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Weekly UpdatesSo your organization has a monthly sustainer program. Now what? Well, it could be time to upgrade those donors, or expand your pool of monthly contributors with a little investment.
Sustainer programs offer predictable monthly revenue from a stable and highly retained audience, said Krista Harte Sassaman, senior account director in the Arlington, Va., office of Epsilon. Revenue also can grow through upgrading as well as selected special appeals, and organizations can use the program to build present and future donor loyalty.
Partners for Parks, a monthly sustainer program of the National Parks Conservation Association (NPCA), had enjoyed modest success, generating about $100,000 in annual revenue with a constant file size of 650 to 750 members for several years. Members--who donate via electronic funds transfer (EFT), credit cards and checks--receive monthly statements, National Parks magazine, an annual calendar, annual membership card and tax receipt. Approximately half the members were check-writers and the average pledge was $12.
"We haven't had to make a huge investment," said Laura Connors, NPCA's director of direct marketing, and suggested that nonprofits use what they have by tapping into existing campaigns to save some money. "You can start small, but just start," said Connors, who was part of a panel during a session at the DMA Nonprofit Federation's annual Washington, D.C. conference in January.
She recommended testing everything, since different techniques will work better for different audiences, at different times, for different organizations. Results from testing can make the argument for further investment, something the association decided to pursue in recent years.
By 2006, NPCA started testing its sustainer program's telemarketing efforts, from ask amounts to payment methods, and improved the join option on its Web site. NPCA enjoys a 4 to 7 percent pledge rate on its telemarketing for Partners for Parks. Since telemarketing can get expensive, increasing the cost to fundraise, the organization usually only reaches out to about 1,000 to 1,500 of its 335,000-member house file.
In 2007, NPCA implemented a quarterly telemarketing invitation call. Its centennial approaching in 2016, the association used it as an opportunity for integration and branding with an initial ask online and in telemarketing of $20.16 per month.
Connors suggested finding opportunities for sustainer programs in integrated campaigns. In NPCA's case, its "All About Jack" campaign last year yielded almost 400 new sustainers. The online/email effort had two versions, one for existing members and one for activists, and was successful in converting 171 existing donors and more than 100 activists. This year, NPCA is slightly ahead of its projected $300,000 in revenue from Partners in Parks, and now has more than 2,200 sustainers.
The Human Rights Campaign (HRC) in Washington, D.C. started a monthly sustainer program for high-end donors during the early 1980s. The HRC's Federal Club was viewed as a means to grow the new organization, which at the time gained its primary revenue from events and large individual gifts. A sustainer program would expand and diversify its revenue stream, a plus for any nonprofit. Its direct mail program reached out to event attendees and their friends and families, the start of building a donor list.
Donors join by making a pledge and annually contribute $1,200 to HRC in monthly or quarterly segments or a lump sum. To grow the program and make it more accessible, the monthly option was offered. So rather than ask donors for $1,200 all at once, HRC asked them to give $100 per month, said Susan Lamb, director of The Federal Club.
HRC used several different sources for prospecting potential Federal Club donors. About 40 percent came from those who attended HRC dinners. Another 35 percent were garnered through direct marketing, such as special campaigns two or three times a year, including direct mail and follow-up telemarketing. About 14 percent came through volunteer leaders in 34 HRC communities, and another 10 percent from other HRC giving programs, according to Lamb.
Retention is a challenge for any giving program, said Lamb. For monthly sustainers, there is less cost associated with managing sustainers versus annual giving.
Monthly programs should have a specific stewarding strategy, Lamb said. While sustainers need less touching--and are generally held out of most mailings--these donors should not be taken for granted. Members still should receive regular recognition, she said, including updates and other pertinent, mission-related communications, such as mail and email alerts.
Depending on the source of origin, retention rates vary with those garnered through direct marketing having a higher retention rate than members who joined at dinners. "You need the bandwidth to meet expectations of different subsets," Lamb said.
In determining whether a sustainer program makes sense for a nonprofit, Lamb suggested avoiding costly mistakes by talking to consultants and experts to help formulate a program that fits the organization. A monthly giving program is a flexible fundraising model that can be many different shapes and sizes; there's not set formula or model.
Lamb warned that sustainers are labor and data-intensive in both consultants and full-time employees (FTE). "Determine if your organization has the infrastructure to support it."
Lamb stressed plenty of planning before executing any monthly sustainer program. Since a sustainer is so labor intensive, she recommended ensuring back-end operations are set up well in advance. It's a high-end program so donors expect, and are used to, good customer service and high access, she said. "It's the meat and potatoes for our leadership," Lamb said.
The Federal Club has more than 5,300 members and HRC devotes four FTEs to the program, with 1.5 FTEs focused solely on processing revenue and updating and tracking data. The biggest challenge for the Federal Club is maintaining accurate contact and payment information at a level of customer service warranted by a major donor program, according to Lamb.
HRC's other monthly sustainer, the Partners Program, has more than 30,000 sustaining members, with two dedicated staff and one full-time intern. All inquiries are responded to within two to three business days. Similarly, the biggest challenge for Partners is making certain accurate payment information in preparation for the monthly charge.
Monthly sustainer programs open the door to potentially upgrade donors. HRC has asked donors to increase giving by smaller increments in addition to formal giving levels. In addition, HRC has upgraded donors from the Partners program to the Federal Club, and onto major donors.
A Monthly Giving Checklist
[check] Make sure it fits with mission
[check] Solicitation programs should include both direct mail acquisition (prospects) and telemarketing (donors)
[check] Accept payment by credit card or electronic funds transfer (EFT)
[check] Make sure there's enough staff available to manage the program
[check] Keep nimble database and record-keeping methods
[check] Choose a good program name and benefits
[check] Develop a communications plan for monthly donors
Source: Karen Harte Sassman, Epsilon
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