Can we get rid of that "old" direct mail?

Here is another great infographic from Kivi Leroux Miller's Nonprofit Marketing Guide.com site. It is compiled from their 2012 Nonprofit Communications Trends Report. 

It is interesting how the "new media" -- website, email marketing, e-newletters and Facebook -- are deemed either very important or somewhat important to a higher degree than the "tried-and-true" print newsletters and direct mail. 

This is particularly intriguing in light of fundraising expert Jeff Brooks' recent post on his Future Fundraising Now blog entitled What's wrong with the Next Big Thing? To quote:

One of the most pointless and uninteresting things you can hear is that something is the Next Big Thing in Fundraising.

Anything that's being bandied around as a "big thing" is not a big thing. Not yet, and probably not ever.

You'll know a thing is big when nobody's calling it a big thing any more -- but they're just using it successfully to meet their goals. 

Another way you can tell a thing is big is when people start claiming it's "dead".
The two Biggest Things in Fundraising today are direct mail and the house of worship collection plate.

Now, it is important to distinguish considering these newish channels from the standpoint of communication versus solicitation.  Electronic channels will serve an ever more prominent role in getting the word out. Truly, email, websites, social media, et al are important components in any nonprofits communication arsenal.


The problem lies in the belief that any of these will supplant direct mail or in-person solicitations as a significant source of gift revenue any time soon. And oh, how we yearn to replace costly direct mail with something inexpensive such as email! Do not succumb to this spurious temptation! 

Use email to support direct mail. Employ social media to provide broader opportunities for education and engagement. Spruce up your website and make sure that it tells your story in a clear and compelling manner. But realize your gifts will come mostly through old-fashioned but lucrative channels. 

Where and Why People Donate Their Time and Money

YourCause, an online resource designed to provide powerful online tools to facilitate fundraising and volunteering, recently posted a great infographic focused on where and why people donated their time and money in 2010/2011. Note that the top motivators for giving included a personal or emotional connection to the charity or being asked by someone they know well. Religious and educational causes accounted for top categories to receive volunteer assistance.  Not surprising given the current recession, economic development was the top issue donors wanted addressed by charities. Also, note that the ways in which donors choose to give appears to be becoming more diverse with donors stating that they have made much greater use of giving channels beyond sending a check in the mail.  

Let’s see what 2012 brings!

(Thanks to Katya Andresen for mentioning this on her blog.)

15 Things I'd Do As the New Head Fundraiser - Part 2

Continuing commentary (mine are in italics) based upon Ken Burnett's 15 things I would do if I were the new head of donor development as shared on the SOFII (Showcase of Fundraising Innovation and Inspiration) website:

9.    I’d work on strategies that build our donors’ trust and confidence in us and our organization. I’d make our nonprofit a model of proactive accountability, to show we are effective and well-run.

Perhaps our greatest responsibility to the donor and one often poorly executed involves earning the donor’s trust. This will involve focusing on establishing superb communications, being transparent regarding our operations, and being guided by a set of principles that are donor-centric. An excellent place to start is encapsulated in the Donor Bill of Rights as outlined on the CASE (Council for Advancement and Support of Education) website.

10.    I’d focus on the major motivations that have attracted our donors to our cause in the first place. I’d try to understand these, and make the best possible use of them.

Do you know what the main motivators are for your donors? Is that an assumption or have you asked them? Distribute surveys, provide opportunities to assemble small groups of supporters for feedback sessions, and establish groups of volunteers that can provide ongoing input. And don’t forget to communicate with the beneficiaries of your organization since they often hear first hand from donors why they give. Keep an open mind. Motivating triggers may be quite different than what you assume – or even think you want.

11.    I’d have our donor database properly profiled at least once a year.

Your most valuable source of information is right in your own database. Consider having it profiled for demographic and response information as frequently as possible. I have had great success utilizing the resources of Marts and Lundy and Target Analytics but there are other excellent services and resources available that will provide invaluable insights and benchmarks. Do it. It is well worth it. Then make sure you act upon what you have learned.

12.    I’d offer donors and other supporters the chance to choose when and how often they hear from us and what they might want to hear about.

As Ken Burnett states, “Donors will always be more responsive if what we send them is what they want to receive.” And as Burnett adds, “When this strategy starts to work, I’ll try introducing other choices for our donors, so they can in effect choose their own personal communications programs.”

I would reiterate that allowing a donor to “choose their communication program” is not the same as removing the donor from a communication stream in the mistaken belief that they will be grateful “not hear from you”.  Remember, donors like to give. If they aren’t giving to your organization they are likely giving to another. Shouldn’t they be given the opportunity to give to you? It is the rare donor indeed that will search you out to send you a contribution unsolicited.

13.    I’d create an environment where innovation and creativity can flourish, so I could readily develop appropriate products and propositions designed to suit our donors.

There are over 1.5 million non-profits in the US and a new nonprofit organization registers with the IRS every 15 minutes. It is the responsibility of each nonprofit to create programs that are compelling, unique, and deserve the support of donors. It will take talented communicators to make sure your nonprofit stands out and establishes a clear niche.

Likewise, fundraisers must balance utilizing “best practices” in their appeals for these nonprofits with innovation and creativity. This will require testing our “tried and true” against new ideas. Test, test, test and test some more.

14.    I’d make our organization the best communicator anywhere.

Communication can take place through many different channels. It could be through your website, fundraising appeals, thank you letters, public events or publications.

Let’s consider nonprofit websites. A significant percentage of donors go to a nonprofit’s website to research the organization prior to making a gift. Yet, recent research has found that donors find giving online far more difficult than what they are accustomed to when utilizing commercial sites. Researcher Jakob Nielsen found that a top priority for nonprofit websites should be to “write clearer content”. As he states in a recent Jakob Nielsen Alert posting, “Non-profits must clearly communicate their value proposition if they want to attract volunteers and online donations. Sadly, such communication is the sore point in the non-profit user experience.”

All areas of communication require the sort of scrutiny that ensures top-notch clarity.

Scrutinize everything you do. “Mystery shop” your branch offices, run your communications past your beneficiaries for their perspective, call donors after appeals and ask for their input. Try to make an online gift and see what the process is like. Remove all impediments from engaging your supporters.

15.    Finally, I’d give a little bit extra.

Going “above and beyond” expectations will set your organization apart from your 1.5 million nonprofit friends. Establish a culture that encourages each of your employees, volunteers, and representatives to exceed expectations. Your mission deserves it. Your donors deserve it.

15 Things I'd Do As the New Head Fundraiser - Part 1

So, you’re new on the job. The expectation is that you will raise a lot of money for your nonprofit – and fast. What do you do first?

Ken Burnett, intrepid Scotsman, fundraiser par excellence and author of The Zen of Fundraising, Relationship Fundraising and other key fundraising tomes outlined 15 Things I Would Do If I Were The New Head of Donor Development on the SOFII (Showcase of Fundraising Innovation and Inspiration) website, an online fundraising resource site he helped establish.

Here are the first 8 suggestions with my comments in italics -- but I highly recommend visiting SOFII and reading the details of all 15. They are really terrific.

1.    I’d aspire to be the most learned fundraiser of my generation.

 The fundraising community is blessed to have at its disposal scores of superb educational resources. Few professions are populated with individuals so willing to share as generously of their knowledge. Blogs, podcasts, seminars, books, publications, and very lively and active professional associations – all result in a plethora of advice and inspiration.

2.    I’d teach all my fundraising colleagues to make the 90-degree shift and to aspire to be 15 minutes ahead.

      

        Put yourself in the donor’s shoes. There is no greater folly or act of hubris than to think that donors should give to your non-profit simply because you have told them they should. Truly, our job is to determine what is important to our donors and how philanthropy fits with their values and aspirations. Then we can match our mission with their priorities.

3.    I’d develop a culture of appropriate but high quality donor service in our organization, top to bottom.

As Ken Burnett states, “I’d make sure we are always a pleasure to do business with.” Think about your organization’s customer relationship management. Can you honestly state that every donor “touch point” is exceptional -- or even acceptable?

4.    I’d be very choosy.

      Focus your efforts on areas with the potential for the greatest return on investment. Is it really the multi-millionaire who was a guest of one of your donors at a recent gala and is therefore in your database? Or is it perhaps the “less sexy”, long-time supporter who has been a modest but consistent donor for 25 years?

5.    I’d cut out all short-term thinking, including all hard-sell activities.

If you have determined what the donor’s values and aspirations are, made a connection between your mission and these values, and provided a long-range strategic path that resonates with them– you don’t have to “hard sell”. 

6.    I’d switch our organization’s contact paradigm from “marketing” to “communication”.

It’s the difference between being sold or being engaged. Resist the temptation to be hoodwinked into thinking that slick graphics, uber-clever concepts, and double entendre laden copy presented to you as edgy marketing is good communication, or more importantly – good fundraising.

7.    I’d make sure we only send effective, imaginative communications.

Given the comments above, will your fundraising communication be dull? I’ll bet your non-profit’s mission isn’t dull! Concentrate on clearly communicating what you do that is important and special. Do it in a compelling and authentic way. Being authentic is really a lot harder than being clever. And it is far more effective!

8.    I’d make ours a listening and hearing organization.

Back in the donor’s shoes again. Talk to them. Survey them. Listen to them. Let them know you have heard them. Then act upon what you have learned.

Next, I’ll share the last seven suggestions from Ken Burnett with my comments. 

Giving with the Head or the Heart?

Two superb blogs recently mentioned conflicting studies relating to whether a donor was more likely to give based upon logic or emotion.  Beth's Blog posted information about a study from Guidestar and Hope Consulting, Money for Good II and The Agitator cited a Boston Globe article Why We Give to Charity examining research behind giving motivations. The two studies arrived at diametrically opposite conclusions as to what drives the giving process – one emotion the other logic.

The Boston Globe article quotes a marketing and psychology professor at University of Pennsylvania’s Wharton School, “What we find is that when people are thinking more deliberatively…they end up being less generous overall.”  The article’s author concludes, “…it appears that giving is driven by emotional motives, rooted in deep impulses, cognitive biases, and even our own selfish needs.”

On the other hand, the Guidestar Money for Good II study claims, “…if nonprofits and information providers are able to provide donors, advisors, and foundation grant-makers with the information that they want, where they want it, these donors would consider shifting up $15 billion in charitable dollars to higher-performing nonprofits.”

I would put forward that these elements are not mutually exclusive. Crafting a strong brand identity, communicating a compelling case for support and being credible is a necessary precursor to even be considered for a charitable gift. The actual giving “trigger” is more likely to be emotionally based in order to be effective. Many annual fund experts know that response to a direct mail appeal declines as a result of data overload. But in order to prepare the way for that all-important second gift, providing additional information that justifies the past gift is essential.  Donor follow-up after the gift is made that includes information claimed important by the Guidestar research such as the nonprofit’s impact and financials would be relevant at that point. This more detailed information will help justify the charitable investment just made and help prepare the way for subsequent gifts.

Data to prepare the way, emotion to overcome inertia, and more information to confirm a good decision -- perhaps it really comes down to a matter of timing. 

Online Giving and Older Donors

A new study by fund-raising consulting firm Dunham + Company out of Plano Texas seems to suggest that donors that are 60 or older are beginning to defy the long-held presumption that they aren’t comfortable giving online.  They found that of the 524 donors who participated in the survey and had made at least one gift of $25 in the past year, 51% of those in the 60 plus age group made their contributions online. Additionally, once these donors gave online they tended to give more frequently than younger donors.
(Link to Dunham + Company Study Article)

Wow!  Or, to quote the study “We believe this study blows some holes in the conventional thinking about older donors and online giving.”

Or does it? Is it problematic that the survey was conducted online? Does this skew the results? I believe to a great degree it must.

Should we temper our enthusiasm for results that are generated by a study that requires that the participant have a level of comfort with the online process to even take the survey?

You betcha!

Nevertheless, there is some validity in the study statement, “This just reinforces the need to apply best practices around integrated, multi-channel communication strategies and give donors options on how they want to fulfill their gift.”

This should apply to all demographics. Make sure the online giving process is clear and simple. And perhaps most importantly, reassure the donor of any age that the transaction is secure.

Giving online, even though it receives a tremendous amount of attention, still pales next to more traditional offline giving. The more we improve the online process, the more donors of all ages will have the confidence to give electronically.

What do you think?

I Give Marriott the Customer Focused “You” Award

It's early December and I just received an email from Marriott Rewards with a subject line “Seasons greetings from J. W. Marriott”. It is a wonderful example of customer-focused communication. The salutation is personalized with my name and it is signed by Bill Marriott in his handwriting. It might seem to be a familiar “end-of-the-year” thank you missive but it excels at coming across as genuine and warm. Here is a link to the email.  Marriott email.

Note the use of such phrases as (I have added the underlining) “thank you for your continued loyalty”, “It is an honor to host you”, and “I look forward to welcoming you at any of our nearly 3,700 hotels in 72 countries.” In fact the communication uses you or your a dozen times.

Too often we are tempted to focus on our achievements and our needs – to use year-end thank-you letters and emails as thinly veiled self-promotion opportunities. The Marriott letter does mention that next year will be the company’s 85^th anniversary but they deflect that potential self congratulatory trap by stating that the true benefit of this milestone is that it “uniquely positions Marriott with the insights and experience to serve you, our treasured guest, and make your stay memorable”.

Three short paragraphs and I feel appreciated. But this email is not just a feel good thank-you message. It also provides the opportunity for the recipient to take a number of beneficial actions. There is a link to customer email preferences where the recipient can update personal information, limit or expand electronic communications, or simply opt-out of future emails.

There are also three prominent links displayed in the message. Two links titled “Find a Hotel” and “Explore a Plan” lead to a colorful and interesting corporate website that can help a customer plan a stay at one of the aforementioned 3,700 hotels around the world. Another link leads to the Rewards page where the customer can see how they fare with this benefit.

What can fundraisers learn from this well executed email? Consider these possibilities:

·      A “you” focused message from your organization’s leader presented in a conversational and genuine tone

·      Links that direct the recipient to select giving or volunteer opportunities

·      A way for the donor to help craft their own communication experience

I think this would be a far superior relationship builder than the common and hackneyed “two weeks left in the year, send your gift now” approach. What do you think?