How to raise less money through your fundraising appeals

Here are some common pitfalls to avoid if you want to raise more money, not less, through your fundraising appeals:

Don't ask. The truth is if you don't ask you don't get. However, many appeals fail to ask donors to give in compelling and inspiring ways. Some charities seem eager to talk about their needs or share stories and only ask once, rather sheepishly, in the final paragraph of the second page - saying something like: ' We need your support to do all this so please give generously.'

If you want to fundraise successfully make sure you position the ask strategically in various places of your appeal, in the response tool and outer envelope. Ask in a warm and enthusiastic manner, show donors what their gifts will accomplish and thank them in advance for their generous contributions.

Talk a lot about your charity's needs. I am sure donors love your charity but at the end of the day they give for their own reasons not yours. So, stop telling them about your organisational needs (e.g. we must meet our budgets, pay our bills, etc) and don't hog all achievements.  Make an effort to understand what motivates your donors to give (and no, it is not because they think you are the best!).

And, start talking about donors as members of your wider team, talk about how they are changing the world and impacting lives through your charity's work.

Don't convey a sense of urgency. The donor might have thought your appeal was good but they filed it away to deal with it some other day. The problem is that one or two weeks later they forgot what moved them about the appeal and threw it away.

To avoid this make sure you communicate to the donor the reasons why they should respond quickly. You can do this by adding a deadline to the letter or by incorporating various reasons as to why the donor should respond with a gift right now.

Don't get donor's attention. According to direct marketing guru Siegfried Vögele you have up to 20 seconds to hook the donor into reading the appeal! During that time they are likely to - open the envelope, examine the contents and decide whether to read on or not.  

Are your stories compelling? Is your ask clear? Is the design of the letter clean and simple? Do your photos tell a story? - All the elements of the package need to work together for fundraising success.

Try to convince the head, not move the heart. Cerebral descriptions of your charity's programmes and lots of statistics are great for training your staff team. But, they are not the stuff fundraising letters are made off. Big picture statistics or statements rarely stir someone's heart but good stories do.

Sound too clever. Successful fundraising copy is simple copy that a 'distracted' donor can read with ease. This means using short paragraphs, short sentences and everyday English.  Remember that the donor wasn't expecting a letter from you and they probably get a lot of stuff in the mail from other charities too. After a long day the last thing a donor wants to do is read a letter filled with run-on sentences, acronyms and big words.

Send fewer appeals. Often donors are likely to support charities that continue to keep them involved through a variety of communications. And, donors who feel appreciated and true partners in your work are likely to give again and again, when presented with new opportunities to make a difference. 

What are the barriers to successful fundraising appeals?

Recently while reviewing the warm appeals for a charity client I got thinking about the barriers to successful appeals. So, what do unsuccessful appeals have in common.

• Unsuccessful appeals fail to respond to the readers (donors) unspoken questions. According to Siegfried Vogele, the father of direct marketing a good appeals writer should anticipate the questions in reader's mind and answer them clearly in the fundraising letter. These questions focus around the charity and the work you are asking the donor to support. The donor might be thinkingwho is this charity? Have I given to them before? How are they addressing me? Where did they find my details? Why should I support their work? How will they make a difference? What is required of me? And, more. Drop me a line of you want to have a look at the full list of unspoken questions that Vogele talks about.

• Unsuccessful appeals lack of clarity about  what they are asking the reader to do. They contain unclear need statements like 'with your money we will impact many lives' or vague and confusing asks like ' support our general fund' or 'we urgently need £750,000 can you please give £10' - Such statements are not likely to motivate anyone to give. 

• Unsuccessful appeals lack of cohesiveness in terms of how all the elements of the appeal package come together, the repetition of key messages, the same fundraising ask, flow of arguments etc. I often see fundraising appeal where the fundraising ask from the letter does not match the ask in the response form or where response forms are generic or cluttered. 

• Unsuccessful appeals lack of authenticity – You know what I am talking about, the kind of appeals where you can take the name of the charity out and replace it with any other charity and it all sounds the same. In a successful appeal the stories and key messages are authentic and fit with what the donors know about the charity and its work. The same can be said about the person who signs the appeal, he or she need to be credible people who are known across the organization.

• Unsuccessful appeals make it difficult for the donor to respond - you might be smiling now but go and have a look at your appeals response forms. Are they cluttered or easy to use? Do they contain clear instructions about how the donor should fill in the form? What is the font size? Can an older donor read it quickly without reaching for their specs? And, what about online giving, sms giving or electronic funds transfers - are you offering donors these giving options or not?  

• Unsuccessful appeals have un-engaging copy – dull copy that does not touch donors’ heart, cluttered writing, weak requests. All these things can contribute to the failure of an appeal to engage with the majority of supporters. However, sometimes the writer’s style, the compelling way he or she uses to share a story, how they move from the story to the big picture issues taking the donor on a journey can catch many a reader’s attention and hold it.

Is there anything else that you would like to add to this list? - I would be interested to hear from you so please comment below. 

How is the recession impacting Christian giving?

The majority of evangelical donors (93%) answered our question about the impact of the recession on their charitable giving. The good news for churches and charities is that more than half of those who responded (62%) said that the recession had not impacted their giving while 38% said that their giving had been impacted. (The survey was carried out in Autumn part of 2009)

Furthermore, when asked whether they were donating the same amounts as they did six months prior to the survey the vast majority of evangelical donors (80%) said ‘yes,’ 9% said they were donating less than they did six months ago and 11% of donors did not answer this question.

Unfortunately, the opposite is happening in that charities and churches are tightening their belts and shying away from investing in their fundraising or stewardship programmes. Christian charities keep cutting their marketing budgets, or making fundraising staff redundant and some have even stopped their new donor acquisition activities.

If this trend continues, bearing in mind that 53% of current donors are either not likely to respond to new giving opportunities or are undecided, then charities who will grow their income are ones who are investing wisely in new donor acquisition campaigns amidst the recession.

Here are some more research insights that you might find useful:

Empty nesters are more likely to keep giving in recession
Evangelical donors without dependents at home are more likely to continue giving in recession compared to donors with dependents at home. 24% of donors with dependents stopped giving compared to 15% of donors without dependents.

Wealthy donors will continue to give
As expected, recession is having a stronger impact on the giving of donors from low household incomes. One in four donors from households making less than £10,000 stated that their giving has been impacted by recession, this figure fell to 22% for donors with household incomes of £20,000 - £30,000 and to 13% for donors from households making £50,000 or more annually.
Regular giving is safe amidst financial turmoil
The presence of dependents at home is not likely to be a key factor in a donor’s decision to stop giving regularly to a charity. We noted that 5% of donors with dependents at home and 6% of donors without dependents at home had stopped giving regularly to one or more charities as a result of the recession.

This data does not contradict the point we made earlier but can be taken to indicate that the majority of donors with dependents at home whose giving has been impacted by recession have probably stopped making one-off gifts. In other words, once donors decide to give regularly to a charity they are likely to follow through with their commitment despite the recession.
Men are steady givers
Men are more likely to continue giving in recession compared to women. Nearly half of women donors (47%) stated that their giving had been impacted by recession compare to 33% of male donors.

Older donors are most likely to be affected by recession
The economic recession is having a stronger impact on the charitable giving of older donors. Half of evangelical donors in the 75+ age group and 41% of donors in the 65-74 age group stated that their giving impacted by the recession. This figure fell to 35% for donors in the 54-65 age group and 30% for donors in the 45-54% age group.

Donors in employment still likely to give
Evangelical donors who are still working are more likely to continue to support their favourite charities through recession compared to donors who are retired or not working. 69% of donors currently working stated that their giving has not been impacted by recession compared to 58% of donors who are not working.

So, how focused are you on recruiting new donors from the empty nesters group? Have you got any plans to grow your major donor giving? How will you target men in a focused way to keep them connected to your cause? What about payroll giving schemes to encourage those in employment to support your charity?

Four simple steps to get a second gift from a new direct mail donor

Our Fundraising Fitness Test often shows that a typical charity loses over 60% of their first time donors acquired via direct mail. Often charities put a lot of money and effort in acquiring first time donors and somehow they lose most of them through the ‘back door.’ Often the main reasons for such high attrition rates are failing to treat new donors in a special way and not asking them soon enough for a second gift.

If you want to increase the percentage of new donors who make a second gift to your charity here are four steps you can take:

1. Thank new donors in a warm and personalised way for their first gift.

2. Send them a welcome pack. Tell them why they are a valuable part of your organization. Your welcome package should include: a welcome letter, a general brochure, your latest newsletter or magazine, and a basic questionnaire to help you get to know these new donors. Make sure you don’t overwhelm them with too many things.

3. Show new donors how you are using their gift to change the world. You can do this most effectively with a donor-centred newsletter or e-update containing a few inspiring stories of how you are putting their gifts to work.

4. Ask for a second gift within three months of receiving the first gift. Many charities leave it too late to ask for a second gift and they lose 65% of the new donors in the process. The longer you wait, the less likely you are to secure that all-important second donation. So, make sure you have a good fundraising package you can use to secure a second gift from your donors.

Do these things consistently and see your new donor retention rates go up from one year to the next.

How are you engaging with Baby Boomers as Donors?

One of the key findings of my Christian Giving Survey revealed that the typical Christian donor today is likely to be 55 - 64 years old male, a university graduate, still in employment (in other words a Baby Boomer).

In the UK today Baby Boomers are the largest and richest pupulation segment group - they hold 80% of UK's wealth and are set on spending it in ways they please them. While large charities with big marketing departments have worked hard at understanding this group and tayloring communications to meet the Boomer's needs and expectations many small, or medium size charities are trying to reach out to Baby Boomers without really knowing much about them.

Here are some pointers from our own research and from general thinking about Baby Boomers that can help small charities smarten up their fundraising and makw the most of their relationships with generous Baby Boomers.

1. Baby Boomers are likely to be university graduates who have an appetite for information (like to listen to Radio 4 or watch the news on the BBC) and have more discretionary income than older or younger people. Appetite for information and discretionary income are top requirements for direct mail fundraising.

The question is: What is your charity doing to acquire new supporters from the Baby Boomer generation? Find out what Boomers read or listen to, where do they hang out in your local community (clubs, groups, associations) and think creatively about how you can get your charity cause in front of them.

2. Our research showed that Baby Boomers appreciate good communications - inspiring stories, feedback about projects they have supported, big picture articles on issues you are addressing. How do your charity's newsletters or appeals tell your charity's impact stories? What compelling pictures are you painting for Baby Boomers so they can support your cause? How are you keeping them informed about the impact their giving is making?

3. Baby Boomers are often depicted as self-centered people who grew up in affluent times. They want to be treated as individuals and like to express themselves. That is why personalised fundraising appeals are a wonderful way of connecting with Baby Boomers and giving them opportunities to express themselves in the ways they engage with charities.

Our research showed that wealthy Baby Boomers want to have their say in shaping a charity's direction and future plans. Once you understand what makes Baby Boomers tick the question is: How can your charity provide ways for Baby Boomers to engage with your work and feel that they are playing a special role in making the world a better place through their giving?

4. Most major donors and philanthropists are likely to give generously not because they have high incomes (although that is often the case) but because they have accummulated assets. The fact of the matter is that Baby Boomers are and will continue to inherit significant assets from their parents. And, these assets will ensure that they can sustain their busy lifestyles as well as their charitable giving.

What is your charity doing to tap into this 'inherited' wealth of Baby Boomers? What opportunities can you offer them to leave a mark in the world that goes beyond consumerism and pleasure?

5. Many direct mail packages today are still focused on getting support from the 65+ age groups - long copy and short copy, photos, images, cause concepts, language that appeals to older people but does not necessary connect with Boomers and yunger generations. The fact of the matter is that Boomers are different from their parents.

So, if your charity wants to relate to them you need to start testing the length of the appeals, test the use of credit card donations or regular giving option. And more importantly, create personalised appeals and thank you messages that prompt generosity and philanthropic conversations between your charity and your Baby Boomer friends.

10 simple truths about direct mail every fundraiser should know

Despite the rapid growth of online communications direct mail remains one of the essential tools in a fundraiser’s tool box for acquiring new supporters, soliciting support from present donors and strengthening the relationship between a charity and its donors.

Here are some basic truths about direct mail that can help you make the most of this fundraising and donor cultivation tool:

1. Charities that raise most money from direct mail are those that have a focused direct mail programme rather than an eclectic collection of appeals.

True measures of fundraising success are not the response rate or total income of any mailing but rather an increase in the total number of gifts compared to previous years and overall income generated through direct mail.

The question is: What would you do to ensure that donors increase their giving frequency and the amounts they donate to your charity?

Well, one thing would be to vary the copy and design of your fundraising appeals, to make them more interesting and appealing to your supporters. Another thing would be to allow for adequate amounts of time between different mailings so that donors have time to respond.

2. Fundraising appeals work best when there is a letter, a response form and a reply envelope. These three elements are essential and other additions to your appeal packages are likely to reduce rather than increase response rates.

However, it is important to note here that the letter enclosed in the appeal pack should contain a simple and straightforward ‘ask’ – a direct invitation to the donor or potential donor to make a contribution to the charity. I know this seems obvious but too many appeal letters hint at ‘the ask’ but fail to issue a straightforward invitation to give.

3. Thanking donors promptly and warmly is a key factor in ensuring the success of a direct mail programme. Showing appreciation for their contributions helps donors to bond with your charity and makes them feel they are partners in your work rather than ‘walking cheque books’.

4. A charity’s donors are more likely to stop giving because they have not been asked enough not because they have been asked too often! Some charities are reluctant to ask their donors more than two or three times a year fearing that they will stop supporting the charity if they are asked more often.

In our opinion, such fears unfounded, unless they are backed up by statistical data of increased donor attrition over a period of time caused by increased frequency in appeals.

Knowing how many ‘asks’ are right for your charity is not something that can be decided by looking at other charities but by testing the frequency of appeals with your database over a period of time and carefully tracking your donor’s attrition and retention rates.

5. Integrating newsletter and annual reports in a charity’s direct mail programme is likely to increase the overall income. Well-written and designed newsletters, magazines or annual reviews enable donors to see the bigger picture of what your charity is doing and encourage them to continue their involvement with your work.

Showing appreciation, gratitude and offering examples of how donor’s gifts have made a difference can sometimes be an excellent way of generating additional income without direct solicitation. However, in order to achieve this - your charity’s communications should be donor-centric rather than programme or charity-centric.

6. Brochures, DVDs or other materials included in fundraising appeal packages are likely to reduce rather than increase response rates. Sometimes, senior leaders of the charity insist that a particular brochure should go out with the fundraising mailing to reinforce its message. On most cases however, producing that additional piece slows down the process of getting the appeal out on time, adds to the appeal costs and the increase in response rates barely justifies the money spent on them.

7. Good fundraisers give donors opportunities to give whatever amount they chose be it £2,000 or £20. A fundraising appeal is in essence an invitation to participate in making a difference in the world through a particular charity’s programmes or activities. That is why fundraising appeals should contain opportunities for different types of donors to give at the level they chose.

Successful fundraising programmes contain different types of appeals for different segments of the database asking for varying amounts of support rather than one size fits all!

8. Emergency relief appeals are likely to generate more income than appeals for ongoing programmes or for general funds. This is understandable since the emergency appeals have an element of urgent response and are often responses to disasters, etc. However, regular giving appeals or annual membership renewal programmes have higher retention rates and contribute towards creating higher donor lifetime value.

Here is a challenge for charities involved in emergency relief work that they need to invest in increasing the number of people giving regularly to their work rather so that they can retain their donors for the long term.

9. Few donors who join a regular giving programme are likely to upgrade their gifts after a period of time. Data from your charity’s database is likely to confirm this trend – and show that further mailings to these donors to increase their giving are not likely to produce high response rates.

However, the good news is that those donors who increase their giving help offset the loss from donors who stop giving or decrease their support.

If most donors are not likely to increase their giving then it is important to ensure that your regular giving programme invites them to donate adequate amounts rather than the smallest amounts possible.

10. If you are mailing less then 10,000 contacts testing different variations of appeal packages using random segments is not likely to produce statistically valid differences in response rates.

This does not mean that you should not segment your database and use different types of appeals with different donor segments. What we are saying is that if your database contains less than 10,000 contacts you should not spend time or money unnecessary to test for example the size or colour of the outer envelope of a package with a relatively small random sample.

However, if your charity mails more than 10,000 at any given time then testing variations of fundraising packages with random samples of the database is likely to produce statistically valid results, help you reduce costs and increase the effectiveness of your fundraising appeals.

A simple recipe for sucessful fundraising

Key ingredients:

Reduce the amounts of what your fundraising team finds fascinating
Add a dollop of listening to your donors
Add large amounts of donor input from observing and understanding your donors
Mix it well for breakthrough fundraising inovations

Here is a basic explanations for those looking to make the most of this basic recipe.

Reduce the amounts of what your fundraising team finds fascinating
Having attended my fair share of fundraising team meetings I have come to realise that the most dangerous words in fundraising are: 'Here is something interesting we can use for our next appeal.' Interesting to whom? To us or to donors?

Many of us in fundraising somehow get locked in our charity's world and slowly become fascinated with our charity's work. And we wrongly assume that donors will find a charity's programmes fascinating too.

When we take a long hard look at why so many donors are not responding to our appeals you might be forced to accept the fact that we have not made that leap from thinking like we do to thinking like the donors do.

Add a dollop of listening to your donors
How can we think like a donor? Well, first of all by listening to donors to discover what motivates them and what makes them tick.

I am not talking here simply about data analysis or evaluation of different campaigns and appeal packages. But, about stepping out of our world to connect with real donors... to do interviews with major donors and regular givers alike asking them why do they support our cause? what prompted them to support our work in the first place? why do they keep giving to us? ....what are they trying to acomplish with their gifts to our work?

Listening to donors can help us focus our fundraising messages to what they find interesting and fascinating about our charity's work.

Add large amounts of donor input from observing and understanding your donors Listening to donors is jut not enough to help you do sucessful fundraising .... An excellent fundraiser does more than listening ... he or she tries to understand the core needs, motivations and desires of our donors.

Such understanding according to an excellent blog entry by Bruce Temkin (http://experiencematters.wordpress.com/2010/01/19/dont-listen-to-customers-understand-them/) can be achieved by engaging donors in conversations with charities and by observing the current trends that might impact a charity's future fundraising offerings...

In short a recipe for sucessful fundraising requires us to step out of our world of charity employees and step into the shoes of our donors; to engage donors in conversations leaving our assumptions about them at the door of the focus group meeting room and to tap into donors interest and desires giving them a chance to do something they have not dreamt about doing before...