Raising Donations Using Direct Mail
A direct mail campaign is often the most practical way to reach many donors. Sending letters also is a simple way to raise money. There is no need to recruit, train, manage and motivate a large workforce. A handful of people can run the entire operation. And you will find you will get a lot more volunteers to fold and stuff envelopes than to cold-call potential contributors. That’s not to say all one must do is write a letter, post or e-mail it, and wait for the returns.
What makes mail fundraising campaigns difficult is that they are one-sided. No allowance exists for a campaign member to personally motivate prospects. The most enthusiastic letter simply cannot match the conversation between a skilled advocate and an open-minded potential supporter. Lacking aggressive salesmanship, only minimum gifts can be expected, no matter how well written the solicitation letter and enclosures may be.
Here’s another angle to think about. Assume that I’m a small-gift prospect with some interest in your endeavors. There’s a good chance that I’ll donate generously to your appeal if you knock on my door or phone because your enthusiasm and presentation will be hard to resist. And how many other organisations will solicit me in these ways? Very few. But send me a solicitation letter and you place your request in the midst of enormous competition for my same donation dollar. And because it’s a letter, I have little problem withstanding its impersonal nature. If your organisation is not among my very favorites, you won’t receive a contribution of any consequence.
You see, although I think highly of your project, I have a table piled high with fundraising letters, from the best known national charities to all sorts of noteworthy regional and local groups. I am overwhelmed with mail appeals. After sorting through them and making my top-ranked selections, I find my charitable budget is about depleted. But I still care about your cause, so here’s five bucks to show you my heart’s in the right place.
With these factors as a downside, letter solicitations produce highly profitable income derived from small-gifts for organizations that plan and carry out meticulous programs. However, first-class mailing programs get extremely involved, both creatively and from a marketing standpoint. There are six elements to understand before considering a direct mail campaign:
1. Fundraising by mail is an ongoing component of annual fundraising programs. In capital campaigning, letter writing is a tool for wrapping up an appeal and giving thanks.
2. Ongoing mail appeals focus equally on retaining and upgrading present contributors while discovering and cultivating new prospects to make up for donors lost to attrition and to enlarge the donor pool. Present givers won’t always be an available source of funding.
3. Donors via mail don’t come free. Depending on the package, to obtain a new contributor, you can spend from $1.30 to $1.60 (or more) for each initial dollar raised from that person.
4. Mail programs are long-term propositions and instant financial rewards are a rarity.
5. Be clear who you designate as a donor and who you label a prospect. Donors are people currently contributing to your charity. Someone who gave you a gift two years ago or a person who once contributed a painting to your auction are prospects, not donors. Get used to thinking of three distinct groups: current donors, past donor prospects, and new prospects.
6. Some prospects have more interest in and knowledge about your organisation than others. Cultivated potential donors are first approached because they represent the highest rate of return. For instance, a past donor prospect is a better bet to send you a new donation than someone who once came to a special event that you held. The person who came to the special event is more likely to fund you than someone who never heard of your group.
In planning a full scale mail campaign, don’t lose sight of the fundamental fundraising requirements. Make sure your project has compelling goals, high visibility, specific, attractive, and timely needs.
Additionally, make sure your group has start-up funds on hand for what can become a relatively large investment to get the program rolling. For example, depending on the scale of your operation, you might want to engage a letter shop or mail house to provide the many functions necessary to get your direct mail package to recipients. This is an expensive proposition.
Or you might opt to subscribe to an online software provider to help drive your mail program. Since the highest percentage of return comes from current contributors, they are the first group to target. If a goal is reachable by only contacting these people, expenses will be minimal and your problems will be solved. If that’s not realistic, additional prospects who might fund your project would need to be reached. That’s fine so long as you realize that their percentage of return will be far less than supporters.
For instance, you send a letter to current donors and perhaps 50 percent of them respond with gifts. A letter sent to brand-new prospects typically yields responses of around 0.5 percent to 2 percent. Until you’ve won over a new potential giver, don’t expect relatively large donations. A return of 5 percent to 12 percent can be expected from present donors.
If your group, school or club is looking for fundraising ideas and easy fundraisers, have a look at Goldstar Gifts and Stationary’s easy to manage ideas for fundraising.
