March 2008

1. Best Practices: Best practices online

By Tom Gaffny

2. Put video to good use
By Rick Christ

3. Spotlight on Success: Cooperation is the answer (Part 1)
By Managing Editor Deborah Block and Paul Karps

4. Idea!

5. Merge-purge 101
By Suzie McGuire

6. Ask Mal

7. HandsOn: Make your Web site a big hit
By Lance Trebesch and Taylor Robinson

8. Cost?

9. What's Working: In praise of fiscal responsibility
By Managing Editor Deborah Block and Paul Karps

10. Certainty?


Mal Warwick, Editor
Deborah Block, Managing Editor
Kieu Tran, Production Manager

Contributing Editors:
Nick Allen, Donordigital
Ken Burnett, Cascaid Consulting
Harvey McKinnon, Harvey McKinnon Associates
Jerold Panas, Jerold Panas, Linzy & Partners
Steve Thomas, Stephen Thomas
Joe White, Share Group, Inc.


1. Best practices online

 

By Tom Gaffny

 

At the 2008 DMA Nonprofit Conference in Washington DC, late in January, Epsilon Executive Vice President Tom Gaffny delivered an extraordinary workshop, relating the findings of his year-long study of online best practices. The presentation included a staggering 192 slides and revealed so much about the state of fundraising online today that it was virtually indigestible at one sitting. Tom graciously agreed to allow us to publish his findings piecemeal as a new column in this newsletter. What follows is the first installment.

 

Let's say you wanted to learn the story behind the story about online fundraising today, to dig out the fact behind the fiction, to uncover what’s really happening, and what’s not, in this fast-changing field. Would you read the magazines and the blogs or attend yet another workshop at a fundraising conference? Or would you undertake a study of your own?

 

I don’t know what you would do, but that was the course I opted to pursue. In December 2006, I gave $15 unsolicited gifts online to 65 U.S. nonprofit organizations—and another 80 the following June. I invited each of the 144 organizations that allowed me to give on their Web sites (only one did not) to engage me in a dialogue. Then I waited to see what would happen.

 

The result to date was a total of 2,409 e-mail messages and a staggering amount of direct mail.

 

 

 

 

  

 

Now, this may be high-tech fundraising, but it’s certainly not high-touch. Of the 144 organizations, 73 sent me a one- or two-line “thank you” during that first critical moment.

 

Something like this, for example:

 

Or this:

 

 

Or this:

 

 

Now, if you had received a thank-you letter much like one of these e-mails in response to a direct mail gift, how would you feel? A little slighted, perhaps? Maybe treated a bit shabbily? In any case, I thought these “thank-yous” fell far short of good form in fundraising. And yet perfunctory messages such as these represented half the 144 organizations to which I’d sent gifts—including many of the country’s largest and most celebrated nonprofits.

 

There are better ways to build relationships with donors. Stay tuned, and I’ll share with you some of the more constructive responses I received. Taken together, they form a primer of best practices in online fundraising today.

 

Tom Gaffny is Executive Vice President, Epsilon, 601 Edgewater Drive, Wakefield MA 01880-6235, phone (781) 685-6825, fax (781) 685-0817, Web www.epsilon.com, e-mail tomgaffny@epsilon.com.

 


2. Put video to good use

By Rick Christ

Everyone says video is hot online. A just-released Pew Internet report confirms the rapid growth in video viewership online in the past year—48% of Internet users! Growth is highest in the desirable demographic groups of women, 50-65 year olds, college graduates, and those in the highest income brackets. Most important, every demographic group surveyed experienced significant growth. 

My firm decided to do our own testing with a list of 50,000 names. We sent the exact same e-mail to both groups, but tested these two subject lines:

1.  "President Bush jokes about paying more taxes"

2.  "Video: President Bush jokes about paying more taxes"

The subject line with the word "video" had a 35% higher open rate. 

Not only did more people open the e-mail with the "video" subject line, more of them clicked through to the video itself: 32% vs. 27%. We have seen this phenomenon over and over—a good subject line increases open rate, but can also increase click-throughs and conversion.

In another test, we used a visual representation of the video in the e-mail body against a version with just copy links.

Twenty-eight percent of those who opened an e-mail with a visual representation of the video clicked through to the video itself, compared to only 23% of those who opened the same e-mail with only text links to the video.

Tips to take advantage of this phenomenon:

  Get video of your programs in action. Don't worry about creating a staged, professional, expensive video. A hand-held digital camera video of your animal shelter, feed-the-hungry program, or advocacy event by a volunteer, posted to your Web site this week, beats a slick, professionally shot video that isn't produced because it's not in this year's budget. 

  Post them to YouTube in your nonprofit account there.

  Embed them in your Web site (YouTube gives you the code, and there's even a simple Joomla patch that embeds YouTube videos like an HTML command). 

  Wrap the video in your Web page with supporting content and a call to action, preferably right on that page. 

  Feature the video in an e-mail to your supporters.

  In the e-mail, include a still shot of the video (or the video itself).

Reprinted with permission from e-Fund News from NPAdvisors.com, available free at www.npadvisors.com.


3. Cooperation is the answer (Part 1)

By Managing Editor Deborah Block and Paul Karps

For many locally based social service organizations, the challenge of developing a sophisticated and successful direct mail fundraising program can be daunting. Not only may the nonprofit lack qualified staff to run such a program, but the expense may be prohibitive—particularly when it comes to acquiring new donors.

However, for at least one portion of the nonprofit universe, the folks at full-service direct mail agency Lautman Maska Neill & Company (Washington DC) have come up with an innovative solution to this problem.

In 2000 they took on the Meals on Wheels National Co-op with five local organizations. These nonprofits had been deploying just one acquisition mailing each November. But according to Account Supervisor Lynn Mehaffy, "They had some good donors, needed renewals, and more acquisition. So we put into place a small, 'getting-started-in-the-mail' fundraising program of four appeals and two acquisitions."

The co-op has grown to include 14 Meals on Wheels groups in eight states around the country, ranging in size from 1,800 to 17,000 donors. The current mailing schedule features seven appeals and three acquisitions—though Mehaffy points out that not all the groups mail all the packages. It depends on how advanced their program is and the size of their budget.

Logistically, Mehaffy and her team develop each package, which is then tailored to reflect the individual program work of the organizations mailing that specific package.

"What's unique about this compared to anything I've worked on before," notes Mehaffy, "is that it really is as successful in Western Michigan as it is in San Francisco. The average gifts are really not as wildly different as you would think. Even in acquisition, everybody has a $40 average gift or higher, up to $65."

With acquisition response rates in the 1-1/2 - 2% range, Mehaffy says it's not uncommon to have groups netting $20,000 to $40,000 in acquisition in November. Ironically, unlike most mailers, "it takes a lot of years for them to net more money in their year-end house appeal than what they net in acquisition. Because they can mail so much bigger with prospects."

Why the concept works

In fact, one of the reasons the co-op is so successful is that it's extraordinarily cost-effective. Many of these groups—especially the smaller ones—could never mail on their own. "Because," explains Mehaffy, "they could never get the lists we can get and could never cover the 5,000-name minimum. The cost would be prohibitive."

Instead, the co-op orders lists with thousands of names for 14 different regions. That way, Mehaffy can use 500 names for one group or 1,200 names for another without those organizations having to pay the minimum charge. Mailing on their own, they would have to rely on compiled lists of zip codes and be unable "to get the really good donor lists."    

The power of the brand

In addition, these local providers have great name recognition. Their vans are out in the community every day, and people know who they are. It's such a high average gift, adds Mehaffy, "because it's food. So in the Ask lines we can say $35 will provide a week of home-delivered meals.

"If you think about a donor in Kentucky or Western Michigan, that person has probably never received an Ask nearly as compelling as Meals on Wheels. Because not a lot of local groups are in the mail there. What they are getting is American Heart and other huge mailers that may not necessarily be doing the real core local human services work that Meals on Wheels does."

Mehaffy emphasizes that these results are not typical for nonprofits, even most local groups. "So much of what's working about this is really about them. We're putting good fundraising practices onto a story that's already fabulous—with name recognition that's already there." Indeed, for a different take on the challenges of direct mail acquisition for a small local nonprofit, see this issue's Ask Mal column.

Case in point

This past November, Mehaffy mailed the co-op's acquisition control for probably its smallest group yet, the Meals on Wheels provider for Yolo County, California. "We were kind of leery about what we were going to be able to find there in terms of good donor lists. And every single one of them turned out to be super-tiny."

Mailing 37,000 pieces, the package generated a 2.24% response with a $57 average gift. The mailing itself—a four-page letter, insert, reply form, and reply envelope mailed in a #10—cost 34 cents per piece for a net profit of $36,409.

In Part 2, we'll take a look at other aspects of this successful cooperative venture, including creative strategies Mehaffy has found to be especially effective.

To see the Meals on Wheels November acquisition control, click here.

Copywriters Deborah Block and Paul Karps are partners in BK Kreative, 1010 Varsity Court, Mountain View CA 94040, phone (650) 962-9562, fax (650) 962-1499, e-mail bkkreative@aol.com.


Where's Mal?

March 3-4, 2008 – Mumbai, India
Resource Alliance
Two-day mini-course in nonprofit management for nonprofit CEOs
Site: S.P. Jain Management Institute
More info: rati@resource-alliance.org

March 9-10, 2008 – Kuala Lumpur, Malaysia
Sutera Milenium Communications
March 9: Raise More Money with High-Impact Communications: A Professional Guide to Effective Fundraising Letters, Proposals, and Face-to-Face Messages
March 10: Executive Seminar: How CSR Can Help You Build a Better Company – and Earn Bigger Profits
Site: Matrade Exhibition & Convention Centre
More info: faridah.hameed@gmail.com

March 13, 2008 – Webinar
Resource Alliance, Inc.
2:00 – 3:30 pm Eastern
Raise More Money with High-Impact Communications

March 22-23, 2008 — Kyiv, Ukraine
Center for Philanthropy
Two-day course: Strategic Fundraising: Raising More Money for your Organization

March 26-28, 2008 – Prague, Czech Republic
International Fundraising Festival
Workshop: Using PowerPoint for More Powerful Presentations
Workshop: Problem-Solving for Advanced Fundraising Practitioners
Workshop: Is Fundraising a Profession?
Site: Michna Palace

April 8-11, 2008 – Redwood City CA
Global Philanthropy Forum
Site: Hotel Sofitel

May 1-4, 2008 – Hamburg NJ
Social Venture Network Spring Conference
Site: Crystal Springs Resort

May 21-25, 2008 – Kuala Lumpur, Malaysia
8th International Workshop on Resource Mobilisation
Master Class: Nonprofit Management for CEOs with S. P. Jain Management Institute Faculty Members
Big Hall Session: The Ethics Challenge: The Fundraising Courtroom
Workshop: The Fundamentals of Direct Marketing
Advanced Mini-course: How to Retain and Develop Donors Through Great Direct Marketing
Site: Eastin Hotel

June 3-5, 2008 – Palm Beach FL
DMA Nonprofit Leadership Summit
Discussion Facilitator
Site: Ritz Carlton Hotel

June 5-8, 2008 – Boston MA
Business Alliance for Local Living Economies
2008 BALLE Conference
Site: Boston University

July 23-25, 2008 – Washington DC
Bridge to Integrated Direct Marketing Conference
Pre-Conference Workshop: Crafting a Message to win more Supporters for your Cause
Workshop: The Copy Clinic: How to Write Successful Fundraising Letters
Site: Washington Hilton Hotel

October 14-17, 2008 – Noordwijk, The Netherlands
28th International Fundraising Congress
Master Class: The Copywriter's Workshop: Crafting Brilliant Letters, Emails, and Telemarketing Scripts for Breakthrough Fundraising Results
Site: NH Leeuwenhorst Hotel


4. Idea!

Here's Idea #17 ("Build Your E-mail File with a Unique Offer") in Convio's series of 29 ideas to improve your online performance.

Communication Workers of America (CWA) used this method to grow their e-mail list from 229 names to 69,000 names in 10 months.

In September 2006, the organization launched their SpeedMatters.org campaign in an effort to bring high speed Internet access to all Americans.

 

 

The key to this dramatic list growth in such a short period of time was offering site visitors the ability to test their Internet connection speed, and compare it to the national average and the average in other industrialized countries.

CWA partnered with Ookla, a company that specializes in Internet connection speed tests, to build a flash speed that lived on the Speed Matters Web site. After the speed test, users were prompted to enter their e-mail address and zip code, both of which were fed directly into the Convio database using an API. More than 50% of the people who took the test voluntarily entered their e-mail address and ZIP code.

Benefits to CWA included:

  Reinforce your organization's mission
  Provide recipients with a something of value
  Promote viral marketing

 


5. Merge-purge 101

By Suzie McGuire

As a former list broker and now as a fundraising consultant, I'm often asked about the merge-purge process. I find that many fundraisers are unfamiliar with how the process works and the basic terminology used in the industry. This article is my effort to lay the foundation for better informed discussions about this critical topic in direct mail.

I'll assume from the start that you accept the fundamental reason why direct mail fundraisers merge-purge their mailing lists when prospecting for new donors. Presumably, you don't want to waste money mailing lots of unnecessary duplicates. And you want to do your part to save trees. But you might still wonder how the process works.

What is a merge-purge?

In a merge-purge, a specialized computer service bureau combines multiple lists into one file of unique names, removing any unwanted names (because of prior giving, bad or incomplete addresses, requests not to receive mail, or other reasons) and setting aside duplicate names. The pool of names to be merged will include lists from other organizations, publications, catalogs, or compiled data. You may also include various housefiles from your own organization, such as event attendees, lapsed donors who you'd like to resolicit, petition-signers, or other housefiles not considered part of your active donorbase.

How lists are ranked or prioritized

You'll need to inform the service bureau what priority ranking to assign in the merge-purge. This will allow the process to assign a record found on more than one list to one particular list rather than another. (When two lists have the same ranking, the retained records are assigned randomly between the two.)

  For example, you may want to assign your house lists as your highest priority, because these individuals are already affiliated with your organization and are more likely to respond. It's more meaningful to track their existing relationships with your organization than to assign them arbitrarily to some outside list.

  Continuation lists—those that include names on files successfully tested for response in one or more previous mailings—should follow, as these are the lists with which you have a history of success.

  Following those should be your re-tests, since your experience tells you these are worth a second try.

  The last priority would be test lists that represent your biggest gamble, since you don't know how they will perform.

There are several reasons why an organization may rank or rotate lists. Your service bureau provider can offer good counsel as it pertains to your organization.

Cleaning the lists

Prior to the actual merge-purge, individual lists are "cleaned." Some tools that may be used are CASS Certification, Delivery Point Validation (DPV), or the NCOA (National Change of Address) file. Employing these computer-matching tools to update and correct the lists you'll use will reduce the number of pieces that are considered undeliverable, improve the ability to identify duplicates, speed up delivery by a day or two, and help you earn postal discounts. You may also ask for any information outside of your area to be pulled off individual lists. For example, if you're a regional mailer, you may request that any names outside of your mailing area be omitted.

Suppression lists

Once you've cleaned the individual lists, you'll want to make sure you're suppressing any individuals whom you would want to keep out of the mailing. Most important this would include your "eliminator" file (a list of active donors to your organization who you would not want to solicit in a prospect mailing). You would also want to suppress anyone who has contacted your organization specifically to request that they not be solicited.

In addition to your eliminator and suppression files, you should use the Direct Marketing Association (DMA) "No Mail/Pander" file. These are people who have specifically requested to be put on a file that removes them from mailings. Members of the DMA—including just about any merge-purge bureau you may do business with—are required to use this name removal service.

Service bureaus also have files of deceased individuals, which can be used to eliminate them from mailings for which they perform merge-purges. In addition, prison files can be used to suppress the addresses of federal and state prisons and county and city jails.

De-dupe process

The de-duplication, or "de-dupe," level is the way you want to recognize duplicate entries on various lists. You can de-dupe at an individual level, a household level, or a residential level. If you de-dupe at an individual level, all addressees, even if they're at the same address, will receive your mailing individually. De-duping at a household level means that only one individual with the same last name will receive a piece of mail in a given household. If you de-dupe at a residential level, only one individual per address, regardless of surname, will receive a mail piece.

There are arguments to de-dupe at these various levels depending on how strictly or loosely you would like your merge to be interpreted, and that may depend upon whether a list is a house list or an external list. You should also consider that the percentage of net names will be affected by the specificity of your de-duping method.

Multi-buyers

Once your mailing is merge-purged you'll identify those names that are on more than one list ("multi-buyers"). These names are mailed in the first instance in your main mail drop and can be mailed again starting a few weeks later in subsequent multi-buyer mailings. The concept is that you don't want to mail multiple times to a particular donor on the same day, but you may want to reinforce your message over the coming weeks with subsequent mail drops of the same mailing. Because you've paid for the name as it appears on each list, you're allowed to mail it the number of instances it has shown up on the merged file. These names are very valuable because they're donors, members, subscribers, or buyers who use the mails more actively than most people and are thus comfortable with the medium.

Post-merge

After you've completed your merge, you'll want to code each list to associate it with a particular project, list, and package. Package splits are lists split across various packages to test new copy, format, or design against your control package.

You may also assign a finder number that allows your caging service to retrieve a unique record identifier instead of hand-keying an entire name and address.

The USPS offers discounts if you sort your mail prior to its delivery to the mailstream. Most service bureaus can presort your mail, so you can get the best postage discount available.

You should, of course, ask your service bureau provider how best to design your merge-purge to suit your own organization's specific circumstances.

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.


6. 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. In this feature, we'll spotlight one Q&A from the most recent month.

Question: We have a very small direct mail program. We mail a total of about 3,500 pieces a quarter to current donors (about 500 - 600), lapsed donors (600 - 700), and suspects (2,200). The response rates are between 5 - 10% for current, 1 - 3% for lapsed, and less than 1% for suspects (generally donors from years in the past or on a mailing list for one of our publications).

Until last year we were a hospital foundation, but the hospital was sold and we began supporting the outreach clinics the hospital had funded before its sale. So, we have lost a number of donors who are no longer interested in what we do, and we have no built-in constituency (the clinics treat the uninsured). And, the average donor age is 70+!

We need to find new prospects, but we're really not sure how to go about it. I'd really like to purchase some names, but we have a limited budget, and I'm not really sure which lists would be best, how many, etc. Any advice? Thank you for your time.

Mal answers: You seem to be attempting to scale the wall that looms in front of any small nonprofit when it tries to use direct mail techniques in the same manner as much bigger organizations. For example, with a small donorbase, a very limited budget, and a localized appeal, it's really tough to make a go of recruiting new donors by renting lists and mailing them acquisition packages. Truth to tell, direct mail donor acquisition can be a costly proposition. It wouldn't surprise me, for example, if it cost you $30 or more on average to recruit a new donor. Which means that, if you want to recruit 1,000 new donors, it could cost upwards of $30,000. And that's just the net, out-of-pocket cost. The total investment would be greater.

Unless you're prepared to invest significant sums, to keep investing, and to be patient until the results start paying off, I'd explore other means to recruit new donors. Special events, for example: Within a geographic community, you can sometimes use events to good advantage to bring people into a face-to-face experience of an organization. Or an aggressive friend-get-a-friend campaign. Neither of these, or other alternative means of recruiting new supporters, would preclude direct mail. Nor would either or both fully substitute for it. But they could help.


7. Make your Web site a big hit

A 30-Day Step-by-Step Guide to Dramatically Improved Search Engine Optimization (Part 1 of 4)

By Lance Trebesch and Taylor Robinson

Do you ever wonder why some Web sites seem to steal the top positions on search engines? No, it's not magic, and yes, your nonprofit can do it, too. The secret to achieving this success is to harness the power of search engine optimization (SEO). By following this step-by-step guide, you'll be well on your way to drastically improving your Web site's standing in only 30 days.

Despite what some companies may want you to believe, there are no tricks or shortcuts to SEO, and you'll not top the list of search results overnight. For a successful SEO campaign, it's best to focus on three major areas: (1) keywords, (2) Web site design, and (3) links.

Your objectives in the first week include submitting your site to several link directories and improving your Web site's keyword structure.

Directories

Submitting to nonprofit directories such as CharityNavigator, Yahoo Health, idealist.org, and fundsnetservices or general directories such as Business.com, Best of the Web, and DMOZ will immediately affect your Web site's search rankings. While listing your site on directories is worth your time, the links are of little overall value and will only have a minimal impact on your ranking.

Keywords

Keywords are the words or phrases that tell search engines about the purpose of your site. It's important to identify which words are most advantageous to your organization so they can be optimized in your content. Begin selecting keywords by brainstorming every word and phrase that's topically relevant to your organization. Remember, put yourself into the shoes of the searcher, and avoid industry jargon. Be sure to include the name of the organization and the main service it provides. Additionally, when selecting keywords, try to avoid such general terms as "nonprofit," "charity," or "fundraiser." Select keywords that are unique and relevant. Two problems arise when general keyword terms are used: 

  The phrase becomes more competitive and harder to rank well on.

  The site receives traffic from people who are looking for a different service than your organization provides.

Nonprofit organizations in particular need to include action keywords, such as "donate" or "contribute," to make their fundraising campaigns more successful. If you're still unable to generate keywords, browse through Web sites of similar nonprofit organizations and look at which keywords are used on their sites.

Keyword tracker tools

Once you've developed a starter list, you're ready to test the words using one of the many online keyword tracker tools. The best free online tool today is Yahoo's Overture. This will show the popularity of the keyword entered during the last month and give a rough idea of what additional keywords may work for the organization.

However, for the organization that wants to launch a more targeted and successful SEO campaign, Wordtracker is the correct instrument to use. Wordtracker has additional features such as the inclusion of plurals and misspellings in its search. Most important, Wordtracker includes the competition for each of the keyword phrases. The trick here is to select keywords that are popular searches, but not commonly used by other organizations.

Keyword density

There's been a great deal of hype regarding keyword density and finding the correct density for each search engine. Keyword density refers to the frequency that the keyword is used. According to the most current and accurate articles written on the subject, such as the Unfair Advantage (within searchenginenews.com), keyword density is in fact much less important than originally predicted. The only standing rule of keyword density is not to use "keyword stuffing" techniques where the phrase is repeated multiple times. Search engines now monitor this tactic and will actually lower your site's ranking if they detect stuffing. Search Engine Land's article, SEO "Don'ts": 20 Fatal Mistakes You Must Avoid to Succeed, gives an accurate list of pitfalls, such as keyword stuffing, that you'll want to steer clear of when implementing your SEO strategy.

Web site content

When incorporating keywords into the Web site's text, be sure to look at the content from the user's point of view, and strike a balance between the user and the search engine (priority always goes to the user), making content friendly for both. For further reading on how to lay out your Web site to optimize its effectiveness with search engines, read Matt McGee's 21 Essential SEO Tips & Techniques or one of the many articles on the subject in Search Engine Land.

Title and header tags

The most important keywords identified should be included in the Web site's title and header tags. A title tag is a short html code that tells search engines about your site, while headers are viewed by users on the top of each page and tell the purpose of the page. The 7 Essential Title Tag Strategies of High Ranking Web Pages in 2006 has further information about how to improve title tags to optimize your search performance.

Week 1 checklist

  Submit your Web site to directories

  List keywords

  Test your keywords with online tools

  Research title and header tags

  Improve your Web sites content by adding keywords

Lance Trebesch and Taylor Robinson can be reached at www.ticketprinting.com or by e-mail at Lance@TicketPrinting.com.


8. Cost?

American nonprofits (exclusive of religious organizations) spent an estimated total of $689.3 million on fundraising direct mail in 2007, according to the latest annual compendium of facts and figures about direct marketing in the USA  produced by the Direct Marketing Association (New York NY).

The same statistical report suggests nonprofits spent an additional $592.3 million on telefundraising, $4.2 million on online fundraising, and $42.6 million on broadcast appeals on radio and television.

If you’re scratching your head in wonder why some of these figures look so low in comparison with the nearly $300 billion contributed to nonprofits in 2007, the answer is easy: Amounts spent on such related activities as lead generation, direct orders, and retail purchases were calculated separately. For example, nonprofits were estimated to buy $3.086 billion worth of “lead generation” online—presumably, activist involvement, newsletter subscriptions, student recruitment, and similar activities—far, far more than the paltry sum spent on fundraising per se.


9. In praise of fiscal responsibility

By Managing Editor Deborah Block and Paul Karps

It seems that whenever the economy turns into a big issue—and that certainly seems to be the case this presidential election year—fiscal responsibility becomes a not-for-profit lightening rod.

It's increasingly critical, therefore, that you make sure your donors and prospects understand just how cost-effective an operation you're running.

That's why we were particularly taken with an acquisition package from Project HOPE (Millwood VA). Because this group isn't shy about proclaiming its fiscal condition—and rightly so.

In the one-sheet, two-sided letter, the organization—which provides vaccines and medical supplies to impoverished communities around the globe—eloquently assures the prospect it will "use your gift wisely. Out of respect and appreciation for our supporters, and in an effort to help the most people possible, 92% of all Project HOPE's expenditures go directly to health education and medical humanitarian assistance programs in more than 30 countries throughout the world."

Letter copy also reports that "Project HOPE has been named one of the best managed and most efficient nonprofit organizations in the world by several prominent publications—a reflection of our efficiency and good stewardship."

Fiscal responsibility is hammered home once again, in both words and graphics, in a most unusual spot: the back of the bright yellow reply envelope.

There's a bold headline, "92% of Expended Resources Goes to Programs." Copy underneath repeats the letter's message, "We strive to help the most people possible, out of respect and appreciation for our supporters." And below that, there's a graphic of a dollar bill "torn" to illustrate visually the considerable percentage used for Project HOPE's "Life-Saving Programs" and the nominal amount for "Administrative Costs."

Meanwhile the back of the outer envelope doesn't go fallow either: It's embellished with words of praise for Project HOPE from four past presidents—Ronald Reagan, Bill Clinton, Jimmy Carter, and George Bush, Sr.

Now, we'll add our own words of praise for this smart mailing!

To see this entire package, click here.

Copywriters Deborah Block and Paul Karps are partners in BK Kreative, 1010 Varsity Court, Mountain View CA 94040, phone (650) 962-9562, fax (650) 962-1499, e-mail bkkreative@aol.com.


10. Certainty?

It’s less costly to keep a donor on your rolls than to acquire a new one. So it’s disheartening to learn that Indiana University’s Center on Philanthropy, as recounted in The Chronicle of Philanthropy, finds only 56% of Americans made charitable gifts in each of the three years studied—2000, 2002, and 2004. This indicates donors move in and out of the market, putting more pressure on the renewal process. Meanwhile, just 29% contributed to charity in some, but not all three years. Fewer than 15% didn’t make any donations during those three years. At the same time, the total number of households contributing in each of the years stayed fairly constant (67-69%).


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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.,
2550 Ninth Street, Suite 103, Berkeley CA 94710-2516,
phone (510) 843-8888, fax (510) 843-0142, e-mail
info@strathmoor.com.

Copyright © 2008 Strathmoor Press, Inc. All rights reserved.