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Fundraising Tuesday: How Well Do You Know Your Donors?

May 17, 2016 by Dennis Fischman Leave a Comment

Toyota hybrid alesman

(AP Photo/Shuji Kajiyama)

Who knows your donors better: you, or the companies that sell them cars?

My wife, Rona, was an early adopter of the Toyota Prius. She bought the first model the dealer ever had sitting on the lot. Every five years or so since then, she’s traded in and bought another Prius. And the dealer knows it.

The dealer doesn’t mail her in years 1, 2, or 3 after her purchase. But beginning in year 4, they start sending her teasers about how much she could get if she traded in now.

They don’t advertise Camrys to her. They don’t send her email about Highlanders or RAV4s. They talk to her about what they know she wants to buy–the new Prius–at the time when she’s most likely to buy it.

Does your nonprofit organization know your donors and their giving, the way Rona’s car dealer knows her buying habits?

When Your Donors Give

A lot of donors give once a year, in November or December. That may be because your organization only asks them once a year. I’ve suggested you should try asking for donations more often. See what happens!

But if you are among the one-third of nonprofit organizations who ask at least every few months, you don’t have to guess. You can look at your donor’s track record. If you’ve been sending Debbie Donor letters every season for three years, and Debbie only ever gives in September, does it really make sense to send her those other asks?

Your donor's behavior is telling you something. You ought to listen. Share on X

Of course, what the donor is telling you may be, “I’ll give to your organization for general support once a year.” That means if you ask her for money at other times, it had better be for something special.

  • Does Debbie care about sending kids to summer camp? Then a letter in early June might do the trick.
  • Is she worried about low-income families freezing? If you’re in New England, February might not be too late for that kind of appeal.

What They Give For

How do you know what your donor cares about? You call and ask. You send surveys. You look for her name on the lists of donors to other organizations.

A little detective work will make sure you ask for donations when the donor is ready to give and for the good work he or she actually wants to support. You don’t have to promise to use the money exclusively for that purpose–but you do have to bring the results the donor wants to achieve to the top of your donor’s mind.

Otherwise, you’re peddling a truck to someone who wants a Prius.

 


Need help figuring out how to ask for donations at the right time, for the right cause? Email me, [email protected], to set up a free consultation. Because it’s more expensive to send out hundreds or thousands of appeal letters that don’t work than to get expert advice.

 

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This May, Think of December Donors

May 3, 2016 by Dennis Fischman Leave a Comment

June-December

Prepare in May for a happy December

If you’re like most nonprofits, you get 30-40% of your annual donations in the month of December.

And if you’re like most nonprofits, your donors want a lot more from you…if you want them to renew their gifts.

 

Here’s what you can do this May to ensure a happy December:

Prepare to write the best appeal letter of your life. How?

  • Fix your database so you can send an individualized letter to each donor: calling her by name and showing you remember her previous donation.
  • Gather emotionally compelling stories.
  • Take photos that tell a story, too.

If you prepare in May, you’ll write a great appeal this fall…and you’ll see the results in December.

Go beyond the thank-you letter. Show the donor how he is making a difference with a one-week impact report. If you seal the deal with the donor as soon as he gives, you’ll be on his donation list in December.

Make it personal. A Northeastern University student called my friend Amy to thank her for her gift. Then the University sent an email from that student to Amy, telling her the student’s story–and explaining how her gift had made the student’s education possible.

Find the right ambassador to speak from the heart. Your donors will thank you for letting them hear that personal story. And they will remember in December.

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Fundraising Tuesday: How Often Should You Ask?

April 19, 2016 by Dennis Fischman Leave a Comment

You've got mail!When people find out I consult to nonprofits about their communications and fundraising, they usually ask me one of two questions.

One is, “Which social media should we use?” The other is, “How often should we ask our donors for money?”

The best answer is, “It depends on you and your donors.” You want to adopt a Goldilocks strategy: not too much, not too little, just right.

And that depends on what your donors prefer–and how well you can write an appeal letter that puts your donors front and center.

“Same Time Next Year” is Not Enough

If your nonprofit is asking for money only once a year, however, chances are you’re leaving money on the table…and losing donors.

Most nonprofits are asking for money more than once a year. Kivi Leroux Miller’s survey found that about a third of organizations are sending fundraising appeals by direct mail every few months, or more frequently! Another third are sending at least twice a year.

If you’re mailing once a year, other organizations are tapping donors’ charitable impulses when you’re not even looking.

Find Out for Yourself

You can determine how often you should ask: by testing.

Not by asking your donors. “Because how people say they’ll behave is often quite different from the way they’ll actually behave,” as Claire Axelrad points out.

Years ago there was a famous door-to-door study where survey researchers knocked on people’s doors and asked them what magazines they read. Wanting to look “smart” people answered with things like “Time” and “Life” and “The New Yorker.” Then researchers looked in their trash cans. They found all sorts of “junk” and “gossip” literature that none of the respondents mentioned.

Donors say the best way to raise money from them is to mail once a year. But there is a reason that the 2016 Nonprofit Communications Trends Report found that most nonprofits are mailing twice or four times a year instead. It works, for most!

Consider making 2016 an experiment. If you’ve previously mailed an appeal letter only at the end of the year, try adding a spring or fall appeal. If you’ve sent out two, try upping it to three or four. See what happens!

Can You Mail Too Often?

Does three or four appeal letters a year sound like too much? Claire Axelrad tells us, “Large organizations who’ve done this testing are now mailing monthly, with 3 – 4 emails in between! Is this right for you? The only way to know is to test it for yourself. However, it’s not a bad place to begin.”

If you’re a large organization, that is! Smaller nonprofits may find it a big investment of time and money to send out the ideal appeal letter two, three, or four times a year. I’d urge you to make the investment, however. It’s how you’ll find out what works for you.

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