January 2008
INSIDE...
1. Spotlight on Success...Hospitals in the mail (Part 2)
By Managing Editor Deborah Block and Paul Karps
2. Specificity!
3. Lists...New Year's list resolutions
By Suzie McGuire
4. What's Working...Holiday giving at its best
5. Ask Mal
6. Extra!...10 ways to energize your thank-you letters
By Sandy Rees
7. Size matters!
8. Hands On...Have you tried an online auction?
By Lance Trebesch and Taylor Robinson
9. CSR
10. Online...The rising impact of online communications
By Sue Woodward
11. Value!
By Mal Warwick
By Managing Editor Deborah Block and Paul Karps
Last month we began our review of what's working in the mail—and what's not—for community-based hospitals. We turned to organizational consultant Ann Thompson-Haas, FAHP (Oakland CA), who specializes in direct mail fundraising for community hospitals and hospice organizations nationwide. With her expertise, we mainly covered the acquisition of new donors and the impact of the U.S. Health Insurance Portability and Accountability Act (HIPAA).
In Part 2, we'll take a closer look at the issue of donor retention, trends in package themes, and testing ideas.
Converting tribute donors
According to Thompson-Haas, one of the greatest challenges for hospitals is to convert the tribute donor—someone who has made a one-time gift in honor or memory of a friend or loved one—into a long-term regular donor of the organization.
The goal, says Thompson-Haas, is to "convert as many people as possible, but with a realistic expectation." In other words, because the motivation to make that initial gift was more personal than institutional, the individual may have little affinity or psychological connection with the nonprofit itself. So she needs persuading as to why the nonprofit needs her ongoing support—independent of the person who was the original source of the tribute gift.
To that end, Thompson-Haas segments her housefile by tribute donors—to track them for conversion purposes. She also segments the appeal copy whenever she can to provide "as much personalization as possible." Another option, which some hospitals find works well, is to ask tribute donors to renew their gifts one month before the anniversary of their initial donations.
Thompson-Haas adds that the conversion of one-time tribute donors is an even bigger issue for hospice organizations that serve a smaller number of families than do hospitals. What's more, tribute donors—who perhaps responded to a family's request in an obituary—may be completely unfamiliar with the work of the hospice and need to be educated much like a prospect would.
Appeal topics
Certain substantive areas, explains Thompson-Haas, tend to work best as appeals. She specifically cites a focus on the emergency room, cardiology, oncology, and hospice as being the best performing topics. Interestingly, what usually doesn't work is pediatrics—unless it's pediatric oncology. (This, of course, is different for the various Children's Hospitals around the country that, as Thompson-Haas puts it, have a slightly different constituency base.)
One theme that has become particularly popular over the past two years is the "Doctor's Day" Appeal. Timed to coincide with National Doctor's Day on March 30, the idea is to use this occasion to inspire grateful patients and donors alike to give in honor of a doctor. A card, for example, might be included in the mailing, with the recipient filling in the name of her doctor.
Thompson-Haas adds that the concept can be broadened to include not just doctors, but any caregiver—turning it more into a "Patient Appreciation" theme. But regardless of who is being honored, Thompson-Haas emphatically says that "while this sort of mailing can be very effective, it should be integrated as just one part of an overall direct mail program."
Testing . . . testing
Like any direct mail fundraising pro, Thompson-Haas is constantly testing her packages in a number of ways. One such test is graphics vs. no graphics. And what she's found is that "vanilla works best." That is, the use of pictures doesn't always increase response. "Plain generally does better."
Similarly, outer envelope graphics or teaser copy "don't necessarily work for healthcare." Instead, looking "more personal" is the way to go.
Thompson-Haas also tests who should sign the letter. Should it be a board member, the medical director, a member of the medical staff, or a hospital administrator? She's learned that doctors or board members work really well, as opposed, for instance, to the hospital's CEO.
Another favorite test is a calculated gift string vs. an open Ask. In donor appeals, using the gift string results in a higher response rate, but oftentimes a lower average gift. The open Ask, on the other hand, yields a slightly lower response rate, but a higher average gift.
Building relationships
Finally, Thompson-Haas points out that from her perspective, "direct mail should not be viewed as an end and means to itself or only about revenue. Rather, it's about growing the circle of support, creating donor loyalty, and building relationships over time. Then, by using direct mail strategically, you'll be able to identify donors who can make major or planned gifts to enable the mission of the organization."
That's an approach that will improve the health of any nonprofit!
Mal and other top speakers are only a click away. Starting March 6, the Resource Alliance, Inc. and Forum for Fundraising will offer a year's worth of Web-based seminars, webinars.
To see who's speaking next, click here.
There's a great lesson on the Made to Stick blog (companion to the book of the same title) about the value of concrete details.
It's a look at some of the work of Claude Hopkins, a legendary copywriter from the 20s and 30s (and author of the classic book on ads, Scientific Advertising) when he got the Schlitz Beer account.
His ads told of the "crystal clear water from a special artesian well." They spoke of the one "mother" yeast cell that produced all the yeast for fermenting the beer. It was the result of over "1,500 experiments and produced a very distinct fresh, crisp taste." He told of how the bottles were "sterilized 12 times to ensure purity, so that nothing would interfere with the clean taste of the beer."
The Schlitz people hated it. They explained to Hopkins that this would never work. They told him, "All beer is made the same way." Hopkins calmly assured them that people would be fascinated with the "behind-the-scenes" look, and that no other beer maker had ever told the story.
Hopkins talked his client into doing the right thing, the ads ran, and Schlitz soon become the best-selling beer in America. That's the power of specificity. (Heaven knows, it wasn't the quality of the beer!)
Notice what Hopkins did with the details: He didn't just pour them on, hoping to "educate" beer drinkers into wanting Schlitz. He turned every detail into a benefit.
To do that, he had to know what a drinker wanted from beer. Then, every detail he gave, he tied directly to what his audience cared about.
Many nonprofits are pretty good at sharing the details of their programs. Where they usually fail is connecting those things with their donor's needs, wants, and aspirations. This is not easy to do, because you have to really know what your donors want. And what they want probably isn't exactly what you want.
To get this right, you have to humble yourself. You have to know—with your mind and in your heart—that the things that matter to you give you little guidance about what matters to your donors. You have to accept the truth that what motivates donors may be boring, annoying, simplistic, or hokey in your eyes.
Unless you're trying to persuade yourself to give, your own taste and preferences have no business in the drivers' seat.
Go to the details. And connect those details to your donors.
—Reprinted with permission from Jeff Brooks’ Donor Power Blog.
By Suzie McGuire
Yes, it's time—time to take a close look at those practices and habits that haven't served you so well in the past and could use a little tweaking. Time to start afresh in the way you manage your mailing lists. And here are 18 possibilities you can consider . . .
List management resolutions
1. Update your rental and exchange list at least quarterly so you can encourage usage and improve results. And be sure to get all those great year-end gifts into your next update.
2. Continue to offer your donors on a yearly basis the option to be held from the rental and exchange file that's traded with other organizations.
3. Communicate and analyze usage of your list with your list manager. Verify that your list is exchanged appropriately, that it's actively promoted, and that users are getting the list quickly and efficiently.
4. Answer list clearance requests quickly so your list manager can fulfill list orders speedily. This will result in many exchange opportunities and increased rental revenue.
5. Review with your list manager how your list is performing for other mailers. Consider changing rules surrounding usage, selections available on the list, and the frequency of updating to help improve performance for users of your list.
6. Be clear with your list manager on basic clearance procedures and on who can or cannot use your lists. This way you'll both be on the same page, and your manager will be able to respond quickly to those organizations who are seeking to use your list.
7. Put your list up on the exchange and rental market. Of course, this applies only if you don't currently make your list available. (Word to the wise: If your concern is that making your list available will offend your donors, consider this: I've seen multiple studies showing that donors left out of the exchange file have worse retention rates than those left in the exchange file!)
8. Stop blocking mail dates. You can't control when mailers use your list, nor can you control the amount of time the Post Office takes to deliver it. Coupled with the fact that donors give to several organizations—and subscribe to numerous periodicals and buy from catalogs—means that your donors are getting other appeals through their other associations. By opening up your usage, you'll be able to get more exchange opportunities, increase rental revenue, and reduce costs when you mail. In addition, you'll create good will with those organizations whose lists you're able to obtain when you mail!
Mailing resolutions
9. Test including "opt out" language for appeals and acquisition. The Direct Marketing Association recommends that marketers include opt out language in future solicitations to donors. Commit yourself to test such language in various places and with different size font treatments. With the "Do Not Mail" threat looming, begin to explore the best ways to communicate opt out language to your donors.
10. Update any list rental model you may maintain with the most current housefile information to improve mailing response in acquisition.
11. Review and re-define your "core" list universe. This category of lists may comprise up to 80% of a mailing. Resolve not to go on "autopilot" and continually use lists even though their performance may be dwindling.
12. Challenge your broker to "not take no for an answer." Ask for reasons for denials of list usage, rental approvals instead of exchanges, or blocked mail dates.
13. Challenge your broker to secure the best costs on rentals and exchange opportunities wherever it makes sense. If you're using large volumes from any one list, look for better net-name arrangements or re-use arrangements.
14. Give your broker more time to get a mail plan approved and processed. Ask for more lists than you'll need and agree upon a contingency plan to ensure you can mail your targeted mail volume.
15. Honor your donors' special requests. Some donors will request one mailing a year. Let them know you hear that request and will highlight it in a letter acknowledging their request—informing them this is their one-time opportunity to give that year.
16. Step back and reassess your fundraising and communication plan for the year. Are you mailing to the right donors at the right times? Do you need to add in a new mailing to a particularly responsive group? Do you need to add an acquisition mailing if response warrants it? Do you need to take out a mailing because of response or cost? It's great to have an annual guidepost, but it's important to keep up on response data and to react in a nimble and flexible way.
17. Remember to consider current events and how they impact the fundraising cycle. None of us has a crystal ball, but we can assume the election cycle will impact our acquisition mailing plans. So be sure to schedule your fall acquisition mailings with great care.
18. Network with other organizations and industry professionals to share ideas, statistics, challenges, and solutions. After all, each of us is in this profession because we want to connect our worthy causes with caring individuals. It's in all of our best interest to collaborate and work together towards this goal.
If we can even keep a few of these resolutions, we're in for a productive and exciting 2008!
Suzie McGuire is a Consultant at Mal Warwick Associates Inc., 2550 Ninth Street, Suite 103, Berkeley CA 94710-2516, phone (510) 843-8888 ext. 250, fax (510) 843-0142, Web www.malwarwick.com. e-mail suzie@malwarwick.com.
No doubt you've seen them before. You might have even used them yourself in your direct mail solicitations. We're talking about those ubiquitous lists of what specific giving amounts will go toward: something like "your gift of $20 will buy two meals for a hungry senior" or "your $35 will pay for a new winter jacket for a child in need."
Of course, there's a reason why this mailing approach is used over and over again. It works, pure and simple.
But a recent house appeal from the U.S. Fund for UNICEF (New York NY) did an admirable job of taking the strategy to the next level. Focusing on holiday time gift giving, the package tied it all together with a smart, appealing Marketing Concept.
The one-sheet, two-sided letter quickly sets the holiday mood, with the signer saying that "I imagine you are busy preparing for the holiday season." Copy goes on to urge the recipient to include "the world's most vulnerable children . . . in your holiday gift-giving this year . . ."
And here's the kicker: "At this time of year, when many of us in the United States are shopping for the latest toys and games for children in our families, UNICEF is striving to secure items on an entirely different—and much more essential—'Holiday Shopping List.'"
The theme continues, "Please look over the enclosed HOLIDAY SHOPPING LIST to see some of the gifts you can help us provide to children in need around the world."
The second page of the letter then reviews the impact these gifts can make on the lives of children. The second-page Ask ties it all together: "As you look over the enclosed Holiday Shopping List, I think you will be surprised at how far your contribution can be stretched . . . pleased by how many young lives you can help save at this most special time of the year . . . and I hope you will be moved to be as generous as possible with your 2007 Holiday Gift to the U.S. Fund for UNICEF."
The Shopping List itself, measuring approximately 8-1/4 x 10-1/2", folds in thirds—so that "UNICEF 2007 Holiday Shopping List" shows at the top with the handwritten "Take a look at how far UNICEF can stretch your contribution . . ." on the panel beneath. The sheet unfolds to reveal a second handwritten panel that continues this thought: ". . . and the impact your gift can make to bring hope to vulnerable children during the Holiday Season!" Eleven different items—with gift amounts ranging from $25 to $1,450—are then listed, broken down into four categories.
The reply slip wraps it all up by referring both to the Holiday Shopping List and to making a holiday gift. The one quibble we have is that the presumably personalized gift string amounts don't match up with any of the preprinted Shopping List amounts—a detail that would have been the crowning glory on an otherwise effective package.
Please click here to see this entire package.
Since 1994, when the Mal Warwick Associates Web site went online, Editor Mal Warwick has answered fundraising questions posed by visitors to the site. Hundreds of those Q&As are available here. In this new feature, we'll spotlight one Q&A from the most recent month.
Question: What advice do you have for creating a first planned giving program?
I am developing my organization's first planned giving program. I have zero experience in this area and would like to make it the simplest and most efficient program possible while still recruiting new donors. Can you recommend any good "how to" books for someone at my level as well as any seminars in the Chicago area that are not conducted by a bank or someone marketing planned giving software? Thanks for your help!
Mal answers: You may want to check with someone else as well after you read this. As you'll quickly see, I depart from the conventional wisdom on this matter of "planned giving."
First of all, that phrase, commonly applied in this country to the field of legacy giving, is unfortunate. Why? Because it almost invariably conjures up in fundraisers' minds the sort of complex trusts and other tax-avoidance schemes favored by millionaires and requiring the ministrations of lawyers, accountants, financial advisers, and "planned giving" specialists charging hundreds of dollars an hour. And that's only the tip of the iceberg in legacy giving.
Fact: At least 90% of legacy gifts are simple bequests in wills or living trusts. They require no more than a quick check with a lawyer to be certain you have the language to conform to the laws in your state. While bequests are typically much smaller than charitable remainder trusts and other complicated instruments, there are so many more simple bequests than any other type of legacy gift that the income tends to dwarf what comes from the rest. (The average bequest in the USA is $35,000, I'm told.)
Fact: There is absolutely no correlation between wealth and the propensity to leave a legacy. In truth, people of lesser means may be more likely to leave bequests.
Fact: Donors in the USA and Canada are very receptive to learning that a charity accepts legacy gifts. That's basically all they need to know—that, and the fact that the easiest way to leave a legacy is by adding a bequest to a will or living trust.
Now, if you talk to most people who specialize in "planned giving"—the same people who offer most of the training sessions in the field—you'll probably hear a different story. Their professional interests are at stake. And, it's certainly true that if there are multimillionaires among your constituents, you might get really lucky and (eventually) receive one of those seven- or eight-figure trusts. However, if your organization is like most of the other 1.5 million nonprofits in the USA, you'll be far better off starting with a simple effort to promote legacy giving by bequest through the mail.
If that last statement sounds self-serving (I am, after all, a direct mail specialist), please check out the available market research data that shows direct mail is by far the best-received and, in most circumstances, the most effective way to market legacy gifts. Again, you'll find disagreement on this point. There are telemarketers in the business who swear their results are superior. I don't believe it.
Unfortunately, there is no book of which I'm aware that will lay all this out for you and give you a step-by-step introduction to how to promote bequests. I've written a little about it in my book, How to Write Successful Fundraising Letters, Revised Edition. But I don't know of anything in print that details what I regard as the fundamentals in this matter: emphasizing the mission, avoiding mention of taxes or tax savings, focusing on case studies of donors who have already pledged bequests, and paying special attention to long-time and regular donors, including those who have lapsed as they aged.
By Sandy Rees
The thank-you letter often is created and sent without much thought. It may seem to be the last step in getting a gift from a donor and a routine task that warrants little merit. But it's actually the first step in securing the next gift!
Purposeful and well-thought-out thank-you letters can help you steward your donors, not to mention provide you with another way to communicate with them. Make sure you are getting the most from your thank-you letter efforts with these ideas.
1. Get the letter out quickly!
Everyone has probably heard that the faster you get your thank-you letters out the door, the better. That's absolutely true. A donor wants to be sure you received her gift, and a thank-you letter is the best way to let her know it arrived safely. Experts say to let no more than 48 hours go by from the time you receive a gift until the time you send out a thank-you letter. If it takes you a little longer and that's the best you can do, work with it. Figure out what will work for your organization and put a priority on getting the letters out the door.
2. Relate your thank-you letter to the Ask.
Instead of sending out a generic letter, customize your thank-you letter to the specific Ask that was used to generate the gift. If a gift comes to you from an appeal you sent out, then make sure your thank-you letter refers to the story or the text in the appeal. You may need to write several different letters that can be used for whatever you have going on. For instance, you may want to write one letter for a special event you're working on, another one for monthly givers, and another one for donors who respond to your newsletter. Relating the thank-you letter to the Ask is a way to let your donors know you are paying attention.
3. Tell the donor what you will do with their money.
This is critical. Make sure the donor knows how you plan to use the donation he or she just sent you. Text like "Your gift will ensure that 15 children will go to summer camp for one week" makes the process of donating tangible to the donor. He can envision 15 kids going to camp for a week, and it helps create a bigger feeling of satisfaction for him.
4. Use a real signature.
Digital signatures are easy and eliminate hand-signing a stack of letters. But technologically savvy donors know the difference between a digital signature and a live one. Have your President or Executive Director sign the letters, or ask a volunteer to sign them on his or her behalf. And use a blue pen so that donors can clearly tell it is a real signature.
5. Have the ED or President go through the letters and add personal notes.
This can bring big rewards in terms of stewarding donors! Taking a few minutes of a busy day to go through a stack of letters may seem like a chore to your boss, but donors who get a thank-you letter with a personal note will be thrilled that the ED took time to personally acknowledge his or her gift.
6. Add a reply envelope.
Don't be afraid to include a reply envelope in a thank-you letter. Many donors will hang onto these and use them for their next gift. You may receive some negative feedback, but you will likely receive a large number of gifts as well. It's not uncommon to receive thousands of dollars in gifts from these "bounce-back" envelopes. You may want to code these envelopes so that you can track the number, size, and amount of donations received using this technique. [Editor's note: Not all of us in the field advocate including a reply envelope in thank-yous. But it's a common practice and represents a matter of judgment.]
7. Include year-to-date or lifetime giving data.
For donors who have been giving for several years, this information can be very enlightening to them. A donor who gives a $10 gift regularly to your organization will immediately see how her gifts add up over time. Sometimes donors forget when they last gave. Including year-to-date information can be a gentle reminder for them if they have pledges or commitments to make.
8. Make it clear that the letter is also a receipt.
Don't you hate getting boring thank-you letters that drone on and never clearly spell out the gift you made? If you have to, draw a line on the page below the thank-you text and print "Gift Receipt" along with the actual gift information.
9. Include an offer to tour your facility or program site.
Always include in your letter an offer for a guided tour of your facility or program site. You may never have anyone take you up on this, but they will remember that you offered. You will probably get a few people who want to visit you. Seeing firsthand the work that you do may make all the difference in the world to a particular donor. It can also mean the difference in an average size gift and a major gift.
10. Include the name and contact info of someone the donor can call with questions. Make sure that person is available.
Donors want to be able to call and talk to a real, live, knowledgeable person when they have questions. So be sure to include the name and phone number in your thank-you letters of someone who can answer questions for them.
From the blog Step-by-Step Fundraising. Sandy Rees can be reached by phone at (865) 216-0083, at her Web site www.sandyrees.com, or by e-mail at sandy@sandyrees.com.
As reported in NPT Instant Fundraising, a new study conducted by The Center on Philanthropy at Indiana University for American Express looked at national charitable giving patterns. But instead of examining total annual donation amounts, the analysis focused on individual gifts. One of the more significant findings was that while the average gift amount was $172, 66% of the donations were under $100 and 45% were under $50. What's more, the median donation was $50, emphasizing the overall importance that smaller-sized gifts play in American philanthropy.
Other key findings were that no statistical difference was found between the average online gift ($165) and offline gift ($174), donations made by credit card were larger than those made by check or cash, and that 24% of the total amount donated was contributed during the holiday season between Thanksgiving and New Year's Day. To read the complete report of the American Express Charitable Gift Survey, click here.
By Lance Trebesch and Taylor Robinson
One of the most effective online fundraising tools you can use today is the online auction. As you may be aware, auctions are time consuming and difficult to manage but can also be very lucrative.
In 2006 alone, more than $16 billion was raised through charitable auctions in the U.S. (National Auctioneers Association). Furthermore, auctions give nonprofit organizations the unique ability to tap into "household spending" dollars which compose 66% of the GDP compared to the only 2% allocated to "charitable giving" (Making Auctions Work Best for Corporate Sponsors and Fundraisers). The use of an online auction in your organization will reduce the amount of resources required to host the auction while maximizing the potential profits.
Advantages
Number of bidders. The principal advantage of an online auction over a traditional auction is the number of potential bidders. The largest online auction site today, eBay, had 83.3 million users in its latest quarterly report (2nd Quarter 2007) and had revenues totaling $6 billion in 2006, up 31% from 2005 (The New York Times).
Women. To maximize your auction's effectiveness, it's important to get women more involved in the bidding process. Hosting an auction online is an effective way to accomplish this. Believe it or not, 71% of online bidders are women (Why Online Fundraising Auctions Work).
General. Online auctions can last for weeks, improving your items' visibility. According to cMarket, your nonprofit can expect to see an increase in auction proceeds between 25% and 100% online rather than face-to-face.
The first step in undertaking an online auction is to decide what method you'll use. Three viable options are available: on your own Web site, using Mission Fish, and using cMarket.
Hosting an auction on your Web site
This is a way to avoid paying commissions on the items you sell—and maintaining control over the auction at all times. The disadvantages are significant however: It requires considerable computer savvy and time to create a successful auction. Furthermore, payment arrangements and credit card security must be addressed. For most organizations, this is not a viable option.
Mission Fish
Mission Fish allows nonprofits to sell and buy auction items on eBay's Giving Works. To list your auction on Giving Works, you'll first need to set up a free Mission Fish nonprofit account, then an eBay account.
The advantages of Mission Fish include the following:
1. A huge number of potential buyers.
2. It's relatively inexpensive. Mission Fish is free, but eBay generally charges 4-6% of the auction selling price.
3. It's easy to set up and requires little continued involvement.
4. Any seller can donate 10-100% to your nonprofit. Your nonprofit is listed on Mission Fish, so sellers can select and decide how much they wish to contribute.
The disadvantages of Mission Fish are:
1. eBay shoppers are looking for the best deal. Nonprofits would ideally like people to pay as much as or more than the market value of the item to contribute to their cause.
2. It's difficult to create community. Anyone and everyone can bid for an auction item, so it's much harder to build a sense of community and get supporters personally involved.
cMarket
cMarket is an online auction tool that's specifically designed for nonprofits. This is a more hands-off approach to online auctions because after the sign-up process is complete, cMarket manages everything.
The advantages of cMarket include:
1. It's the simplest way to stage an online auction. cMarket has hosted more than 2,000 online auctions for nonprofits, and the auction is handled by professionals.
2. Vacations, cruises, and many other prizes can be acquired risk-free. Many of the prizes are available through cMarket and are free of charge if the auction is not a success. If the auction is successful, however, the items' selling prices to the nonprofit are still well below market value.
3. Bidders are supporters. cMarket is smaller in scale, and most of the bidders will be people notified about the auction through e-mails, phone calls, or personal requests.
The biggest disadvantage of cMarket is that it's expensive. The additional services come at a price of $295 per year and a 9% commission on sales (A Few Good Online Auction Tools).
Our recommendation is that, if you're trying an online auction for the first time, use Mission Fish. It's lower risk (you'll probably get near-market value) and inexpensive. However, cMarket is a promising tool for many nonprofits in the future.
Making your online auction a success
Timing. If you decide to use eBay's Giving Works, you'll want to plan the auction so that it ends on a Sunday night between 9:00-11:00pm Eastern Time to maximize sales (Four Huge Mistakes Ebay Sellers Make).
Frequent E-mails. Sending frequent e-mail updates to supporters—which let them know how many days they have left to bid on certain items and when they have been outbid—will create a sense of community around the fundraising project. Be sure to increase the frequency of e-mails during the end of the auction period.
Photos. Many nonprofits don't spend enough time taking high-quality photographs of the items being auctioned. Good photos are proven to increase sales in online auctions.
Title. For eBay auctions, think of titles for auctioned products that are likely to match what buyers will search for on eBay.
Product Types. The highest-priced auctioned items, in order, are "travel, tickets, and art." The average selling price for all items in a Giving Works Study was $53.
Lance Trebesch and Taylor Robinson can be reached at www.ticketprinting.com or by e-mail at Lance@TicketPrinting.com.
If you'd like to learn a little about cutting-edge developments in the field of Corporate Social Responsibility—and learn a little about my life outside of fundraising—please join me Tuesday evening, 5:30 to 8:00 pm, January 29, in the boardroom of the San Francisco Chamber of Commerce.
I'll be moderating a "Business Innovation Conversation" about "Values-Driven Business," the topic (and title) of a recent book I co-authored with Ben Cohen, co-founder of Ben & Jerry's.
The panelists will include top executives from three outstanding San Francisco companies:
- Method Products Inc. CFO Andrea Freedman will discuss how the company's internal practices around the collaboration of hip, clean, and conscious created a home products business that has been doubling annually in size and revenue.
- Wild Planet Toys COO Jennifer Chapman will share innovations such as the "Inventor Invasion" program, pairing employees with kids from low-income after-school programs to help children develop their creativity through toy invention.
- New Resource Bank founder and Vice Chairman Peter Liu will discuss how bank employees are encouraged to "re-purpose" their careers, and how granting low-interest loans to green builders has garnered this community bank assets of $60M after just six months in operation.
The panel will discuss ideas that highlight how incorporating a company's values into its core business policies and practices can produce benefits for its owners or shareholders as well as its employees, its community, its suppliers, and the environment.
The Chamber's boardroom is located at 235 Montgomery Street, 12th Floor, in downtown San Francisco. The event will be co-produced by S.F. Works, the San Francisco Chamber of Commerce, Social Venture Network, Net Impact, and Pacific Community Ventures.
5:30 to 6:30 pm registration and cocktail reception; 6:30 to 8:00 pm program, with Q&A. Cost is $25 for Chamber of Commerce, Net Impact, and SVN members; $35 for nonmembers and at the door (all major credit cards accepted). Register in advance: Visit www.sfworks.org or contact Allison DeLise at (415) 217-5181 or adelise@sfworks.org.
By Sue Woodward
Sixty-two percent of adults link directly to an organization's Web site for information about the organization before donating, according to a recent online survey of 2,379 U.S. adults, conducted by Harris Interactive in collaboration with Virilion (formerly Mindshare Interactive Campaigns). Participants were 18 and over and had volunteered, donated, or advocated for a nonprofit in the previous 12 months.
The Web is used as a source of information more than friends (38%), the Better Business Bureau (38%), family (31%), or third-party sites such as Charity Navigator (11%) or GuideStar (7%).
The survey findings don't suggest you can ignore charity watchdog groups. But they do highlight the need to examine carefully how you present your organization to the world—and dedicate more time and resources to ensuring that your Web site shows off the great programs and personal stories that illustrate how your work makes an impact.
Changing communications preferences
Despite this finding, 35% of nonprofit donors still prefer direct mail as the method to receive information from the organizations they support. However, this preference was significantly different among varying age groups. Older donors (those 65 and older) are more likely than younger donors to prefer direct mail (46% of those 65 and older versus 25% of those age 30-39 and 36% of those age 40-49).
But how did preferences for communication fall after direct mail? Eighteen percent of nonprofit supporters prefer searching an organization's Web site themselves. (Web site search – another reason to make certain your storefront is in order!) Fourteen percent prefer to receive information from a friend, 12% from family, (people giving to people), and 10% prefer e-mails from the organization.
This last finding was a bit of a surprise. It's also a heads up to organizations that rely solely on e-mail appeals and e-newsletters to reach their online fundraising goals. They need to begin thinking of how they can engage donors through more interactive marketing tools and strategies rather then just push marketing.
Bigger donors spend more time online
Adults who support nonprofits and are online spend about equal time with the Internet as they do watching television: an average of 17 hours per week watching TV compared to an average of 16 hours on the Internet. This exceeds the time they spend with radio (nine hours), newspapers (four hours), and magazines (three hours).
By contrast with supporters in general, donors who give larger amounts and are online spend more time with the Internet than television. Those who donated $5,000 or more in the past year and who are online spend an average of 19 hours per week online as compared with an average of 16 hours watching television.
But donors who gave less than $1,000 in the past year and are online spend more time with television than the Internet. On average, those who gave less than $1,000 spend 17 hours per week with the Internet as compared with an average of 18 hours with TV.
So do younger people
In addition, younger adults who are online and support nonprofits spend more time with the Internet than with television than older supporters. Those age 25-29 devote 15 hours per week to the Internet and an average of 13 hours per week to TV. Those age 65 and older spend an average of 16 hours per week with the Internet and an average 23 hours per week with television.
My colleague, Michele Salomon, Research Director, of Harris Interactive concludes, "These findings suggest that important segments of nonprofit and charitable supporters rely on the Internet as much as if not more than other media sources to get their information. This seems more pronounced among higher level donors and younger supporters."
This survey certainly shows that nonprofits need to alter the balance of their communication efforts if they want to engage supporters effectively. Direct mail remains important. As direct response pioneer Roger Craver continues to tell us, "Don't Give up Your Postage Meter!" But as more time is being spent with the Internet, younger and more affluent donors are using this medium now more than ever. Nonprofits looking towards the future must change the focus of their efforts when acquiring, cultivating, and retaining donors.
M. Sue Woodward, CFRE, is Senior Vice President, Virilion (formerly Mindshare Interactive Campaigns), 1025 Vermont Avenue N.W., Suite 1200, Washington DC 20005, phone (202) 370-1465, fax (202) 521-4014, Web www.virilion.com, e-mail swoodward@virilion.com.
By Mal Warwick
How much is a monthly donor worth to you? His Long-Term Value, I mean.
Just for instance, take this one exemplary former monthly donor to one of our clients at Mal Warwick Associates . . .
Beginning with a $25 gift in 1983, this generous individual made a total of 279 monthly gifts of $25 or $30 each over a 22-year period ending in 2005.
After such a dramatic demonstration of loyalty, why did the monthly gifts end in 2005? For the same reason that all gifts end . . . with death.
One year later the client received a $25,000 bequest from its former, loyal donor.
The total value of all those 280 gifts of a lifetime? $31,250.
And if you think that donor history is unique, guess again. Giving histories for monthly donors like this thoughtful person—ending with bequests—are wonderfully common in fundraising.
The next time someone proposes you launch a monthly giving program for your organization, think twice before you reject the idea as too much trouble.
This publication is designed to provide accurate and authoratative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal or other expert assistance is require, the services of a competent professional should be sought. (From a declaration of principles jointly adopted by a committee of the American Bar Association and a committee of publishers.)
Mal Warwick's Newsletter: Successful Direct Mail, Telephone & Online FundraisingTM
(ISSN 1067-9316) is published 12 times per year by Strathmoor Press, Inc.,
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