AFP’S READY REFERENCE SERIES
Reviving Your
Donor File
PRESCRIPTIONS
FOR A HEALTHY
DIRECT
MARKETING
PLAN
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Reviving Your
Donor File
Prescriptions for
a Healthy
Direct Marketing
Plan
By Margaret Guellich, CFRE
AFP’s Ready Reference Series
Association of Fundraising Professionals
This booklet is the fourth in AFP's Ready Reference Series for professional fundraisers.
Text by Margaret Guellich, CFRE.
©2003 by the Association of Fundraising Professionals (AFP), 1101 King
Street, Suite 700, Alexandria, VA 22314.
All rights reserved. No part of this publication may be reproduced, stored
in a retrieval system or transmitted, in any form or by any means—electronic, mechanical, photocopying, recording or otherwise—without the
prior written permission of the publisher. Printed in the United States of
America.
Table of Contents
The Role of Direct Marketing in the Development Office .......... 1
Pulling Together Your Team: An Integrated Strategy .................. 6
In the ER: First Treatment of an Ailing File ................................ 10
Energizing Direct Mail: Prescription for a Performing File ...... 15
Tele- and E-marketing: Contact with a Purpose .......................... 25
Cultivation: From Surviving to Thriving...................................... 29
Appendices
A: A Response Tracking Form ...................................................... 32
B: Sample Scripts and Letters ........................................................ 35
C: Frequently Asked Questions...................................................... 39
Resources
AFP Code of Ethical Principles and
Standards of Professional Practice................................................ 42
Additional Resources ...................................................................... 44
A Donor Bill of Rights .............................................. inside back cover
The Role of Direct
Marketing in the
Development Office
A
n organization’s direct marketing program serves two extremely important
roles within the overall fundraising strategy: (1) to raise unrestricted revenue and (2) to
identify a pool of major gift prospects. Directors
of development confirm over and over that their
best source of major gift and planned giving
prospects is donors to the annual fund. No wonder then that major gift officers have such a difficult time finding prospects when the donor file is
ailing.
Why Direct
Marketing?
Direct marketing is like a two-edged sword.
On one side, direct marketing is consistently the
best source of identifying major donors and
planned gifts. On the other side, direct marketing
is cost-heavy, thus becoming the first place executive directors and boards look to cut expenses.
Even with the best of programs that net millions
of dollars, direct marketing—particularly the list
acquisition program—suffers the first budget
reduction.
FAIR JUDGMENT
High-dollar, major gift programs have the
lowest fundraising cost ratio—once the major
Direct marketers should
donors have been identified. The primary
be judged on meeting
resource for these big donor programs, howevrevenue goals and idener, is direct marketing and its high-cost ratio.
tifying major and
Too frequently organizations solely increase
planned gift prospects.
their investment in existing major gift donors
and fail to invest equally in marketing to new
prospects. Strong fundraising programs cannot
have one fundraising approach without the other,
nor can the investment in direct marketing be
haphazard—high one year and drastically cut the
1
Reviving Your Donor File
next. Educating executive directors, CFOs and
boards about the pivotal role of direct marketing
is key to building an organization’s capacity for
fundraising and planning for its future success.
What Causes a
File to Languish?
Many nonprofit organizations begin their quest for
funds by asking individuals for support. Statistics
gathered by national organizations reinforce this
approach as the best possible source of continual
funding. More than 76 percent of donations came
from individuals in 2002.1
New organizations most often identify the
personal friends of the board and executive director as the first list of prospects. Once those names
have been exhausted, the organization seeks new
ways to acquire supporters.
List rentals or list exchanges are used to develop a prospect program that feeds the renewal
campaigns. Very quickly the decision makers discover that acquiring new donors, maintaining
databases and cultivating individuals is an expensive, tedious job. Frequently, a return on investFILE FAILURE
ment is not seen for 12 to 18 months, and if
GUARANTEE
prospecting is not strategically managed, it will
No acquisitions in a
not break even in a reasonable length of time.
year or more.
Unfortunately, because of the cost risk associated with prospecting, too many managers
No one tending to file
make a decision to cut—or worse yet, stop—
trends and analysis.
their acquisition programs all together. Costs
can reach $2 or $3 or more to raise $1 when this
strategy is not well managed.
However, cutting or eliminating the acquisition budget is counter-productive and winds up
weakening the overall donor file.
1
Giving USA 2003 (Indianapolis: AAFRC Trust for Philanthropy, 2003).
2
Reviving Your Donor File
General neglect is just as detrimental to the
donor file as eliminating acquisitions. In some
organizations, the direct marketing position has
been left unfilled for months or the development
director has strong donor-relationship skills but
no marketing experience. In other organizations,
staff and boards have not acted on recommendations made in file analysis reports, responded to
testing and renewal details or initiated cultivation
techniques.
Either way, these
two primary causes—
acquisition budget
cuts and overall neglect—are at the root of
undermining a file.
MARKETING RULE
It only takes about nine months to change the
trends in a direct marketing file.
Either build up or tear down—take your pick!
Does your organization look like any of the following? Read through the cases in these boxes and see if
any of the details sound familiar.
Time for a
Check-up
CASE A
Symptoms: An international organization has a strong planned
giving program but its marketing efforts are failing. The donor
retention rate is pitiful, there have been no prospect list acquisitions in two years and the development program has had no professional direction for three years.
Diagnosis: The donors are literally dying off the file and little
has been done to “stop the bleeding.”
Prognosis: With strategic direction, the program can be turned
around.
3
Reviving Your Donor File
CASE B
Symptoms: A national organization has a fairly large direct
marketing file that looks healthy from all reports. Mail is sent regularly, responses look reasonable from year to year, acquisition
quantities are budgeted to increase annually, attrition rates are
high but look normal compared to other similar organizations and
some major gift prospects are identified.
Diagnosis: This file has unlocked potential. Acceptable retention numbers are hiding a flat performance.
Prognosis: With strong strategic direction, donor cultivation
programs and an eye on continual analysis, the file could eventually
break records.
CASE C
Symptoms: A regional agency, heavily funded by the United
Way, has several thousand names in the database and mails
appeals to its donors twice a year. A magazine is sent quarterly but
does not contain any material asking for funds. Its planned giving
program is almost non-existent and donors are never visited.
Diagnosis: The donors—although interested in the program—
are not asked frequently enough for support. There is minimal communication about the good works of the organization. Some donors
may think that the organization does not need funds since it is
heavily supported by a prominent national charity, and the appeals
are not urgent or only implied with a return envelope.
Prognosis: Mailing and asking more frequently could improve
the retention rate significantly.
If your direct mailing program looks anything
like these cases, there is still hope for a cure for
your donor file. Strategies for alievating these
problems are outlined in the next chapter. But
you will need patience—turning around poor file
trends such as in these case organizations takes a
number of months. The results are well worth the
wait, however.
4
Reviving Your Donor File
Initially, many direct marketing files were built and
maintained independently of other facets of
fundraising. When major donors were identified
they were quickly removed from the direct marketing file. Planned gifts were managed separately out
of a corner office. Cultivation comprised face-to-face
donor visits, telemarketing meant calling to ask for
more money, and these two strategies were not
linked. Web donors were a vague vision for the
future.
Integrated
Marketing:
Fitting the Pieces
Together
Today’s high-tech, fast-paced environment
demands an integrated marketing strategy.
Professionals now grasp that direct marketing
concepts and their implementation are critical to
approaching ALL donors, collectively and in subgroups. Each approach must be designed in relationship to the other strategies.
When analyzing results, boards, directors and
fundraisers must look at the sum of the parts. For
example, an organization needs to track various
“touch points”—marketing methods—each of
which can influence a donor’s or prospect’s decision to make a gift. How a donor makes a gift—via
a telephone pledge, a website credit card donation
or mailing in a check—may be just a matter of
convenience, while the emotional motivator
prompting the donor to say “yes” in the first place
comes from a different source. Only by tracking
all the touch points can an organization grasp
which become trigger points.
Direct marketing is one piece of a much
larger picture. Today, marketing fundraisers
are part of a team of major gift officers,
planned giving managers, cultivation specialists and e-fundraisers. Once the pieces begin
to come together, the team needs to work collaboratively to complete the puzzle.
THE BIGGER
PICTURE
By tracking touch
points, you’ll see the
strategies that trigger
giving.
5
Pulling Together Your Team:
An Integrated Strategy
Working as a
Team
T
he most difficult part of “putting it all
together” is actually “putting it all together.” Each strategy needs to be watched
closely by a sharp eye, but the individuals managing the various programs need to function collectively as a team, communicating clearly with each
other, staying flexible and letting go of personal
agendas.
Keeping track of which donors are receiving
specialized treatments, analyzing returns and
reviewing file trends is tedious, but successful
organizations pay attention to these details. Just
seeing the retention rate increase one percentage
point on an ailing file can be a milestone and
mean that something is working. You have to be
able to identify what it is.
When evaluating what tactics or programs are
breathing life back into a languishing file, charities must consider their strategies holistically.
CHECK LIST
FOR INTEGRATED
MARKETING
Review current donor segmentation behavior.
Develop marketing goals/objectives for the year.
Decide how and when to use mail, telemarketing, email and cultivation.
Prepare an expense budget.
Develop and implement a schedule.
Monitor response rates, average gifts, retention, behavioral patterns,
revenue and costs.
Evaluate overall performance and build strategy for the following year.
6
Reviving Your Donor File
Some executive directors and boards evaluate telemarketing based solely on those campaign
reports, when, in fact, telemarketing affects mail
campaign responses and vice versa.
When one organization coordinated its
efforts, adding a new donor program, starting a
thank-you phone program, emailing news releases
to interested donors and adding lift notes to inactive donor mailings, the retention rate increased
by 8 percent in one year. What worked? The
answer to that question is clear: everything. Each
strategy was intertwined. Integrated programs
must be evaluated as such—integrated.
NUMBERS
TO
WATCH
Response rates and average gift by segment
Revenue per thousand mailed
Overall campaign response rates and average gifts
Number of gifts per donor per year
Gifts upgraded, downgraded and the same
Retention rate
Attrition rate
Geographical clusters
Cost to raise a dollar
Net revenue
Cost per thousand mailed
Rollout costs for tests (not just for the quantity tested)
New name and lapsed name retention
These numbers take time to understand and interpreting their meaning
can be a challenge. In addition to these stand-alone statistics, an organization
should learn how it measures against similar nonprofits and the industry as a
whole. Comparing apples with apples gives decision makers a much better evaluation. Networking with colleagues also can help development officers judge
benchmarks.
7
Reviving Your Donor File
New Marketing
Programs: Staying
Fresh
Strengthening your file demands creativity, developing new approaches to donors in various file segments. For example, one way to increase the average
number of gifts per donor per year could be to start
a monthly giving program. This program could
increase the annual dollar value of donor giving
while also improving the frequency of giving.
Monthly giving programs also strengthen a donor’s
commitment to an organization and supply both
planned giving and major gift officers with
prospects.
Some organizations have successfully used
focus groups or surveys to gather information
about prospect and donor interest and behavior.
Results have led some nonprofits to develop special strategies, such as targeting “boomer” donors
to keep their giving active. Other organizations
have focused on older donors by mailing planned
giving materials more frequently. Still others have
identified donors with particular interests and
mailed or called with focused materials.
In marketing, putting a creative package in
the mail, developing a persuasive telemarketing
script or broadcasting an urgent email is only one
part of the strategic plan. For a complete strategy,
the development team needs to examine the statistics, analyzing the performance of new
fundraising ventures and the impact on donor
giving patterns and revenue. These programs
should have clear purposes and measurable outcomes so organizations can determine if these
strategies are effective and affordable.
A Classic
Turnaround
8
One national organization had serious donor file
issues—marketing lacked solid team leadership, the
list performance had plateaued, revenue was flat and
the active file was shrinking. Cuts to the acquisition
budget were made and no one focused on second
gifts from new donors, resulting in high attrition
rates. Lastly, the gift array table was highly success-
Reviving Your Donor File
ful in numbers of gifts, but methodically downgraded donor giving year in and year out.
It took more than a year, but this nonprofit
gradually turned around these bleak donor
trends. The decision makers invested in marketing
leadership, integrated strategies and acquisition,
recognizing the file not just as a source of revenue
but also a pool for major gift and planned giving
prospects.
What were the key strategies? The new team
changed the basis for the gift array table from the
last gift made to the highest gift within a year;
they made thank-you calls to new donors and
high-dollar giving donors; the team clearly
explained the attrition rate to decision makers so
they wouldn’t cut the acquisition budget; they put
cultivation programs in place; they directed staff
to pay attention to the new donor program; and
they started several monthly giving programs.
In the end, the team reversed donor attrition,
increased revenue and expanded the major gift
pool. Maintaining the file’s transformation into a
record-setting performer became the new challenge—a welcomed one. But the process took time,
trust and commitment.
9
In the ER: First Treatment
of an Ailing File
Stop the Bleeding
M
any organizations that have poorly performing files are not adequately investing in new lists, resulting in meager
prospect response rates and low new-donor retention rates. To stop the file from bleeding—losing
prospects and new donors—an organization must
set clear strategies and realistic goals for its acquisition and new-donor programs.
To keep a file at status quo, the organization
must replace all the donors it loses—those who do
not renew from one year to the next. However,
sustaining the same level of donors as the previous year is not as simple as sending a mailing to
an equal number of prospects as the donors lost.
A strategy is needed for maintaining donor numbers.
Revisiting Case A:
The Right Remedy
Can Cure
The organization has 60,000 active names (donors
who have given within the last 12 months) and a
retention rate of 60 percent (or an attrition rate of
40 percent). By the beginning of the next year, its list
will have dropped to 36,000 and it will need 24,000
new donors to maintain the same donor level.
Remedy 1: The organization, which has had
no direct marketing strategic direction and has
never tried to lower its attrition rate, only budgets
for a mailing to 1,200,000 prospects since list
acquisitions are so costly. However, the long-term
effect of stopping or drastically reducing the
acquisition program shrinks the active donor
base. Mailings usually generate only a 1 percent
response rate, so the current strategy would generate only 12,000 new donors—half of what the
10
Reviving Your Donor File
organization needs. By the beginning of the third
year—ignoring any further attrition—the active file
would drop from 60,000 to 48,000 donors—more
than a 30 percent loss.
Year 1:
60,000
Year 2 (60 percent retention):
36,000
New donors added:
12,000
Year 3 (ignoring further attrition):
48,000
WORST FUNDRAISING DECISION
Stopping prospect acquisitions because it is too
expensive.
Remedy 2: The organization assumes a 1 percent response rate and mails to 2,400,000
prospects to acquire the 24,000 replacement
donors. Although the total cost of this investment
could reach slightly more than $1 million, the
directors recognize that it is money well spent and
an investment for the future. Next year, they plan
to grow the file by increasing acquisitions even
more and improve their strategies for maintaining
existing donors.
Year 1:
60,000
Year 2 (60 percent retention):
36,000
New donors added:
24,000
Year 3 (recover previous attrition):
60,000
Although cutting or halting an acquisition program
is a common cause for an ailing file, other more subtle knocks also can lead to a file’s demise. In fact,
one of the most deadly is perhaps the easiest to correct: neglecting the details.
Keep an Eye on
the Details
Whatever strategy an organization uses to
revive its donor file, attention to detail is a must.
11
Reviving Your Donor File
The first detail to look at is the attrition rate.
Reviewing the activity for the total file is a good
place to start, but a detailed look at file segments
can reveal hidden or a lack of activity.
For example, in Case B mentioned in the previous chapter, although the overall attrition rate
appeared relatively normal compared to other
organizations, it was still high at more than 45
percent, and a review of selected file segments
indicated trouble spots. Upon closer examination,
the file showed significant failed renewals in three
categories: (a) new donors; (b) 12-month lapsed
donors; and (c) 36-month inactive donors.
Once the organization identified these problems, it was able to create strategies that boosted
its retention rate. Knowing the file’s weak points
helped the direct marketer decide which marketing packages to send to the different segments of
donors who have stopped giving.
Keeping New Donors Interested
SPECIAL
TREATMENT
Don’t treat your
new donors just like
your long-standing
givers—the newcomers
need a tailored strategy.
12
In taking a closer look at the details, an
organization discovers that the attrition rate of its
new donors is 70 percent—in other words, only 30
percent are retained. If the organization does not
receive a second gift by the time a donor is on the
file for four months, the chances of getting that
gift within 12 months—or ever—are miniscule.
To stabilize its donor base, the development
office needs to do more than just keeping the
acquisition program alive; it must develop ways
to retain at least 65 percent—if not more—of its
new donors.
Typically, new donors are immediately
rolled into the renewal appeals list, but a
renewal appeal tends not to contain the information new donors need to motivate a second
or third gift. A renewal appeal goes to longstanding active donors who are already well
acquainted with the organization. A first step in
Reviving Your Donor File
improving new donor retention would be tailoring a marketing package specifically for the lessinformed giver to cultivate loyalty.
Reactivating 12-Month Lapsed Donors
Donors whose giving has lapsed in the last
year—even those who have given more than once
or twice in the past—can spike the attrition rate
and need special attention. Losing these donors
also impacts the major gift and planned giving
programs by reducing the pool of active donors
who might give larger gifts. An integrated strategy
using mail, phone, and email can motivate these
donors to renew. As in Case C mentioned previously (page 4), the problem could be something as
simple as not making appeals frequently enough.
Just by increasing appeals or using a different
method, marketers can improve overall donor
retention and identify new major gifts.
Rousing 36-Month Inactive Donors
Likewise, inactive donors who have not made
a gift for three or four years require a different
strategy. For example, a donor who used to give
regularly a few times a year suddenly stops, and
the renewal mailings have lost their effect.
Rather than continuing with that strategy, it
RENEWAL APPEAL
is time to approach the donor differently—or
RESULTS
revisit the same marketing tactic that initially
UNAPPEALING?
sparked the donor’s interest.
Try a follow-up
Knowing what motivates donors to keep
phone call or another
giving is just as important as knowing what
strategy that was sucmade the donor give the first time and what
cessful in the past.
the retention rate is.
Most organizations cannot possibly afford to
analyze every detail about every file segment, but
assessing the retention rates of two or three key
segments will both save money in the long run
and provide better information for decision-making. Those segments should include new donors,
lapsed donors who gave the previous year and
13
Reviving Your Donor File
donors who have not given in 36 months or more.
The first steps in reviving a flagging file—
keeping an eye on the details, developing strategies for each donor segment and being consistent
with list acquisitions—will dramatically improve
donor retention rates and feed major and planned
gifts. Yet these points are not only reparative, but
also are preventative medicine for the donor file
and essential to all direct marketing.
14
Energizing Direct Mail:
The Prescription for a
Performing File
H
ighly successful new-donor programs are
aimed at ultimately asking for and
obtaining second and third gifts. The
programs appear to be expensive because the
quantities mailed are usually low, but new names
cost the organization at least $2 or $3 per $1 initially raised. Converting a new donor into a loyal
donor is where an organization recoups its costs.
Spending a little more to retain the new donor
makes for good stewardship and generates a
healthy list of long-term committed supporters.
A Healthy Start:
New Donor
Programs
New donors are fragile and can easily be swept
away by other organizations or interests. Their initial gifts are statements of interest, not loyalty.
Organizations must work hard to earn the
donors’ trust and confidence, especially since the
boom of new charities created in the wake of the
Sept. 11, 2001 tragedies. Fundraisers have always
needed to demonstrate credibility, but with the
influx of new nonprofits and the concern about
whether organizations are following gift intent,
donors are demanding greater accountability and
transparency. New donors want to know more
about an organization before committing to it.
Setting up a new-donor program can set the tone for
transparency and credibility while linking donors
closer to the organization and providing more information after the first gift. A healthy new-donor program has the following elements:
Sample New
Donor Program
Step One: The “welcome to our family”
acknowledgement letter builds the foundation of the program.
15
Reviving Your Donor File
A welcome brochure that answers some frequently asked questions, invites the donor to visit
the website and provides a brief overview of the
organization’s mission and programs is essential.
A soft ask for additional support is appropriate.
Although the welcome package is an important
touch point, the donor should not be overwhelmed with too much information, such as
books, flyers or multiple brochures.
Step Two: The “credibility package” is the
second solicitation appeal mailed within
two months of the first gift.
The primary theme communicates the organization’s outstanding achievements and its efficiency. Besides telling a story and conveying an
urgent appeal, this package must include simple
cost ratios explaining how the donor’s money is
used. (Lower costs speak volumes.)
E-MAIL STEP
The “follow-up email” goes out to new email donors after
Step Two. With online donations, the donor should receive an
immediate email thank you with links to your website “about us”
page. Then two months later the donor should receive the “credibility package” via the postal service. A follow-up email solicitation provides links to your organization’s annual report.
Step Three: The “best-ever renewal package” mails within three months of the first
gift.
This package is not seasonal, i.e. built around
a holiday theme, but clearly communicates the
most successful story the organization has to tell.
Invest in this piece; it should be your best.
Step Four: The “follow-up phone call” is
made to new donors who have not made a
second gift within four months.
16
Reviving Your Donor File
As with all telemarketing, you
need to communicate your reason for
calling, so the script welcomes the
donor again and emphasizes themes
used in the acquisition appeal. The
caller also reinforces the organization’s credibility and urgency for
funds. This step is the most costly but
often the most effective in getting second gifts.
In developing the appeals schedule and mail, phone and email strategies, the organization needs to keep in
mind that capturing that second gift
as quickly as possible markedly
improves new donor retention.
HINT: NOT
NONPROFIT
FOR
EVERY
New-donor programs might
not be for every organization.
Usually this system produces better results and stronger lifetime
giving than immediately rolling
new donors into the standard
renewal process. However, not
every organization’s experience is
the same, so you will need to test
and analyze the results to see
what works best with your
donors.
NEW-DONOR BEST PRACTICES
1. Ask for a second gift quickly.
2. Mail frequently, even monthly.
3. Watch responses VERY closely.
4. Test which mailing should go first: “credibility” or “best ever.”
5. Test packages themes.
6. Test making the phone call sooner.
7. Compare the new-donor program results with the old method of
immediately rolling new donors into the regular renewal program.
8. Mail donors a slightly different version of the acquisition package.
9. Test calling email donors.
When organizations don’t know what is going on
with a flagging file, drops in the general renewal
response rates can trigger knee-jerk reactions, such
as pumping a list with more new names. Although
we have seen that acquisitions are essential to maintenance and growth, in this case just adding
Getting Proactive
with Your Inactive
Donors
17
Reviving Your Donor File
MARKETING RULE
What motivated
donors to make that first
gift is most likely what
keeps them giving. Some
donors can be converted
to give to other projects
or programs, but not the
majority of them, so stay
on message.
prospects unintentionally covers up what is really going on within the file. When the development office examines more closely the details of
file segment response rates and attrition, it can
easily see that the 12-month lapsed and 36month inactive donors need attention, which can
improve the retention rate.
In considering Case A’s “bleeding” problems (see page 6), we can see how reactivating
old donors could boost an ailing file, which
costs less than trying to acquire new ones.
Many organizations have hundreds of thousands
of inactive donors. Courting this segment not
only costs less but also can generate greater
upfront results than only marketing to prospects.
Let’s take a closer look at the details of Case A:
Year 1
Active
60,000
60 percent retention
36,000
New donors needed
24,000
In this scenario, the organization only has
funding to acquire and mail to 1.2 million new
names, generating a 1 percent response rate.
However, it also budgets another mailing, this one
going to 50,000 lapsed/inactive donors using a
different marketing treatment that produces a 5
percent response rate.
Year 2
Active
36,000
Names added (acquisition)
12,000
Names added (reactivation)
2,500
Total active donors
50,500
We can see that the organization still has
shrinkage, but it is 15 percent rather than the 20
percent without a reactivation program. In addi-
18
Reviving Your Donor File
tion, the organization now has grown its major
gift pool with donors who already have a giving
history.
Donors who are not current but have made gifts in
the last year or two need strategies other than those
for donors who are currently active. Many organizations keep this group in their regular renewal mailings and treat them exactly like the active donors.
Although this can appear to be cost effective, it really isn’t because they are not responding to any of the
renewal appeals. These donors require target marketing and a different motivation to renew.
Reconnecting with
12- to 24-Month
Lapsed Donors
Reducing this segment’s attrition rate can
produce higher frequency rates, deeper donor
commitment and significantly more revenue.
These donors are also the largest prospect pool
for major and planned gifts. If they do not remain
active, those programs suffer. So, targeting them
for renewal makes sense not only on the marketing side but also for the health of the entire
fundraising effort.
With donors who have not given in more than two
years, unlocking why they have not renewed is the
key to retaining them in the future. Donors’ reasons
for not giving include:
No longer interested in the cause
25+ Month
Inactive Donors:
Cutting Attrition
through
Reactivation
No longer identify with the mission
Cannot afford to give at this time
Do not trust the organization
No longer perceive the need as urgent
Cannot relate to the organization’s communications
Have not been asked
19
Reviving Your Donor File
Some of these reasons are not within the control of the fundraiser to change, but others definitely are. Such reasons—not identifying with the
mission, distrust, inability to relate, need perceived as not urgent or not being asked, for example—may be symptoms related to the organization’s copy and how it conveys a message more
than anything else.
A creative audit is helpful in reviewing packages and determining whether an organization is
following the fundamentals of fundraising copy—
conveying an urgent message, telling a story, communicating credibility and writing from the perspective of donor need. Once fundraisers know
what is missing, or is missing the mark, in past
letters, then they can fix appeal copy and other
communications and create package treatments
for inactive and lapsed donors.
L APSED REACTIVATION TIPS
1. Mail with acquisition mailings to keep costs down.
2. Research how the lapsed donors originally came on file
and mail packages with the same themes.
3. Create a “welcome back” program for reactivated
donors.
4. Create a special mailing, phone call or email to
communicate after 10 or 11 months of inactivity.
One of the cheapest ways to heal an ailing file and increase
the active donor pool is by reactivating lapsed donors. Although
this does not substitute for prospect acquisition, reactivating
donors—and keeping them reactivated—will increase retention
and reduce file shrinkage. These donors can easily be mailed
with the acquisition mailings, being careful to track and code
them separately.
20
Reviving Your Donor File
Donors tell organizations what they like
and don’t like by writing it on the reply form,
emailing or calling and by whether they give
or not. Organizations that neglect reviewing
these details always struggle with high attrition rates.
MARKETING RULE
From time to time organizations drift
from communicating their mission and message, feeding the feeling, “I no longer identify
with the organization.” If your retention rate is
slipping, review your old sample books and start
reading. You might rediscover hidden treasures of
copy and effective package treatment that can be
used again to prompt renewals. At the very least,
this review will create a “feel” for the organization,
and it will only take an afternoon of reading
through old appeals and magazines.
Marketing cycles
may be compared to
clothing styles that
return. Strategies that
worked five or 10 years
ago may work just as
well today.
When comparing current appeals to past
appeals, look for the following:
Urgency
Credibility
Story
Persuasion
Donor need perspective
Ask
Don’t mail or segment haphazardly. When an organization mails and segments the donor list, it should
have a purpose in mind. Perhaps your direct marketer wants to test a particular donor group, watching giving behavior or responses to different package
treatments.
Segmenting Your
List
If the purpose of segmentation is to reactivate
donors, then the organization wants to increase
response rates. The packages for each lapsed segment should be thought through and a treatment
21
Reviving Your Donor File
selected that can help boost returns. Lift notes—
personal remarks, either handwritten or in script
font in another ink to attract attention—can be
used to draw personal attention. For example:
For a donor who gave last year but not this
year, a note could read, “We’ve missed your
support this year. Hope you can help as
you did last year.”
For a donor who has not given in a few
years, the note may say, “We’ve missed
your support. The needs are so great today,
we’re hoping you can help this year.”
SAMPLE POST-IT NOTES
®
Post-it® notes make very effective lift notes and add a personal touch, as if you want this donor in particular to see this
remark.Preprint these using a script font in a pen ink color.
These are ideas for notes to donors of various levels.
1. Gave one gift:
Thank you for your recent support. Please take the next
step in our partnership by making a gift to our annual fund.
Thank you.
2. Lapsed donor (no gift in 13+ months)
Thank you for your past support. We’ve missed hearing
from you and hope that you’ll be able to help us today!
3. Inactive donor (no gift in 24+ months)
Thank you for all your past support. Whatever you can do
today will help those who are suffering the most.
(Note: Of course, these note ideas are interchangeable.
Most donors who have lapsed in their giving really think they
made a gift “a week ago”!)
22
Reviving Your Donor File
One organization was mailing a child-themed
package twice year to 13- to 36-month inactive
donors who had given only once. The response
rate was extremely low, keeping attrition high.
The organization wanted to try something completely different so it developed a package based
on its credibility, including cost ratios. The results
were impressive. The credibility package outpulled the child-themed package 3-to-1 and
helped revive the file.
LIST SEGMENTING IDEAS
1. Mail high-dollar—even lapsed—donors first class.
2. Put Post-it® notes on letters to lapsed segments calling
attention to the immediate need.
3. Create a different package for each segment.
4. Send the new donor series to one-gift donors who have
lapsed after 18 months.
Believe it or not, “not asked for a gift” is frequently
cited as the reason for not giving. Asking for the
wrong gift can just as easily defeat the pitch—asking
for too much can turn a donor off and asking for
too little can downgrade a donor. Striking the
appropriate chord, whether in person, at your gift
array table or in a letter, can make or break an
appeal. Whenever a file is ailing, gift suggestions
require as much planning and research as the segmentation and the package treatment.
Suggesting the
Perfect Gift
Testing different gift array tables will prove
helpful to encourage reactivation, but keep in
mind that for lapsed donors any gift is better than
no gift. Donors who made $100 gifts two or three
years ago should not be asked to reactivate at that
level. A suggestion of $15 or $25 for a special need
may be just the trigger for a donor to reactivate.
23
Reviving Your Donor File
Reactivation and new-donor second gifts
arerather low, typically at the level of acquisition
gifts. Economic downturns, high unemployment
rates, uncertainty in the stock market and personal insecurity also play a role when donors determine the size of their gift.
One large organization had been successfully
downgrading its donors’ gifts and lowering the
file’s overall average gift by using a donor’s most
recent gift as the basis for the gift array table. The
problem stemmed from a highly effective
MARKETING RULE
acknowledgement program that had a soft
Any gift from a lapsed
ask. Donors typically responded with a
donor is better than no gift
smaller gift, but that registered as the most
at all.
recent gift and became the benchmark for
the next gift. Once the organization understood what was happening, it began basing the
gift suggestion calculations on the highest past
contribution (HPC) within 12 months, and the
average gift increased by 25 percent in the first
year.
Organizations build gift suggestions in a variety of ways, so testing is important. Some ways to
create the gift suggested include benchmarking
the HPC within the last 12 months or the most
recent contribution (MRC); averaging gifts during
the last 12 months; and asking for stretch gifts
particularly if a pledge is involved, making the
first increment 25 percent higher, the second 50
percent higher, and the third 100 percent higher.
Some appeal letters and reply forms actually identify a donor’s last gift and refer to it as “your last
gift.” Although database information is frequently
accurate, mistakes do happen so referencing past
gifts should be held to a minimum. Highlighting
or circling a gift amount brings attention to it
and can motivate a donor to give that amount.
24
Tele- and E-marketing:
Contact With a Purpose
T
elemarketing can be an effective shot in the
arm for an ailing file. While some donors
dislike solicitation calls, others respond
well to the personal touch. Calling new donors
who have not made second gifts or donors who
have lapsed frequently produces response rates far
higher than direct mail appeals.
The Personal
Touch
One organization that had difficulty collecting the second gift used telemarketing for donors
who did not respond well to mail requests. The
response rate jumped from 5 percent to 14 percent on the phone. For another group, telephoned
lapsed donors reactivated at a 33 percent response
rate while the mail produced only a 6 percent
response rate. Although telemarketing can be
costly, renewal revenue from new donors or recaptured donors will offset the costs quickly.
Telemarketing works when the organization
calls the right donor for the right reason, underscoring the importance of the script. Some donors
quickly hang up, but good communicators (aka
“telemarketers”) can introduce the organization
and its need very early in the conversation, sparking a donor’s interest. Unlike the mail, a script can
be changed immediately if it is not working and
before too many donors are called. Effective reasons to call donors include an emergency situation, a special need or opportunity, and any purpose with a high sense of urgency.
When a donor is on the phone, take the
opportunity to find out what the person likes or
doesn’t like about the organization. When listening, the communicators must have the attitude
25
Reviving Your Donor File
that “the donor is always right.” They have the
chance to rebuild a bridge or strengthen donor
loyalty. The last thing a nonprofit needs is an
angry donor, so courtesy and understanding are
of the utmost importance.
Communicators need to have enough information to answer basic questions, so go beyond
the script and teach them about your organization. Most donors do not expect a caller to have
answers to all their questions, but they do expect
answers eventually. If a donor needs to be called
back, a staff member should do so within 24
hours.
RULES
OF
PHONE ENGAGEMENT
1. Have a reason to call.
2. Teach the communicators about the organization.
3. Invite the executive director or board to listen in on
some calls.
4. After a year, review the behavior of the donors who
gave in response to a call.
5. Honor all “do not call” requests.
Some donors will give call-stopping responses, such as “I just sent a check,” “No, I will not
pledge,” or simply hang up. Researchers find in
tracking the behavior of these donors, their giving
peaked shortly after the call was made. Obviously,
do not call them again, but keep these donors in
the mail stream of appeals so they have a return
envelope at hand and can make a gift in their own
time.
Telemarketing results should not be reviewed
in isolation, but seen in relationship to all strategies used to boost a file’s performance. While
donors may make a pledge over the phone, they
probably learned about the charity through a
26
Reviving Your Donor File
mailed newsletter or a website. Integrating all the
marketing strategies so that they are complementary is the best preventative measure for a file to
remain strong.
E-philanthropy takes on as many shapes and sizes as Grafting in
other fundraising marketing approaches. While
E-philanthropy
many nonprofits are just learning how to use email
and websites, a few have had great success integrating this tool. In fact, a good website is fast becoming
an effective means for capturing unsolicited gifts
and lifting a flagging file. Donors who go to an
organization’s website for information can read its
“best-ever” copy—the mission statement, credibility
documents, news releases, program accomplishments—and they can see it all in as much detail as
they want. However, that information must always
be new and fresh; otherwise donors and prospects
will not return. Organizations
TIPS FOR USING
must move past a “brochure
E-PHILANTHROPY
site” to develop a dynamic
website.
1. Use the same rules as mail and keep
it simple: strong teaser, interesting
Sending email communistory, credible information, urgent
cations and e-newsletters can
message and call to action.
give a file lift, but just as
with telemarketing, you need
a reason for the communication. Issues of privacy and eetiquette are major concerns,
and organizations must follow the rules. Plus, email
addresses change rapidly,
leaving an organization with
hundreds of “return to
sender” emails to process.
With a dynamic website, an
organization can have
donors update their own
information when they log
on.
2. Make the website easy to navigate.
3. Make sure the donor knows exactly
how to make a donation.
4. Code and track email solicitations.
5. Have the acknowledgement and any
fulfillment in place.
6. State privacy policies.
7. Identify secure pages.
8. Help to drive donors and prospects
to the website through all print
materials.
27
Reviving Your Donor File
As with any new medium, e-philanthropy
must be tried and tested. Most marketers will
admit that it is not a stand-alone tool the way
mail was in the past. Rather, it is an integration
tool, helping to pull mail and phone appeals
together.
Statistics on exactly how much e-philanthropy can help invigorate your donor file are limited.
Analysts do know that any type of cultivation and
solid communication with donors makes a difference, but data of the effects of the internet on
long-term giving are mostly limited to extremely
large national organizations.
28
Cultivation: From Surviving
to Thriving
C
ultivating donors has traditionally been a
responsibility of major gift officers who
exclusively concentrate on individuals and
foundation directors who might make a major
investment in the organization. Focusing on
donors with big gift potential, the major gift officers spend time getting to know these high-dollar,
high-commitment individuals and develop personalized strategies and giving opportunities.
Beyond Major
Givers
With more and more frequency, however,
organizations are using similar cultivation tactics
in their direct marketing to average-level givers.
Recognizing the dual role of the marketing program—to raise revenue and identify major and
planned gift prospects—fundraisers have moved
donor cultivation beyond the realm of the major
gift officer. Using culitvation techniques in direct
marketing, nonprofits are successfully upgrading
gifts and keeping donors active at all giving levels.
Today’s technology and databases allow
organizations to closely track giving patterns and
identify personal interests of all donors, not just
the obvious big givers. Information gathered
through the various avenues of giving provides
organizations with details that can be used for
more tailored marketing. Combined with the
more personal interaction—follow-up phone calls,
hand-written thank-you notes, personalized emails—an organization’s database can be used
very effectively to improve giving and retention.
Donor cultivation is a powerful means to
transform a barely surviving file into a thriving
file. When tailored strategies are used, donors
29
Reviving Your Donor File
CULTIVATION POINTERS
Besides sending the traditional acknowledgment letter,
call to thank donors, even new donors, at selected gift
levels.
Send handwritten notes to donors who give over a
selected level.
Send handwritten notes three or four times a year to
donors on the file more than five years.
Send birthday cards to annuitants.
Send news releases to donors with interests in particular
projects.
tend to become more committed earlier and not
lapse. They feel needed by the organization and
their sense of “family” is real. Occasionally, a
donor might complain that a thank-you call or a
handwritten note is a waste of money, but most
will be impressed by the special attention and
pleased that their gifts make a difference. The personal attention is worth the extra effort and produces results.
One national organization began investing
money in cultivation by calling and writing special notes to all donors at upper giving levels in
the marketing file, not just in the major gift category. At the end of the first year of cultivation,
many of these donors had upgraded and the
number at the next highest giving level doubled—
providing the major gifts officers with a fresh
pool of prospects.
Cultivation is definitely an investment, but
well worth the effort if done strategically. Revenue
may not be immediately raised, but the long-term
donor value generated by cultivation in both
retention and average gifts is noticeable within a
year. Be sure to keep good records on changed
donor behavior not only to evaluate the strategy
but also justify the investment.
30
Reviving Your Donor File
Turning around a file in decline or breathing new
life into a stale performer is a challenge that
demands identifying the problems and doing something about them—not just treating the symptoms.
You need to get to the root causes and address these
issues.
Final Words
Treatment requires risk and creativity, so decision makers must understand that not everything
will necessarily work and turnaround will take
time. Earning the trust of the board and executive
director is key, so honest and clear communication in analysis is critical.
The time will be worth it. Marketers will make
decisions based on the results of new fundraising
efforts, and finding the right strategies and combination of tactics is essential to success. The final
goal is developing a long-term relationship with
your donors, and with that is carried a noble burden of responsible stewardship.
31
Appendix A:
A RESPONSE TRACKING FORM
T
his sample report tracks the response to
a mailing appeal, in this case raising
money for “Hidden Poverty.” Marketers
make future stategic decisions using reports
such as this one. When setting up your own
form, consider the following points.
Each segment must be coded before
mailing to track results.
A report should track the response rate,
net revenue, average gift, revenue per thousand mailed and cost per dollar raised, as
well as measure the projected revenue and
expenses against actual revenue and costs.
Response rates are typically higher for
donors whose gifts are more recent. (i.e.,
the “0-6 $50-$249” segment has a rate of
12.16 percent, while the “19-24 $50+” segment has a rate of 0.73 percent.) If your
results are atypical, look closely at the
details: Did that segment actually mail?
Were the addresses correct? Did another
mailing, telemarketing call or email solicitation overlap that segment? Were the
instructions to pull the segment correct?
Average gifts typically fall into the range
selected. (For example, the average gift for
segment “0-6 $50-$249” is $66.27.) If your
average gift is noticeably higher, it could
be that one donor made an extraordinary
gift. This gift should be excluded from a
campaign report since it would skew the
results. If the average gift is much lower
than the range, check if the gift ask on the
reply form was too low for that segment.
32
31118
31119
31120
31121
31122
31123
31111
31112
31113
31114
31115
31116
31117
215 14.81%
956 12.16%
25 11.74%
315 11.28%
57
4.80%
22
0.73%
102
RESP %
$55,879
$63,357
$8,476
$25,099
$5,423
$3,256
$7,588
REVENUE
1.11%
120
10,788
62,533 5,179
SUBTOTAL
TOTAL
8.28%
1.15%
0.72%
113
7
9.56%
35,224 3,367
9,811
977
11.87%
11.70%
5.93%
7.32%
4.89%
8,054 956
10,924 1,278
4,252 252
5,781 423
6,213 304
154
$3,640
$4,938
$1,922
$2,613
$2,808
248,347
$2,549
$2,152
$397
$(2,327) $21.24
$(2,283) $19.04
$(45) $56.71
30,099 $218,248 $47.95
$4,876
$4,435
$442
$33.53
$17.25
$28.76
$15.86
$10.66
$35.21
$60,799 $22.79
$28,415
$17,107
$5,326
$4,095
$433
$5,423
$9,301 $159,777 $99.93
$76,720 $15,921
$32,055
$22,045
$7,248
$6,708
$3,241
$5,423
PROJECTED COSTS: $40,000
$3,971
$236
$219
$406
$2,178
$3,980
$2,018
$1,705
$1,160
$522
$10,234
$481
$452
$452
$452
$452
$452
$452
$452
$452
$452
$563
$0.12
$1.91
$2.06
$1.11
$0.21
$0.11
$0.22
$0.27
$0.39
$0.87
$0.06
NET REV
AVG REV/1000 CST/1000 COST/$
TOTAL
COST
GIFT
MAILED
MAILED
RAISED
$563
$817 $55,062 $259.90 $38,484
$0.01
$8,056
$563
$4,428 $58,929 $66.27
$0.07
$8,356 $339.04 $39,793
$563
$120
$0.01
$8,990
$563
$1,572 $23,527 $79.68
$0.06
$4,755 $95.14
$4,569
$563
$668
$0.12
$1,560 $148.00
$1,081
$563
$1,696
$0.52
$7,588 $74.39
PROJECTED REVENUE: $125,000
16,521 1,692 10.24% $169,078
1,452
7,865
213
2,792
1,187
3,012
CODE # MAILED RESP
LAPSED/INACTIVE
19-24 $10-$49 31124
31125
25-36 $50+
SUBTOTAL
LO DOLLAR
0-6 $25-$49
0-6 $10-$24
7-12 $25-$49
7-12 $10-$24
13-18 $10-$49
BRE Lo
SUBTOTAL
SEGMENT
HI DOLLAR
0-6 $250
0-6 $50-$249
7-12 $250
7-12 $50-$249
13-18 $50+
19-24 $50+
BRE Hi
Mail Date: 10-Nov
HIDDEN POVERTY MAILING
Reviving Your Donor File
Business reply and courtesy reply envelopes
(BRE and CRE) should be coded by appeal.
By coding the envelopes, these gifts can be
attributed to the correct appeal rather than
“white mail”—unspecified mailings.
Lapsed and inactive segments typically produce low response rates. For example segment “19-24 $10-$49” shows a 1.15 percent
response when those donors are mailed the
renewal (house) appeal package. Try mailing
the same segment the acquisition package
and compare the results—the response rates
might be higher.
Tracking cost per dollar raised helps to (1)
confirm that it is cost effective to mail a particular package type to a segment and (2)
monitor the organization’s overall cost of
fundraising.
Comparing projections to actual numbers
is also helpful. In addition to reviewing revenue and costs, examine the net revenue—
what your organization can actually spend.
Comparing the cost per thousand mailed
of various appeals will show whether you
can afford an upgraded strategy, such as
mailing some segments first class rather
than bulk, including four-color inserts, or
personalizing to a greater extent.
Examining the revenue per thousand
mailed will show you how well one segment
did versus another segment no matter how
many pieces you mailed. For example, segment “0-6 $250+” has less total revenue
than the “0-6 $50-$249” segment. However,
by comparing the revenue per thousand
mailed, you can see that the “$250+” segment is the better performer. Developing a
strategy to upgrading the donors in the
“$50-$249” segment would help this organization strengthen file performance.
34
Appendix B:
SAMPLE SCRIPTS
AND
LETTERS
C
ertain components of a successful call are
standard, no matter the purpose of the
call. When your communicators phone
supporters, they should always begin the call with
a warm greeting, immediately identifying themselves and your organization. The following
scripts outline various strategies.
Good Calls
Lapsed, inactive or one-time gift script
I’m calling this evening with a special need for
“Last Chance Charity.” Your previous support has
helped and we appreciate that. But tonight there
is a special need. With the cold weather coming
we must provide blankets, coats and gloves for
our families—almost 100 now. Just a pledge
DO NOT CALL
of $35 will do that for one of our children or REGISTRY
their parents. Can we count on you?
While charities are
Cultivation/thank-you script—1
exempt from the national
Do Not Call Registry,
Hi! Mrs. Generous, Tom Wonder, presithey must comply with
dent of Last Chance Charity, asked me to
specific requests from
call and say thank you for your gift of $500.
donors who do not wish
This not a solicitation call—we just want to
to receive any more calls
say thank you because your gift has done so
from them, as per FTC
much to help the neediest. Mrs. Generous,
rules and the AFP Code
how did you first meet us?
of Ethics.
Cultivation/thank-you script—2
See www.ftc.gov.
Mrs. Generous, I noticed you’ve been
supporting us for five years now. First, thank
very much. Do you recall what sparked your
interest? Why do you continue today?
Thank you again—we are all so grateful. If you
ever have a question, please call me—do you have
our toll-free number? Thank you.
35
Reviving Your Donor File
Letters to Your
New Donors
Develop a series of letters specifically for your new
donors, including an initial thank-you and welcome
to the organization and a letter telling your best
story.
Thank-you and welcome letter
Dear [Name],
Thank you and welcome! We appreciate so
very much your most generous contribution of
$50 received on December 15, 20xx, and want to
welcome you to our family.
Your gift comes at a time when we are putting the final touches on our holiday family gift
giving. You’ll never know the hearts you have
filled with joy but I can guarantee that they are
truly grateful!
I am enclosing a welcome brochure on our
“Last Chance.” We’ve tried to include answers to
frequently asked questions but if we’ve missed
yours, please do not hesitate to contact me at
800-tollfree.
Here at Last Chance we’re hoping this is the
beginning of a long relationship. Please remember that you have changed lives with your gift
AND we are truly grateful.
Best wishes for a blessed holiday,
Truly Grateful
Director of Donor Services
P.S. Your compassion for those who are suffering is deeply appreciated. You have made their
day brighter! Thank you!
GOOD LISTENERS
Effective communicators are great listeners. Use your call time to
take notes, especially with your cultivation and thank-you calls. These
are your most loyal supporters, so ask good questions— and listen to
their answers!
36
Reviving Your Donor File
THE WELCOME BROCHURE
The welcome brochure should be simple with one panel on your
organization and one panel on your cost ratios. A major portion of the
brochure should be dedicated to frequently asked questions, such as:
Can I make a credit card donation?
Do you have a monthly giving program?
What is your legal title?
Credibility letter
Dear [Name],
Whenever I’ve received a gift from friends like
you I am both grateful and humble.
Grateful because I know you have many
choices and it is an inspiration to me that you
have chosen us.
Humbled because I know you trust us and
believe that we are using your gift to help the very
poorest. Rest assured that we’re doing that in the
most respectful, effective way possible.
That’s why I want to report back to you exactly how we use your precious gift and what happens when we do.
Our annual results show that over 85 cents of
every dollar goes directly to help those we serve.
I’m proud of that result and so should you! Less
than 9 cents is spent on administration and about
6 cents on fundraising. But I’m getting ahead of
everything because the important part is that we
are grateful for the trust you place in us and we
want to assure you that we will continue that
commitment – to do the best possible job in your
name!
(The rest of letter should tell a story—give an
example—ask for another gift and thank again!)
37
Reviving Your Donor File
BEST-EVER LETTER
Dear [Name],
Today we need to ask for your help—help caring for families right in your
hometown. They are the hidden poor.
Every day at least a dozen more families have lost their jobs. Their poverty
—their need to pay rent, heat, electricity—put food on the table—becomes more
and more desperate daily. But their poverty is hidden because they tell no one—
they are embarrassed—ashamed . . . you probably already know someone like
this.
These families are not living extravagantly—for the most part they are simply doing their best to eke out a living. The unfortunate part is that their livelihood has been jeopardized by our sluggish economy.
I’m Tom Helper and for the last 10 years Neighborhood Share has been
helping families in your hometown. But the situation is worse today. Our staff
and volunteers help by paying some bills, providing debt counseling and job referral services. Our caring, through your support, helped more 192 families last
year.
Why would you help us today?
Because you care and it’s the right thing to do. For a caring, compassionate
person, helping these families naturally springs from their love, their values and
their morals.
What would help?
You must make that decision based on your family’s own need . . . you may
want to discuss it with them. But $50 would help with a water bill, $100 would
offset a monthly electric charge and $250 could help with rent. No matter the
size of your gift, the important thing is the support you offer.
And for many of our families, once they are back on their feet they too
become donors—inspiring many.
Our staff does all the confidential interviews with families, so you can be
assured that your contribution is used to help legitimate need.
But we need your help today. Your compassionate, generous gift makes a
difference. It will be used immediately to help families hidden in poverty.
On behalf of those who are suffering in your neighborhood, thank you. My
sincerest appreciation for your help!
Tom Helper
38
Appendix C:
FREQUENTLY ASKED QUESTIONS
Q.
Every year I submit a budget for
new acquisitions to cover attrition
and every year it is slashed. What
should I do?
A. Do some extrapolation of the numbers for two
years and demonstrate to the decision makers
the full impact of their decision on future revenue, including planned giving and major gift
prospects. Then let them decide.
Q. There is no money for cultivating donors.
How do I get it?
A. Find some other ways of implementing a few
programs. The funds needed to underwrite a
start-up cultivation program are minimal—
even $5,000 will go a long way. Perhaps the
lapsed donors could be mailed a less expensive piece or current staff could do handwritten notes or thank you phone calls rather
than outsourcing the activity.
Q. My executive director and board do not like
telemarketing. How do I change their
minds?
A. You probably cannot change they way they feel
about getting telemarketing calls but you can
persuade them to test it for the organization.
Start very small—perhaps just with thank-you
calls. Have the executives get used to hearing
about what donors are saying. Ease into solicitation calls and when those start to pay off,
your leaders may relent.
Q. I work for an association that depends on
39
Reviving Your Donor File
volunteers to raise money for the annual
fund. The volunteers are good but they run
out of time so we have very little follow-up
and my major gifts are lagging. What
should I do?
A. Your concern about keeping the volunteers is
valid and really needs a sensitive approach,
but you are neglecting your donor file. Pay
attention to the numbers and try to figure
out who is doing what. Begin by working on a
strategic fundraising plan that focuses the
volunteers on major gifts and cultivation
while the organization focuses on smaller
annual fund gifts.
Q. My nonprofit has already mailed to our
closest friends. Now where do I find
donors to the organization?
A. Begin by testing 50,000 to 100,000 rented
names and creating an acquisition package.
Also, have a plan in place for mailing to any
new donors.
Q. My mid-sized organization has developed a
newsletter that has a soft ask—just a return
envelope. There are many changes that I’d
like to make. How should I go about getting that done?
A. Test any of your changes first. Marketers do
not need to personally like every package
design or every word in the copy, but they do
need to know what works to motivate the
donors to make a gift.
Q. We have a pool of major gift prospects. The
director wants to take them out of the
direct mail stream and have them cultivated and solicited by the major gift officers.
Won’t we lose revenue?
A. Each potential major donor needs to have a
solicitation plan. When fundraisers begin to
40
Reviving Your Donor File
cultivate the donor, they can get a sense
whether or not the prospect should be kept in
the direct mail stream. Some donors enjoy the
direct mail even though their gifts come
though the major gifts department. Your
question is a good example of how integration and team play can work for the donor
and for the organization.
41
AFP Code of Ethical Principles and Standards of
Professional Practice
STATEMENT OF ETHICAL PRINCIPLES
Adopted 1964; amended October 1999
The Association of Fundraising Professionals (AFP) exists to foster the development and growth
of fundraising professionals and the profession, to promote high ethical standards in the
fundraising profession and to preserve and enhance philanthropy and volunteerism.
Members of AFP are motivated by an inner drive to improve the quality of life through the causes they serve. They serve the ideal of philanthropy; are committed to the preservation and
enhancement of volunteerism; and hold stewardship of these concepts as the overriding principle of their professional life. They recognize their responsibility to ensure that needed resources
are vigorously and ethically sought and that the intent of the donor is honestly fulfilled. To
these ends, AFP members embrace certain values that they strive to uphold in performing their
responsibilities for generating charitable support.
AFP members aspire to:
· practice their profession with integrity, honesty, truthfulness and adherence to the
absolute obligation to safeguard the public trust;
· act according to the highest standards and visions of their organization, profession and
conscience;
· put philanthropic mission above personal gain;
· inspire others through their own sense of dedication and high purpose;
· improve their professional knowledge and skills, so that their performance will better
serve others;
· demonstrate concern for the interests and well-being of individuals affected by their
actions;
· value the privacy, freedom of choice and interests of all those affected by their actions;
· foster cultural diversity and pluralistic values, and treat all people with dignity and
respect;
· affirm, through personal giving, a commitment to philanthropy and its role in society;
· adhere to the spirit as well as the letter of all applicable laws and regulations;
· advocate within their organizations, adherence to all applicable laws and regulations;
· avoid even the appearance of any criminal offense or professional misconduct;
· bring credit to the fund-raising profession by their public demeanor;
· encourage colleagues to embrace and practice these ethical principles and standards of
professional practice; and
· be aware of the codes of ethics promulgated by other professional organizations that
serve philanthropy.
STANDARDS OF PROFESSIONAL PRACTICE
Furthermore, while striving to act according to the above values, AFP members agree to abide by
the AFP Standards of Professional Practice, which are adopted and incorporated into the AFP
Code of Ethical Principles. Violation of the Standards may subject the member to disciplinary
sanctions, including expulsion, as provided in the AFP Ethics Enforcement Procedures.
Professional Obligations
1. Members shall not engage in activities that harm the members’ organization, clients, or
profession.
2. Members shall not engage in activities that conflict with their fiduciary, ethical, and
legal obligations to their organizations and their clients.
3. Members shall effectively disclose all potential and actual conflicts of
interest; such disclosure does not preclude or imply ethical impropriety.
4. Members shall not exploit any relationship with a donor, prospect, volunteer, or
employee to the benefit of the members or the members’ organizations.
5. Members shall comply with all applicable local, state, provincial, and federal civil and
criminal laws.
6. Members recognize their individual boundaries of competence and are forthcoming and
truthful about their professional experience and qualifications.
Solicitation and Use of Charitable Funds
7. Members shall take care to ensure that all solicitation materials are accurate and correctly reflect their organization’s mission and use of solicited funds.
8. Members shall take care to ensure that donors receive informed, accurate, and ethical
advice about the value and tax implications of potential gifts.
9. Members shall take care to ensure that contributions are used in accordance with
donors’ intentions.
10. Members shall take care to ensure proper stewardship of charitable contributions,
including timely reports on the use and management of funds.
11. Members shall obtain explicit consent by the donor before altering the conditions of a
gift.
Presentation of Information
12. Members shall not disclose privileged or confidential information to unauthorized
parties.
13. Members shall adhere to the principle that all donor and prospect information created
by, or on behalf of, an organization is the property of that organization and shall not be
transferred or utilized except on behalf of that organization.
14. Members shall give donors the opportunity to have their names removed from lists
that are sold to, rented to, or exchanged with other organizations.
15. Members shall, when stating fundraising results, use accurate and consistent accounting methods that conform to the appropriate guidelines adopted by the American
Institute of Certified Public Accountants (AICPA)* for the type of organization involved.
(* In countries outside of the United States, comparable authority should be utilized.)
Compensation
16. Members shall not accept compensation that is based on a percentage of charitable
contributions; nor shall they accept finder’s fees.
17. Members may accept performance-based compensation, such as bonuses, provided
such bonuses are in accord with prevailing practices within the members’ own organizations, and are not based on a percentage of charitable contributions.
18. Members shall not pay finder’s fees, or commissions or percentage compensation
based on charitable contributions, and shall take care to discourage their organizations
from making such payments.
Amended October 1999
Reviving Your Donor File
ADDITIONAL RESOURCES
The AFP Bookstore carries many titles dealing with direct marketing and
related issues. These may be purchased at the AFP website
www.afpnet.org/afp_marketplace
AFP Code of Ethical Principles and Standards of Professional
Practice can be found on the AFP website at www.afpnet.org/ethics
AFP Fundraising Resource Center—Contact the Resource Center for questions relating to fundraising, philanthropy and nonprofit management. Phone:
(800) 688-FIND (3463) or email: [email protected]
THE AUTHOR
Margaret Guellich, CFRE, has almost 30 years of fundraising experience. A
well-known speaker, she is senior director of development for American Life
League. Guellich was named Fund Raising Executive of the Year 2000 by the
AFP Greater Washington DC Chapter and was selected as the Women’s Direct
Response Group’s 2000 Woman of the Year.
In her former position with Catholic Relief Services, she oversaw a $55
million budget and led the organization in its selection as Non-Profit of the Year
by the Direct Marketing Association. She was selected as one of the 12 Most
Powerful Women in Direct Marketing by The NonProfit Times in 2001.
An MBA graduate of Drexel University, Guellich has taught at Notre Dame
College and George Washington University’s Fund Raising Certificate Program.
She is on the advisory board for Fundraising Success and Target Marketing
magazines.
44
A Donor Bill of Rights
PHILANTHROPY is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To assure that philanthropy merits the respect and trust of the general public, and that donors and
prospective donors can have full confidence in the not-for-profit organizations and
causes they are asked to support, we declare that all donors have these rights:
I.
VI.
To be informed of the organization’s mission, of
the way the organization intends to
use donated resources, and of its capacity to use
donations effectively for their intended purposes.
To be assured that information about
their donations is handled with respect and with
confidentiality to the extent provided by law.
II.
To be informed of the identity of those serving
on the organization’s governing board,
and to expect the board to exercise prudent judgement in its stewardship responsibilities.
III.
To have access to the organization’s
VII.
To expect that all relationships with
individuals representing organizations of interest
to the donor will be professional in nature.
VIII.
To be informed whether those seeking
donations are volunteers, employees of the
organization or hired solicitors.
most recent financial statements.
IV.
IX.
To be assured their gifts will be used for
the purposes for which they were given.
To have the opportunity for their
names to be deleted from mailing lists that
an organization may intend to share.
V.
X.
To receive appropriate
acknowledgement and recognition.
To feel free to ask questions when making
a donation and to receive prompt, truthful and
forthright answers.
D E V E L O P E D
B Y
AMERICAN ASSOCIATION OF
FUND RAISING COUNSEL (AAFRC)
ASSOCIATION FOR HEALTHCARE PHILANTHROPY (AHP)
COUNCIL FOR ADVANCEMENT AND
SUPPORT OF EDUCATION (CASE)
ASSOCIATION OF FUNDRAISING PROFESSIONALS (AFP)
Have you read these publications in the
AFP Ready Reference Series?
O
Establishing Your Development Office:
Staffing & Reporting, Budgets & Planning, Boards & Volunteers,
the Seven Must-Have Documents
(Also in French and Spanish)
O
Getting Ready for a Capital Campaign:
Your Blueprint for Evaluating Internal and External Readiness
O
Bring a Development Director on Board:
Assessing Needs, Recruiting, Interviewing, Hiring
O
Reviving Your Donor File:
Prescriptions for a Healthy Direct Marketing Plan
For an up-to-date list of publications in this series, prices and
quantity discounts, please contact the AFP Resource Center
at (800) 688-FIND or email [email protected]