Finding the Right Local-Systemwide Balance for Annual Giving Growth
Olivia Hairfield
Published: 04/01/2025
When it comes to annual giving programs in large or small systems, one common dilemma is whether to adopt a local or systemwide approach. Each approach has unique benefits and challenges, making it essential to tailor the tactics based on the organization’s mission, donor base, and goals. The key to success is balance: a thoughtful blend of systemwide strategy and localized engagement. Healthcare organizations like Avera Health and Essentia Health Foundation have mastered this balance, leveraging centralized initiatives and regionally tailored approaches to increase donor loyalty, boost engagement, and maximize fundraising outcomes.
During the 2024 International Conference, Beth Hatcher (Principal and Chief Executive Officer, Beth Interactive Inc.), LeAnn Mouw (Executive Director of Advancement and Corporate Engagement, Minnesota State Community and Technical College), and Kellie Yackley (Community Giving Officer, Avera Health) shared valuable insights on annual giving strategies based on case studies from Avera Health Foundation and Essentia Health Foundation. Here, we explore practical tips to discover how to find the right balance for your annual giving program.
1. Maintain a Strong Local Connection
For many donors, especially in rural communities, the local impact of their donations is paramount. Avera Health, a large health system spanning five states, initially centralized its annual giving under the motto “One Foundation, One Voice, One Message.” However, donor feedback revealed concerns about whether gifts would support local communities when they no longer saw familiar, local names on communications. To address this, Avera segmented their e-newsletters and appeals, providing region-specific stories alongside systemwide messaging. After the change, Avera saw a 76% increase in gift numbers during the 2023 Fall Mission mailer compared to 2022. The hybrid approach to messaging made donors feel more at ease and showed them how their contributions directly benefit their local areas while reinforcing the broader mission.
2. Use a Multi-Channel Approach for Greater Reach
Avera and Essentia both used a variety of channels—direct mail, email, and digital appeals—to reach donors. Avera saw significant success by launching its first online campaign, which contributed to an 86% increase in dollars raised during the 2023 annual campaign. The team took a risk on something new, and the results paid off. Ensure you are utilizing multiple outreach channels to meet donors on their level.
3. Prioritize Year-Round Stewardship
When a new donor gives to your annual campaign, don’t forget to continue the relationship through stewardship. Regular donor stewardship is essential for retention and maintaining engagement. Plus, it is cost-effective. According to DonorSearch, nonprofits only have to spend $0.20 per dollar raised to retain a donor while it can cost up to $1.50 to acquire a new donor.
Make sure to implement a structured stewardship routine. Regularly connect with donors through thank-you notes, updates, and calls to reinforce their impact and keep them engaged year-round.
4. Test and Measure Your Efforts to Improve Performance
A data-driven approach is crucial in refining annual giving strategies. Avera and Essentia’s teams consistently analyze performance metrics—like donor retention, average gift size, and email engagement—to assess effectiveness and identify areas for improvement.
Establish key performance indicators (KPIs) for each campaign and review them regularly. Don’t hesitate to adjust based on data, and test new approaches to find what resonates best with your audience. Kellie recommends trying a strategy twice before making the call to stick with it or move on to something new.
5. Balance Systemwide and Local Initiatives
At Essentia Health, each foundation had a unique annual giving program. While successful, this decentralized approach led to inefficiencies and high costs. To address this, the foundation pivoted in 2023 to one systemwide program, focusing on shared storytelling and a singular funding priority. The change paid off. Essentia saw a decrease in overall dollars raised, but the streamlined approach did reduce expenses and save on time. Return on investment improved from 2.1:1 to 2.3:1.
While the focus on systemwide campaigns worked for Essentia, Avera adopted a hybrid model—balancing systemwide and regional appeals. That change had a significant impact on Avera. In 2023, year-end appeals saw a 428% increase in dollars raised, including local matching gifts.
The key for Essentia was to scale back the local segments, while for Avera, increasing local initiatives helped the foundation reach its goals. When debating systemwide vs local, evaluate your goals carefully. If your main objective is cutting costs, centralization may be key. But if your main focus is dollars raised, consider a balanced strategy that incorporates both systemwide and local messaging.
6. Encourage Internal Communication and Collaboration
Avera and Essentia benefited from strong internal communication and collaboration with marketing and development teams. Kellie shared that at Avera, weekly cross-functional meetings helped align everyone on campaign progress, ensuring that marketing, development, and other teams were working toward unified goals. No matter which team sent the communication, donors received consistent messaging providing a cohesive experience.
7. Streamline Storytelling for Efficiency
When dealing with multiple foundations or regions, finding the right story for everyone can be challenging. Yet, choosing one powerful story that represents your mission and resonates as broadly as possible can save your team time. Avera chose to feature a single story that could resonate across regions while also providing alternative ways for donors to engage if they didn’t identify with the key campaign. While it may take time, seeking out a story with greater appeal to more donors can be worth it.
Final Thoughts
As you refine your annual giving strategy, remember that success lies in adaptability, connection, and innovation. Now is the time to take action. Experiment with new channels, refine your stewardship strategies, and embrace data-driven decision-making. The future of annual giving is bright for those willing to evolve.