Fundraising Costs Reduced for Henry Ford College Foundation
Reduced cost to raise a dollar from $2 in year one to $.10 in the third year.
Increase client’s ROI from 2x in year one to 10x in year three.
CHALLENGE:
The Henry Ford College Foundation (HFCF) was established in 1982 as a tax-exempt organization that raises funds to support the College’s mission. It helps provide access to affordable high-quality educational opportunities for all. HFCF engaged our team after taking a two-year hiatus from its annual fundraising efforts. This followed a year in which the foundation’s year-end appeal campaign had a $2 cost to raise a dollar.
SOLUTION:
Knowing that fundraising efficiency was paramount, we focused on the foundation’s most-likely-to-give donors. After analyzing Henry Ford College Foundation’s transactional and demographic data, we developed a comprehensive action plan that would:
- Identify commonalities between donors and the highest dollar amounts.
- Minimize costly direct mail and communications to people unlikely to give.
- Recommend focusing communications on 41% of the donor database.
- Identify almost 400 individuals with the financial ability to give at a higher rate.
- Develop a fundraising program that could be replicated.
- Ask only people most likely to give at rates that matched their ability.
RESULTS:
Our Authentic Marketing approach generated these transformative and sustainable results:
- Reduced cost to raise a dollar from $2 in year one to $.10 in the third year.
- Increase client’s ROI from 2x in year one to 10x in year three.
