Benjamin Franklin once said that “Without continual growth and progress, such words as improvement, achievement, and success have no meaning.”
This statement holds true in many instances, even when used in reference to non-profits. The acquisition of donors, although complicated, expensive, and time consuming (if done wrong), is one of the most essential components of successful fundraising.
There are many misconceptions and mistakes that can be made throughout the process of acquiring donors with direct mail fundraising efforts. Listed below you will find five things that together will help ensure the success of your campaign.
1. Mail an acquisition piece at least once a year…
Because the perfect donor database just doesn’t exist (and we all know this), every year you experience the loss of current donors. Large loss or small loss, a loss nonetheless. When these donors leave your database, they take with them the gifts you would have received on their behalf. Consequently, without an effective acquisition package each year, you will, in addition to your churn in current donors, see declining donor growth.
2. Differentiate yourself from your competitors…
According to the National Center for Charitable Statistics (NCCS), more than 1.5 million nonprofit organizations are registered in the U.S. Therefore, it is an extreme likelihood that one of these organizations does work similar to the work you are doing. Without telling potential donors what sets you apart, how will they know to choose you over your competitors?
3. The writing does matter…
Making the assumption that the individuals who receive your acquisition letter won’t read it is a common error in this process. People read what interests them and they will continue reading for as long as they stay interested. Ergo, the more informed they will be and the more they will be willing to participate. Remember, these people don’t know you personally (yet) and you want them to. Don’t you?
4. Accurately interpret your acquisition results…
You shouldn’t think that your direct mail acquisition is a failure just because it loses money. Don’t get down on yourself if your Average Gift, Response Rate, Net Income, or Cost Per Dollar Raised is lower than expected. Net Cost per Donor Acquired is the only number that should hold any significance in calculating the success of your acquisition mail piece.
Calculate your Net Cost per Donor Acquired by dividing your net income (income minus expenses) by the number of donors acquired.
Direct mail donor acquisition mailings almost always lose money. The end goal of an acquisition is to spread awareness and generate loyal donors, not donations, contacts, not cash (at least not at first).
5. Don’t lose sight of the lifetime value of these donors…
The success of your direct mail acquisition is not measured in the immediate response you see from new donors. It comes later with the second, third, forth, etc. gifts, from your news donors and when these same new donors increase their gift amount, participate in your capital campaigns, make a major gift, and ultimately leave a legacy in their wills.
Showing appreciation to your newly acquired donors is key in the effort retain them and increase their lifetime value. Thank them promptly (with a thank-you letter), demonstrate how their gift is making a difference (with a donor newsletter), and ask them for a second gift (with a fundraising letter) sooner rather than later for the best results.
At the One to One Group, we use a special formula to help our clients recapture lybunt and sybunt donors, which is an easier and more effective way to reduce your churn. Stay tuned for more on this subject!
