Sue’s Muse

Once again, we find ourselves discussing the effectiveness of communicating through emails vs. social networks.  Just yesterday, I led a roundtable discussion on this very topic at the DMANF Conference in Washington, DC.  

According to a new report released by Epsilon, deliverability rates were almost exactly the same in Q3 2008 as they were in Q3 2006.  Open rates and click-through rates dipped during the same period, but only slightly.   Good news indeed for folks who use this type of communication to build constituent relationships, share information and appeal to donors. 

“Despite concerns about the declining effectiveness of advertising and the challenging economy, e-mail continued to perform consistently in 2008,” said Kevin Mabley, senior vice president at Epsilon, in a statement. “We anticipate increased reliance on this highly measurable and engaging method of customer interaction [in 2009].”

In my October 17th Blog “Email or Social Networks - How do you Communicate?” I shared some of the latest statistical reporting on the use of Social Networks as a communication tool.  Social Networks continue to show a gain as the communication preference of choice for younger audiences.  53% of those aged 18 to 24 and 42% of those aged 25 to 34.

Why? The most mentioned reasons are:  More messages in email boxes are viewed as irrelevant and Social Media Sites empower users to interact with the brand on their terms.

So, for now, this report reinforces the notion that in order to be effective, marketers need to use all lines of communication available to them … to build, engage, excite and evangelize their constituent file!

Have a great weekend!

Sue

The celebrations have ended … cabinet secretaries have been approved by congress … including a new Secretary at Treasury!   We are now all holding our collective breath to see how and when the newly proposed stimulus package will affect the American public … which means … how it is going to affect nonprofits in reaching their goals?

The new Treasury Secretary, Timothy F. Geithner, has pledged to quickly launch initiatives to jump-start both the credit markets and the broader economy.

“We are at a moment of maximum challenge for our economy and for our country,” he said.  “In the world we confront today, Treasury has to be and Treasury will be a source of bold initiative.”

So what does this mean for fundraising?  It means that, just as many of you have already figured out, there is no quick and easy fix!

If bold initiatives are called for … then being proactive, rather than reactive, is what organizations need to be moving towards in order to remain viable and solvent! 

So - what steps can you take to be more proactive in your direct response fundraising efforts?

1-   Analytics - is the name of the game.  Review your year-end stats - and go to your best performing file selects first, adding in less effective selects depending on your budget, both on and offline.

2-   Messaging - make certain you share the challenges that your organization is facing in appeals and describe specific steps you taking to meet the needs of those you serve. Never forget that “donors are stakeholders” in your organization.  Constituents are more likely to support your nonprofit during difficult times if they understand that you have a plan to meet the current challenges.

3-   Cultivate and Steward – send updates and newsletters that clearly outline your issues, the strategies you have taken to address them and the successes you have had to date.  This type of communication will keep donors and supporters informed about the progress you have made and the challenges you continue to face. 

Being proactive and sharing with your loyal donors and supporters might just surprise you … they really do want you to succeed!

Regards,

Sue  

That’s right … YOU ARE TOPS!  What am I talking about? … according to a recent article in the U.S. News and World Report … ‘Fundraiser’ is, once again, ranked as one of the top careers in 2009.

The article outlines many of the day to day responsibilities of a fundraiser … and no, it is attending a lot of parties and picking up checks … but rather the article shares how a good fundraiser spends their time building donor relationships … cultivating and stewarding gifts … while recruiting, inspiring and training both staff and volunteers.

No surprise here … it is one of the main reasons I chose this type of nonprofit work years ago. 

But I would like to take a moment to honor all those great friends, colleagues and mentors who, over the years, have not only reinforced my decision … but have shared their ideas, strategies, skills and profound optimism … that no matter how tough it gets out there … we are all in this together! 

These professional relationships have seen me through the good times and the bad … sharing ideas, offering encouragement and sometimes just listening to me rant!

It didn’t take an article to tell me YOU ARE TOPS! 

Regards,

Sue

There are a number of truths in fundraising … but one of the most profound is “YOU DON’T HAVE A DONOR UNTIL YOU GET A SECOND GIFT!”

Only 35 percent of new donors ever make a second gift.   Direct mail acquisition to acquire new donors is an investment … your investment is generally recouped after you get a second gift, additionally, new donors on your file become prospects for your major gift and planned giving programs.  Pretty heady stuff … you simply have to keep filling that pipeline!

I tell clients when they have acquired a new donor … “You now have a suspect!”  So how do you go about getting that second gift?

At a recent fundraising conference, reported in the NonProfit Times, Lynn S. Edmonds, president of LW Robbins Associates, shared her “5 Key Steps to Getting a Second Gift.“ Key steps included:

·      Prompt and thoughtful thank-you letters. This includes important “not-to-take” steps, which are sending acknowledgments too late (maybe by batching monthly or using bulk postage), sending transactional-focused “donation receipts” and getting the data wrong.

·      New donor welcome kits. This recognizes the donor’s status as a new and much appreciated friend.

·      Early second gift appeal. Get new donors to repeat their original gift. Mailing after a prompt acknowledgment, but before the first regular appeal.

·      Presenting donors with your strongest renewal appeals up front. This means offering early matching gift opportunities, newsletters with an appeal letter to show proof of stewardship and other strong renewal controls.

·      A first-year anniversary package. This can be from 10 to 13 months after the original gift date. Try to recapture the motivation behind the initial gift. Tell donors it is now at the time when they gave before, and urge them to give again at this same time one year later.

Second gifts don’t come automatically … this is great advice on taking that first step towards building a donor relationship … and turning a first time donor into a loyal supporter!

Regards,

Sue

No matter where you were in the country or the world today … you could not help but be moved by the events taking place in Washington, DC.  The peaceful transfer of power … the huge gathering of citizens from all walks of life … the message of hope and the call for service made by our new president to all Americans.

After a lifetime of working for nonprofits - I know first hand what a difference ONE Volunteer, ONE Donor, ONE Nonprofit Professional, ONE Organization can make … and how each can effect positive change!  Now we are all being called upon to meet the challenges ahead. 

Many have already been motivated, as reported today in the Chronicle of Philanthropy.  Many more are ready to answer the call. 

It is an inspiring time in the country.  But, no rose tinted glasses here … in our business … the fundraising business … we understand the challenges we face to raise dollars in order to meet the demands for services - nationally, internationally and in our local communities.

Today we celebrate … tomorrow we begin again … to answer the call.

Regards,

Sue

If you haven’t received your embossed invitation to one of the numerous inaugural balls to be held in Washington next week - never fear - Google, along with LCCR (Leadership Conference on Civil Rights), are having a ball everyone can attend … okay, so it is more of a party … but it still sounds like a great time. 

“We’re calling it an alternative to traditional inaugural balls,” said a Google spokesman, Adam Kovacevich.

According to a recent article in the New York Times - the party is to be held at the Andrew W. Mellon Auditorium.  Google, in keeping with its casual California style, is asking attendees to skip the black tie.

Instead of having to purchase tickets, like other inaugural balls, Google is asking folks to make a donation to five nonprofits, including the Leadership Conference on Civil Rights … and Google will then match all contributions.

What a wonderful way to join in the inaugural fun and, at the same time, support a lot of great organizations!

Now all you have to do is get there!

Regards,

Sue

P.S. I want to take a moment to wish each of you the best this holiday weekend … reflecting on the life of a great leader, Dr. Martin Luther King … and a great visionary in our new President, Barack Obama.  To quote a song by Cy Coleman, with lyrics by Carolyn Leigh … “The best is yet to come, and won’t that be fine - You think you’ve seen the sun, but you ain’t seen it shine!”

Target Analysis has released its 2008 3rd quarter report …the Index of National Fundraising Performance, - which includes 37 million donors, giving 68 million gifts. The report focuses only on direct response fundraising with direct mail being the main source of giving, but also includes web, telemarketing and face to face canvassing.  Gifts over $5,000 are excluded. 

Once again, to no one’s surprise, the numbers show a decline in donors, but an increase in revenue obtained per donor.  The main decline is in the low acquisition rate of new donors.  Loyal donors have, and will continue to be, the ones who make a difference in an organization’s bottom line. 

Direct response donors have been declining over the past 5 years … for a possible variety of reasons. According to the report, these include a declining DM donor population, economic and generational profiles, attitudes about giving and an increasing focus by organizations on major gifts. 

So - in which way do you invest your limited organizational resources? Should you drop investment in direct response programs … invest only in major gifts, cause marketing, foundations, and planned giving?  I would argue that you need to continue to spread your investment.  If anything, what this report shows is that organizations that invest across the board are feeling the least impact from the current economic crisis. 

This is not a time for the timid … nonprofits should look at continued investment in all direct response vehicles … including acquisition, cultivation and second gift strategies.  Why?

To quote my good friend and Direct Response guru extraordinaire … Roger Craver: 

“If an organization truly understands the source of its gifts and understands how the process of upgrading over the years truly works (in spite of what most organizations or consultants do), they would be willing to pay far more for the right type of newly acquired donor. Why? Because in virtually all organizations a significant portion of the major gifts spring from the ‘small’ gift programs and so do significant numbers (although not the majority) of bequests. And when these riches are imputed back to acquisition costs, the return on investment is terrific.”

I couldn’t say it any better myself!

Regards,

Sue

Over the past several months when speaking with friends and colleagues, I have heard the exasperation and sometimes desperation in their voices about finding solutions or ideas to help them achieve their fundraising goals in this extremely difficult economy.

I tell them what I am sharing with each of you … YOU ARE NOT ALONE!

No, I am not talking about that everyone is going through the same thing … although it’s true … what I am talking about is the myriad ideas and information that are written and posted on blogs, agency enewsletters, association updates, professional periodicals etc.

I don’t care whether you are a one person shop … or a member of a large staff … no one, and I mean NO ONE, can say that they don’t have access to ideas that can assist them through this difficult time in our industry!

So, for those of you who simply haven’t had the time to find and sort through these great ideas, I have listed some of my favorite sites below … and, hopefully, you will find some additional resources to make life just that tiny bit easier when the boss asks … “What Can We Do?”

First, please check my site’s ‘blog roll’ for links to my favorite fundraising blogs. Some of my other “FREE” favorites are: Fundraising Success Magazine  (You can also get online weekly updates and hard copy); eMarketer  (even though it focuses on commercial matters, much is applicable to nonprofits); Nonprofit Times and the Chronicle of Philanthropy(a lot is free - but you need to subscribe for some of the stories.) And, of course there are the association publications, although not free, chock full of great ideas.  These include AFP International, DMA, DMANF, NTEN and DMAW. 

Loads of information, ideas and forums … remember you are not alone!  We are all in this together.

Regards,

Sue

PS - Got any great free resources that you would like to share? We’d love to hear about them!

I hope you had a wonderful holiday celebration with your friends and family, and are ready to start the New Year with all the vigor and optimism you can muster.  However, on the economical front, there’s no new ‘news’ … we are going to continue to face tough times in the months to come. 

Now is the time for nonprofits to shout their programs’ successes and future plans from the rooftops to current and potential donors.  (Metaphorically of course.)  

NEVER NEVER NEVER … tell your donors that, unless they send money … there will be no program(s).  Rather focus on the positive aspects of your programs and the impact you and your organization are making in spite of the current recession and how, with their continued support, you can make an even greater impact.

Remember - No one wants to donate money to what they perceive as a sinking ship!   Why bother?

In his recent white paper, eMarketer CEO Geoffrey Ramsey shared what consumers are looking for during hard times.  I would put donors in the same category and suggest that we too need to take Ramsey’s words to heart:

In a study conducted by OMD, a media agency under the Omnicom

umbrella, 81% of consumers surveyed said advertisers need to continue

to communicate about their products during a recession.

Fundamentally, what consumers need in these tough times is trust.

They need trust in the financial system, to make their future more

secure. But they also need to trust in brands.

With limited dollars, the risk in buying the wrong product or service is

increased, Marketers should respond to this need by getting out in front of

customers and prospects with messages that reinforce their brand’s equity

and value.  — eMarketer Geoffrey Ramsey, chief executive, eMarketer, white paper, “Digital Marketing Now: Seven Strategies for Surviving the Downturn.”  January 2009 

Simply put … what your donors need is Trust … Trust in your organizational brand and that, together, we can make a difference.

“We want to help consumers be certain

they’re making smart choices when every

dollar they earn counts.” —A.G. Lafley, chief

executive, Procter & Gamble, as quoted in The Wall Street

Journal, October 15, 2008

Isn’t that what we all want?

Regards,

Sue