11 and FY’12) Focus Group Research (Spring ’12)

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Welcome Kit #1

Developed Welcome Kit for all new under $1,000 donors

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Welcome Kit #2

The Welcome Kit was redesigned in mid-FY’11 to improve cultivation

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Welcome Kit #2 Results

pledge pay-up rate (first four months)

average second gift (same fiscal year)

second year retention rate

donors giving second gift within a year

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Additional Insight

Focus Groups were conducted in May ’12 among key donors segments: New One-time Lapsed Re-engaged

The goals were to understand how to: Improve donor engagement Drive donor retention

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Findings re: Why Donors Lapse

Several clear themes emerged regarding why small donors lapse:

UJA only cares about large donors

They wanted to know where the money goes

Small donations aren’t appreciated

UJA is big and impersonal

Pressured to give

Solicitations are too frequent

Asks (amount) are overly aggressive

They are put ‘on the spot’(when solicited)

“I’m a small donor and I’m treated like one. So if I have money later, and I will, you can bet I’m not giving to UJA”

“No matter how much I give, it’s never enough”

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Segment Findings

New Donors: Limited awareness of what UJA does Thought knowing what UJA does, would increase contribution and

involvement Ranked events and social activities highest in likelihood of increasing gift

Lapsed Donors: Did not consider themselves lapsed Had different expectation about donation frequency than UJA did

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Segment Findings

One-Time Donors: Many reasons for giving (e.g., Disaster relief, honoree at event) Donor not necessarily giving because of relationship with UJA Cultivation required before solicitation

• Educate donor about where money goes• Build relationship• Engage donor

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New Donor Communication Plan

The focus groups informed first-year communication plan:

Welcome Kit feedback positive. Used comments to ‘tweak’ kit• Exactly what they wanted to know

Thank donors and let them know how gifts are used• But they assumed it was ‘another solicitation’ and never opened it

Changed teaser copy to better communicate contents

Rebalance cultivation and solicitations• Increase number of cultivation mailings, reduce solicitations• Optimize timing of solicitations based on giving trends• Make them feel like their gift makes a difference

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New Donor Communication Plan

Make new donors feel appreciated and important:• Ensured that messages, formats and visuals are engaging and make

small donors feel that they are making a difference• Use postcards to avoid assumption that ‘it’s a solicitation’ so that

messages get across

First postcard/e-mail in series launched October 2012

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Communication Comparison

2012 New Plan (2013)

Acknowledgement 1 1

Welcome Kit Direct Mail 1 1

Solicitation Direct Mail 13 3

Cultivation Direct Mail 0 6

Cultivation e-mail 4-5 6

Solicitation e-mail 17 3

Qtrly. Bills (if balance) 4 4

Contacts/Solicitations 40-41/30 24/6

The new plan reduces the number of solicitations and increases the focus on donor cultivation. We anticipate this will drive increased payment and higher giving levels.

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New Donor Solicitation Packages/Timing

The timing of direct mail and e-mail solicitations (order will vary) will be optimized based on giving trends.

January

Febru

aryMarc

hApril

MayJune

July

August

Septem

ber

October

November

December

0%

5%

10%

15%

20%

25%

'08 '09 '10 '11

High Holiday

End of year

* Note: the groups are not mutually exclusive. e.g., Month 12 can also be HH or End of Year.

Percent Donors Giving Second Gift

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New Donor Solicitation Packages/Timing

The timing of direct mail and e-mail solicitations (order will vary) will be optimized based on giving trends.

0 1 2 3 4 5 6 7 8 9 10 11 120.0%

5.0%

10.0%

15.0%

20.0%

25.0%

'08 '09 '10 '11

* Note: the groups are not mutually exclusive. e.g., Month 12 can also be HH or End of Year.

Months from initial pledge

Percent Donors Giving Second Gift

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Cultivation Postcard Series

Following the acknowledgement letter, the donor will receive either the Welcome Kit or the first postcard:

Series includes six e-mails around similar themes (if have e-mail address)

Month Theme

October Children/Families

December New Yorkers/Poverty (Homelessness & Hunger)

January Jewish Identity/Education

March Get Involved: Events & Volunteering

May Israel

July Aging/Elderly

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Next Steps

Track and evaluate results

Initiate Phase II to differentiate based on donor behavior:• Payment status – e.g., Telegiving open pledges• Acquisition Channel or program type – e.g., online; Friends

Asking Friends; direct mail