1

PVAAnalysis and Recommendations

2

• Introduction• Analytical Focus

• Nonprofit Industry Assessment

• Fundraising• Channel Evolution

• Millennials

• Visibility Imperative

• Membership

• Program Evaluation

• Conclusions

Agenda

3

Executive Summary• Building a sustainable future

• Transition to an online acquisition, direct mail appeal structure.

• Increase visibility

• Membership growth

• Program analysis

4

Analytical Focus

5

• From 2000 to 2010, the number of tax-exempt organizations grew by 33%• Non-Profits grew by 19%

• Veterans’ Orgs by 12.7%

Non-Profit IndustryGrowth

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

1,473,062

1,709,205

1,960,203

All Non-ProfitsVeterans' Non-Profits

35,24936,166

39,709

Tax Exempt Orgs

IRS 2011 Nonprofit Data Book

6

Average Growth:

2.4%

Current Growth:

1.1%

$98,000,000$99,000,000

$100,000,000$101,000,000$102,000,000$103,000,000$104,000,000$105,000,000$106,000,000

year 2year 1recession year

Non-Profit IndustryEconomic Trends

“If we continue to grow at this rate, it will take more than a decade to get back to where we were in total giving in 2007.”

- Patrick Rooney, executive director of the Indiana University Center on Philanthropy

7

Non-Profit IndustryIncreased Demand

Nonprofit GrowthIRS 2011 Data Book

13%

Expected increase in demand forservices.Non-Profit Finance Fund 2012 Survey

85%

Post-recessionRevenue growthGiving USA’s 2012 Annual Report

54%

8

18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+

1%

12%

22% 24% 25%

11%4%

0% 3%9%

14%

33%

22%27%

Distribution of New Donors by Age within Origin Channel

2010 Mediansjoined onlinejoined by mail

FundraisingChannel Evolution

“Although direct mail remains the dominant channel for new donor acquisitions as well, it has become increasingly common for new donors to give their first gift online.”

Target Analytics: “2011 donorCentrics Internet and Multichannel Giving Benchmarking Report”

9

• It is increasingly common for new donors to give their first gift online, and they tend to be younger and have higher household incomes than mail-acquired donors.

• While they tend to give larger gifts than mail donors, online-acquired donors tend to have slightly lower retention rates than mail-acquired donors.

Target Analytics: “2011 donorCentrics Internet and Multichannel Giving Benchmarking Report”

FundraisingChannel Evolution

10

FundraisingChannel Evolution

• Direct mail is not dead, but it needs to be strategically leveraged with other channels of reaching donors to be effective and efficient.

• Strong direct mail capabilities can drive up retention and long-term value of new donors acquired online, by transitioning them to direct mail appeal programs – according to Target Analytics.

11

Recommendation Fundraising

Five year pilot program using 2% of current acquisition budget transitioning to a 20% online acquisition program after 10 years

12

FundraisingMillennials (Gen Y)

“In short, the total annual charitable contributions grow with age, but the difference is primarily driven by the number of charities contributed to, rather than differences in gift size” Giving Institute - Engaging the Next Generation of Donors

The Next Generation of American Giving, March 2010, Convio

Number of Donors

Average Contributions per year

Average# of Charities

$ per Charity

Estimated Annual Contributions

Matures 30.81M

$1066 6.3 $169 $32.7B

Boomers

52.26M

$901 5.2 $173 $47.1B

Gen X 35.96M

$796 4.2 $190 $28.6B

Gen Y 28.56M

$341 3.6 $95 $9.7B

13

“Millennial donors are different than donors from past generations – but not in the ways you might expect. Yes, technology and social media are integral parts of their lives, but these donors are driven by personal relationships and human connections.” A 2010 Study of Millennial Giving and Engagement Habits, Achieve-JGA

FundraisingReaching Millennials

14

RecommendationMillennials

15

Visibility Imperative   “People must be convinced that a real need exists and the nonprofit is the best hope for addressing this need.”

Matt Evans, Excellence in Financial Management – Creating Value in the Nonprofit Sector

16

Brand ManagementPersonality

17

RecommendationVisibility

18

PVA's members with SCI/D (19,000)

Total Veterans with disabilities (5,500,000)

Total veterans (20,000,000)

Potential MarketsMembers

PVA's members with SCI/D (19,000)

Total Veterans with SCI/D (42,000)

Total veterans + non-veterans with SCI/D (750,000)

Information provided by U.S. Census Bureau and Department of Veterans Affairs

19

RecommendationMembership Leveraging Visibility

SCI/D Veterans

Vets with other disabilities, and

nonveterans with SCI/D

Donors and other Americans invested in

PVA

20

Program Evaluation

21

Program EvaluationKey Value Questions

•How does the program create a direct benefit to PVA’s members?

•How does the program convey a message of value to donors?

•Is the program financially accountable?

•How is the program supporting PVA’s core mission and values?

•How does the program differentiate PVA from other organizations?

22

ConclusionRecommendations

• Building a sustainable future• Transition to an online acquisition, direct

mail appeal structure

• Millennial outreach

• Increase visibility

• Membership growth

• Program analysis

23

24