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Fighting the Recession:
10 Great Ideas on Direct Mail and Online Fundraising
If your Twitter campaign still hasn’t covered the $100,000 shortfall in your fundraising program, you might have to buckle down and try to tune up your direct mail andonline fundraising, despite the economic downer. Here are five ideas for online and five for direct mail. Got others? Let us know.
—Mal Warwick, mal@malwarwick.com, and Nick Allen, nick@donordigital.com
Retain donors or maintain average gift size?
If your average gifts online are down 25% or more, as is the case at many organizations,should you aim to keep your donors giving—even at a lower level—or to keep average giftshigh even at the cost of retaining donors? We vote for retention. Techniques you might try:(a) Base your e-mail appeal gift strings on most recent contribution (MRC) rather thanhighest previous contribution (HPC) to take account of the fact that many people just don’tfeel able to match what they gave last year or the year before. (b) Try testing a really low  Ask—$10 or $15—with donors lapsed 24 months or more, just to get them reactivated. If  you highlight the $10 or $15 Ask, the gift string can still include larger amounts, and youraverage gift will be higher than the minimum.
Remind direct mail donors with email (or even mobile).
If you’re not already doing it, test an e-mail appeal right after donors would have received your direct mail solicitation, or a few days before they’re scheduled to get a phone call. Youcould send either a simple heads-up notice that an urgent letter is in the mail—or, if youplan ahead, you could give those who prefer to contribute online a chance to save you theexpense of mailing them by giving online. Either way, you’re likely to boost the returns youreceive in the mail and get some online gifts. You might also consider following up an appealby mail or phone with a second email, updating donors on the progress of your fundraisingcampaign and giving them one more chance to contribute to it.
Ask for a donation after an advocacy action.
When your supporters take an advocacy action—for example, by emailing their member of Congress on an issue—they are demonstrating their support for your mission. Once they “submit” the action, make the next screen a donation page—and give them the chance tosupport you again.
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Optimize your donation landing page.
The default donation pages in Convio, Blackbaud Kintera or NetCommunity, and Network for Good post some obstacles in the way of donors that prevent them from actually makingthe donation. Take a look at theDonordigitalpaper on Amnesty International’s donationpage optimization. Test removing the fields you don’t really need (e.g., title, phone, fax,shipping address), make the button say “donate” instead of “submit,” and use a bigger fontand a color—and see if that makes a difference. Try testing your donation and other landingpagesusingGooglesfreeWebsiteOptimizertool.Youwillprobablyalsogethigherconversionsif you create custom landing pages for specific campaigns.
Learn from your metrics.
Online work produces a ton of metrics, but it can be hard to create a dashboard of the onesthat are really useful to track and improve your fundraising program. Figure out what variablescan make a big difference in persuading donors to make additional gifts, or prospects tomake that first gift, or anyone to make a larger gift or sign up for monthly giving. If youropen rate is dipping, is it due to too many uninspiring messages? If your average gift isdropping, the economy is suspect #1, but is there anything you can do to raise it?
For more information about how you can put ideas like this to work for your organization, contactMwosi Swenson,Mwosi
@
donordigital.com, orNick Allen,nick 
@
donordigital.com, atDonordigital.
Now let’s turn to the better-mapped territory of fundraising by mail. If your organizationis already well established in that realm, you may have mastered the basics sufficientlyenough thatyou’re wonderingwhatelse you mightdo to fine-tune yourdirectmail programunder the terrible economic circumstances we’re all now experiencing. Here, then, are five ideas you may find applicable to your situation:
Be careful about sharing the bad news.
 At every juncture, you’re advised to “strengthen your case for giving,” and today’s awfuleconomic climate is no different. However, if you rush to tell your donors how badly yourfundraising is going these days, it could backfire. You might think it makes sense to sharethe bad news about that foundation whose gift you were counting on, or the reduced givingfrom your major donors. From what we know so far, this approach turns off donors. Don’tdo it. If you’re serving people whose needs are greater than ever due to the economy, make your case. And tell donors what steps you’re taking to combat the recession—increasing theefficiency of your operations, trimming marginal programs, and focusing even more tightly on delivering the programs and services that advance your mission. Don’t complain—bragabout how well you’re serving the people who depend on you
despite
the economic crisis.
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Don’t be creative just to demonstrate your creativity.
Creativity can be an important element in a successful fundraising program—but it’s notcreative to dump the techniques and programs that have worked well for you in the past andstrike out in a dramatic new direction. Stick with what works. If last year’s spring appeal wasa big success, find a way to repeat it this year—instead of crafting a clever new solicitationbuilt on the theme of the economy. If your annual donor renewal program has been deliveringreasonably good results, don’t decide that it needs to be completely rewritten. Be content with the one in the hand, not the two that may be in the bush.
Raising $1,000 gifts by mail.
Many nonprofits draw a hard line between major gifts and direct marketing and membership,most commonly at the $1,000 level. Donors whose single gifts match or exceed that amountare automatically removed from the direct marketing people and relegated to the major givingstaff. The theory is that personal attention will elicit larger gifts. There are three principalproblems with this practice: (a) Major gift officers are typically too busy (or think they are)to devote time to donors of such a modest amount as $1,000—and often those $1,000donors receive
no
attention; (b) Donors who have increased their support to the $1,000level, often after many years of cultivation, have usually done so in response to directmarketing, not personal attention, and in many cases are uncomfortable about meeting inperson or even by telephone; and (c) There is no reason whatsoever to believe that directmarketing (mail, telephone, and online) is unable to secure gifts above $1,000. In fact, wehave been successfully soliciting gifts of $1,000 or more by what we call “high-dollar mail”for more than two decades. (You can learn about how we’ve done it in Mal Warwick’s book,
.) Your organization may be able both to save money on hiring major gift solicitors
and
increase net revenue by integrating high-dollar mail with your major giving efforts.
Cheaper to reactivate the lapsed than acquire the new.
For years, direct mail practitioners have realized that persuading donors who haven’t givenfor a year or two to renew their support is normally easier and cheaper than recruiting freshnew donors—and has the added advantage that reactivated donors tend to be more responsivethan newly acquired donors. If your organization has 5,000 or more lapsed donors, a specially targetedmailingshouldbecost-effectivesoconsidertryingit.Ifyouhavetelemarketingcapacit within reach—either in-house or through an agency—calling may make even more sense (and you’llfindoutveryquicklyifitworks).However,keepinmindthatitsnormalpracticeindirectmail to spend no more than three years to resolicit a donor. After that point, many mailerssimply include those deeply lapsed donors in a donor acquisition mailing. Such lapsed donorlists often perform very well in acquisition. And if a special lapsed-donor reactivation programis beyond your organizations means, consider including in your donor acquisition program
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