How much to ask for
How do you know how much to ask for?
Is it better to ask for a specific or generic amount?
Does asking for an odd amount work?
Should we ask gift amount information for planned gifts? How?
What range of gifts should we ask for?
How much should we ask for in an acquisition mailing?
Should I ask for a specific gift amount in high-dollar fundraising?
What's a good first-time ask for an e-mail campaign?
How can we ask our donors for larger gifts?
When should we ask for a bigger gift?
How can we ask for a larger gift, less often?
How often should we suggest upgraded gift amounts?
What's the best formula for an upgrade ask?
How much should staff or board members be expected to give?
How much help should be expected from Board members?
Are premiums worth it in the long run?
Is the long term value of a premium acquired donor better or worse that a donor acquired WITHOUT a premium?
What can we do with leftover premiums?
How can a donor give tax-free bonds?
How do you know how much to ask for?
You mention in one of your answers that asking for the right amount in a direct mail piece is critical. We have struggled with this question in our organization, and have not yet figured out the best solution. Do you ask the donor to upgrade based on the highest gift made in the last 3 years? On the last gift the donor made? Are there different "rules" for giving at lower vs. higher levels?
Mal answers: You've asked one of those $64,000 questions. I can't do justice to it in a brief online response. But I'll try to give you some guidelines to consider:
(1) The "right" Ask is one that works. Regrettably, there are no hard-and-fast rules that will guarantee such an outcome. Trial and error — informed by rigorous testing, if possible — is the only way to discover the optimal approach.
(2) When it comes to upgrading donors, I believe strongly that a mixture of approaches is best. In other words, I would not consistently use either the Highest Previous Contribution (HPC) or the Most Recent Contribution (MRC) as the basis for an upgrade Ask. Nor would I recommend suggesting upgrades according to a fixed formula (10% or 20%, say, or 50% and 100%). Variety, guided by what is appropriate in the context of each particular appeal, is more likely to produce good results, I believe.
(3) Much of the time, the most effective upgrade strategy is not to seek a gradual increase but instead to suggest that a donor give a dramatically larger amount — by elevating his membership to the next highest level or by joining a high-dollar giving society, for example.
(4) I don't think it's productive to pursue significantly different upgrade approaches with low-dollar donors than with high-dollar ones. In each case, I do one of two things, depending on the character of the appeal and the donor's giving history: either (a) to seek a very modest increase or (b) to suggest a much bigger jump — from $15 to $50, say, or from $100 to $500.
Is it better to ask for a specific or generic amount?
Is there any difference in response rates between an ask for a specific amount, i.e. $74.56 versus a more generic $75?
Mal answers: It's very likely that there will be a difference in response rates between these two Asks — but you won't know what it is unless and until you test it. I certainly don't know!
Actually, my colleagues and I have tested this sort of thing on several occasions in the past. Sometimes it has worked. Sometimes it hasn't. That's why I suggest testing.
Does asking for an odd amount work?
I would like to know of any available research related to using odd dollar amounts (i.e., $19.95 or $49.97 etc.) for ask amounts for gifts. Does the research show that organizations using this concept raise proportionately more dollars or does it seem to make any difference? I suspect that it might show the request gets more attention, but the question is — does it get more response and what do the donors think about this concept? I have also wondered if this is mostly used on single requests for gifts through the mail or it tends to be mostly used in gift clubs?
Mal answers: In direct mail, there are three kinds of "research." There's the informal kind, which tends to involve such things as enclosing "surveys" to donors or members with their newsletters. That kind's totally meaningless except as a form of donor involvement. Then there's the serious kind, in which professionally trained researchers select samples on a scientific basis and gather information, which they proceed to analyze using statistically sound methods. Then there's testing.
Testing is the sort of research we direct mail fundraisers do at every possible juncture. When properly conducted, testing can make clear to us what works or doesn't under very tightly controlled circumstances. That's the kind of thing we learn when we test such matters as odd ask amounts.
Over the years, my colleagues and I have tested such odd ask amounts on many occasions. For what it's worth, our findings have been mixed. Sometimes they work better. Sometimes not. But those findings aren't worth much. They apply only to the particular organizations we studied, at that particular time, and in connection with those particular direct mail packages. The information isn't transferable.
But you want a straight answer to your question. Here it is: maybe an odd ask amount will work for you. Test it!
Should we ask gift amount information for planned gifts? How?
Specifically, for one donor who has established a CRT naming us as remainder man, and informed us about starting it as well as of amounts added to it several times. We don't know the founding amount and hence the total. Would it be appropriate to contact the donor's office to inquire further?
More generally, we invite friends in our annual fund mailing to notify us if they have included our organization in their estate plans, and a number have indicated on their reply card with their annual gift that they have. We are unlikely to form a Legacy Society for a variety of reasons. But as we build our planned giving program, we could send these friends a letter thanking them (again) for their commitment, explaining that we are planning for the future and seeking to gauge the scope of planned gifts already earmarked for our work, and enclosing some kind of reply device they could use to disclose the amount of their gift.
Mal answers: You're fortunate to have donors with such faith in your future that they're willing to include you in their estate plans. I can certainly understand your eagerness to know how large their bequests will be, but I'm inclined to urge caution. Rather than straightforwardly ask your legacy donors how much they're setting aside for you, I would be more likely to ask them for their *opinions* about whether it's appropriate to inquire about the amounts. Their answers to such questions will give you the clues you need to either drop the subject or pursue it further. You could take this approach either face-to-face, if the opportunity arises, or by mail.
Very few nonprofits are able to make any projections at all about legacy giving. Those that can do so tend to be larger organizations that receive large numbers of bequests annually. Even in such cases the projections may be off by many millions of dollars. After all, a bequest may amount to anywhere from $1 to more than $1 billion. You certainly can't tell by looking at someone how much they're likely to leave you!
What range of gifts should we ask for?
What is the current wisdom regarding the ask strings on a mail response form? That is, what ranges, placement of amounts in the string, etc.
Mal answers: When deciding how much money to ask of your donors (or prospective donors), consider what you know about them: how much (if any) they've given before, what you might know about their financial capabilities, the degree and nature of their interest in the work you're doing or the issue you're addressing, and anything else you can conjure up. You'll also have to take into account what you're offering in exchange for a gift. Is it a membership? Are there premiums involved? Other tangible benefits?
Appeals to prospective donors or members are a special case. The public in general is unlikely to give you more than $15-30 as an initial gift, so most direct mail packages start the acquisition gift string within that range. However, I've seen several successful premium offers that start at $50, $100, or even more.
In an appeal to previous donors or members, it's generally best to limit the number of gift options to two or three (plus "other"). In prospecting, since you'll know much less about the people you're writing, a long string is generally better -- with five or six suggested gift levels.
I hope this helps.
How much should we ask for in an acquisition mailing?
We are planning on launching a direct mail membership campaign fairly soon and my boss is adamant that we should have the following levels: $35, 100, 500, 1000 and 5,000. Personaly I think there is no way we can ask for levels that high for a first time ever, acquisition mailing.
So I've put together a couple of reasons that I will share with him as to why we should keep our levels at: $35, 70, 100 and 250. I'm hoping that you can offer some other good reasons.
Cold mailing lists: We will be relying primarily on cold lists (ie., people who have little or no relationship with the Foundation). Traditionally, donors from a cold list, even one that's carefully selected, do not give over $500 on a first time ask. We have a better chance of acquiring gifts with this appeal by keeping the levels low.
Benefits: If asking for higher amounts, our benefits should also be equally appealing, which means more expense for the Foundation. This is too much of an up front cost for us.
Standard Practice: In all of the sample direct mail pieces, with the exception of a select few, that I've been looking at and that I've personally received in the past, there is no ask over $250.
Committment: From what we've learned and my experience in the fundraising field it is clear that when people are giving their own money they are making a committment to the organization. A gift of $1,000+ usually means the donor has a relationship to the organization and requires a more personal ask than a direct mail solicitation.
Anything you can add (for either argument) is greatly appreciated. Thanks!
Mal answers: I tend to agree with you, but I don't share all the reasons you cite.
$5000 is clearly too high an Ask in cold mail. I've seen it used on rare occasions, and I've even worked with nonprofits that have received gifts of $5000, $10,000 or more from acquisition mailings. But I strongly doubt (I don't recall) that they had included high-dollar Asks in their prospect letters. If someone wants to send you that much money, it will be for her own reasons, and the Ask amount is unlikely to be the deciding factor.
$1000 is used more commonly in acquisition, but rarely by me. I think it makes more sense to cluster the Ask amounts within a narrower range, thus reducing the risk that a donor will feel a $25 or $50 gift is pointless if you really want gifts of $1000 or more. In other words, I suspect (though I can't prove) that high-dollar Asks in acquisition may depress response.
You mention the lack of benefits as a reason not to ask for big gifts. I part ways with you on that one. The principal benefit for any donor is the understanding that a big gift will make a big difference. That may be enough. Tangible benefits, including public recognotion, may have little or nothing to do with motivating big gifts.
You're definitely on the right track! Good luck, and thanks for writing.
Should I ask for a specific gift amount in high-dollar fundraising?
I'm trying to convince a colleague of the importance of including specific dollar asks in higher dollar ($250-$5,000) solicitations. My colleague is uncomfortable asking for anything more specific than "support." Have you ever written any articles on the importance of a specific ask?
Mal answers: Hi and thank you for writing!
Once upon a time, I wrote an article entitled "The Cardinal Rules of Writing Fundraising Letters," which later I incorporated into my book, "How to Write Successful Fundraising Letters." The most direct way for me to answer your question is to note that "including a specific dollar Ask" is one of my cardinal rules. For the detailed rationale, I suggest you turn to the Cardinal Rules chapter in that book, which is widely available.
However, the short form of my rationale is this: If you ask for "support," you could reasonably expect some people to rationalize, "Sure, I support these folks! I wish them the very best of luck!" or "I'll include them in my prayers." Just because you mean money when you say "support," you can't expect that everyone else will get the idea.
Besides, direct mail testing almost always shows that a specific dollar Ask — when it's set at the proper level — will on average result in gifts that are much higher than when there is no specific dollar Ask. The art of the business lies in setting the right Ask amounts. But that's another story . . .
What's a good first-time ask for an e-mail campaign?
We're about to ask a large group of affiliated people to begin giving to our organization on a yearly basis. We'll be doing the solicitation via email. For people who have never given before, and about whom we know very little, what's a reasonable low-end ask? The strategy here is to get as many people as possible into the donor base, rather than to raise as much money as possible. We've seen everything from $10 to $45, but don't know how much difference it will make within that envelope. Any thoughts on how to figure out what to ask for?
Mal answers: You and your organization live in cyberspace, the fantasy world of direct response fundraising. In direct mail, when we want to answer a question like this, we test. That means selecting an adequate number of names at random, splitting the group in half (or thirds, or fifths), and testing one suggested minimum gift level against the others by mailing a slightly different letter to each segment. In a mailing, this whole process could take months. Online -- in your space -- it can take as little as a day or two. So, my advice to you is TEST. Just be sure you know how to select statistically valid samples. (Call a statistician or a market researcher at the local campus if you're not sure.) There's no telling what the market will reveal to you. For maximum response, the most effective Ask may not be the smallest one.
How can we ask our donors for larger gifts?
In a direct mail appeal, what is the best way to ask for an increase in individual donations?
Mal answers: Great question! If there were a simple way I could respond by telling you the very best way to move donors up the ladder (or "upgrade," to use the jargon), I'd do so. Unfortunately, like so many things in fundraising, there is no single answer to this question. There are many ways to upgrade donors by mail. Here are a few:
* Invite a group of your most generous donors -- say, those whose individual gifts have been between $100 and $999 -- to enroll in a high-dollar annual giving society at $1000 or more per year, offering them benefits consistent with the offer.
* Create a series of membership or donor categories at successively higher levels ($100, $250, $500, $1000, etc.), and ask those who fall into the category just below each level to "step up" to a higher level of support. Again, special benefits might be appropriate, depending on your organization.
* Offer a special back-end premium -- such as a book signed by your president or executive director, on a topic relevant to your organization's work -- to those donors who contribute, say, $100 or more in response to your appeal.
* Launch a monthly giving program, inviting small donors to give modest gifts every month by credit card or pre-authorized checking (technically known as Electronic Funds Transfer, or EFT). If a $25 donor habitually gives you two such gifts every year, then a commitment to a $10 monthly gift would constitute a huge upgrade -- from $50 to $120 per year!
When should we ask for a bigger gift?
My organization started an Annual Giving Club for our donors this year. It has proven to be somewhat successful and many of our donors are joining at the lower level of $250-499. My question is this: Is is appropriate to add a P.S. to the thank you letter that says "Did you know that for $XX more, you could become a member of the XXX level?" My Boss feels this is a good thing. I, on the other hand, am a bit skeptical. I do not want our donors to feel as though the gift they gave is not sufficient enough, or unappreciated. What is your opinion on this? Thanks!
Mal answers: You've found yourself in the middle of one of the enduring controversies in fundraising. We all know that donors who have recently contributed are strong prospects for additional support. Your boss is taking the popular position that you should not hesitate to take advantage of this goodwill. By contrast, you're more focused on building long-term relationships with those donors which might result in much more loyal, constant, and possibly more generous support in the years ahead.
I don't believe there's any incontrovertible truth at the heart of this dispute. In other words, you're both right, and you both might be wrong -- depending on the circumstances. The principal variable, I believe, is the urgency of your cause and the aggressiveness you want to project in your fundraising efforts. In such cases, I'd probably side with your boss. On the other hand, if you're free to develop donor relationships with more leisure, I'd come down on your side of the argument.
So, once again the universality of my Fundamental Law of Fundraising is proven true: "It depends."
Good luck, and may the best person win.
How can we ask for a larger gift, less often?
Recently we sent out a donor questionnaire, asking donors their preference for receiving communications from us, including direct mail. We did this as part of relationship building and also, in response to feedback that we were sending out too many direct mail solicitations.
We had an excellent response rate of over 20% and a lot of useful information emerged, including 6 bequests we did not know about. Many donors indicated a preference for receiving only one or two direct mail solicitations from us per year, instead of the usual four.
Our challenge now is to ensure that these donors do not reduce the amount they donate. Many would have donated $20 four times a year. Now we will be asking them for one annual donation of $80 plus.
Any suggestions on how we approach this situation?
Mal answers: I'm very pleased to hear that you're taking your donors seriously. Far too few nonprofits go to such lengths to cater to their donors' preferences. I'm quite confident, though, that your organization will benefit hugely over the long run -- from increased loyalty (and thus higher donor retention), upgraded giving, and, ultimately, more bequests. Those organizations that have been brave enough to adopt the approach you're taking -- the buzzword is "relationship fundraising," or "donor-centered fundraising" -- have found it to be highly rewarding.
I can't assure you, though, that you will receive $80 from those donors who've sent you $20 on each of four occasions per year. It may simply be that such folks aren't likely to have so much to spare in their checking accounts at one time. However, it may also be that some of these people would dig much deeper because of the consideration you've shown them, and send you $100 or more at year-end.
In fact, I wouldn't hesitate to appeal to them in that light: "Last year you contributed a total of $80. Will you consider renewing your support this year with a gift of $100 or more?" In any case, I would certainly treat these "annual-only" donors in terms of cumulative giving a year at a time and *not* refer to their previous, $20 gifts.
How often should we suggest upgraded gift amounts?
We do three fundraising mailings per year to our donor base. Is it a good idea to continually suggest upgraded gift amounts each time we mail, or should we only do it once per year? My concern is I don't want to irritate my donors by constantly asking them for more, more, more!!
Mal answers: Good question — and one that's not asked frequently enough. Your instinct and mine are similar: I suspect it's wise to confine upgrade efforts to those infrequent appeals when you really try to secure a dramatically higher gift. With that said, however, I must confess that I rarely act on this instinct. Continuing upgrade suggestions seem to result in gradually rising gifts from some donors — actually, most donors never upgrade — so it's difficult to persuade nonprofit mailers that the long-term harm from the practice outweighs the short-term benefits. If you're free to make that choice, I urge you to do so.
What's the best formula for an upgrade ask?
We want to use a donor's last contribution as the basis for suggested donations for the next mailing. Is there a standard percentage to use to figure the suggested increased amounts? For example, if they gave $25 last year what figures should we suggest this year? I would like to be able to give the donor 4 higher donation levels. Let me know if you have any suggestions. Thanks.
Mal answers: Your seemingly simple question opens up a wide range of possibilities.
First of all, an "upgrade Ask" may be based on a number of possible precedents, including the Highest Previous Contribution (HPC), the Most Recent Contribution (MRC), or cumulative giving for the past year. HPC and MRC are the most common, and you've chosen MRC. Fine.
There is no uniform formula for upgrade Asks. Some fundraisers favor a very aggressive approach, using a "gift string" along the following lines:
3xMRC 2xMRC 1xMRC
Others argue that aggressive upgrade attempts may turn off donors. They tend to be a lot less bold, something like:
MRC+20% MRC+10% MRC
Yet other folks favor an entirely different approach. They might ask a donor who's previously given $100, say, to give $500 to join a special giving club. Those who previously gave $500-999 might be asked for $1000. Under-$100 donors would be asked for $100.
These are questions of strategy, really. For example, if your client is experiencing a low renewal rate, and it's very important to raise that rate, I would be very timid about upgrading. If the renewal rate is fine and you just need to raise the average gift, be more aggressive.
In any case, I wouldn't offer four upgrade options. In a resolicitation, I generally feel that the maximum number of suggested Ask amounts should be three (plus "Other").
I hope this helps. Thank you for writing, and good luck!
How much should staff or board members be expected to give?
Would you have any sense of what a foundation or donors would regard as a reasonable amount of BOARD giving per year? Or STAFF giving? For, say, a $10 organization. Appreciate your help!
Mal answers: I can't speak knowledgeably about the expectations of foundation program officers or other donors. But I certainly can tell you that I, for one, and everyone else I know in the fundraising field believes that nonprofit board members bear ultimate responsibility for an organization's financial health and ought to participate personally in fundraising.
My personal rule of thumb is that EVERY member of a nonprofit board should give SOMETHING at least once a year. That means everyone, without exception. Clearly, some can afford more than others. But in a $10 per year membership organization, for example, it's entirely reasonable to require that every board member pay the $10 dues as an absolute minimum. And those who can afford much more should pay more. The organization ought to find 100% board giving a real asset in fundraising. I'm sure that many, if not all, funders, would be encouraged to hear that a grant applicant can make such a claim.
I feel that STAFF giving is another matter (though there are many who disagree with me). Some nonprofits encourage staff donations, which seems okay -- and some virtually REQUIRE it, which does not seem okay. I think coercion is out of order, especially with low-wage, entry-level personnel. Certainly, though, management-level staff ought to demonstrate the same level of buy-in as do board members.
So, there you have it -- my OPINIONS. Best of luck to you!
How much help should be expected from Board members?
How much assistance with a fundraiser should be asked of our board? Board members aren't required to donate money to our organization (and therefore most don't), so we've asked for help soliciting auction items, selling tickets to our event, and if interested, volunteering for part of the event (mainly before guests begin to arrive). Is that too much to ask of our board members?
Mal answers: Boiled down to essentials, nonprofit board members have two responsibilities: (1) to hire and fire the chief executive, and (2) to assure the financial health of their organization by helping to raise money. If they're not asked to contribute directly -- which, in my view, is a big mistake -- then what DO they do to help raise money? At a minimum, they should be expected to pitch in and help pull off a major fundraising event.
Are premiums worth it in the long run?
Is the long term value of a premium acquired donor better or worse that a donor acquired WITHOUT a premium?
Mal answers: You have just asked the question of the hour. The answer depends on whom you ask.
I know of one sizable, direct-mail-based organization that intensively studied this question some years ago and concluded that premium-acquired donors were worth substantially less in the long run — taking into account the substantial costs of producing and mailing premiums throughout their lifetime on the donor file. As a result, the organization switched to a straight fundraising appeal, reducing the size of its donor file by more than two-thirds and significantly raising the average donation in its program.
Still, most of those who use premiums extensively insist — vehemently — that there is no meaningful difference in the Long-Term Value of premium-acquired and non-premium-acquired donors. They claim to have tested the question to their satisfaction. In one, small-scale research project conducted by my agency for a client, we reached the same conclusion. And the fact remains that the majority — possibly two-thirds or more — of donors acquired by mail in the U.S. come from premium offers. Certainly, the very biggest direct mail fundraising programs tend to use premiums.
However, I wouldn't take all those claims at face value. Most of the most outspoken advocates of premiums are either (a) the people who produce them or (b) the consultants who mail them in huge numbers and receive very high mailing fees as a result. (The use of premiuims undoubtedly permits a mailer to increase quantities in its mailings because premiums raise response rates.) So I'm still skeptical.
Now you know what I know. Take your pick of the answers: yes or no. It's your choice.
Is the long term value of a premium acquired donor better or worse that a donor acquired WITHOUT a premium?
Mal answers: "You have just asked the question of the hour. The answer depends on whom you ask. I know of one sizable, direct-mail-based organization that intensively studied this question some years ago and concluded that premium-acquired donors were worth substantially less in the long run -- taking into account the substantial costs of producing and mailing premiums throughout their lifetime on the donor file. As a result, the organization switched to a straight fundraising appeal, reducing the size of its donor file by more than two-thirds and significantly raising the average donation in its program. Still, most of those who use premiums extensively insist -- vehemently -- that there is no meaningful difference in the Long-Term Value of premium-acquired and non-premium-acquired donors."
What can we do with leftover premiums?
One benefit of joining our lowest level giving club is a dated ornament (during the current fiscal year, Christmas 2001). We will have some left over and I'd like to send them now to a selected group of donors who are close to that minimum level as an incentive to upgrade this year's giving. (And point out that they will receive the 2002 ornament if they renew at the same level or more in the new fiscal year starting September.) Aside from "rewarding" some donors who won't respond, is there a downside to this idea?
Mal answers: The only other downside I can imagine -- and I suspect it would be quite rare -- is that a few such donors might actually live with donors who have upgraded to the premium level. However, I wouldn't be worried about that. All in all, what you propose seems to be an intelligent use of dated premiums that would otherwise entirely go to waste.
How can a donor give tax-free bonds?
If a donor wants to give tax-free bonds, what are the most appropriate type of gifts? (i.e., gift annuities, unitrusts, annuity trusts, outright gifts, etc.?) And why or why not. Thanks.
Mal answers: I appreciate receiving your question, and I wish I could give you an answer. Unfortunately, you're asking for information that's far out of my field of expertise. You'll need to consult either an accountant, an attorney, a financial planning specialist, or a planned giving practitioner (or some combination of them). This is a technical question of the sort that makes my head hurt. I'm glad other people care enough to tackle challenges like this. Sorry I couldn't help.
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