Mailbag July 2005

By Stephen Hitchcock

Reprinted from Contributions Magazine

Q: Are those mailings with hand-written addresses on the outer envelope and hand-written notes inside worth the expense and bother?

A: Almost all of the organizations we work with at Mal Warwick & Associates are using some form of hand-written mailings. The percentage of donors who respond to these mailings is very high — two, three, or even four times as high as in response to conventional lasered or printed appeals. These hand-written appeals — which cost two, three, or four times as much as a standard appeal — are raising a lot of net revenue for some groups. That's especially the case when the mailing is sent to donors or members who have given $100 or more in the past.

A number of companies offer the service of hand-addressing outer envelopes and then penning short notes — including the donor's name — on a letter or note card inside the mailing. Prices vary widely depending on how much handwriting is involved. Often, the outer envelopes are blank — in other words, without the organization's name and logo printed on them. There are even companies that produce fake handwritten packages, using a script-like laser or inkjet font.

If you're thinking about sending out one of these mailings, I urge you to limit the number of donors you select for the mailing — but that you don't limit your use of what is tried and true. The trap that too many fundraisers fall into is to make the packages cheaper so they can mail them to more donors. Don't do that!

Our experience is that these hand-written packages work not just because of the handwriting. The note-card sized outer envelope, the attractive note card, the return envelope that is folded to fit into the smaller outer envelope, and the use of first class stamps on both the outer envelope and reply envelope — all these elements work together to create a mailing that moves lots of donors to respond (often, writing back personal notes of their own).

So, which of your donors should receive these highly personalized packages? In what situations, do they work best?

Lapsed and former donors are prime candidates for these mailings — since these hand-written mailings generate a higher response than conventional renewal or reactivation mailings. Even with very high costs, using these mailings to recapture lost donors is typically less expensive than going out to recruit new donors or members. In most instances, sending out a hand-written note as the last or next-to-last renewal notice will be very effective. However, unless you have a big budget and a very patient board of directors, you may want to avoid donors who have never given more than $15 and who haven't given in three or more years. You won't generate enough contributions from that group to offset the higher costs.

Another group that is responsive to these mailings are those who have given gifts as large as $100 or more. The higher cost of hand-written appeals generates a high "return on investment" because these donors will make higher average gifts when they respond. It's also the case that donors at this level are often better informed and more invested in your organization — so it doesn't take more than a short note (rather than a long four-page letter) to motivate them to send you a check.

A third audience for these mailings are those donors who just received a lengthy, substantive appeal — perhaps even your organization's annual report or strategic plan. These donors or members should be your most responsive and most active supporters. In this situation, your hand-written note is a follow-up to the earlier, in-depth request for funds.

What should your hand-written note say?

Well, the three situations outlined above suggest exactly the message your mailing should convey. In fact, the hand-written note will be most effective if the message is appropriate to the recipient. For example, to lapsed donors you might write, "Amy, we haven't heard from you for some time. I hope you can send a gift soon." To your more generous donors, the message might be, "Tony — You've been so generous in the past. I hope you can help again. Thanks. Bill." And for those follow-up mailings: "Jane — I hope you received the annual report I sent last month. A gift now will be a big help. Thanks! Bill."

Both for impact and for cost containment, these notes should be kept brief — with short words and informal style. Most of our clients include a lasered reply form — to make it easy for the recipient to respond and to capture accurately the donor's name and address. Some organizations apply a label with the donor's name and address on the back of the reply envelope. To be honest, I don't think we've tested that.

If you've followed along through all of the logistics above, you're probably saying to yourself, "I can just hear my executive directors and board members. They'll tell me, 'This is a sham! This is trickery! We would never manipulate our donors in this way.'"

Hmm. When it comes to talking with executive directors and board members, logical arguments are often ineffective — especially when you're discussing fundraising. A big stumbling block is that many executive directors and board members don't make contributions to their own organization, much less to other groups. They can't understand that many Americans enjoy receiving mailings and they appreciate lots of opportunities throughout the year to support causes they care about.

But if you're game to make the case for using hand-written mailings to a skeptical audience, let me offer the following talking points:

(1) Donors appreciate a simple, direct reminder to give. These are busy people who like to read lots of other materials, so your short note saves them time and leaves them with "brain space."

(2) These mailings show respect for individuals — your organization is literally investing time to communicate one-by-one with donors.

(3) It's good stewardship to use mailings that generate such high response, especially for lapsed members or donors. Your organization spends a lot of money to acquire donors; not using these mailings to keep or recapture them is a waste of your investment.

(4) Your organization's credibility, its financial stability, and mission effectiveness are greater when donors believe it is their organization — not some group of strangers to whom they send token gifts. That kind of ownership and sense of family are best created when you have two-way communication with your members and donors. Send out one of these hand-written mailings, and I can guarantee you that you'll receive phone calls, e-mails, and notes. What a wonderful opportunity to begin a life-time conversation with someone who cares about your organization.

You can probably tell I'm a strong advocate of these hand-written appeals. But I would never want these expensive mailings to be used alone or as a substitute for a full-featured direct response fundraising program. Hand-written appeals will be most effective when they are part of an annual mailing plan that includes newsletters, substantive special appeals, bequest information, and inexpensive renewals to the largest number of donors possible.