Guest post from Marygrace Bateman, Market Manager, IBM Predictive Analytics Solutions Marketing
Pop quiz hotshots: What ranks as the world's 8th largest economy, with a $1 trillion annual turnover?
You probably didn't guess the global non-profit sector. It’s true, even though "non"-profit and "world's 8th largest economy" seem at odds.
In fact, in the U.S. alone this sector has grown 25 percent in the past 10 years, surpassing the growth rate of both the commercial and government sectors.
And therein lies the rub.
The word "profit" comes from the Latin for progress, so the phrase "non-profit," literally means, "non-progress."
The term was first used in 1630 by Massachusetts's first governor, John Winthrop, in his famous sermon, A Model of Christian Charity, where he admonished that if the Puritans "pursued profits, they would surely perish out of the good land." A former ”Tax”achusetts governor speaking out against the perils of profits? Now that’s ironic.
In today's world, however, "non-profit" encompasses the antithesis of "non-progress," as non-profit organizations are critical to carrying out the civic and educational duties that are often left out of government's purview.
Just as critical to non-profit organizations' missions are the funds that make those missions possible. Those funds come from donors, and in our volatile economy, the need for improved fundraising efforts has never been greater. Non-profits often already have the data necessary to glean valuable insight from their donor base, but the question remains, what to do with the data so as to maximize funding with limited resources?
The answer: predictive analytics.
IBM SPSS Solutions for Predictive Donor Management can help non-profit organizations better understand donor behavior and the most efficient use of fundraising channels to acquire new donors, grow their existing donor base, and retain valuable donors.
Predictive analytics empowers organizations with the tools to predict who is most likely to donate, how much they would donate, when they would donate, and what is the optimal delivery channel (email, phone, etc.) that will prompt a likely response.
For instance, by using Predictive Donor Management, UNICEF, the child rights organization of the United Nations, better mapped out the donation behavior of their contributors with greater accuracy and defined clear-cut segments and profiles. Now, they’re now able to better target direct mail campaigns and produce a substantially improved yield.
Specifically, for door-to-door campaigns they successfully identified the best neighborhoods where the response was 2.5 times higher than in the least successful neighborhoods.
Sounds like progress to me.
And one way to ensure non-profits won’t be "perished out of the good land."
For more information:
· Attend IBM’s webinar: Successful Fundraising: Using Analytics to Gain Donor Insight (May 9, 2012 at 1:00 pm ET) with fundraising expert Joshua Birkholz
· Read how PDSA, the U.K.'s leading veterinary charity, used predictive analytics to increase one direct mailing campaign's response rate by 26.6%
· Visit the IBM SPSS Non-Profit Resource Center