July 2009

Join me at the Bridge Conference!

Now in its fourth year, this annual Washington DC conference has emerged as one of the largest—and surely among the best—of the many fundraising conferences held around the United States each year.

This year’s Bridge Conference—formally, the Bridge to Integrated Marketing & Fundraising Conference—will be held July 21-23. I’ll be busy there, delivering two workshops and a pre-conference master class. Check it out.

1. Direct mail for small nonprofits

By Tom Ahern

Can direct mail be a cash cow for smaller nonprofits? Think “cash calves” instead.

Mass-market expectations yield disappointing results at local levels. Take heart, though: Direct mail is about far more than instant cash.

Everything you think you know for sure about direct mail is likely based on the ways and means of mass-market fundraisers.

One-half of one percent: that’s an acceptable response rate, mass-market professionals figure, for an untried direct mail appeal sent to an untried audience. You’re acquiring one new donor, in other words, for every 200 pieces you mail.

Well, okay, if you mail a million pieces, that math might work for you. It somehow does for sophisticated mega-charities.

But if you mail just 5,000 pieces, as a local nonprofit might, hoping to attract new donors, a return of one-half of one percent is bound to disappoint, at least in terms of an immediate financial windfall.

Acquiring 25 new donors (.005 x 5,000), even if they gave you an unusually generous $50 average gift, will only gross you $1,250. It could cost you twice that much just to print and post the mailing. How can you possibly cost-justify that kind of outlay when your fundraising budget is already dangerously frail?

And yet . . . direct mail can be a vital contributor to the fundraising efforts of smaller and niche charities. You just need a different sort of math.

Onesies-twosies math. Smaller nonprofits are not in the churn-and-burn direct mail business. They are in the business of adding a few friends at a time, accumulating a list of true believers, fellow travelers, concerned neighbors, and others.

New Haven, Connecticut, a typical enough small city, has one nonprofit for every 100 residents. The vast majority of these organizations will probably never muster more than a thousand supporters apiece. Even big organizations sometimes have relatively few supporters. A community foundation I know that in 2008 gave away $27 million in grants has accumulated just 1,100 permanent funds in its 93-year existence; that’s about 12 new donors who started funds each year.

Work the percentages, not the gross income. Direct mail for smaller nonprofits is as much about “friend-raising” as it is about fundraising.

Case study: A nonprofit serving immigrants and refugees took its first baby steps into direct mail, sending out 5,000 pieces of mail to strangers. The mailing did surprisingly well, reaping 100 new donors, a 2% response rate. Still, the average gift was just $25 (a typical “first date” gift), for total gross revenue of $2,500. Total net revenue after expenses? Less than zero.

Was their mailing a failure or a success? If you counted just the cash, a failure definitely. But let’s take a second, deeper look. This nonprofit was new to non-event fundraising. A mere 400 names comprised their entire annual donor list. Adding another 100 donors increased that supporter base by 25%, a significant improvement. Looked at that way, I would deem the mailing a howling success.

Why? Because, as a small nonprofit, an essential mission is to build your “tribe.” Tribe is a marketing term. You can define your tribe as those few people who believe in your mission, would like to see you prosper and grow, and will occasionally contribute money or time to that end.

If it works, mail it again. Embrace this stark reality: Most people ignore most of their mail most of the time. You do. I do. We all do.

Newbies to direct mail worry about the 99.5% who do not respond to an acquisition mailing. They worry, “Why don’t they like us?” It’s a pointless anxiety. Most people receiving your mail neither like you nor hate you. In fact, they’ve made no decision about your organization, except to ignore your mailing that particular day.

I learned a very interesting thing: If you keep mailing a good piece of direct mail to the same well-qualified group of people, you will pick up additional response each time you mail.

I wrote a direct mail “friend-raising” package for a community foundation. We sent it to a list of millionaires in the relevant geographic area. The first mailing went out to 3,340 names and garnered a 3% response. Hence, we judged it successful measured against industry standards.

So we mailed the very same package again to the very same list, minus anyone who had responded, a few months later. This time we attracted a 2.5% response. A few months later we sent the very same package to the very same list yet again, minus anyone who had responded. This time we received a 1.3% response.

Point? Had we stopped with the first mailing, we would have left more than half our eventual response on the table. (Care to read the letter? Go.) Again: Most people ignore your direct mail for no good reason. If they’re qualified recipients (for a local charity, anyone who lives in the same area is the broadest brush) and (important caveat) you have a direct mail package that works, keep mailing. It will pay off.

Retention is the real name of the game. It is expensive to acquire new donors. It is cheap—up to 10 times cheaper—to elicit a gift from a person who has been a donor before.

And yet retention is probably the least developed aspect of most fundraising programs. Donor loyalty programs are in their infancy. Welcome packages are virtually unknown. Most donor newsletters, a primary tool for donor cultivation, are unmercifully wrong-headed.

Takeaway: A local charity needs a way to attract new friends and build its tribe. Direct mail remains the tool of choice for that important task. Know, too: As the economy went sour, U.S. donors began redirecting their contributions to local charities such as food banks, research indicates. Local charities, this might be your best moment to reach out.

Reprinted with permission from the Ahern E-Newsletter: About Donor Communications. Copyright © 2008 by Tom Ahern.

2. Where's Mal?

July 14, 2009 – Webinar
The Foundation Center
Workshop: Fundraising When Money Is Tight

July 21-23, 2009 – Washington DC
2009 Bridge to Integrated Marketing & Fundraising Conference
Master Class: The Copy Clinic: Crafting Brilliant Fundraising Letters, Emails, and Telephone Scripts for Breakthrough Fundraising Results
Workshop: The Nitty Gritty of Direct Marketing: Analyzing Direct Mail, Online, and Telephone Fundraising Results
Workshop: Getting Inside the Mind of the Donor
Site: Gaylord Hotel, Resort and Conference Center, National Harbor MD

September 2, 2009 – Phoenix AZ
AFP Greater Arizona Chapter
Luncheon Address: Fundraising When Money Is Tight
Workshop: Fundraising in a Global Context
Workshop: Technology and the Future of Direct Response
Site: Sheraton Hotel

September 16, 2009 – San Diego CA
Fundraising Outside the Box Conference
Luncheon Address: Fundraising When Money Is Tight
Workshop: Fundraising When Money Is Tight
Site: Hilton Hotel Downtown

October 2, 2009 – Los Angeles CA
ArtsReach National Arts Marketing & Fundraising Conference
Keynote
Site: Biltmore Hotel

October 16, 2009 – Concord NH
CONFR: Council on Fundraising
Keynote

February 26-27, 2010 – Albuquerque NM
Association of Lutheran Development Executives
National Conference
Master Class
Workshop
Site: Hyatt Regency

May 11-13, 2010 – Online
Second International Fundraising Congress Online

3. Standing out in a crowded inbox . . . twice!

By Managing Editor Deborah Block and Paul Karps

Normally in this column, we discuss a direct mail package that has caught our attention for some particularly noteworthy reason. This time, however, we’d like to switch gears and highlight an email solicitation we recently received. Or, to be more precise, a pair of email appeals that really stood out among the many that hit our inbox every day.

Just to preface this praise, we’ve certainly noticed for a while now that the emails we typically receive from the Planned Parenthood Federation of America (New York NY) have been a cut above the rest. But in early May, the folks at PPFA raised the bar even higher.

Here’s the email in its entirety:

Right off the bat, check out the teaser copy—oops, we mean the Subject line. Personalized to the recipient, it’s grabby and absolutely piques your interest. Plus, many people probably recognize the reference to Judy Blume’s iconic novel, whetting the appetite even more to open the email.

But just to be on the safe side, the introductory italicized paragraph—written by PPFA President Cecile Richards—clearly identifies Judy Blume and her most famous works.

The rest of the email, though certainly well written, is your pretty standard honor-mothers-on-Mother’s-Day pitch, albeit with the celebrity twist of having it penned by Blume. (Though the graphics are also nice. And the picture adds a warm, personal touch.)

The kicker, though, came the next day, when we received the following PPFA email:

Apparently, that first email created quite the stir—as noted in a Chicago Tribune article entitled, “Judy Blume embroiled in Planned Parenthood controversy.”

The beauty of this second email is that it touches so many buttons. Not least of which is the “us-vs.-them” mentality that underlies the “how-dare-they-attack-our-beloved-Judy” approach.

In effect, PPFA is able to turn the situation into a community-building/activist-based exercise, rallying the troops to send additional messages of support to Blume.

Of course, the email works just as effectively in a more traditional sense: as a direct follow-up to the original fundraising appeal. Though in this case, it also illustrates the communicative power of email and the immediacy of the medium.

Well done . . . all the way around!

Copywriters Deborah Block and Paul Karps are partners in BK Kreative, 1010 Varsity Court, Mountain View CA 94040, phone (650) 962-9562, email bkkreative@aol.com.

4. Ask Mal

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. Here’s one Mal answered last month

Question: I am an event planner and want to develop a niche and specialize in fundraising. I have a full-time job I love, but I am trying to get involved with fundraising on a part-time basis. My current job is flexible and I get a lot of time off.

How does a person get involved in fundraising? I know I could be an asset and I ultimately want to be able to consult nonprofits in the area of fundraising along with possibly planning galas. How does one become an expert in this field?

Mal answers:The best way I know to get a start in nonprofit fundraising is to volunteer for an organization whose work you feel passionate about. Events, in particular, often require lots of volunteers.

Another way—not mutually exclusive by any means—is to network with professionals in the field. Join the closest chapter of the Association of Fundraising Professionals (AFP), and go to some of their events. It’s probably not a bad idea to read some books, too (hint, hint!). For a good selection, go to a big online bookseller and search for “fundraising.”

5. Social “Trysumers” and the hidden gate in the donor pyramid

By Marcelo Iniarra Iraégui and Alfredo Botti

Indiana Jones adjusts his hat, lowers his head, summons up all his courage, and pushes the sphinx. The door to the pyramid he had studied for years opens up before his eyes. He reaches for his torch and steps into the labyrinthine passageway. He has discovered a new door, one that had remained hidden from the sight of those who passed right by every day.

The torch lights up the passageway. Suddenly, the echo of his footsteps becomes louder and a golden chamber appears before him, revealing the pyramid’s glittering treasure, its brilliance illuminating an unmistakable smile on the face of the archeological adventurer.

Another hand, just like Dr. Jones’s, is about to open another door in the pyramid—the donor pyramid. There is some hesitation, as if someone is considering, “Why not? It’s a good cause. Let’s try it.”

A few seconds later, the index finger on the hand clicks the button on the mouse and the “send” option changes color. The data arrive at the organization in less than a second, and the door of the pyramid opens up. A confirmation message, slightly less glamorous than Dr. Jones’s treasure chamber, appears: “Thank you for subscribing to Save the Forests. Your details have been received.”

Every day, millions of people concerned about thousands of causes go through a new door in the very same fundraising pyramid that has appeared in fundraising books for years. However, now we need to think about the pyramid with two new concepts added (see illustration).

The first of these new concepts is that the pyramid has another doorway, a different entrance that can be accessed by making a donation. In turn, the pyramid also has an extra space, an entirely new level that admits nonfinancial, digital supporters who arrive via new media—Websites, email, and the increasingly popular SMS (Short Message Service, or text messaging), or through other wireless access points.

The second concept is the introduction of a new trend that emerges from the entry of these nonfinancial, digital supporters— “social trysumers”—to the pyramid. This trend involves trying out the experience and determining the effectiveness of social organizations all over the world, at no cost, before deciding whether to remain a nonfinancial, digital supporter.

The hidden gate

A new level has been added to the pyramid. The traditional fundraising pyramid permitted access to the organization only if someone made a donation. This doorway was generally accepted and respected by everyone. Entry could be gained by making a one-time donation; by becoming a monthly, annual, or major donor; or by leaving a legacy. However, it always involved an initial financial contribution. Underneath the pyramid were prospects or suspects who were enthusiastically invited by social organizations to enter the fundraising pyramid through the donation door.

New media have changed social paradigms. Now, more than 1.3 billion people use the Internet and more than 3.3 billion have mobile phones. This has made a massive impact on the way people communicate with one another and with social organizations.

Since the emergence of new media, it has been possible to notice the emergence of a new model and a new door to the fundraising pyramid—a nonfinancial, electronic door—as well as a new level, or space, where millions of people can begin their journey of commitment to an organization.

Consider people who become involved with an organization as cyber activists or other kinds of digital participants, before becoming financial supporters.

It might be useful to clarify that the change became evident when considering the contacts in an email list, not just as mere contacts, but rather as individuals who had an access door to the organization and may possibly go on to make donation. It’s important to say “possibly” because many of these contacts will continue to support the organization non-financially through voluntary participation. This participation may include involvement through digital media by actively sending protest emails to governments or corporations, or by simply keeping themselves informed so that they can express their activism in their day-to-day lives. This model applies to every kind of organization, from community or educational institutions to campaign and environmental organizations.

Who uses this hidden gate to the pyramid? There are “social trysumers,” those who want to try new experiences in the social sector via new media without incurring any costs. The concept applies here to describe the portion of nonfinancial supporters who are in search of new and creative proposals for social change.

There’s also a more traditional group of social participants who enter through the nonfinancial door in search of familiar experiences, made easier by new media access, and who want to be part of a digital movement, activism, or community. They wish to be a part of the organization, but don’t want to donate right away. Many other groups also exist, depending on the specific characteristics of each particular organization.

What is a “trysumer?”

“Trysumers” have been described as “transient, experienced consumers who are becoming more daring in how and what they consume, thanks to a wide range of societal and technological changes.”

Another definition is as follows: “Freed from the shackles of convention and scarcity, immune to most advertising, and enjoying full access to information, reviews and navigation, experienced consumers are trying out new flavors, new authors, new destinations, new artists, new outfits, new relationships, new ‘anything’ with post mass-market gusto.”

Source: http://trendwatching.com/trends/trysumers.htm

Trysumers often become financial supporters. A recent case from Greenpeace emerged in Argentina where the organization collected 1.5 million subscribers for its Save the Forest Campaign in just 65 days and 28,000 monthly members in less than eight months. In this case, a combination of emailing and telefundraising was a very successful strategy in converting nonfinancial supporters to financial supporters.

New fundraising for a new pyramid?

Organizations worldwide with digital fundraising as a main component of their marketing mix are using various versions of this new pyramid. These organizations have raised the question of how to manage nonfinancial supporters most effectively. Which department should be in charge of managing the database? These supporters are not simply referred to as newsletter subscribers, cyber activists, online volunteers, etc., depending on the organization. The communications department wants to manage the email or SMS information from these supporters. The public policy department “looks after” digital action and its impact on the organization’s political objectives or programs and is responsible for taking the lead. The development office wants to invite the nonfinancial supporters to donate in order to achieve the organizational objectives. Sometimes the debate is endless.

The proposition that the first contact with potential donors begins with a new, electronic nonfinancial door, through which hundreds or thousands of people pass in a very short time span, constitutes a change in vision for fundraising. Perhaps now, more than ever, development offices should become public-mobilization departments, integrally leading nonfinancial relationships with the organization. This would constitute a significant change in fundraising. Many people never choose the financial donation path, but nevertheless remain members of an electronic community of activists or friends of an organization. Others enter the traditional donor cycle.

Given the new paradigms introduced by electronic media, perhaps the Greek philosopher Heraclitus, who lived more than 2,000 years ago, could not possibly have imagined that his wise advice would still apply today. He was very right in stating, “There is nothing permanent except change.”

Marcelo Iniarra Iraégui styles himself as “tribe chief” of Marcelo Iniarra Consulting. He’s based in Buenos Aires and may be reached by phone at +54 (11) 4588-0363 or by email at marcelo@marceloiniarra.com. Alfredo Botti is Director of Fundraising for Greenpeace Argentina.

6. When not to ask for funds

By Jeff Brooks

To hear some fundraisers talk, you might believe that one of the coolest secret fundraising weapons around is not asking for money.

It doesn’t work.

For the most part, not asking is the quick route to not receiving.

But I do know of three situations when it’s better not to ask than to ask:

1. When a donor specifically requests that you not ask.

Common courtesy says you don’t talk to someone who doesn’t want to be talked to. But in fundraising, it’s better than that: When someone requests less communication, they often end up giving as much or more than someone who makes no choice at all. In fact, it works so well, you’d be smart to encourage donors to tell you when and how you should contact them. Just giving them the choice improves their future responsiveness. It’s like magic!

2. When it’s not worth your money to ask.

With some donors, it might be costing you too much to ask. Someone who gives you $5 will most likely give you $5 each time they give. Pay attention to the costs and revenues of your fundraising by donor giving level. You’ll likely find groups where you’re paying more to ask than you’re getting back. This is often masked by the overall performance of the file as a whole.

Finally, and most important, the main reason not to ask for money:

3. When you don’t need any revenue.

Takeaway from all this: If you need money, you should ask for money. With some rare exceptions, more asking means more revenue.

Courtesy of Jeff Brooks at Donor Power Blog.

7. Who’s using the Internet?

By Tom Belford

Always “must read” for me are the reports from the Pew Internet Project on Internet habits by generation.

Here’s the latest, from which I’ve extracted a few factoids.

Of special interest to us fundraisers is Internet use by older generations:

• Age 55-59 - 71%

• Age 60-64 - 62%

• Age 65-69 - 56%

• Age 70-75 - 45%

• Over 75 - 27%

I focus on the old folks ’cause this is where the donors are.

A good indicator of how many in this universe might be online donor prospects is the percentage who have purchased something online.

Of Internet users, these percentages have shopped online:

• Gen Xers lead the way at 80%

• Older Boomers (age 55-63) - 72%

• Younger Boomers (age 45-54) - 68%

• Age 64-72 comes in at 56%

• Age 73+ is 47%

Pew observes that through age 32 online users are focused on entertainment and communications (especially via IM and social nets). Beyond that age, online interest shifts to research and email communication.

Worth a read.

Reprinted with permission from Tom Belford in The Agitator

8. What’s the right length for your landing page?

By Ivan Levison

Should your landing page be short and sweet and to the point?

Or should it be long, fact-filled, and loaded with irresistible benefits?

The answers to these questions depend on what your landing page is trying to accomplish.

A little background . . . Landing pages are of two types:

1. A long landing page can be used to “sell off the page.” In other words, you can try to make a sale and actually complete a transaction right on the spot.

EXAMPLE: My friend Bob Bly is currently selling an ebook titled Writing E-Books for Fun and Profit from a landing page. To check out Bob’s very effective, heavy-copy landing page, click here.

2. A short landing page is used simply to capture data. The goal of this kind of landing page is simply to get prospects to cough up some basic personal data (like name, title, email address) in exchange for allowing them to access your free offer (like a White Paper, “How to” Guide, Executive Report, whatever). KEY POINT: No attempt is made to complete a sale.

EXAMPLE: To check out an example of a short, clean, to-the-point landing page, click here.

The bottom line?

If your intention is to make a sale right off your landing page, don’t hesitate to go for length.

You’ll need to:

• Fully explain all features and benefits

• Build trust and confidence

• Overcome skepticism and resistance

• Spur immediate action

• Issue a compelling, clear call to action

All of this takes space, and the more you tell, the more you sell.

However, the exact opposite is true if you're trying to get prospects to raise their hands and provide some information about themselves.

For the short landing page you’ll need to:

• Provide a quick “thank you” for responding to the offer

• Capture the minimal information you’re after

• Avoid asking prospects when they’re planning to make a purchase or what their budget is (Way too pushy!)

• Provide a promise of privacy and make your policy clear

• Thank them again. Let them click to the download. KEY POINT: Get out fast!

Copyright © 2009 by Ivan Levison. Reprinted with permission. Contact Ivan Levison at 14 Los Cerros Drive, Greenbrae CA 94904, phone (415) 461-0672, fax (415) 461-7738, Web www.levison.com, email ivan@levison.com. Click here to order a free copy of Ivan’s new report, “101 Ways to Double Your Response Rates!”