What Organizations Can Do Amidst COVID-19 and an Economic Downturn

This is an unprecedented time in modern history. With markets falling dramatically and lock downs and social distancing affecting the country, the full economic impact of COVID-19 remains uncertain. It is no longer business as usual. In the 2008 recession, organizations that focused on their return on invested capital came out ahead. Those who retreated faltered.

What can you do right now to minimize the risk of your 2020 goals slipping?

The answer starts with getting back to the basics: know your donor, know your customer.

Follow this proven 3-point strategy to keep your momentum in the midst of economic instability and uncertainty due to the coronavirus, COVID-19.

Managing in Uncertainty?

Read our guide to learn key strategies to protect and grow your organization amidst economic instability.

1. Engage with Your Community, Focus on Impact

Historically, during economic downturns, organizations that use this time to create stronger relationships come out ahead.

Being there for donors and customers gets you closer to them. The more you do for your community, the more goodwill you generate. This builds your brand and tightens your relationship with your audience.

To connect with your audience, share stories about the impact you are making on others during this difficult time. You will get attention by touching people’s hearts.

Luxury Brands

LVMH, home to brands such as Louis Vuitton and Fendi, is manufacturing hand sanitizers in their factories that normally produce perfume.  The goal is to help address the dramatic shortage of hand sanitizer, especially in hospitals that so desperately need it. By showing their commitment to a larger cause, they are reinforcing their brand. They have already received a sizable amount of free publicity for their efforts.

Financial Institutions

Banks are offering very low or no interest loans and short-term lines of credit to small businesses. WaFd in Seattle, an area hit very hard, is offering a $200,000 business line of credit for 90 days and is fast-tracking loans up to $30,000 for small firms that saw a 10% or more drop in cash flow due to the coronavirus. They are standing by their community and have prepared $100 million for these loans.

Charities

Just about every type of organization can have an impact. Celebrity chef José Andrés closed his restaurants and set up community kitchens to offer packaged lunches to those who aren’t able to get meals. As the founder of World Central Kitchen, his organization provides relief during natural disasters. While he loses money providing free meals, his attitude and approach is to pay it forward.

Travel and Hospitality

Several colleges have shutdown, leaving students with little time to move out and return home. One student got to curb side check-in at the airport only to find that her bag was overweight. She had packed her text books and other heavy items. Rather than charge $75 overweight baggage fee, the Southwest  Airlines rep asked if she was a college student returning home due to COVID-19. Exasperated, she said “yes!” The airline’s rep immediately waived the extra charge so the student could get home without added stress.

The student’s mother shared this heartwarming story on social media. While Southwest isn’t a luxury brand, the student and her mom (and many of her social media friends) now have a stronger relationship with the company. The airline rep’s gesture generated far more goodwill than $75 of advertising could buy.

Knowing what your customer needs right now will score points that will create a stronger relationship going forward. It will also help you increase your return in invested capital.

2. Stay Top of Mind, Don’t Retreat

With the Dow Jones losing so much of its value in a week, even wealthy consumers will feel (and likely be) less rich than they were a month ago. They may postpone previously scheduled meetings that you set up. Some might say that they are not in a position to do any business with you due to significant losses in the stock market. Others could hold back on financial commitments till they see a rainbow after the storm passes.

Staying top of mind is a critical element in maintaining momentum during an economic downturn. Those who retreat will lose market share.

While your first instinct may be to reduce your investments, retreating from activity can make your situation worse.  John Quelch’s Harvard Business Review article on How to Market During a Recession stresses that organizations should maintain their marketing efforts during a downturn. Again, it’s not business as usual. How you approach your prospects to build bonds will influence their lifetime value with your organization.

This blueprint works regardless of your type of organization. The Chronicle of Philanthropy recommends a very similar strategy for charities to connect with donors in a looming recession.

Now is the time to reach out with a personalized message.

Your outreach will be different for everyone so knowing what makes your prospects, donors and clients tick is critical. You can use your WealthEngine account to find insights to personalize your approach to donors, customers and prospects. Learn what types of causes they donate to, who their connections are, and other intelligence to prepare your conversation.

3. Strategize for a High Return on Invested Capital (ROIC)

In a tighter market for dollars, your competitors include everyone pursuing the wealthy client’s cherished bank account. This includes nonprofits vying for their cause, banks claiming they can manage wealth better, and luxury brands who offer unique lifestyles and experiences.

The stocks deemed as winners in the 2008-2009 recession had one thing in common. All of them had a high return on invested capital (ROIC) that outperformed their peers. The Financial Times reports that organizations who prioritized ROIC generated 15-20% growth whereas those who retreated lost 15% or more.

History will repeat itself. Inaction now will hurt your organization in 2020. Optimizing your invested capital can make or break your year.

The key to success is to make your outreach as efficient as possible. That’s why getting back to the basics, knowing your donor or customer, is so important. Wealth and lifestyle insights about your audience empowers you to craft your message in ways that your competitors won’t.

Small Gestures Build Big Bridges

The country’s lock down is preventing in-person meetings. Many organizations are scrambling to move online to conduct business. Their staff is simultaneously dealing with children who are now at home due to school closures. If you know a top prospect has children under age 18, something you can find instantly using WealthEngine, you know they are likely struggling with schools being shut down temporarily. Send them a link to kids activities. It can help them stay occupied while the whole family is self-quarantined.

Use wealth and lifestyle data to increase your return on invested capital. It can help you come out of our current economic downturn better positioned for growth than others who are competing for the same dollar. You want to show that you care now, not later when things are rosy.

Markets abruptly tanked, leaving many people nervous. Some people will be reluctant to commit immediately. This is precisely why you need to know who your best targets are.  They can withstand market fluctuations better than others.

We will eventually get out of this economic situation and you want to be as well-positioned as possible.

In every downturn, those who invest in getting closer to clients come out ahead.

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Storytelling for Fundraising: Engaging Donors to Boost Year-End Fundraising

storytelling for fundraising

Over a quarter of nonprofits studied by NonProfit Hub reported that 26-50% of their fundraising success can be attributed to year-end giving. Before you start planning your year-end fundraising campaign in early fall and begin executing year-end asks in November, now is the time to begin mapping out how to approach your year-end activities. Several organizations struggle with understanding the right way to communicate their year-end ask. Once you have identified your donor or prospect list with the highest potential, it is important to communicate with them effectively. By leveraging storytelling for fundraising, you can find effective ways to galvanize your donors into giving.

Most nonprofits send two touches at the most during this season in order to avoid overwhelming their prospects. While this frequency may be enough to get their attention, you have to ensure that your message does not get lost in the clutter. So, by employing storytelling for fundraising tactics, you can more effectively get your message across and cut through the clutter. Let’s explore why and how nonprofit storytelling can boost your efforts.

Why Storytelling for Fundraising is Effective for Year-End Communication

1. Ethos

It all comes down to logic vs. emotion. An emotional appeal is more likely to be memorable. Prospects are surrounded by logic and it is easy for them to rationalize their way out of making a year-end contribution. Evoking an emotion makes them feel more compelled to make a difference to the community or animals being affected.

A story also has the power to humanize your cause. Stories about animal rescue, preservation, or community upliftment have the ability to generate empathy in your prospects. They can find themselves relating to your story, making your year-end ask much stronger.

3. Narrative Form

A story has dips and curves, a before and an after making it gripping for its readers or listeners. If you have a strong opening, you are more likely to keep your prospect engaged during your communication.

4. Imagery

Words can create strong mental images, better yet they can be supported by actual images of the cause. Images make for a more visual appeal and visuals make messages more memorable, therefore creating a lasting impact.

Now that we understand the ‘whys’ of storytelling for fundraising, we need to understand the ways in which we can ensure that your communication makes the lasting impact that can resonate with a donor even after he or she has engaged with your message.

How to Optimize Storytelling to Boost your Year-End Fundraising

People tend to be more emotional around the holidays. This means that they are also more likely to feel generous during this season. The following ways will help ensure that your communication appeals to their spirit of generosity in the right manner.

1. Showcase Communities Being Influenced By Your Work

First and foremost, focus on the communities impacted. If your sustainability efforts have impacted the health of a particular community, if your organization has provided a platform or voice for a marginalized group of people, or if your impact has changed the lives of animals for the better; tell the story from their perspective.

2. Unearth Testimonials from Community Members

Take narratives from impacted communities to the next level by including actual testimonials from community members. Tell their stories in a way that showcases their lives before and after the impact of donations. Testimonials can add to the authenticity of your message. Using video can be especially powerful here as it can increase the level of engagement with the storyteller.

3. Bring Attention to Ongoing Projects

Even if you have projects that are still in process, share this with your prospects. Show them how far you have come, how much of a difference you have made. Include them in your plans, this is a great way to make an appeal. This provides a platform for you to show your prospects how their donations can help you get closer to your goal. Work in progress can create a sense of urgency in your prospects, especially when you tie your goals to end-of-year deadlines.

4. Highlight the Real Heroes of Your Stories—Your Donors

Telling the story from the perspective of impacted communities can be very strong. However, another technique for year-end asks is making your prospect the hero of the story. This can be used to show past donors the impact of their contributions and the potential difference that a future donation could make. So, showcasing them as a central figure can prove to be inspirational. Donors gain great satisfaction from acknowledgment, this can be heightened during the holiday season, making them a hero and acknowledging their impact can help crystallize your message in an extremely effective way.

Galvanizing Donors through Personalized Outreach

Uncover more about the power of personalized storytelling from Co-Executive Director of Alex’s Lemonade Stand, Jay Scott—a featured keynote speaker at the 2019 WE Prosper Summit.

 

We hope these reasons for leveraging storytelling for fundraising help boost your efforts as the year progresses.

 

3 Key Strategies for Luxury Hospitality Brands

luxury hospitality brand

The competitive landscape for the luxury hospitality industry is changing rapidly.  Companies are merging, startups are disrupting the market, and consumer preferences are evolving. It is important now more than ever for luxury hospitality brands to drive loyalty with unique & informed offerings for wealthy guests. Let’s explore the top 3 strategies your luxury hospitality brand can implement to compete for your consumer’s share of wallet.

Key Strategies for Luxury Hospitality Brands

1. Personalize Your Offerings to Drive Brand Loyalty

What you know about your wealthy guests and more importantly, how you leverage that information, will set your brand apart from the competition. Wealthy consumers are looking for personalization during every touchpoint of their hospitality experience. From booking to arrival to post check-out, brands should be engaging with consumers throughout the whole journey with an arsenal of knowledge.

For example, is your wealthy guest a wine connoisseur? Reach out to your guest right after booking to offer a personalized session with the on-site restaurant sommelier for an exclusive tasting experience. Offer to arrange a nearby vineyard tour or have your guest host a business meeting in the tasting room. These small gestures keep your brand top-of-mind and engaged especially during the often overlooked lag time post-booking and pre-arrival. It also signals that you care about your wealthy guest’s interests and you can highlight your brand’s amenities and partnerships to cater to your guests even more.

2. Create Targeted Messaging to Keep Wealthy Guests Engaged

The way you communicate with your wealthy guests can make or break brand loyalty. Wealthy guests have different needs and preferences than non-wealthy guests. Even among the wealthy guest category – information that is relevant to retirees will vary from information that is relevant to a high-powered CEO. Successful luxury brands tailor their messaging to meet the needs of their consumer and hospitality brands should follow suit.

The best way to tailor your messaging is to leverage data to promote relevant information, thereby increasing engagement and excitement. Your CEO guest would love to know about new properties opening in emerging business markets such as China or Brazil. You can also maximize marketing dollars by targeting vacation package promotions to retirees and empty nesters with disposable income and fewer time constraints to get away and relax.

Marketers know they only have a short time to deliver a relevant message before their future consumer moves on to a different activity or even a competitor. Share-of-mind is getting more and more competitive and the more brands can arm themselves with pertinent data about future wealthy guests, the more they can secure the wealthy wallet.

3. Identify Customers With Shared Values to Cultivate Deeper Connections

All brands, luxury hospitality brands in particular, represent a promise to deliver an experience that is different from what the competition offers. That includes a promise to uphold values that your brand represents. Luxury guests are more inclined to feel a deeper connection to brands that care about the same things they do. Most hospitality brands are aligned with charitable causes that resonate with wealthy consumers who have the propensity to give. If you know your guest supports a particular cause, be sure to notify them about related events. Invite your wealthy guests to your pet adoption event or holiday giving promotion. Communicate local initiatives to support the military with your veteran guests. Applying useful information that your guests truly care about will activate lifelong brand loyalists.

The more you know about your guests, the more you can tap into what’s more important to them. Celebrate distinguished guest’s birthdays, anniversaries and other milestones with a bottle of champagne or offer to make restaurant reservations to redeem loyalty reward points. Suggest kid-friendly excursions for wealthy guests traveling with families. Offer marathon runners a power breakfast to maintain a healthy diet while traveling. Leverage partnerships to give aviation aficionados access to private jet experiences.

How to Leverage WealthEngine to Deepen Customer Engagement

In order to effectively create a personalized experience for your wealthy guests, you must gain a deep understanding of their interests. What would items would they be excited to receive from your luxury hospitality brand? Once you understand their preferences, and what they would need to have a novel experience, you can begin refining your efforts to meet their needs. This all starts with a wealth screening.

With a wealth screening, you can find, segment, and prioritize your customers, and segment them based on different attributes. So, not only can you group your customers and prospects based on demographic traits such as age and income, but you can also append your database with wealth and lifestyle attributes. By doing this, you can easily understand an individual’s interests and what they like to spend on. So, gathering these data points gives you a more holistic view of your customers. You can easily use their demographic data and wealth attributes to take a data-driven approach to your outreach strategy. This makes it easier for you to engage them on an individual level.

Now, you have the ability to create an enriching experience for them. Additionally,  by creating an experience that caters to individual customer needs specifically, you could potentially transform these individuals into loyal supporters and advocates for your luxury hospitality brand.

Uncover the Best Ways to Appeal to Millennial Millionaires

Looking to target high net worth customers for your brand? Download A Look at Millennial Wealth to discover the best ways to engage wealthy millennials.

For luxury guests, life doesn’t stop while traveling. This is the perfect opportunity for luxury hospitality brands to contribute to their lives in an impactful way. This is a tremendous opportunity for them to gain share in this competitive and ever-changing market.

Capital Campaign Best Practices: Top 3 Tips to Manage Your Team

capital campaign best practices

Once you’ve created your timeline and priorities for your capital campaign, it’s time to assemble an energetic group of people to oversee your efforts. Your volunteers and staff handle the bulk of your campaign efforts, so it’s important to continue encouraging them throughout the process. But how best can you manage them during this process? How can you help meet their needs? Let’s explore the necessary capital campaign best practices you should implement to help you effectively manage your staff during your campaign.

Clarifying Your Campaign Goal

Before you integrate people into your campaign, it’s necessary to clarify your goal. So, once you’ve moved out of the planning phase (after you’ve set your initial goal), you want to conduct a feasibility study to ensure that your goal can be reached. During this time, it’s important to answer pertinent questions like: what does our organization need? What does our community need?

Clarifying your goal will give you a better idea of what resources you need to achieve it. This is especially important when assembling a staff. If anything, this will help you get a better sense of the roles you’ll need each member of your team to fulfill. What skills should your ideal volunteer member have? What are the macro-goals and micro-goals they need to meet? And, how should those goals be divided among them? Let’s explore how to go about bringing on the right consultant.

Choosing the Right Consultant for Your Campaign

Before you can carry out a successful campaign, you need to assemble a top-notch team to help you achieve your goal. But, how do you go about gathering the right consultants?

The first step in gathering the right consultants is to assess whether or not you have the resources to hire new people. It’s important to ask yourself:

  • Do we have enough allocated in our budget to hire new consultants?
  • What are the hidden expenses that come with hiring new people?
  • Are they going to need their travel expenses covered?
  • Do we want to go with someone local or someone else?
  • Do we want someone easy-going or someone polished?

Depending on your budgetary restrictions, you may want to look into hiring from external sources.  Solo practitioners or small boutique firms that specialize in helping with capital campaigns are great assets in your efforts. However, when gathering people for a campaign, it’s important to recognize that in order to collect a substantial number of gifts, you need the right people and resources to procure them. In that sense, it can be effective to spend a bit more getting the help you need, if you want to see a greater return in the form of campaign gifts.

Capital Campaign Best Practices for Managing your Team

Now that you’ve assembled your team, it’s important to find effective ways to communicate and connect with them during the campaign process. It’s important to make your team feel valued and heard during this time. Since most of your volunteers and staff have other commitments, it’s important to acknowledge their efforts and make sure they’re not feeling burnt out. Neglecting to check in with them can result in campaign stalls, which can prevent you from achieving your goal efficiently and effectively. When managing your team, it’s important to:

1. Set clear and Achievable Micro-Goals to Start

During the initial stages of your campaign, refrain from asking your staff to take on long, and demanding roles. Most staff and volunteers have other commitments besides what they’re contributing to the campaign, so it’s important not to overwhelm them with tasks. You want them to feel energized while working on the campaign, not burnt out. Although you may have a deadline for your campaign, it’s more important to complete the micro-goals of the campaign effectively.

Just like your campaign, each meeting you have with your staff and volunteers should be comprised of clear and achievable goals. It’s important to set a purpose, confirm it, summarize your key points, and then determine your next steps. Setting clear and achievable goals clarifies questions or concerns that may arise during the campaign. If each step is approached systematically, you are helping your staff remain focused, without overwhelming them with the scope of your goal. By doing things in chunks, it’s easier to achieve your macro-goal.

2. Shuffle Staff and Volunteers Periodically

By shuffling around your staff and volunteers, you are presenting them with opportunities to refocus their efforts and attention. If they’re given new tasks or new groups to work with, they’re given an opportunity to regain energy by having to get acquainted with new material. By allowing them to flex their skills in different areas, your team will feel less burnt out and more engaged.

3. Acknowledge the Milestones of Individuals and Groups

Another capital campaign’s best practice is to celebrate milestones that your team has met over the course of the campaign. During the campaign process, it’s important to give words of affirmation to individual staff members and volunteers. By doing so, you’re indicating to each of them that their work is valued, seen, and contributing substantially to the overall goal you’re working towards. These displays of recognition also provide them with a sense of accountability. Not only are their actions valued, but they also have influence. Openly realizing their efforts indicates the standard of work that you want to continue to strive toward.

What Staff Members Can Do to Refresh Their Efforts

Aside from finding new ways to inspire your team, it’s also important to help them find new ways to revamp their efforts. Once they’ve received clarification about the goal and feel supported, they’ll want to revisit potential hurdles.  As your campaign goes on, encourage your staff and volunteers to:

1. See Which Existing Donors Can Be Upgraded

As your staff solicits gifts from existing donors, it’s important to make sure that they’re creating appropriate ask amounts for each donor. Instead of adopting universal gift amounts, it’s necessary to evaluate your existing donor’s giving history. Additionally, how much they’ve donated they’ve donated in the past, and if this matches what they could give based on their income and giving history. To avoid missing opportunities to engage potential major gift donors, use a wealth screening. This will help you understand which donors have the greatest propensity and capacity to give.

With a wealth screening, you can see which donors have the greatest propensity and capacity to give. So, not only can you segment your audience based on demographic traits such as age, but you can also append your database with wealth attributes. By doing this, you can easily understand an individual’s how much they’ve donated in the past (giving history) and how much they’re likely to give in the future (estimated giving capacity). Gathering these data points gives you a holistic view of your donors. You can easily use their demographic data and wealth attributes to take a data-driven approach to your outreach strategy. This makes it far easier for you to identify donors who would be just as likely as your donors to give.

2. Find New Donors to Engage

If your staff has exhausted all of their efforts in engaging existing donors, and raising all the funds they can, they can use a wealth model to find new donors to engage. But, these won’t be just any donors. These will be donors who will be just as likely as your best to give to your organization.

A model is a unique, custom algorithm that can help you predict who’s most likely to contribute a gift to your organization specifically. This type of model is known as a predictive model. To create this custom algorithm, WealthEngine data scientists will employ proprietary data, along with yours, to determine who within your database (and beyond) are likely to contribute gifts to your campaign. This model can also help you identify prospects with similar attributes to your best donors. You can then rank your list of prospects in order of similarity to your best donors to prioritize your donor outreach.

3. Push Your Recurring Giving Program

As your donors contribute gifts, it’s important to create opportunities to redirect your donors to your recurring gifts program. This encourages them to give continuously throughout the year and in years to come.

Uncover More Capital Campaign Best Practices

Unearth more insights on how to successfully boost your fundraising efforts with our Capital Campaign Guide.

How to Leverage Giving Days for Nonprofit Fundraising

Hosting a Giving Day fundraiser is a major undertaking for any organization. Such an event typically requires a good deal of planning and coordination to ensure success. What if you could get people besides your staff to help you with your mission? Gain even more publicity and increase donations? And maximize your results far beyond your Giving Day?  Well, you can by optimizing your strategy for hosting a giving day for nonprofit fundraising.

You’ve probably heard the saying “work smarter, not harder”? That’s what optimization is all about, whether you’re moving a heavy object or organizing Giving Days for nonprofit fundraising.  Recruiting other people to help you get the word out is just a start. There are optimization strategies that can pay off far beyond your Giving Day event.

3 Ways to Optimize Your Giving Days for Nonprofit Fundraising

Optimizing your Giving Day fundraising strategies will allow you to reach more people and increase your donations. Long-term, such strategies can also help you build your donor list.  Optimized Giving Day activities generally can be divided into the following three categories.

Increase visibility

Gain as much exposure as possible for your nonprofit. These actions will inform your current supporters about your Giving Day. By increasing your visibility will also help you get the attention of more new donors.

Target ideal donors

Who are your ideal donors? Data analysis and modeling can help you segment and reach out to those who best match your demographic criteria. Increase your results with less effort.

Grow your supporter list

Use Giving Days for nonprofit fundraising as future leverage. Your Giving Day can be the start of campaigns that nurture your current supporters and grow your list.

The First Steps for Executing a Successful Giving Day

There are numerous ways you can gain more traction on your fundraising efforts by “working smarter.” The first part of optimizing your fundraising efforts revolve around your big event — holding a Giving Day for your organization. Here are some strategies you can implement to maximize your results on Giving Day.

Plan your event

All successful fundraising efforts begin with planning, and Giving Day is no different. How can you optimize your planning? For one, set Giving Day goals. How much money does your group want to raise? Is $10,000 realistic, $50,000, or more? How many donors would you like to have contribute? How many new donors would you like to add to your list? Having a target will drive your supporting actions. It can also help generate excitement when you reach milestones along the way.

You can also strategically control the time allowed for making donations. Some organizations extend their Giving Days for nonprofit fundraising beyond 24 hours. They continue “Giving Day” activities for a week or more to allow everyone the opportunity to donate.

Partner with others

How can your staff multiply their efforts to raise more funds? The answer is to get as many people as possible involved. Community and civic foundations typically support their member nonprofits, in addition to their surrounding communities. Sign on with a partner, if you can.

According to GiveGab, peer-to-peer fundraising can be a powerful way to raise funds. They found organizations using this strategy raised 300% more on Giving Day than those that did not.  Does your organization have chapters, affiliates or departments? That’s one example of peer-to-peer fundraising ideas. Create some friendly competition. You can also offer some small prizes. And in this case, your organization is the biggest winner.

Recruit ambassadors to help promote your Giving Day event. They can be people both in and outside your organization. It’s even better if they’re connected with a significant social media community. Make sure you’ve armed them with training and fundraising tools.

Here’s an interesting way to partner with your current contributors. Ask your donors for a small contribution, with one caveat: request they recruit their friends to contribute. For instance, ask for just a $10 donation. But also ask that they contact five people they know to also contribute $10. This way, you’ll pick up five new donors.

Provide incentives

A donor incentive is another way you can optimize your fundraising. Approach corporations and major donors to put up matching funds. Who wouldn’t be more willing to donate if their contributions are doubled? How about rewarding donors of a certain dollar amount with merchandise? Even a coffee mug or tote bag with your logo can be a nice thank you. It will also keep your group in sight and mind.

Promote through multiple channels

Create a comprehensive communications plan. Get your promotional message out across as many channels as possible. Send texts, emails and videos that inspire action. Social media posts will ensure donors of all ages are aware of your event. Encourage sharing of your content. And whenever posting online, always include a link to your giving forms.

Include fun activities

There are all kinds of activities you can organize as part of your Giving Days for nonprofit fundraising campaigns. They can be as simple as dumping a bucket of water on an administrator in your organization when you reach your goal. Or as complex as hosting an on-site carnival or scavenger hunt in the community. Whatever activities you choose, appeal to the widest audience for more attention.

Make it easy to give

How are you accepting donations? Are donors able to contribute through your website? Can they access donation forms via cell phone? Consider the preferences of your most frequent donors. Give them options that make donating easy.

Giving Tuesday Toolkit

WealthEngine’s Giving Tuesday Toolkit can provide you with more information on how to prepare for your Giving Day Event.

Implementing a Giving Day Donor Strategy

The second way to optimize your fundraising comes from knowing your donors. These are the people currently supporting your organization. Then you can use the information you discover to better target your prospects.

Segment your current donors

Donor screening allows you to pick up on key donor attributes. Those attributes can include wealth, income, lifestyle and affinity. Wealth models can help you optimize your time and effort by focusing on the best prospects for your organization. A wealth model is a statistical model used to identify common traits among your donors. Utilizing these data points will help you group your donors according to key characteristics important to your organization. Segment your donors and create personalized communications more likely to get attention.

Identify upgrade donors (to sustainers, mid-level, major and planned givers)

Who in your database has the potential to give more to your cause? Which donors could become sustainers, increase their dollar amount, or make major contributions? Data analysis can identify your current best donors. Wealth screening and modeling can also show you who has the most upgrade potential as a donor. Then you can target those donors and determine how to best appeal to them for increased support.

“At its core, building donor relationships, and major donor relationships especially, is about getting to know supporters.” That concept will become increasingly important as more millennials gain wealth. Millennials, in particular, are generous when it comes to causes they value. But they also like to get more directly involved. Speak to their interests and what they find valuable.

Acquire new donors

Use the information you gain through your data analysis and wealth model to target new donors. See how their traits compare with your best donors. These are the people most likely to support your organization. Concentrating your effort on this group should yield better results, reducing your cost and time for acquisition.

Create giving levels

Use an individual’s wealth data and giving history to ask for a specific, suggested donation amount during your fundraising. That includes presenting suggested donation amounts on any written forms you may send. Most of the top 100 nonprofits suggest four to five donation amounts, along with an option to enter a custom amount.

A technique called “anchoring” can also be used to leverage donation amounts. In one experiment, participants were asked if they could contribute a specific dollar amount. The cause was to save offshore sea birds from an oil spill. When asked for a $5 donation, the average contribution was $20. However, when the ask was raised to $400, the average donation increased to $143. When there was no suggestion, the average donation was $64.

You can take this optimization strategy a step further. Help donors visualize the impact their donations will make. For example, how many days of groceries will a specific donation buy? How many children will get a hot lunch? Or how many bags of dog food can be purchased? Donors who can see the actual value of their donations may give more.

According to GivingTuesday.org, donors who contribute on Giving Day are more likely to donate again before your next Giving Day. Nurture your relationships with current donors. And work on turning new Giving Days for nonprofit fundraising donors into ongoing contributors.

3 Things to Remember Post-Giving Day

Fundraising is not just about Giving Day, it’s so much more.  You may host a Giving Day event only once a year, but the benefits can continue all year long. Develop a strategy to leverage contact with all of your donors and increase your fundraising success.

Thank your contributors

Be sure to acknowledge  all of your supporters promptly. Whether they donated time or money , let them know their contribution is appreciated. This is your first step in staying in touch. Also consider sending out a thank-you message through all of your communication channels to the community. Be sure to share the results of your Giving Day.

Continue your follow-up

To turn your first-time contributors into long-term donors, you need to look beyond wealth indicators. This is where you need to gain insight into who they are and the reason they donated in the first place).  Figuring out their “why” will help you create more personalized communications that encourage them to become regular supporters.

Too often staff members don’t continue to engage with their new contributors. That’s a mistake. You lose a valuable opportunity by waiting too long until your next contact. Whether you’re connecting with regular contributors or your new donors, stay in touch.

Enhance your donor data

You’ll likely gain new insights about your donors though your Giving Day activities. Use those insights to better target donors in future fundraising efforts. Utilize this new information to grow your list of recurring donors. Leverage the right data in your communications to fully engage prospects and develop stronger donor relationships.

Don’t think of Giving Day as merely a one-time event. Instead, view your Giving Days for nonprofit fundraising as an integrated part of your fundraising efforts. Data analysis and modeling is essential for optimizing your time and dollars. It’s also what WealthEngine does best. Contact WealthEngine today to optimize your donor data.

Our Giving Day Series

This is the third article in our Giving Day series. You can read more about Giving Days for non-profit fundraising best practices in our first two articles on 8 Reasons to Hold a Nonprofit Giving Day and Giving Tuesday vs. Giving Day: Which Fundraising Day Best Suits Your Needs? Stay tuned for our last article on Giving Day Ideas for Your Fundraising Event.

Top 5 Annual Giving Campaign Ideas

annual giving campaign ideas

Annual Giving Campaign Ideas to Boost Your Fundraising

Once your annual giving campaign starts, you’ll be actively monitoring your success. So, to keep your momentum going and to ensure that your donors remain engaged, it’s important to implement different strategies to help you reach your campaign goals. Let’s explore the top 5 annual giving campaign ideas you can implement to make your campaign a success.

1. Start with your Board of Directors to Gain Key Supporters

Once you form your steering committee, it’s important to reach out to those board members (who are helping oversee your campaign) to contribute donations. Since they’re working to ensure that your campaign is a success, by providing your organization with strategic direction and support, it’s necessary to involve them in creating a stable foundation for your annual fund. Other donors will then feel more inclined to give knowing that you’ve already received donations.

It’s also important to tap into your board of directors’ networks, to see which of their constituents would be most inclined to give. These individuals won’t simply contribute a small, one-off gift. Depending on how closely connected they are to a member of your board, they may feel inclined to give a more substantial gift to support your organization’s efforts. If someone they know is actively working to raise money for a cause they care about, how can they turn away?

The Connections feature on the WealthSignal within the WealthEngine platform can help you uncover potential major gift donors who are connected to your existing board members. Connection strength displays the number of familial and business connections an individual has. So, the more connections you have, the easier it is for you to potentially get introduced to other wealthy prospects.

2. Screen and Segment Your Supporter Lists

Another annual giving campaign idea is to screen and segment your supporter lists. Both processes will help you make more effective annual fund appeals. When approaching your donors for your annual fund campaign, there’s no need to ask for a universal gift amount. If a donor has the propensity and capacity to give more, it’s important to create the right ask for those donors. Let’s say there’s a potential major gift donor in your database, but instead of reaching out to them for a major gift, you ask them for a donation of only $50—an ask amount that you’ve been sending to donors of all levels. By not screening and segmenting your donors beforehand, you may miss out on an opportunity to boost your fundraising efforts with just one substantial gift.

How Screening can Help You Reframe Gift Asks

With a wealth screening, you can see which donors have the greatest propensity and capacity to give. So, not only can you segment your audience based on demographic traits such as age, but you can also append your database with wealth attributes. By doing this, you can easily understand an individual’s how much they’ve donated in the past (giving history) and how much they’re likely to give in the future (estimated giving capacity). Gathering these data points gives you a holistic view of your donors. You can easily use their demographic data and wealth attributes to take a data-driven approach to your outreach strategy. This makes it far easier for you to identify donors who would be just as likely as your donors to give.

By reframing gift asks using wealth screenings, you are articulating to your donors and prospects that you understand their needs, interests, and value their support. Also, by understanding your existing donors’ giving history, you can upgrade donors to give more if they have underperformed previously. Additionally, your annual fund campaign is a testing ground for future annual fund efforts.

3. Model Your Top Existing Donors to Find New Prospects

Another key annual giving campaign idea to implement is to model your top existing donors. Let’s say you’ve reached every donor, of every level, in your database. Out of the donors you’ve reached, you’ve managed to solicit gifts from all of those who had the highest likelihood and inclination to give. But, let’s say, in doing this, you’ve exhausted your efforts. What’s next? How do you identify and engage prospects who would be just as likely to give as your best donors? That’s where wealth models can help.

A model is a unique, custom algorithm used to help you do two things:

1. Describe your existing donor base

We can take the data you already have and show you the unique characteristics of individuals in your database. These types of models are known as descriptive models. Essentially, we can help identify and illuminate the commonalities your donors share. That ‘it’ factor that separates them from the average giver. So, we can help you identify hidden gems in your database, who you have yet to pursue. Or, we can help you find under-performers who have the propensity and capacity to contribute more.

2. Predict who else would be most likely to give

We can help you predict who’s most likely to contribute an annual gift to your organization specifically. This type of model is known as a predictive model. In this case, you’d use an Annual Giving Model. To create this custom algorithm, WealthEngine data scientists will employ proprietary data along with yours to determine who within your database (and beyond) are likely to contribute gifts to your annual fund. This model can also help you identify prospects with similar attributes to your best donors. You can then rank your list of prospects in order of similarity to your best donors to prioritize your donor outreach.

4. Find Creative Ways for Your Supporters to Give

Since your annual fund raises money on an ongoing basis throughout the year, it’s necessary to find new ways to keep existing donors engaged. A common challenge most organizations face is finding creative and innovative ways to bring supporters back. Although you’ll receive one-time donations, the goal is to encourage your supporters to make multiple donations during your campaign. Without their recurring contributions, your campaign won’t be as successful as it can be.

To re-energize your donors to give a second or third time, it would be beneficial to:

1. Start a Corporate Matching Gift Drive

By encouraging gift matching, donors have the opportunity to make donations and have their company either donate the same amount they have or more. Doing this allows donors to double their contributions, so you receive double the funds. Be sure to encourage your donors to see if their workplace will match the donations they make to your organization.

2. Promote Your Recurring Gift Program

As your donors contribute gifts, it’s important to create opportunities to redirect your donors to your recurring gifts program. This encourages them to give continuously throughout the year and in years to come.

3. Set up a Crowdfunding Page

Another annual giving campaign idea is to set up a crowdfunding page. Although crowdfunding pages have previously been used to support individual endeavors, they’re being used more and more for organizational fundraising. Just be sure to outline what you’re fundraising for, why you’re fundraising for it, and how this supports your organization. Once you set up the page, it can be easily shared over social media. So, given the viral nature of these pages, your donors can share it with their peers. They can then encourage people in their network to give. Not only is this a great opportunity to solicit gifts, but it also allows you to strengthen your presence on platforms individuals frequently visit.

Once your supporters make secondary contributions, they’re far more likely to contribute to future campaigns. To find more creative ways to engage your donors, check out our article on the 14 nonprofit fundraising ideas for the changing advancement landscape.

5. Humanize Your Goal with an Impactful Story

As you leverage wealth insights and find new fundraising tactics to reinvigorate your donors, it is important to actively forge deep connections with your donors. One way to do this is by sharing success stories with your donors. Remember: your annual fund is intended to help your organization realize its mission in actionable ways. So, it’s incredibly important to engage in nonprofit storytelling that will galvanize your donors.

You don’t simply want to tell your donor about your goals and intentions, but you also want to share success stories with them. If and when you reached your annual fund goal in the past, how were you able to help your community? How have their lives been positively impacted since then?

By creating and sharing impactful stories with your donors, they’re able to view your goal through a different lens. In that sense, empathy is the greatest impetus for individuals to support a cause. Now, your organization’s goal is not a random monetary mark. There’s greater recognition that these funds raised are supporting your mission, which supports your initiatives, which helps you support others. And that change starts with gifts contributed by your donors. They are at the core of everything you do. Once they’re reminded of that, they’ll feel inspired to give.

Discover Your Next Best Annual Fund Donor

Test drive WealthEngine to find your next best donor! Discover their Propensity to Give (P2G), Giving History, Connections, and more.

A nonprofit’s annual giving campaign is critical to the organization’s success. Implementing these key annual giving campaign ideas will help you engage your donors effectively, now and in the future, so that you have the funds needed to make a difference.

Other Articles in Our Annual Giving Series

This is the third article in our Annual Giving series. You can read more about Annual Giving best practices in our first article on What is an Annual Gift? and our second article on the 8 Phases of a Successful Annual Giving Campaign.

8 Reasons to Hold A Nonprofit Giving Day

nonprofit giving day

A nonprofit giving day is intended to help different organizations and higher education institutions bring awareness to their efforts and help them raise as many donations as they can within a short, defined period of time. Let’s explore the importance of giving day, how you can launch one for your organization, and how you can leverage wealth insights to boost your fundraising.

What Is a Giving Day?

So, what is a nonprofit giving day? A Giving Day is a 24-hour, online fundraising event. The purpose of holding one is twofold. The first reason to hold a Giving Day is to collect as many gifts as possible within a limited time period. Additionally, nonprofit Giving Days are held to increase awareness for your charity, foundation, or university. They are a great way to draw attention to your organization and incorporate your organization into the greater community.

Giving Days are initiated primarily by community foundations, cause-based nonprofits, and higher education institutions. They typically center on a specific geographic area, such as a city, state, or region. But, they can also be national or even international in scope. Technically, anyone, anywhere, can donate to your cause.

Examples of community foundations hosting a nonprofit Giving Day for charities in their regions are GiveMN and Arizona Gives Day. Another well-known global Day is Giving Tuesday. Created in 2012, Giving Tuesday is held every year on the Tuesday following Black Friday and Cyber Monday. It was designed to kick-off charitable “giving” during a season when people are already in a giving mood. What better way to encourage donations from those who are eager to contribute?

The Success of Nonprofit Giving Days

Holding a nonprofit Giving Day has increased in popularity. There are now hundreds of Giving Days happening across the United States and several on a global level. In fact, Giving Days are becoming a standard part of fundraising.

As their popularity increases, the question is: are Giving Days worth all of the work involved? Consider some of the proceeds from these 2019 Giving Days:

  • Horizons Giving Day 2019 raised over $1.6 million for its 41 affiliates.
  • The Big Give, a Giving Day supporting nonprofits throughout South Central Texas, brought in over $4.7 million for 545 participating nonprofits.
  • Contributions reached over $11 million for A Giving Day for Amplify Austin, which supports Austin, Texas nonprofits.

With proper planning, promotion, and organized effort, nonprofits definitely have an opportunity to see rewards from the Giving Days they hold. Setting a limited time for these special donations creates a sense of urgency to raise funds. Of course those who are most interested in your cause will be more likely to give their support. And this is also a chance to gain new supporters because of the nonprofit’s increased visibility.

Reasons to Hold a Nonprofit Giving Day

A concentrated fundraising effort within such a limited period can go a long way toward getting people excited about your work. In the short-term, Giving Day helps connect supporters to the causes they care about. Long-term, you can continue to engage with donors in various ways to maintain and grow their contributions.

Here’s how your organization can benefit from a Giving Day:

1. Raise funds for your organization.

A primary reason for a Giving Day is to bring in the dollars necessary to continue your work.

2. Increase visibility and community awareness of your group.

The exposure gained through a Giving Day can boost your nonprofit’s standing in the community.

3. Re-engage with past volunteers and donors.

Chances are, those who contributed in the past will support you again.

4. Add new donors to your list.

This is the time to pick up those who have an interest in what you’re doing but have not yet contributed.

5. Enhance your donor data.

Giving Day will allow you to collect more information on the donors who are involved with your organization to aid future prospecting.

6. Strengthen the sense of community pride.

People like to be part of events that help others and creates a positive vibe.

7. Benefit from the work of others.

If your Giving Day is part of a multigroup effort, you can share the workload and make new connections.

8. Learn more about fundraising.

Your staff will learn new skills as part of creating a Giving Day fundraising event.

Participating in a Giving Day not only benefits the organization, but its supporters and surrounding communities as well. Many people like to give back when they are able to. And they like knowing that their contributions made a difference.

Launch a Giving Day for Your Organization

Giving Days take plenty of planning, enthusiasm, and follow up with both donors and prospects. A Giving Day is designed to run on the target day for 24 hours. But smaller nonprofits sometimes extend fundraising to a week or longer to allow supporters more time to contribute.

Additionally, a nonprofit can partner with community and civic foundations for a joint Giving Day event, That can be an effective way for the organizations to assist member nonprofits with the work involved. As it’s been said, many hands make light work.

Also, nonprofit Giving Days provide an excellent opportunity for a nonprofit to hone its marketing skills. It’s only by trying out different strategies will you know which ones produce the best results. And you’ll have new tactics you can use in other fundraising campaigns.

While raising funds in just 24 hours takes work, it is a worthwhile endeavor for a nonprofit. Raising funds is important, but so is gaining visibility and building your donor base for the future. That’s how you’ll be able to bring in even more contributions.

How WealthEngine Can Help You Find Giving Day Donors

So, as you begin searching for Giving Day donors, it’s important to identify which donors (of the ones you are already looking at) may be likely to give in the future. Using our platform, you have access to 250 million profiles in our database. Each of which contain insights on an individual’s wealth, Net Worth, Income, Propensity to Give, and more. With insights on an individual’s giving behaviors and history, you can easily focus your efforts and pinpoint which donors you’ll want to deepen your engagement with.

Additionally, using WealthEngine’s new WealthSignal™,  featured in the upper right-hand corner of each individual profile, you can make quick appraisals about the individuals you look up within our database. With this indicator, you receive pertinent information on your existing and prospective donors. For example, WealthSignal™ can help you pick up on a donor’s Estimated Giving Capacity—how much an individual could give in the next five years. So, this section is especially helpful for prospect researchers as they determine how much an individual may give in the future.

Additionally, by conducting a wealth screening, you can upload a list of your contacts, apply wealth insights to that list, and uncover new information on your donors’ propensity and capacity to give. So, with these insights, you have the opportunity to identify existing donors who can give even more than you thought possible.

Uncover Your Next Best Giving Day Donor Using Wealth Insights

Test drive WealthEngine to find your next best prospect for your day of giving! Discover their Propensity to Give (P2G), Estimated Giving Capacity, Net Worth, and more.

This is the first blog in our Giving Day series. Check out our second post that explores Giving Day vs Giving Tuesday, and how to determine which day best suits your needs!

3 Ways to Leverage WealthEngine to Recruit Diverse Board Members

recruit diverse board members

 The diversification of boards is not just a benefit. It’s a necessity. Goldman Sachs recently announced that they won’t take companies public if they don’t have at least one diverse board member, specifically one female board member. Similarly, California amended the Gender Corporation Law in 2019, stating that all publicly traded companies must have at least one female director on their boards by 2020. Additionally, companies with at least one diverse member saw a 44% jump in their average share price. As opposed to those that didn’t, which only increased by 13%. These changes illustrate a much greater need than meeting diversity quotas. Boards are now moving to recruit diverse board members in order to maximize their effectiveness by creating space for different perspectives. 

As boards begin prioritizing diversification, it’s important to be mindful in your search as you sift through potential new members. Not only do you want to make sure that you’re looking at a more assorted pool of candidates, but you also want to make sure that you’re engaging individuals who are well connected, influential, and will provide a unique skill set that will benefit your board. Let’s explore how our platform can help you recruit diverse board members

Things to Consider As You Recruit Diverse Board Members

Even before you begin using tools in WealthEngine to search for new board members, it’s necessary to adopt a new approach to your search. The steps you took to bring together the existing members of your board may not serve you as well now that you’re looking for new individuals with different skill sets. Taking a page from McKinsey, there are 3 best practices you should implement in your diversification process: 

1. Adopt a New Mindset

Make your commitment to gender diversity known and back up that value with sustained action throughout your organization. When creating significant change, outlining your purpose, intention, and goals will help underpin decision making. To do this, you can set new principles in your decision-making process. For example, establish a target number of board positions that should be filled by women and make sure the list of prospective members you’re compiling is diverse. 

2. Expand Your Criteria

Not all ideal board candidates may have prior board experience. That being said, it’s important to look beyond current CEOs or members of C-Suites. Be open to creative solutions and focus more on people who will help you meet your goals. To do this, define what expertise you require from potential board members and then define what is flexible, so as to deliver on gender diversity goals. 

3. Create and Maintain an Active Pipeline

The last thing to consider as you recruit diverse board members is to create and cultivate an active pipeline of candidates. Once you actively create a pipeline of potential female candidates, you can begin cultivating and nurturing long-term relationships with your prospects. This will serve you well in your board-inclusion efforts now and in the future. 

These considerations, in combination with wealth insights, will help you establish a more inclusive and diverse board. 

Before You Begin Your Search

Before you begin looking for prospective board members, it’s necessary to understand what you look for in one. So, as you develop your board member persona and evaluate prospects, ask yourself: is this individual well connected? Do their interests and actions align with our work? Are they a major gift donor? Are they an active participant in our organization or business already? Do they have experience on other boards? If so, which other boards do they serve on? 

Using WE Analyze, you can examine screening data on your existing board members and gain a holistic view of them. This gives you a clearer picture of commonalities, or unique qualities, among them. This will help you more easily visualize your board members, learn more about them, and create a board member persona. Using this information will make it easier to evaluate who would be a good fit for your board. So, this will help greatly during your selection process.   

How WealthEngine Can Help You Recruit Diverse Board Members

1. Use Search and WealthSignal to gain a Holistic View of Board Members

Using Search, you have access to 250 million profiles, with insights on an individual’s wealth, Net Worth, Income, Estimated Giving Capacity, Propensity to Give, and more. So, when looking up the name or profile of an individual you feel may be a fitting candidate for your board, you can gain information on how connected they are, what their propensity and capacity to give is like, as well as demographic information. By understanding their behaviors and interests, you can gain a clearer impression about what (demographically and in terms of their skills), they’ll be able to provide to your board that is unique. 

This is further supported by WealthEngine’s new WealthSignal™. The WealthSignal™,  featured in the upper right-hand corner of each individual profile, will help you make quick appraisals about the individuals you look up within our database. Like search, you receive all the same pertinent information on your candidate (Propensity to Give (P2G), Net Worth, Income, etc.), but it’s all displayed in a visual, similar to a bar-signal. So, you can easily skim through a candidate’s qualities, and make informed decisions quickly about whether or not you’d like to pursue them further, without having to scroll through their info. This cuts out time and energy as you determine who you’d like to engage. 

2. Use Inner Circle to Find Connections of Your Close Contacts

The Inner Circle feature within WealthEngine allows you to discover the close connections or relationships of your existing board members. When looking for potential board members, it’s helpful to find individuals who have some affiliation with your organization or business. Someone who harbors a similar value system and influence as your existing members. And, what better way to find these individuals than through your existing board members’ network? 

All you have to do is upload a list of your Inner Circle members into WealthEngine. The question is: who do you include in that list? Your Inner Circle list can include board members, trustees, long-term advocates—anyone you have a close, personal connection with who has influence. If they’re important to your organization, be sure to include them in your list. Once you label or mark individuals as Inner Circle members using our Inner Circle badge, we’ll store those profiles in your account in a list.

So, the next time you Search or Screen, the system will automatically compare individuals to those marked as members in your Inner Circle list. This will help you determine which people are Inner Circle Connected or people who know those members. Those profiles will then be flagged with Inner Circle Connected badges. These markers will help you navigate profiles with ease as you determine which individuals have networks that could benefit your board. Either through business relationships, nonprofit board members, or personal connections.  

Now, you’re able to reach out to these candidates in an effective way: through a personal connection. These warm connections provide you with an amiable introduction when you’re engaging potential members. These individuals may feel inclined to join your board because you have a mutual connection. So, Inner Circle, and their connections, allows you to find exemplary candidates in no time. 

3. Use Prospect to Recruit Diverse Board Members

Using Prospect (specifically Prospect’s Audience Builder) in WealthEngine, you can generate lists of new individuals (outside of your database) from distinct demographics and hundreds of different attributes. So, if you’re looking for new prospective board members, outside of your known connections, you can plug in qualities into Prospect to view a list of individuals who fall within the parameters you’ve set that resemble your existing board members— or what you’re looking for in new ones. 

Under the ‘Professional’ section of the  ‘Attribute List’ in Prospect, you can flag pertinent criteria for your prospective board members. For example, you could flag attributes such as ‘business owner’, ‘executive’, ‘on board of directors’, and more. You can also flag interests or charitable causes you’d want your candidate to be affiliated with under the Giving Section. Most importantly, under the Demographics section, you can factor in the gender or ethnicity of your ideal candidates. The key here is to find those unique qualities. By narrowing your search, you are identifying individuals who you’d most want to be represented on your board. So, the individuals you identify won’t be far removed from your missions or values as a business or organization. 

Uncover Your Next Best Board Member Using Wealth Insights

Test drive WealthEngine to find your next best board member! Discover their Propensity to Give (P2G), Estimated Net Worth, Connections, and more.

By honing in on the qualities of your ideal candidates, not only will you be able to welcome new board members who were previously underrepresented, but you will also be able to diversify the interests and skill sets brought to the table. With insights like these, you’ll be able to propel the efforts of your organization now and in the future. 

Wall Street Bonus Schedule 2019: How Nonprofits Benefit

wall street bonus schedule 2019

In the first quarter of each year, the financial industry celebrates Wall Street bonus season. That’s when the previous year’s bonuses are paid to Wall Street workers.  Depending on the firm, Wall Street bonuses may be paid anytime from late December through the end of February. The 2018 bonus pool, paid in early 2019, was $27.5 billion, which amounted to roughly $153,000 per worker. Although down 9% from the previous year, the Wall Street bonus is twice the average salary of a New York City worker. This year, however, the 2019 Wall Street bonus schedule, based on last year’s performance, is expected to be lower overall. Yet some Wall Street workers will see a slight increase in their bonus. 

Some fixed income traders could see 5% less and corporate management could see 10% less. The Wall Street bonus for commercial bankers looks to be about the same. But investment banking advisors and hedge fund managers may see a 5% higher bonus. Let’s explore the impact of these payouts in the 2019 Wall Street bonus schedule and how your organization, and your donors, can benefit from them.

Wall Street Executives Bonuses: Impact of Payouts

Regardless of whether Wall Street bonuses are up or down slightly, a lot of money will flow into New York. The financial sector represents 5% of New York City’s private workforce, according to Moira Boyle, Director of WealthEngine’s Luxury Sales Strategy. “Those large year-end paychecks have a disproportionate effect on the local and regional economy.”

Wall Street bonus time has been described as inciting a type of “March madness” in terms of its exhilaration.  Part of that elation is tied to some big spending. “People are going to spend most of that money where they live,” commented New York State Comptroller Thomas DiNapoli in a Newsday.com article. Not only New York City, but Long Island, the northern suburbs and the entire state profit. Wall Street bonuses also contribute a significant amount of tax revenue to the city and state.

The Nonprofit Share of the Wall Street Bonus Market

The question for nonprofits becomes, how will Wall Street bonus recipients spend that money? And even more importantly, how much of their Wall Street bonus may be donated to charitable organizations?

Including salary and bonus, the average compensation of Wall Street workers was $399,000 in 2018. As Boyle pointed out, the more senior executives receive the largest payouts, several times larger than their salary. “That’s enough to finance a high-priced investment,” she said. “Approximately 177,000 individuals will be buying real estate, cars, watches, bags, trips, and donating to their favorite charity.” 

If you’re a nonprofit, this is your opportunity to get a share of that Wall Street bonus spending.  ”We know from human nature that their attention will gravitate to what caught their attention most recently,” said Boyle, “so marketing and visibility are key. Charities should also take note of the time of year—this is a time when a major gift campaign can have a large impact on an organization.”

Getting Donors to Respond Positively

When it comes to major donor fundraising, you want to be able to pinpoint which potential donors are worth pursuing and build relationships with them. Your existing donor data is your starting point. Here are some questions that can help you target Wall Street bonus donors:

1. Who are your current donors?

Use your donor data to create profiles. Conduct a wealth screening. Screenings will help you determine key attributes, like income, lifestyle and interests. In doing so, you can identify common traits, along with each type of individual’s tendency and ability to donate. Build statistical wealth models of your best donors. You can segment top prospects and create personalized offers.

2. What type of donor fits the Wall Street bonus category?

To bring in new donors, you have to know as much about them as you can. Once you know what your major donors look like, you will gain a clearer picture of whom to target. WealthEngine data, combined with your database, can help determine who would most likely contribute to your organization.

3. How do they prefer to communicate?

How are you engaging your donors, based on what you know about their donation influencers? To encourage a positive response, always consider donor communication preferences. Then send your donors and prospects personalized messages that highlight their interests and align with their values.

4. Are you following up and keeping in touch?

Thank donors for their contributions and show them how their gift will be used. Continue communicating with your qualified prospects who have not yet donated. And keep in mind the “quality over quantity” motto. Besides standard donations, some donors may make choose to make a legacy gift through a will. 

A Look At Millennial Wealth

Download WealthEngine and Coldwell Banker’s A Look at Wealth 2019 to understand the motivations, behaviors, and trends of millennial millionaires.

Understanding your current donors will help you determine who are your best prospects and how to engage them. The above steps are more complex, but have been simplified here. WealthEngine can assist your organization in targeting the most likely Wall Street bonus donors. Then it’s up to you to keep them donating. 

Wall Street Bonus Schedule: Leveraging Luxury Spending

wall street bonus schedule

The first quarter of the new year is when financial industry workers in New York City receive their Wall Street bonuses. This Wall Street bonus schedule, or these payouts, represents the performance of workers and the market in the previous year. Wall Street bonuses tend to be higher in years when the market does well. 

Depending on the firm, employee bonus distributions may be paid anytime from late December through the end of February. This Wall Street bonus schedule time has been described as creating a sort of “March Madness” in terms of its euphoria and spending. After all, who wouldn’t want to celebrate such a financial reward? The 2018 bonus pool, paid in early 2019, was $27.5 billion. That amounted to roughly $153,000 per worker. Although down 9% from the previous year, that bonus is twice the average salary of a New York City worker. Let’s explore the impacts of these bonuses on the luxury market and how they can benefit your business. 

Impact of Wall Street Bonuses on the Local Economy

This year’s Wall Street bonus schedule, based on market performance in 2019, is expected to be a bit lower for some Wall Street workers. However, for others, they may experience a slight increase. That’s according to Bloomberg. For example, investment banking advisors and hedge fund managers may see a 5% higher bonus. The Wall Street bonus for commercial bankers looks to be about the same. Fixed income traders could see 5% less, corporate management 10% less. And the Wall Street bonus for equity traders could dip as much a 15%.  

Still, even if bonuses are down slightly, that’s a lot of money to be pumped into the area. The financial sector represents 5% of New York city’s private work force, according to Moira Boyle, Director of WealthEngine’s Luxury Sales Strategy. “Those large year-end paychecks have a disproportionate effect on the local and regional economy.”

It’s easy to see how Wall Street bonuses boost the economy of New York City. “People are going to spend most of that money where they live,” commented New York State Comptroller Thomas DiNapoli in a Newsday.com article. But Long Island, the northern suburbs and the entire state profit, he pointed out. Wall Street bonuses contribute a significant amount of tax revenue to the city and state.

Wall Street Bonus Purchasing Power

Spend it, save it, or donate it? Just what are the recipients of those Wall Street bonuses likely to do with that extra cash? “A prudent employee would treat it as salary,” replied Boyle.  “However, history has shown that non-discretionary spending and real estate transactions increase during the first quarter of the year. “r

As Boyle pointed out, the more senior executives receive the largest payouts, several times larger than their salary. That’s enough to finance a high-priced investment. The average compensation, including salary and bonus, of Wall Street workers, was $399,000 in 2018. “Approximately 177,000 individuals will be buying real estate, cars, watches, bags, trips, and donating to their favorite charity,” said Boyle. 

DiNapoli concurred. Wall Street bonus income is often spent on vacation homes in the Hamptons and on the North Fork. Or for luxury items such as boats and jewelry. East End restaurants and tourist attractions also benefit from stockbrokers’ spending.

The Luxury Market Is Growing

The luxury market grew 5% worldwide in 2018. That growth represents the sales of three major items: luxury cars, luxury experiences and personal luxury goods. Luxury experiences grew by 20% in two areas, high-end food and wine and luxury cruises.

Luxury product marketing targets consumers who have both the propensity and capacity to buy your luxury product or service. It may be apparent Wall Street bonus recipients have the capacity for a luxury purchase. But what about their interest? Are your targeted consumers interested in what you have to offer? It’s not enough to know that your prospect can afford it.

How well do you really know your customers and prospects? Consumers expect more from luxury brands. They want to do business with companies that know enough about them to provide a relevant and personal shopping experience. Luxury marketers must respond to consumer desires for those customers to take them seriously.

Getting Your Share of the Wall Street Bonus Market

If you’re a luxury marketer, this is your opportunity to get your share of Wall Street bonus spending. How are you engaging your customers, based on what you know about their purchasing influencers? ”We know from human nature that their attention will gravitate to what caught their attention most recently,” said Boyle, “so marketing and product visibility is key.”

To bring in new luxury customers you have to know as much about them as you can. And your existing customer data is your starting point. Understanding your current customers will help you determine who you want to reach and how to engage them. Here are some steps you can take to best identify your luxury buyers:

  1. Gain knowledge and insight on your customers. Segment them through analytics such as profiling and cluster analysis.
  2. Make evidence-based decisions on where to allocate your resources and the strategies to use to target prospects.
  3. Identify the data that supports your initiative. Determine the data you need to further understand your customer and create compelling offers.
  4. Approach prospects who have both the financial ability and behavioral characteristics to join your exclusive circle of customers.

A Look At Millennial Wealth

Download WealthEngine and Coldwell Banker’s A Look at Wealth 2019 to understand the motivations, behaviors, and trends of millennial millionaires.

Leverage wealth data to reach luxury consumers. And Wealth Engine can help you build a customer profile to target Wall Street bonus recipients.