What Canadian Charities need to know about GDPR

What is GDPR?
The General Data Protection Regulation (GDPR) has recently (as of May 25, 2018) been enacted in the European Union. It oversees how personal data is processed and increases the rights of each member in your lists. Currently, the GDPR is only relevant in the EU and individuals that live in the EU, but many speculate it’s only a matter of time before similar regulations are enacted worldwide. In the meantime, for charities in Canada, the Canada Not-for-profit Corporation Act and your provincial societies act apply as it has previously.

What is considered “Personal Data”?
Personal Data refers to any information that can identify an individual such as their name and contact information. Indeed, it also encompasses higher security information such as credit card information and criminal records information. 

Does the GDPR affect your charity?
If you have donors who live in the EU or you have charitable programs that operate in the EU, then yes the GDPR affects you. If not, it does not. If you have a some of donors in the EU, take this opportunity to reach out to them and ensure you have consent for sending them materials.

How does consent play into the GDPR?
If you are sending email and mail to your donor list, all you need to do is ensure that the user/donor had willingly signed up for your list at some point in the past. Opt in can be in the form of a simple checkbox on an online or paper form. The simplest thing to do is to go through your website form where people sign up for your newsletters and pull the data to indicate opt-in time. You don’t need to re-ask your list to opt-in again! 

Things you shouldn’t and can’t do under the GDPR:

  • Rent or sell your list of donor names to any external sales groups for extra income. This is common if you are a periodical subscription, but overall a poor practice in the nonprofit industry.

  • Don’t use your donor list to sell something unrelated to your charity or cause. It’s permissible to sell artisan goods made by the people your charity impacts, but it’s not permissible to send information about a corporate sponsors’ product. 

Things you should do:

  • Ensure you have a privacy policy. If you don’t have one, now is the time to put a document together to assure your donors that you take their privacy seriously and have internal ways to manage processing data.

  • Be extra clear on what donors are signing up for when they provide their contact information or email address. For example, in the donation process let donors know that the information that is collected is used to issue their tax receipt. Be transparent and let donors decide whether or not they want to receive your newsletter updates.

Friendly Reminder About CASL

Even though GDPR may not apply to you as a Canadian Charity, there is still CASL.

What is CASL?
CASL (Canadian Anti-Spam Legislation) was enacted to stop spam and data harvesting, and allows users to unsubscribe from unwanted email solicitation. CASL applies to all Commercial Electronic Messages (CEMs). 

A CEM is an electronic message that encourages participation in a commercial, profit-generating activity.

Good news! This means that it does not generally apply to not-for-profit fundraising!

Electronic media for which fundraising is the primary purpose need not comply with CASL. 

What activities does CASL apply to?
There are some activities that many nonprofits do that ARE considered CEMs. If you engage in any of the following, you need to adhere to CASL:

  • Soliciting for registration to your program/service
  • Selling products (i.e. goods associated with your cause, but are not for fundraising purposes “Buy these handmade crafts. Proceeds go to the makers in XYZ country.”)

Any electronic message where you are selling a product or service to users who receive something in return (a commercial transaction) MUST comply with CASL.

Solicitations solely for funds or confirming information need not comply with CASL. Here are a few examples of solicitations that generally do NOT need to comply:

  • Fundraising Campaigns: i.e. Donate to send a kid to camp!
  • Matching Campaigns: i.e Contribute to our matching campaign!
  • Notifications that a donation was received
  • Confirmation of contact information

Is the email asking for a monetary transaction? Evaluate what needs to comply with CASL and what doesn’t by asking: “Can this transaction be charitably receipted?” If the answer to your specific question is yes, you do not need to worry about CASL and vice versa.

What to do if you have Messages that Need to Adhere to CASL

Ensure all your contacts have willingly subscribed to your solicitation.
Have your recipients checked a box on your donation form or website indicating that they want to receive your emails? Is this a voluntary field? If not, you do not have their consent to send CEMs. 

Make sure your sender contact information is clear in your CEM.
CASL requires all CEMs sent to have a clear sender. Whether this is an internal staff or your executive director, you need to provide the name, mailing address, and either a phone number or an email of the sender.

Provide a simple unsubscribing mechanism.
Users who receive your CEM need to be able to unsubscribe easily without cost. Include a link at the footer of your email that allows users to unsubscribe. Their request must also be processed within 10 business days.

Disclaimer: This post is not legal advice and we’re not lawyers. While we think this post is packed with useful information, it is for informational purposes only, and Frontier is not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use.
 

Behind the Design: A Case Study

Background

Here at Frontier, we strive to develop fundraising research that always pushes the industry to improve, which in turn helps charities have a greater impact in the world. This means that our marketing decisions are grounded in research and testing in order to produce the best results for our clients and continue shaping industry best practices. 

To understand how we could improve our direct mail appeals for our clients, we commissioned Predictive Eye Tracking reports one of our mailer designs.

Predictive eye tracking is a software model based on decades of neuroscientific research that predicts where on the page readers’ eyes are drawn in the first 3-5 seconds of reading. This enables designers to place key information in spots where it will have the most impact. These tests produce a heat map image of the results, along with statistics relating to page complexity and noticeability.

  • The page complexity score measures how much visual clutter is present on the image.

  • The noticeability metric produces a list of the top elements on the page that will be noticed within the first 3-5 seconds.

  • Finally, the heat map indicates areas of highest focus with red spots.

Until recently, the technology to produce these reports was only available for digital mediums, so the newfound ability to test our print campaigns is very exciting.

The Opportunity

During our first interaction with predictive eye tracking reports for our print campaigns, we learned that user engagement was low on the back page of our direct mail appeal. After analysing the report, we hypothesized that the large volume of uninterrupted body copy on the back page may be the main culprit that was losing donors’ attention. This provided us with an opportunity to optimize this space to emphasize the client’s message. But how?

The Fix

This discovery was a call to immediate action for our team! We got creative with the next direct mail appeal we sent out. This currently under-utilized space had the potential to leave a large impact on current and prospective donors; our challenge was to utilize it in such a way that it added value for the client. So, our team developed the idea of creating impact statistic graphics to insert on the back page.

Not only would this give the eye a place to land by breaking up the text, but it would also provide a space to further emphasize important points to the donor.  Most importantly, it would allow a donor to visualize how they can be the hero in the story, all within the first 3-5 seconds of flipping over the appeal letter. Impact statistics offer tangible and visual metrics that are quick to digest, all while emphasizing the impact donors can have on real lives. 

However, at Frontier we are not satisfied with assuming we’ve solved the problem; we test to ensure it’s solved. So we ordered another predictive report, this time on our new design. The results came back overwhelmingly positive: the back page received a focus rate score of 93.7%, which indicates highly focused attention. Additionally, the new impact statistic graphic was the top focus item on the heat map. Essentially, the new infographic stole the show, dramatically  increasing overall donor engagement with the page.

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Applied Results

Not only did the Predictive Eye Tracking test results prove that this was a worthwhile change, but the real life results we have seen from our clients also verify this.

The success of this design means that now we have another strategy for effectively communicating clients’ messages to potential donors. Since confirming our theory with the predictive eye tracking test and seeing our clients’ real-life fundraising results, we have gone on to integrate this design into many of the mailers we create for our clients.

But we haven’t just inserted basic impact statistic graphics into all our mailers. We have taken the principles of these solutions and tailored them to each of our client’s individual needs, based on who they are as an organization and even when in the year the campaign launches. This design has contributed to the success of numerous mailers, and is particularly applicable for campaigns with tangible asks.

By sharing this type of research publicly, Frontier continues developing our industry’s understanding of effective fundraising practices. For example, our general manager, Mariam Ghani, presented these findings at the 2017 Pursuit conference in Edmonton, AB so that other fundraisers could gain from our research.

“It was a privilege presenting to other non-profits to share that direct mail fundraising continues to be an effective tool, and even more so now when we have the technology to optimize it further.” - Mariam Ghani, General Manager, Frontier

Through research like these tests, our goal is to help shape industry best practices so that organizations like our clients and can raise support more effectively than ever before.

Calgary Dream Centre Case Study: One Year with Frontier

History

As the Calgary Dream Centre faced the end of 2014, they had high hopes for the upcoming year—the year signifying their 10th anniversary of influencing transformations in their community. They were working tirelessly. With their efforts focused on helping those most vulnerable in the city, their fundraising had taken the shape of an event-based fundraising program with only rare mailings to donors.

As soon as we began to study their fundraising practices, we saw numerous ways that we could help. So we set about to make their 10th anniversary a critical juncture—a year of unprecedented and sustainable growth.

Introducing Frontier

In the autumn of 2014, the Calgary Dream Centre was seeking to partner with a fundraising agency to help them grow beyond their current fundraising standard and double if not triple their revenue over the course of several years. After deliberating with peers in the mission world, they chose Frontier.

In establishing a partnership, we focused on building trust and relationship—getting to know the members of the Dream Centre personally. Because they view us as an extension of their fundraising team—not simply an external service provider—we are able to soak in the knowledge and culture of the Dream Centre as an organization and develop a deeper understanding of their needs.

We immediately started building a new website and hustled to launch it in December 2014. We also created an annual print and email calendar, and began acquisition campaigns right away.

Because of our personal approach, and getting to know the Calgary Dream Centre even before our official contract, we were able to get to work within weeks of our initial contact, seeking new strategies and improvement right away.

Game Plan

The first improvement we made to the Calgary Dream Centre’s fundraising strategy was a total overhaul of their website. We redesigned every attribute to clarify the focus, creating the entire website around a single call to action: Donate. We also streamlined the online donation experience using our best practices, as explained on our blog. By de-emphasizing third party events, we highlighted the importance of one-time gifts. Instead of being overwhelmed by options, donors were simply being asked to do one thing, so many of them did it!

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Over the next 12 months, we grew the Dream Centre’s direct mail campaign to include 7 appeals, 5 acquisition campaigns and 4 newsletters. This increased communication resulted in the addition of 194 new donors since October 2014, which is 150% growth over the previous year.  

The Newsletter itself—which we named “Transformations”—was our own creation. Through the release of quarterly issues, a signature piece has emerged with a focus on sharing information and cultivating relationships with the donors. It provides organizational accountability to these supporters—showing them where their dollars are going—and keeps them informed and engaged. Did you know that donors are known to give up to three times more to charities that show the problem being solved and where their dollars will go?  

Lastly, we gave some time to brand unification. By equipping the Dream Centre with important tools such as a professional, unique and recognizable brand that maintains consistency across all of their “products,” we enabled them to compete in the big leagues and grow their donor base.

Results

Site redesign alone grew online revenue by 66%. We helped them rustle up $161,891 through their website, which is currently 13% of their gross revenue total. Further, the introduction of Transformations and its emphasis on donor care and communications provoked a 17.4% reduction of donor attrition. In fact, 322 donors have returned after not giving for more than two years. That’s roughly equal to their total acquisition of the last three years combined!

Since December 2014, we’ve seen ongoing, visible growth. In fact, the Dream Centre has seen the largest gross donation revenue increase in their history: $1,220,137, an increase of $344,000. In total, they received gifts from 1605 donors, which is a 105% increase.

The Calgary Dream Centre is a charity whose heart for the community eclipsed their capacity to focus on strategic fundraising. Now, with enhanced donor care tools, they’ve been able to build a stronger foundation of trust and loyalty with their donors and raise more revenue. And there’s more in store!

We look forward to a continued partnership with the Calgary Dream Centre in 2016. We plan to establish a branded monthly donor program to further steward existing donors, as well as develop an Easter Direct Mail and Acquisition campaign. On the digital frontier, we’ll be exploring third party event fundraising together. We fully expect good to become better—than best—as we apply more of our fundraising best practices, moving forward!

Union Gospel Mission: Camp Direct Mail Case Study

History

At Frontier, many of our staff remember life-changing experiences from their times at camp. These memories have simmered over the years and become richer as we witness more and more lives changed by Union Gospel Mission sending children in need to camps. It’s been on our hearts to help make a bigger impact for camps for years and, as you’ll read in this case study, we think we’ve done just that.

The Campaign

Working together with UGM’s annual giving team, we crafted a direct mail package that was beautiful and heart-warming, packed full of fundraising excellence. Camp direct mail was already familiar to UGM and their donors, so our team’s leading mandate was to optimize. Our primary goal was to increase net revenue, with a secondary goal of improving the consistency of UGM’s communication across mediums (such as the Gratitude newsletter and digital materials).

Here’s a visual of that fun and engaging campaign.

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Screen Shot 2015-09-09 at 4.01.53 PM

The ask strategy around camp and the generous matching offer remained the same but to increase effectiveness, we honed the detail. We significantly tweaked the reply form, adjusted the cover to reflect the actual demographics of the kids UGM sends to camp and tailored the copy to UGM and their donors. Finally, this was the first time UGM had a truly integrated multi-channel camp campaign.

Results

It was the best year on record. The quantity mailed was nearly 6,000 less than the previous year while revenue went up 19.4%. That’s up by nearly $32,000! What drove this change? Both average gift and response rate improved dramatically. The average gift increased 22% and response rate increased over 19%.

Among camp appeals from 2010-2015, this ranks as the best overall campaign, with the highest response rate and largest average gift.

But, our goal wasn’t just revenue. It was net revenue. Working more efficiently, the cost per thousand (CPM) for this appeal decreased 27%, a drop of $405 per thousand. That’s a savings of over $10,000.

The net difference: over $45,000 more net revenue to send to impact lives than either 2013 or 2014.

Summary

Our belief is that content is king. Your fundraising writing is by far the most important revenue driver. Using better data segmentation generally leads to more tailored content, while asking donors for the right amount and using appropriate language with them. Visually, we believe you should be the best you you can be for a given medium.

Don’t engage in a race to the bottom. Drive value to your donors and dignity to the people you serve. The result is a winning combination.

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