Pssst … Don’t Tell the Big Guys

We’re on to all their fundraising secrets.

May 2007 By Benjamin Borne

multipage

How you can do it:

• Look at your donor file in a scientific light.

• Segment your file with an inexpensive file audit. Then strategize to get the most out of each group of donors. This will mean communicating with some groups more often and some groups less often (or even not communicating with some of them at all anymore).

• Rent and exchange your file. It is a misconception that allowing your donor file to be used by other organizations will anger your donors. If done properly, sharing your file will provide another source of income and make available good lists that you might not otherwise have access to.

• Communicate with your major donors in a different and more personal way. Call them, send handwritten letters, thank them, invite them to events, and let them in early on news and announcements.

• Employ an inexpensive, but seamless and focused multi-channel fundraising campaign. Have volunteers make telemarketing calls, utilize inexpensive e-mail blast software or, if your e-mail file is small, send individual e-mails.



LEARN

One thing is for sure: The big nonprofits don’t have their fundraising programs in cruise control. Testing, changing and improving is a way of life for these behemoths. Just about every decision made when conducting a campaign will be measured or analyzed to provide valuable information for future efforts. Testing doesn’t come without cost, but there are ways to test that minimize expense and still provide valuable information.

How you can do it:

• For direct-mail campaigns, use variable laser copy to test lots of things: a different P.S., different gift ask amounts, keywords within a letter, a more religious tone vs. less religious, etc.

• For e-mails, test the items above as well as when you e-mail. Try before a mailing then try after a mailing.

• Telemarketing can be tested as well. Vary the script or test voice tones to convey different levels of urgency.

• Include at least one or two test lists with every acquisition campaign. The cost is nominal when compared to the overall investment. Finding a new, productive list for any fundraising medium is extremely valuable.

• Build the idea of investment into every fundraising campaign. Commit to learn something from each and every mailing, telemarketing campaign or event. This way the cost to learn is spread evenly throughout the program, not just focused on one or two large acquisition initiatives that don’t yield a net gain in revenue.

• Analyze results. Analyze results. Analyze results. It’s that important.



MANAGE

Saving money, working efficiently and finding new ways to raise money effectively are everyday goals that large nonprofits work to achieve. Smaller organizations should manage their program with these same goals in mind.

How you can do it:

• For direct mail, look for gang-run opportunities. Large mailers constantly are producing proven, effective mail pieces and getting economies of scale that yield low per-piece costs. Enlist your agency to design a mail piece that can be produced with one of these larger production runs, and you’ll likely get an upscale mail piece at a low price. (There might be plate and/or set-up charges, but not enough to offset your savings).

• Gang runs don’t just apply to mail production. List orders can be grouped as well. For some nonprofits (especially regional fundraisers), obtaining acquisition lists is a major challenge. Names are sparse and costs are high. These issues can be averted by being included with a larger organization’s list order. Your agency or list broker can work with you to make sure you’re getting lists that will work, not just lists that someone else is mailing.

• Postage is an area that easily can be overlooked as a source for saving money. At the very least, nonprofits should use the Nonprofit Standard mail rate for the vast majority of mailings — major donors getting a First Class stamp can be an exception.

However, there are ways to reduce the cost of postage further. Make sure your mailings are pre-sorted with current software. Many mail vendors will enlist a co-mingling service. Co-mingling involves combining and sorting multiple mailings to achieve even deeper postage discounts using the leverage of hundreds of thousands (even millions) of mail pieces.

• Save money on materials. Stick with two colors on print components. Consider printing for more than one mailing at a time. Slit and nest your letter and reply slip instead of matching. Get economies of scale or contract pricing.

At the risk of spoiling Oprah’s favorite book, “The Secret” suggests that to obtain anything in life, all it takes is visualizing exactly what you want. I’m not suggesting that fundraising like the larger organizations is a matter of visualizing; however, changing your mind-set is part of the process.

Sure, your budgets are beyond tight and deadlines loom, so take it in steps. There is a reason that these large organizations fundraise the way they do: It works.



Ben Borne is vice president/account director at Newport Creative Communications. He can be reached at bborne@newportcreative.com.