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Bridge the Giving Gap

Direct-mail efforts with extra-personalized attentioncan move donors from low-value to high on their way to major gifts.

October 2007 By Cathy Finney

In most mid-size to large nonprofit organizations, there are two distinct areas from which revenue is generated from individual donors. The names vary: Membership hands off to development; direct marketing supports major gifts; marketing feeds donors to advancement.

In each situation, one group is dedicated to generating broad-based support via a bevy of direct-response techniques. Another very separate group raises large or major gifts utilizing relationship-based techniques. The impact of this structure is, in most cases, a siloed system that doesn’t make it easy for staff to transition donors — and a jarring experience for the donors themselves.

Professional fundraisers on either side of the divide spend their time developing techniques and processes to increase the value of fundraising efforts — independent of what the other group is doing. Too often there is little or no collaboration between the two. And this is unfortunate because the ideal donor-lifecycle model would have these two groups working together to move donors up the giving ladder from first gift to ultimate gift in a strategic and systematic, yet personalized, way.

Increased competition and changing expectations from donors require fundraisers to work harder at creating a deeper, more cohesive relationship for donors, particularly those who have raised their hands to indicate a great capacity or propensity to support our causes. Mid-level programs are an important element in a smooth donor transition from smaller gifts to larger commitment. Mid-level giving allows us to bring the best of both worlds to bear in crafting strategies for this emerging donor group. Mid-level donors are those donors who bridge the gap between the often divergent worlds of direct response and major gifts. These donors are ready to make a deeper commitment to their cause and need to move beyond traditional direct-response vehicles as a mechanism for support. However, they are not quite ready for — nor do they yet require — the intense, one-on-one relationship and staff resources that major-gifts cultivation offers.

As many organizations look toward creating more donor-centered and mission-oriented experiences for more committed supporters, there are three areas of focus that are key to building successful mid-level giving programs.

Appropriate audience selection
Using some variety of RFM to select donors for direct-response efforts is a proven technique for donor segmentation. But for mid-level donors, organizations might need to dig a bit deeper into their donor pool to determine who is best suited for these efforts. Truly understanding the nature of your donor file is important. Organizations should look at their sources of donors and the offers that bring them in. Are they members or donors? Are they motivated initially by disasters or other episodic factors? What demographic or psychographic information is available?

 

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