fundraising industry, local, nonprofit profile, regional

Some GiveSTL Day 2019 Statistics

GiveSTL Day is a one-day campaign for St. Louis-area nonprofit organizations. The appeals are generally made through electronic solicitation and social media, but there are no real rules, so organizations can run their campaigns how they wish.

Some of my favorite organizations participate: Spirit of Discovery Park, the Humane Society of Missouri, even the Sierra Club. This is a way to bring the whole community, both organizations and donors, together in a spirit of cooperation and healthy competition.

It’s usually scheduled in the first week of May. I first heard about it in 2018, and this year, 2019, I paid a lot closer attention. I’ve been looking at some 2019 results, and I’ll share a few highlights with some take-aways for those planning to participate next year.

1. Aggregate Results Don’t Really Help Much For Individual Organization Understanding

There were 887 organizations signed up. Of those, 842 received donations, with total donations (including prizes) over $3,000,000. That’s a lot of money, but it’s also not very helpful to individual organizations trying to learn how to make GiveSTL Day a success for them.

For the rest of these analyses, I’m using the GiveSTL Day data that shows results by individual organization, which does not include prizes so the total is only $2.89 million. This is an average of $3,434 per organization. Not bad, but that total is pretty skewed by a few large “winners” and many small “not-so-winners”.

Over 50% of the groups participating in 2019 had under $1,000 of donations. 504 of the 887 received $999 or less. That’s almost not worth it, if you consider the time taken by a staff member to create a campaign, design some artwork, solicit a match, design and produce artwork (or take photographs), plan, write, and publish social media posts and e-mails, set up autoresponder thank-yous, and so on. What’s the return there? I can imagine it might be pretty difficult to justify the same activity for such a low return next year.

However, if you did absolutely nothing, and still got $1,000, it might make sense to participate again. Because, hey, free money.

The point is, it’s hard to look just at aggregates and figure out what’s going on. You need to break results down by organization size and sector to have a good feel for what you could get out of GiveSTL Day. Those will tell you more about how your peers fared, and with some analysis could show you how you did relative to them.

But it probably won’t give you much certainty on what you would get if you participate again next year. Which, to be frank, is what we’re all looking for, right? We all want that secret sauce that turns our GiveSTL Day campaigns into the money trees we dream of.

It’s not that easy.

2. Size Is No Guarantee of Success or Lack Thereof

Organizations are grouped according to size of their budget: Micro (<$250,000), Small (up to $1,000,000), Medium (up to $2,000,000), and Large (everything above $2,000,000).

The fact is, there are small groups that have plenty of success and large groups that struggle. The Small segment this year included 379 organizations. 52 of those received over $3,000 on GiveSTL Day. And 12 of those were over $10,000. Evidently, small-budget organizations can still find the money to create major results in one-day campaigns like this. And remember, $10,000 on a $250,000 budget is a much bigger bump than the same amount on a $1,000,000 budget.

One factor that certainly helps: 10 of those 12 had a match available. Having a match is like free money, in multiple ways. It provides an incentive to give (because that money will be doubled), and it’s a large amount that comes with little effort.

I highly encourage all groups next year to start with a match, as a good way to create additional motivation for giving. (More on that later.)

In the same vein as small is not bad, let me say that being bigger is no guarantee of success, either. Yes, the biggest numbers did come from the largest groups. ThriVe ($181k), Stray Rescue of St. Louis ($136k), Foster and Adoptive Care Coalition ($110k), and St. Louis Priory School ($106k) had big days. But for the rest of the 205 Large groups, just being big was no better indicator of how their day would turn out. Only 58 of them had donations over $3,000 on the day, just past the 52 of the Small groups.

And of all of the 205 Large organizations, only 109 (53%) received $1,000 or more. That means that if you were a Large organization, and participated in GiveSTL Day in 2019, the chances of you walking away with over $1,000 were pretty much a coin flip.

This is an encouragement and a challenge. An encouragement to those small organizations that your results can be better, with appropriate strategy and an effective campaign. And it is a challenge, to those organizations who think that just relying on their name and their current size will be enough to make GiveSTL Day a success. You’re going to have to work for it.

3. A Match Is Not Just Helpful, It Is ESSENTIAL

I said above that having a Match is like free money. It can inspire higher donations, because of the desire to make that donation work even harder. Take a look at the aggregates:

  • 735 groups WITHOUT a match received $1.27 million ($1,725 each)
    • Average gift of $94
  • 107 groups WITH a match received $1.62 million ($15,175 each)
    • Average gift of $202

Fewer organizations, received significantly more money, with almost twice as much given per donation. Now, that’s not to say that having a match guarantees you more money. But having a match is more than just inspiring higher-dollar contributions.

Yes, a match is good for your donors, because it gives them something to shoot for, an initial goal that they can accomplish with the right initial effort.

Beyond that, though, a match is a signal that your organization is doing the right things. It shows that you’re planning GiveSTL Day as a campaign, not as an event. It shows that you’re being thoughtful about how you solicit matches throughout the year.

And planning early enough to get a match in place means that you’re more likely to complete the rest of the essential campaign steps in time for success as well: a marketing concept identified, a timeline planned, resources aligned to take advantage of specials like prizes, etc.

A word of caution: be careful how big you set your match. You want the matching dollar amount for GiveSTL Day to be something that’s going to challenge donors, but you don’t want it to be so far out that you don’t get there. That’s actually wasting your match money. For example, Five Acres Animal Shelter received over $30,000 on GiveSTL Day. But they also had over $5,300 of match remaining unused. Essentially, they missed out on over $10,000 of donations ($5,300 that could have been given and $5,300 that would have been matched).

If the Shelter had an indication of how much of that match would be used, then maybe they could have dedicated those matching funds to another campaign later in the year. As it turned out, there seems to be a missed opportunity.

All that to say – be strategic in how you structure your match. You want to make your matching funder happy that you’ve been able to satisfy her desire to inspire donations, and asking for too big a match (or putting too much of it towards GiveSTL Day) may counteract that.

Conclusion

GiveSTL Day is a giving campaign designed to bring the St. Louis region together for a common purpose. Like similar one-day digital campaigns across the country, there are many opportunities. My suggestions: start early (like every campaign) and get a match (like every campaign, if you can). And make sure you don’t let your own internal view of your organization’s size (and how that may make success easier or harder) inhibit your disciplined approach to having a great GiveSTL Day.

business development, fundraising industry

Hey Nonprofits! Why Aren’t You Spending MORE on Fundraising?

It’s a pretty simple question, really.

Why don’t you spend more time, more effort,

and more MONEY on fundraising? 

Look, we all know that fundraising is hard. Direct mail returns sometimes seem too low to justify the effort. Email response rates are dismal. And grant applications? Who wants to get rejected 7 times out of 10? No, thanks.

Plus, all that time spent doing fundraising is taking time away from your mission: saving animals, restoring the local greenways, or ensuring that kids don’t have to go home hungry over the weekend. I get it – fundraising isn’t why you got into the industry in the first place.

But it’s a necessary component of running your nonprofit. So if there was a hidden switch inside your fundraising process that could magically expand your funds available to do the good work you signed up for, why wouldn’t you flip it?

The good news is, it’s already there.

The bad news, though, is that you’re going to have to do some work to make it happen.

As much as I might like to say I’m the expert in everything, I’m not. I’m no botanist, social scientist, or playwright. However, I do know numbers. And the one that sticks out to me is the Cost to Raise a Dollar.

This is the standard metric within the nonprofit world, and it represents how much it takes to bring $1 in the door. For some charities, it’s less than a dime. For others, it’s up over $0.40. That’s not to judge either one as right or wrong. In fact, the national average is around $0.20 (see link for details).

So this, to me, signals the opportunity. If it only costs $0.20 to raise a dollar, that means you have a 5-to-1 return on every penny spent on fundraising! That’s up in the realm of stratospheric returns promised by many financial gurus hawking investment newsletters. If that’s the opportunity available, why wouldn’t you continue to spend more to get more?

The difference is, they’re selling you something that may or may not pan out, while you, in your organization, KNOW what your costs are and what your returns are. So, if it costs you $0.25 to raise $1.00, you can be fairly confident that if you expand your fundraising operations next year by $25,000, you should bring in an additional $100,000.

What else could you do with an additional $75,000? That’s $75,000 towards more rescued kittens, low-income student scholarships, or innovative gallery exhibits. Or, think about this. Maybe you reinvest that $75,000 again the next year and turn it into $300,000. Do it once more and now you’re at $1,000,000. WHOA.

It comes down to this: If you could earn those additional funds next year, simply by flipping the switch and expanding your fundraising operations, what’s stopping you? If you can think of three good reasons why putting more time and money into fundraising wouldn’t provide you with the standard 3-to-1, 5-to-1, or even 10-to-1 returns, then you shouldn’t do it.

But I’m betting you won’t have those three good reasons. Probably just one, “It’s not in our budget.” And if that’s true, then we have another conversation to have. But, if you’re willing to at least ask the question of whether you can get more by doing more, it means it’s probably time to consider expanding your fundraising efforts. So: what’s holding you back?

craft, fundraising industry

Knowing Your Enemy

Today’s entry was inspired by Kristina Leroux’s post, Writing Assignment: Knowing Your Enemy, on the Nonprofit Marketing Guide blog. She challenged the reader to personify the enemy, whether that enemy is homelessness, apathy, greed, sloth, or something else. During an AFP event a few weeks ago I heard from Jim Schallom at Sherwood Forest that the enemy for fundraisers is “Starbucks”, or the general consumerist mindset. That’s been on my mind, and this challenge completely integrated my fundraising and fiction writing minds.

So here it is:

Dee Dee versus The StarBuck

In the still morning light, before the armies massed at the opposite edges of the valley slopes are fully awake, Edie and Dee Dee walk carefully along a dew-covered path. “I know you’re scared, Dee Dee”, says Edie. “But I believe in you. You’ve been preparing for this moment a long time.” She grasps Dee Dee’s shoulder, and the connection immediately encourages Dee Dee’s troubled heart.

“Yes,” she admits. She doesn’t want to fear, she trusts her training, and she knows that she is on the good side in this fight. But the idea of her upcoming battle with The StarBuck, their nemesis, the bane of their existence, looms large in her mind. She stoops down to the path and gathers a handful of pebbles, dumping them into her supply sack at her waist. Still… “Yes, I’m scared. I know how important this is to all of us.”

“I believe in you,” Edie says. “I wouldn’t have trusted you with such responsibility otherwise.” Dee Dee knows she is telling the truth, and yet the challenge still brings butterflies to her stomach.

Their brief walk returns Edie and Dee Dee to their army’s campsite. Tents fill the small plain in haphazard clumps; volunteers, advocates, and employees alike wander throughout, preparing for the day. A buzz of conversation rises over the morning cookfires, and any who see them give a smile. Today is the day. It is the start of the Annual Campaign. And for the first time Dee Dee, instead of Edie, is to lead the charge.

Across the valley the enemy waits. They go by many names and nicknames, but the most common is “The Something Betters”. That is, everyone over there always has something better to do with their time, their money, their advocacy, than to give it to this side over here, where there is good to be done. Something better like a phone upgrade. Something better like a new automobile lease. Something better like an extra manicure this month, because, well, reasons.

Edie and Dee Dee, though, lead the army fighting the battle to save local homeless animals, to provide them places to live and to provide loving companions for their human partners. They work to make all lives better in the community, not just provide a little more entertainment. And it is sometimes disappointing to see how little progress gets made.

Because so many of the surrounding villagers just don’t know what’s happening. They don’t know of this battle waged here, in this Valley of Public Opinion, to keep the shelters open. They don’t know how the battle is fought for the division of wallets and attention, every day, every week, ever month, every year. They of course have time to keep up with all about the latest government scandals, they know what’s happening half a continent away in the fashion capital of the world, and yet so much opportunity is missed here at home to make a better life with such a small effort. Edie and Dee Dee and their army fight, every day, against the Something Betters, in order to bring about that satisfying community that everyone so deserves.

Today Dee Dee will meet The StarBuck, at noon, in the middle of the plain, to do battle, to fight, to compete for the attention of the world. Should she triumph, her shelter will have earned yet another temporary reprieve. Temporary, for there will always be another Something Better coming along to take its place, and the fight will wage on. Should she fail… Well, that is an option too tragic to consider.

The sun beats hard on the plain as the two armies begin their descent. Dee Dee leads her pack, Edie follows at the rear. Across the way, she can see that The StarBuck, her rival, leading a similar army. She gathers her nerve; this is most important. All those behind her are counting on her to deliver.

They approach, these massed brigades, to support their avatars in this battle. They know that their future, too, hinges on the success or failure of the two who represent them. They stop and wait, in silent anticipation, tension building as Dee Dee and The StarBuck approach one another.

The StarBuck is large, three feet taller than Dee Dee at least. His stout body and broad shoulders bear leather armor destined to rebut the slights of opinion arrows pointed at him. Everyone knows his reputation, too, as a thief, arms snatching coins from unsuspecting consumers with a little drip here, a little dab there, insidiously expanding his effect every day. His armor is decorated with hundreds, perhaps a thousand, shiny baubles proclaiming themselves the Newest! Cheapest! Fastest! Best! He attracts his prey, and they come close, close enough for him to rob their pockets while they are distracted, and after he leaves them wondering just where all their money went.

Dee Dee is armed, though, with her weapons of choice. The stones in her sack represent all her tools, all her little tricks she has picked up along the years. She knows she will not convince The StarBuck to retreat with words, so she remains silent while he shouts.

“Ha ha, little one!” His voice rings out over the masses. “You have nothing. Nothing! What do you give them?” He sweeps an arm to indicate the whole world. “Better? Faster? Tastier? No! Not even a guarantee. You give them nothing! You should walk away now, before we destroy you forever.” He sneers, and Dee Dee can see the bright white of his teeth, many shades whiter than normal, only available through the latest and greatest bleaching technique. He reaches into his pack and pulls out a mug, tossing it across the space to her. It bounces and spills, double-mocha extra whip foaming across the grass. “Here,” he says, “drown your sorrows in that and be gone.”

Dee Dee stares at the pointless waste, and says nothing. Instead, she reaches into her sack and takes out a stone. On it are etched the words “Direct Mail Campaign: 345 adoptions last year”. She places the stone into her sling, winds, and fires, the missile aiming directly for The StarBuck’s exposed head. It strikes him on the chin and rocks him backwards. The next says “Case Study: How We Educated 912 With FREE Classes”, and it connects with his temple. The StarBuck is wounded, dizzy, staggering. She loads up yet another.

“E-mail follow-up: Partnerships with hundreds of businesses and thousands of volunteers” flies across the space, strikes the StarBuck at the cheek, and spins him around. He staggers but does not fall. His strength and resilience are evident. Dee Dee has one last chance. She takes out the largest, heaviest stone from her bag. On it is written “Matching Gifts”, and she loads it into her sling. She feels the weight, the power, the importance of this moment. Her arm winds up; she releases just as The StarBuck turns to face her once more.

The stone arcs towards him, in silent slow motion as the massed crowds wait breathless, and as it strikes him between the eyes he rocks back, back, back, until the only sound is a loud crash as The StarBuck hits the ground.

Nobody moves.

And then, from behind her, a cheer erupts, as her dedicated soldiers watch the Something Betters launch into disarray and scatter. They flee at the loss of their leader; they run back to their hiding holes in the discount marts and strip malls and e-tailers. Dee Dee has won the day; she and the army have saved the shelter for another year.

Edie appears beside Dee Dee and gives her another hug. “Well done,” she says, “I knew you would do it,” and Dee Dee floats on the emotional high of the moment, feeling hundreds of hands pressing in to congratulate her too. Her smile overwhelms her, and she cannot turn it off. Why should she? The Annual Campaign is a success, and for one more year there will be contentment in the village.

THE END

(FOR NOW)