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Direct Marketing Facts and Figures in the Nonprofit Industry

Direct Marketing Facts and Figures in the Nonprofit Industry
January 30th, 2008 4:00 pm

“E” Is for Engagement

Everyone had to be wondering the same thing I was wondering as we sat in a room at the JW Marriott Hotel toward the end of the DMA Nonprofit Federation’s 2008 Washington Nonprofit Conference in Washington, D.C., last week: How is Tom Gaffny going to pull off a session titled "’E’ Is for Engagement: 65 Organizations, A Case Study"?



I pictured the executive vice president of fundraising for Epsilon in a cowboy hat, scatting into a microphone like the auctioneer at a livestock sale. (I guess I was the only one who went that far, but like I said, the conference was winding down.)



But he did it … with aplomb. The gist of the session was that Gaffny made online contributions to 145 nonprofit organizations and then tracked their responses. His findings were fascinating, sometimes astounding. For example, 49 of those organizations never even acknowledged the gift. (Yes, there was indeed an audible, collective gasp.)



In the end, Gaffny whittled down the best practices of the best e-efforts into these 12 tips:



1. Be relevant. Be local.

2. Highlight video on your Web site.

3. Engage constituents (quizzes, games, video, etc.).

4. Leverage techniques that work in the mail (matching gifts, headlines, Post-its, etc.).

5. Send information in bite-sized chunks.

6. Work at channel integration.

7. Personalize your organization.

8. Be visual.

9. Say thank you in different ways.

10. Ask "friends" to get the word out.

11. Be timely. Be there.

12. Highlight your partners.


Margaret Battistelli, editor-in-chief, FundRaising Success



August 15th, 2007 10:00 am

Scenes From The NY Nonprofit Conference… The Small Nonprofit: Maximizing Income Through the Mail

This was an excellent session especially for small nonprofits that are looking to take the big step of entering direct mail waters.


The presenters did a very good job of taking the audience through the necessary steps to start, grow, and analyze a successful direct mail program. Several package samples were shared as well as results.


Some of the highlights / take aways:



  • Organizations must be willing to invest in acquisition and be committed to a 5 year plan. Amy Schrom from Dartmouth-Hitchcock Medical Center said that their organization expected to break even after 5 years but they actually achieved that goal after just three years.

  • When considering list rentals, you must consider your demographics. Do prospective donors recognize your name, what your mission is, who you serve, and where? Focus your acquisition efforts where people are likely to know your name, what you do and where you serve.

  • Try many different lists. And keep on testing.

  • Test, test, test and don’t give up. Not only with lists but also with strategies, package formats, content, or offers, to find out what is most compelling for your organization.

  • When first starting out, try mailing in the fall, at year end, and in the spring.

  • As the program grows, use matching gift challenge appeals and membership appeals. Seek to establish a monthly giving program to donors who give 3+ gifts within a 12 month time frame. Anniversary appeals showing the accomplishments of the organization since its inception also work well.

  • Try using cultivation-type appeals like calendars and newsletters.

  • If you are using a self mailer for newsletters try sending them in a #10 envelope. The results were remarkable.


Overall, the session was clear, concise, and informative.


Guy LeDuc, Account Director, LW Robbins Associates



July 27th, 2007 11:11 am

The “Long Tail” of Fundraising in Social Networks

p>If you missed the launch of Facebook Apps Platform almost two months ago, you’re already way behind the times.  The technology "enables anyone to build any application that…Facebook could build."  The Causes application by Project Agape enables anyone with a Facebook account to support and engage their Facebook networks to support a "Cause" - be it "Save the Seals!," "End Global Warming!," or "Fight Hate".

All of the Causes have to be linked to a Guidestar-verified 501(c) (3).The developers hope to revolutionize the way people give money, using the principles of group fundraising and social networking.

We took a sampling from all of the Causes to get a sense of what the potential is.  There are currently about 8,000 Causes, and we sampled about 10% of them.  Lots of zero dollar donations in that sample (555 out of the 774 we sampled).  Of the 218 causes that actually had donations, the average money earned was about $290, and the average number of supporters was about 6,600 (that was after throwing out all of the zeros).  That works out to an average of about $1.24 per supporter.  The total donations ran from $5 to $22,871.  The members range from 0 to several hundred thousand.  Here are the graphs of the results below.  It’s a pretty long tail.  If you’re a spreadsheet junkee, you can email me and I’ll send you the data.

Money Donated to Casues on Facebook
# of Members in Facebook Casues

Perhaps more relevant than the average in this case, however, are the median (36 for Cause members, $0 for donations or $30 if you throw out all the instances of zero donations) and the mode (6 for members and $0 for donations — $10 if you throw out the 555 instances of zero).  Translation:  you’re more likely to get between $0 and $30 per Cause — not the average of $290.

As much as there is potential for "free" money, social networks — and the apps that go with them — are not a silver bullet, yet.  To be fair, though, this particular tool is only about two months old.

If you want to venture into social networks for promoting your org, the same old organizing rules still apply.  The "Field of Dreams" strategy doesn’t usually work anywhere on the web, social networks included.  However, they’re different from other mediums in that they tap into some basic human needs in a new way — the need to be part of a group, need to be creative, need to have a voice heard in a public forum — but it’s tough to get in the middle of that as an organization.  It takes a lot of time and a personal touch.

So for now, we’ll remind you to think like a rock band if you want to spend your time in these mediums.  Seriously, pay attention to what rock bands do to mobilize people on social networks.  And yes, you should be everywhere, but prioritize.

If you want to get down and dirty with the costs and benefits of social network recruiting, we have put together a Social Networks ROI Calculator you can use to help with your decision-making as well as a few how-to articles and case studies .

Justin Perkins, Nonprofit Services Director, Care2
James O’Malley, Chief Blogger, frogloop.com



July 3rd, 2007 9:57 am

Cell Phones: The Next Big Fundraiser!

Got a cell phone? Who doesn’t these days. And like most you’ve probably upgraded or changed service a few times. So in the words of Roger & Tom of The Agitator, EcoPhone deserves a raise for finding a way to rid us of those old cells (among other electronic doo-dads) laying around and at the same time raising funds for charity.


Here’s how it works: You register on their site and then download all the materials necessary, including the all-important tax deduction receipts. You run a cell phone drive and collect old cell phones, DVDs, ink jet cartridges, laptops/notebooks, MP3 players and digital cameras. Go to the EcoPhone website and print out a FREE DHL shipping label and in 30 days you get a check. How cool is that?


I think I’m going home tonight and dig through my car, drawers and my daughter’s toy box. First nonprofit who sets up a cell phone fundraiser gets my cast-offs!


Jill Murphy, Senior Manager, Member Services, Nonprofit Federation


 



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