Your Acquisition Program and Today’s List Services

1. Your Acquisition Program and Today’s List Services

2. Part I: IntroductionCELCO ABOUT US • List Brokerage and List Management Company for non-profit community • I joined CELCO in 1991and purchased the firm in 2001. • Kelly Leech is the AI List Broker and has been with CELCO since 2007. Prepared By CELCO

3. Part I: Introduction Our Clients Fall Across Many Market Sectors Relief: Action Against Hunger, Bread for the World, City Meals on Wheels, Coalition for the Homeless, Oxfam America, SOS Children’s Villages, Technoserve, National Urban League, Volunteers of America Advocacy: ACLU, Amnesty International, Alliance for Retired Americans, International Planned Parenthood, Gay Men’s Health Crisis, Friends Committee on National Legislation, LAMBDA Environmental and Animal Protection:Greenpeace, Natural Resources Defense Council, ASPCA, Best Friends, Chesapeake Bay Foundation, Red Rover, San Diego Zoo, Save the Bay Arts & Culture: WETA, Kennedy Center, Wolf Trap Foundation, New York Landmark Conservancy, Jazz at Lincoln Center Health:amfAR, Lupus Foundation, Michael J Fox Foundation, Helen Keller International, National Osteoporosis Foundations, USC Norris Cancer Center

4. Part I: IntroductionAMNESTY INTERNATIONAL & YOUTH VILLAGES Lori O'Brien Tricia Hart Director of National Development Director of Direct Response Prepared By CELCO

5. Fundraising List Brokers In our sector, List Brokers can be heavily involved in the following functions, as well as planning your mailings, clearing and ordering lists and tracking results: • Analysis and Reporting– Front end, back end, long term value • Creative – packages, messaging offer and format • Strategy – When to mail, what to mail, how to split tests and packages • Modeling – vast experience with many mailers and modelers

6. Fundraising List Brokers • Exchange Relationships- 2 for 1, $100+ • LTV– long term planning • Match Back Analysis- using cross channel markets to improve acquisition performance • Budgeting – per mailing, annual and beyond • Price Negotiations – Net names, reduced rates, test rates, volume rates

7. Fundraising List Brokers • Research – uncovering the best lists, markets and techniques by fundraising venue • Industry tends – what they are, what they mean for you • Selecting a broker…find a broker that knows the marketplace and that you work well with. Check references and pricing.

8. REPORTING: Industry Trends In the first half of 2013, corrections occurred in Relief Market (post-emergencies, i.e., Haiti) and Social Benefit groups saw marked improvement. Other markets saw little change and overall, revenue was generally flat with total index at -.6%. Index of Revenue Change by Market Sector Source: Q2 2013 Index of National Fundraising Performance, Target Analytics, September 2013. Source: Q2 2013 Index of National Fundraising Performance, Target Analytics, September 2013. 72 organizations and 35 million donors, $2.3 billion in revenue.

9. REPORTING: Industry Trends Higher revenue per donor has masked the fact that new donor numbers have been declining now for almost 10 years. In the most recent period, the relief sector had the smallest median change in new donors. Index of New Donor Change by Sector Source: Q2 2013 Index of National Fundraising Performance, Target Analytics, September 2013. 72 organizations and 35 million donors, $2.3 billion in revenue.

10. REPORTING: CELCO Clients CELCO Clients saw flat or a small improvement in results in the Advocacy, Gay & AIDS, Health, Relief and Senior Markets. 12 Month results for completed mailings at end of each quarter.

11. REPORTING: CELCO Clients 12 Month Completed Results – Fall 2012-Fall 2013

12. The Case for Youth Villages 6,000,000 youth come into contact with state child protection systems each year 3,500,000 youth are screened into the system each year 423,000 youth are in state foster care and residential custody each year 86,000 youth are in juvenile justice residential treatment each year $23 billion every year

13. Youth Villages helps children and families live successfully. • Founded in 1986 • Helps 22,000 children and families a year • Offices in 11 states and Washington, DC • Helps children from 20 states and Washington, DC • Home-based model works with the child and family • 80% success rate at 1/3 cost • Program is 6 months vs 1 year or more • Even two years after completion, success rate > 80%

14. National Recognition

15. The Case for National Development • National crisis: 3.5 million children in “the system” today • Proven national service provider with successful model • Geographically diverse • Need for fundraising portfolio diversification • Foundations 84% • Individuals 12% (primarily major gifts > $10k) • Corporations 3% • United Way 1%

16. First Year Highlights • Finding a control package • Finding continuation lists • Establishing a threshold for usable donors ($10+ donors) • Successes • Modeled lists • Welcome package series • Vendor partners who became stakeholders • Challenges • Astounding (for the wrong reason) average gift • Lack of national name recognition • Shaky economic recovery

17. Usable Donors ($10+)

18. LTV by List Type

19. Improved Performance YOY

20. CTRAD Improvement

21. Lessons Learned: 7 Requirements to Launch a Program • Passionate internal champion • Realisticprojections with costs, break even and pay back dates • Conservative assumptions and best/worse case scenarios • Re-projections after 12 months of data • Speak to but don’t budget planned giving and major gift upgrades • CEO and Board buy in • Clear source of multi-yearfunding • Savvy vendor partners committed to your success (but brutally honest) • Absolute adherence to schedules, basic sound DM principles, results reporting, “go/no-go” touchpoints and continuous improvement • Nerves of steel, strong inner compass, ability to walk in the desert and navigate rough waters • *Bonus if you also have* • Hand up and off strategy for high value prospects ($25 to $5K in 2 wks)

22. The Case for Amnesty International Exposing and Preventing Human Rights Abuses *Protecting people wherever justice, freedom, truth and dignity are denied. *Currently the world’s largest grassroots human rights organization, with more than 3 million supporters, activists and volunteers in more than 150 countries. *Investigate and expose abuses, educate and mobilize the public, and help transform societies to create a safer, more just world.

23. in 1980’s • Amnesty International • Where We Began • Founded in the UK 1961 • Represented in more than 68 countries • Amnesty International USA is the largest section in terms of members and donations • US Direct mail program prior to recession was a $30 million program and represented over 70% of the US budget

24. Amnesty International • Recent Realities • Declining response, decreased renewal rates and decreased investment led to shrinking of donor file and revenue • Program finished 2013 just under $19 million, Represents 51% of US budget • Focus on bringing in high lifetime value donors and maximizing return on investment • Acquisition budget decrease required shifts in strategy • New acquisition control package rolled out in 2012, replacing a 15 year control

25. AMNESTY INTERNATIONALLTV Study • Purpose – To study and review subsequent giving based on the acquisition gift, (new or reinstated) • Parameters – February 2008 through July 2012. • Gross Value per Donor (GVD) – Our analysis, evaluations and recommendations are based on the GVD. 25

26. AMNESTY INTERNATIONALSeasonality To analyze giving trends in relation to mailing seasons we broke the calendar down into four mailing periods. • Fall – September/October/November • Winter – December/January/February • Spring – March/April/May • Summer – June/July/August 26

27. AMNESTY INTERNATIONALSeasonality 27

28. AMNESTY INTERNATIONALSeasonality 28

29. AMNESTY INTERNATIONALHouse vs. Outside 29

30. AMNESTY INTERNATIONALLIST PERFORMANCE 30

31. AMNESTY INTERNATIONALLIST PERFORMANCE 31

32. AMNESTY INTERNATIONALLIST PERFORMANCE • List performance can identify other concerns for mail file: • *Identified poor renewal among house donors • *Showed longer-term impact of new control package • List strategy part of overall program goals: • *Focused on long-term value of donors to support sustainer strategy • *Analysis of seasonality to increase efficiency of scarce acquisition $$

33. OVERALL TAKE AWAYS • Modeling applications -- response, value, backfill and modeled list selections – have provided new life – both as a means of improving response and gift levels. • Maximizing exchanges, net arrangements, bulk pricing, negotiated rates, and other cost savings measures play a large role in success. • House names continue to be integral part of successful prospecting programs. Modeling applications have greatly improved targeting ability for deep lapsed, non money survey responses, online activists and other warm prospects.

34. OVERALL TAKE AWAYS • Subsequent giving analysis by package and list is key to solidifying best strategies for acquisition. If you can not do it – get it done! • Matchback analysis of direct mail impact on online giving proves beneficial in determining overall program health. • Look for non core markets where your program can thrive. • TEST, TEST, TEST, TEST!!!

35. Thank you for your time. Contact us any time: Barbara Sims Barbara@Carolenters.com Kelly Leech Kelly@Carolenters.com Lori O’Brien Lori.OBrien@youthvillages.org Tricia Hart THart@aiusa.org 35 Prepared By CELCO