Choosing the Right Donors to Call

by Joseph H. White, Jr.

Seemingly minor matters can have enormous impact on the cost of a telephone fundraising program - and on its results.

Some of the most troublesome issues involve file segmentation: the division of a donor list into subgroups, or segments, which may be singled out for calling (or merely for special treatment).

Take, for example, the issue of whether donors should be segmented on the basis of their Highest Previous Contribution (HPC) or, instead, based on their Most Recent Contribution (MRC). HPC is commonly used as a selection criterion for special appeals in direct mail fundraising, but it's not necessarily smart to use it in telephone fundraising appeals.

Consider the trade-offs.

A file segmentation based on HPC may inflate the number of donors selected for calling. In most programs, there will be more donors to call if we select all those who gave $100 or more at any time in the past than if we select only those whose last gift was of $100 or more.
In fact, many individuals may be included if they contributed $100 or more in the distant past but haven't contributed more than $25 or $30 at any time since then. Such donors may not be good candidates for $100 gifts today.

Keep in mind that in most telephone fundraising programs, the minimum suggested gift is a multiple of the donor's previous gift, whether HPC or MRC. And a telephone fundraiser may face great odds when asking for a $200 or $500 contribution from an individual who's really just a $25 or $30 donor. (The $50 to $100 range might be a more appropriate starting point for such a donor!)

That's how an HPC-based segmentation may create two problems: unrealistically high expectations and higher cost.

Expectations are inflated because the giving potential of donors selected on the basis of HPC is exaggerated. And costs are higher because fundraisers need more time to negotiate larger gifts. This means longer and more expensive phone calls.

The Most Recent Contribution generally provides a more direct and accurate reading of a donor file's current giving potential. (Generally, but not always: exceptions include minimum membership renewal gifts.) Using the MRC has the minor added advantage of reducing negative comments from donors whose Highest Previous Contribution may have been due to special circumstances.

Does this mean, then, that HPC is not a useful segmentation criterion in telephone fundraising?

Not at all! In a High-Dollar phone program, selecting donors on the basis of their Highest Previous Contribution often makes a lot of sense. After all, a one-time gift of $100, suggests that the donor has the ability to give $100 or more once again. But I'd be loathe to use HPC even in a High-Dollar program without including at least one other selection criterion, such as recency, for example - defining HPC as the highest gift received during the past 18 or 24 months. And, in any telephone fundraising program, it's important to set a minimum contribution level, whether it's based on HPC or MRC.

The bottom line is that the right donors need to be selected for every telephone fundraising program. Proper planning for file segmentation can pay off in a big way by lowering costs and improving net results.

Another article on Raising money by phone
• 12 ways to combine direct mail and telephone fundraising