New study results: Online plus direct contributions are best

I was very interested to read the 2011 donorCentrics Internet and Multichannel Giving Benchmarking Report that was released recently from Target Analytics.   While this research is focused on fundraising of all types,  I think it applies to parish contributions.

Several points in the summary of findings are what we would expect:

• Online-acquired donors are significantly younger and tend to have higher household incomes that mail-acquired donors.
• Online-acquired donors tend to give much larger gifts than mail-acquired donors.

But here was one of the big points to note:

• Robust direct mail programs drive up the retention and long-term value of new donors acquired online. Without the ability to become multi-channel givers by renewing their support via direct mail, this group of donors would be worth far less. Other than monthly recurring giving programs, established direct mail programs area the best method for gaining repeat gifts from online-acquired donors.

 This next chart shows that while there is a significant percentage of online donations there is still a far greater percentage of donations from mail:

 

  So why do I think this is pertinent to parishes?  

          1.  Online giving attracts a younger and likely more affluent group of people.  While our data indicate that every age group uses Online Giving,  this is still our best way to engage younger people to contribute financially to our parishes.

          2.   We should continue to emphasize envelopes.  Think of them as ongoing direct mail.  Parishioners may want to use both Online Giving and Envelopes for various reasons. And if the parish has other projects then mail is a very effective medium. 

This is all kind of analytical -  in the end we must engage our parishioner base in our parish by focusing on our formation and by accomplishing our mission as Church.  At a more superficial level,  we do need to make the best use of the tools available to us.  This is also good stewardship!

Tell me how your parish makes use of electronic services, envelopes and direct mail...

 

Increase the Effectiveness of Online Giving; Advantages of Merchant Accounts

It's exciting to hear how parishes are using Online Giving!  Many are incorporating Online Giving with their new Faith In Action websites from Our Sunday Visitor for maximum impact.  We held a customer advisory panel meeting recently and heard an idea to get parishioners to give to special collections.  The parish sends out an email at the beginning of each month explaining which special or one-time collections are available that month for contributions.  This gives them an opportunity to encourage parishioners to give to those collections while also reminding them to sign in to make their donation.  Works great!.  That particular parish has seen steady growth and acceptance of Online Giving.

Also remember to thank your parishioners for using Online Giving.  Oh,  and while you are at it thank them for using envelopes!  This is an opportunity to explain why the parish encourages the use of these tools,  and how they help the parish.  Explain what's printed on the envelope and why.   Note the special box to check indicating "gave electronically"  so parishioners can participate in the liturgy.  Its possible to add other types of gifts to the envelope,  such as prayer or shared time that parishioners would like to note in addition to giving electronically.

Merchant Accounts

If you are evaluating your Merchant Account setup,  then remember to look at the cash flow and the timing of processing for your account.  With Online Giving you are assured that parishioner contributions are processed immediately and funds are not stored in escrow.  You also are assured that your parish risk is minimized.  In an environment where your provider is serving as the parish merchant of record, a problem at any parish is a problem for ALL parishes.  Its compounded if funds are stored in escrow.

As the merchant you also can incorporate other services to support your bookstore or possibly credit card scanners and be confident that you are both compliant and secure.

How are things working at your parish?  let us know!

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Tips from Parish Visits

This past week we talked with several parishes who are using Online Giving. One in particular just started in January 2012 and has 84 parishioners using Online Giving as of the third week of February. I heard a great idea from the business manager at this parish.

This parish had people participating in a jog-a-thon for the parish and added a donation category to support the jog-a-thon. They had sponsorship from both parishioners and other community members. The result was a tremendous success for the event and also greater awareness about the parish for the community as people visited the web site to donate. People can participate using the "QuickGive" feature in Online Giving.

At another parish nearby, the staff have included Online Giving information in their communications, in their bulletin and in their increased offertory and stewardship renewal materials. As a result of making giving online a standard option they have over 10% of their parishioners using the system.

We noticed at another parish that Online Giving was prominently displayed in one of the parish bulletins. The space allocated was as large as most of the significant advertisements so it was easy to spot. They made the invitation to Online Giving a bold announcement.

These techniques served these parishes well. They are excited about the acceptance of Online Giving and they are experiencing the improvements to cash flow as a result.

What is your parish doing to make it easy to give online?

Online Giving and Envelopes: Synergy for your Parish

As I meet with parishes and dioceses I find that people think of their electronic giving application and their offering envelopes separately. Recently we were visiting a parish where these were two different staff members who managed the different offerings! When we asked them if they were working together on how to get the most out of both, they said no. By the end of our meeting they recognized the need to plan together to coordinate the two.

Even more concerning are parishes who place electronic giving and envelopes at odds with each other. "How do we decide which to use? Can we eliminate envelopes?" This approach completely misses the idea that we are providing options to parishioners so everyone can give from a sense of abundance and gratitude. we don't want to exclude anyone.

In our desire to compartmentalize functions and organize ourselves, sometimes we miss the opportunity to create an environment to foster cross-communications. Both web sites and electronic giving are technology based; however, their use is for communications and for contributions. While the skill set to understand the administration of electronic giving is different from the skill set to manage offering envelopes, the purpose of both of them is the same. So periodically it makes sense to step back and talk about these tools together as a parish staff. This includes how we represent them to parishioners.

As we all have gained experience with electronic giving it has become clear that we have to think about electronic giving and offering envelopes together as options for parishioners to use for contributions. Use them to reinforce each other by including your electronic giving URL on your envelopes and by reminding Online Giving users they can use envelopes at Mass and select "gave electronically". Remind envelope users if they forgot to give to a special collection they can use Online Giving and give to that collection as a One Time Gift.

This is a wonderful opportunity to remind parishioners about prayerful giving. As we talk about the introduction of electronic giving to our parish, we can use that opportunity to thank people for using envelopes. Our parishes can provide us options that are convenient for us as parishioners, and we can even use both as the need arises! What a great time to update your envelope designs and to express gratitude to people for their contributions. As a result we can raise overall awareness, remind people of the tools available to them, and get more engagement and contributions from both our electronic giving and our envelopes.

Use the introduction of new tools like Online Giving to create synergy for your parish! The same goes for web sites and Online Giving, but that's good for another time!