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Volume
5, Issue 5 - September 2003 |
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"I
love your newsletter! It's refreshing, fun
and filled with helpful hints"
Toni Paglia,
Director of Development, The ARC
Syracuse, New York |
|
This is the age of instant communication. We have lightning-fast email.
Cellular phones seem to be at every ear. Search engines and web sites allow us
access to information at incredible speeds.
In this electronic age, is there a place in your charitable organization
for “snail mail”? You know, the kind that costs 37¢ and takes a couple of
days just to get delivered a few hundred miles away? If you are trying to
increase the numbers of donors in your database, the answer is YES!
No matter the size of your donor file, it is always necessary to add new
donors. People move (up to 15% of us every year), they die, their economic
“comfort level” changes, or they just plain lose interest in your
organization. In an attempt to at least maintain the income level from lost
donors who had mailed gifts to you at least once a year, it becomes
necessary to secure replacements for them.
What is a
very cost-effective way of doing this? Direct mail! Let’s see how this
works. You have a donor list of 2,000 names. Even if you are mailing to your
entire file from four to twelve times a year and you are verifying your
donor addresses on a regular basis, you can still expect to lose around 10%
of that file each year. That’s 200 donors you need to replace. How do you go
about doing this in the most cost-effective way? You send a direct mail
acquisition package to a select list of prospects.
Here are the numbers. A direct mail acquisition package can expect to
produce about a 1.5% response. The 200 donors you attempt to replace will
require that you send a mailing of about 14,000 pieces. The cost per mailing
piece, including bulk mail postage, will be in the neighborhood of 50¢. That
is a gross cost of $7,000. Let’s further propose that your average gift is
$20. That times 200 responses is $4,000, resulting in a net cost for the
mailing of $3,000. This results in the cost to acquire each new donor of
$15.00.
That $15.00 spent to acquire a new donor can be considered the cost of
your sales call. Email could be less expensive but finding the email
addresses of 14,000 prospects is a daunting task. And, unless you have an
active web site, an email message could not “sell the sizzle” that a direct
mail piece is capable of doing. A direct mail acquisition package has long
been known to be the most cost-effective way of reaching a donor prospect.
How long it takes to recapture that cost and turn new-donor strangers
into friends depends on the effectiveness of your overall direct mail
strategy.
In order to determine if a direct mail donor acquisition program is right
for your organization, an evaluation of your direct mail “fundability”
should be conducted. This would review such areas as your program and its
appeal to the donor public; a review of your direct mail history including
donor responsiveness, renewal, upgrading attempts and other mailings; an
analysis of your previous donor acquisition results; your annual mailing
calendar; your donor management function; your overall fundraising program
including planned giving and special events; and the list goes on.
We can help with a direct mail evaluation. Just give me a call
(505-899-1520) or send me an email () and I’ll connect you
with a direct mail professional.
Back to Table of
Contents
Charity begins with a direct mail solicitation, according to findings from
the national marketing firm, Vertis. More than half (59%) of the 2,000 American
adults surveyed during the spring of 2003 were most likely to donate time, food,
clothing or other contributions to organizations that contacted them through
direct mail and 53% confirmed they read fundraising and nonprofit direct mail.
The study found that 62% said personalization was the most important
factor when contributors determine which charity or fundraising direct mail
they open, followed by timing at 59%. 32% said a free gift or token was
important, 31% listed a special offer and 30% said dated material was
important.
Interestingly,
two-thirds of the survey participants had Internet access and the study
revealed little difference in the contribution habits of a home with
Internet access compared to the total number of survey participants.
However, there was one significant exception—Internet users were more aware
of organizations that had a Web presence.
The survey showed that 86% of Americans donated money to nonprofit
organizations in 2003. Donations under $500 have increased 7% since 2001,
while donations above $500 have decreased by 10%.
Source: Markets Advertising, CyberAtlas online.
What this survey tells us is that nonprofit organizations should consider
both direct mail and the Internet as viable sources of information and
donations. Clearly, the Internet bolsters a donor’s understanding and
awareness of a nonprofit. And we also know that donors are becoming more and
more savvy about the ability to donate online.
Your development plan should include a variety of methods to inform
donors and solicit contributions, from direct mail to special events. And
your organization should have an active and up to date web site that
educates donors about your mission and programs.
Back to Table of
Contents
The survey referenced above showed that health organizations continue to
garner the most contributions, hovering just over 50% since 2001. Not
surprisingly, donations to safety/disaster relief spiked in 2002, rising to 44%
over the previous year’s 28% and dropping down to 37% in 2003. Religious
organizations, not including local churches, saw the biggest decline in 2003,
dropping to 39% from 50% in 2002.
Here is the breakdown of the survey results:
| Health |
52% |
| Food/Hunger |
40% |
| Community Services |
40% |
| Children’s Services |
39% |
| Religious |
39% |
| Safety/Disaster Relief |
37% |
| Homeless/Shelter |
36% |
| Education |
27% |
| Animals |
22% |
| Social Services |
15% |
| Political |
14% |
The survey also asked “From which of the following do you receive
information on organizations to contribute to?” Here are the results:
| Direct Mail |
59% |
| Fundraiser |
45% |
| Word of Mouth |
41% |
| Church |
40% |
| Telemarketer |
21% |
| Telethon |
20% |
| Internet |
16% |
Here is what respondents said about how much they were giving this year:
| None |
14% |
| Under $100 |
37% |
| $100-$249 |
22% |
| $250-$499 |
12% |
| $500-$999 |
7% |
| $1000-$5000 |
6% |
| Over $5000 |
1% |
Back to Table of
Contents
It’s
not fully active yet, but www.grants.gov
will be THE link for federal grants. Here are some more great online resources
for grants:
www.fundsnetservices.com (Fundsnet Online Services),
www.cof.org (Council on Foundations),
www.fdncenter.org (The Foundation
Center), www.givingforum.org
(Forum of Regional Associations of Grantsmakers),
www.wfnet.org (Women’s Funding Network),
www.women-philanthropy.org
(Women’s Philanthropy Institute).
Here is a great resource for online learning. Visit
www.fundraisingbasics.com
and learn about their online e-workshops. They are quick and easy to grasp.
More sites you should know about:
www.guidestar.org lists financial information for 800,000 nonprofits
(including yours). www.idealist.org
is a leading nonprofit site with jobs, events, volunteer opportunities and
consultants lists.
At www.news.gilbert.org
you’ll find daily news updates for nonprofits. Putnam Barber maintains the
Nonprofit FAQ at
www.nonprofits.org/npofaq. Find volunteer opportunities at
www.networkforgood.org. The
Center for Philanthropy and Nonprofit Leadership is at
www.nonprofitbasics.org. At
www.serviceleader.org
you’ll find a huge site covering every aspect of volunteer management.
www.techsoup.org has built the
leading resource center for all issues related to nonprofit technology. And,
check out
www.ncna.org/states.htm to find the state association of nonprofits
nearest to you.
Want a fun way to raise money? Contact Jana Kuzia at Carnival Cruises at
jkuzia@carnival.com
Back to Table of
Contents
Now you can add two great books to your agency library.
The ABCs of Building Better Boards is just what you need to
improve your Board’s potential. It includes ideas for recruitment, retention and
recognition and has some great forms for you to copy and use.
The Association of Fundraising Professionals says of this book:
“Here is a book that every senior fundraiser
responsible for board recruitment and development should read once and then
review annually...takes up where books full of theory fall short...give it a
chance and you will discover a gem to be treasured.”
Learn how to deal with unproductive Board members and how to better define the
roles of staff and Board. There is a chapter on financial and fiduciary facts,
one on simple parliamentary procedure and much much more.
Discover how Board Job Descriptions and annual Commitment Letters will
dramatically improve your Board’s effectiveness. See how a truly effective
Nominating Committee will lead to a better Board.
Get good ideas for more efficient Board management and administration, including
how to set up and manage effective committees.
It’s only $24.95 plus shipping and handling. Take advantage of a volume
discount of up to 20% and give this book to all new Board members as part of
their orientation.
Fast Fundraising Facts for Fame & Fortune
is full of ideas to improve your fundraising, including how to ask effectively,
special events essentials and new ideas for fundraising.
Help volunteers get over the fear of asking for money and in-kind resources for
your organization. Learn how marketing principles will make fundraising easier.
Learn about Jean’s Ten Rules for Fundraising Success
and apply them to your organization immediately. This book puts the FUN into
FUNDraising and gives good examples and ideas that really work, rather than
using hard to follow formulas and theories.
At only $19.95 plus shipping and handling, it’s a Must Have for your nonprofit
resource library.
Email me at to
discuss volume discounts for staff or volunteers. Buy both books for $39.95 plus
shipping and save.
Order Now So You Don't Forget!
Go to the Order Form to order your copies of
The ABCs of Building Better Boards
and
Fast Fundraising Facts For Fame & Fortune ©
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Contents
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HOW CAN I HELP YOU?
TAKE THIS QUICKIE QUIZ
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Please give me a call if you want to turn any NO into a YES. I can help
with:
- turning your Board into a dynamic group of volunteers,
- facilitating a strategic planning session,
- analyzing your current fundraising and suggesting some new ideas, and
- training volunteers and staff in becoming more effective fundraisers.
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Contents
Here is what people have said about my training and facilitation:
"Jean Block is a powerhouse in the
Non-Profit world. You don't move about these circles long before her name is
prominent in the conversation. Her commitment to training, fundraising,
motivating, and cultivation is unsurpassed. To say she is an influence is
to miss the point. She gives new meaning to the word enthusiasm! You don't
know Jean, you experience her! She is a force unlike any other I have every
met."
Randy Gleason
Randy
Gleason Consulting, Inc.
"I attended the Corporate
Sponsorship Workshop - WOW! You were amazing! What an OPPORTUNITY for me!
Your presentation style was EXCELLENT. By
far the best workshop I've been to in a long time (content and style
both!)."
Vicki
Kopplin
Epilepsy
Foundation of Minnesota
"I attended your workshop in St. Louis
and left there feeling so uplifted by your motivation. Your training - to
make us all savvy marketers - has paid off. Even in this economy, our
underwriting is up and our auction donations have blown away everyone in
town! We simply feel empowered to ask anyone and everyone AND to tell them
WHY we are their market. It's working!
Thank you!"
Kirsten Wagmeister
Junior League of Evansville
"Thank you for the awesome training
sessions...As someone (who) would normally walk over hot coals before asking
for $, I was amazed by your session. I actually feel fired up at
fundraising. I went right home and called two friends with ideas for their
non-profits. I hope to give a presentation to my Board encouraging them to
have you train us."
Heather Harden,
Finance Council Director
Junior League of
Champaign-Urbana
"I just have to tell you that you made
such an incredible impact when you spoke to our Board. I can't begin to tell
you how many times your words of wisdom have been brought up at our
Executive, Board and Committee meetings. In fact, just today, in two
different conversations I was having, your ideas were quoted by others.
Thank you for inspiring us to think in a new direction."
Kim Erdel
Junior League of
Springfield, Missouri
"Jean conducted an extremely well
organized and productive [Board] retreat, one that I can
say with confidence that our members count as the finest
ever conducted for us. Jean's follow-up report was
in-depth and meaty, and both Board and staff have
referred to it time and again. The knowledge of
boardsmanship the members took with them has made a
remarkable difference in their levels of commitment and
support."
Eileen Cook, Executive Director
Casa Esperanza
Back to Table of
Contents
Creating Passion in
Non-Profit Organizations
By Michael Kroth, Ph.D. and Patricia Boverie, Ph.D.
How important is having and inspiring passion for non-profit
organizational success? Extremely, according to the results of our recent
survey.
We recently included a survey in this newsletter and asked people who are
involved in non-profits – staff and volunteers - to tell us how important
passion is and what increases it and reduces it. We received 34 responses,
certainly not enough for a scientific study, but enough to give us an idea
of what you think.
In this article we will share the results with you. We’ll tell you how
important you felt passion was, and give you some examples of what people
thought increases passion or reduces it. If you would like even more
information about this survey, we will be featuring the factors that
increase passion or reduce it in our own newsletter next month. If you are
interested, you can sign up to receive it by going to our website at
www.leadingwithpassion.com.
How important is it to be passionate about the work of the
organization?
We asked how important being passionate about the work of the
organization is to organizational success. We asked each person to rate it
on a scale of 1 to 5 – with 1 = not important for organizational success, 2
= somewhat important, 3 = important, 4 = very important, and 5 = essential
for organizational success.
The average response (in order):
| Executive Director |
4.58 |
| Board Chair |
4.55 |
| Staff members |
4.38 |
| Key Volunteers |
4.16 |
| Board members |
4.12 |
People felt that being passionate about the work of the organization was
very important for each of the above, but that it was essential for the
Executive Director and the Board Chair.
How important is it to be able to inspire others?
Using the same scale as above, we asked how important it was to be able
to inspire others to be passionate about the work of the organization and
their role in it.
The average response (in order):
| Executive Director |
4.52 |
| Board Chair |
4.50 |
| Key Volunteers |
4.38 |
| Board Members |
4.27 |
| Staff Members |
4.18 |
Again, people felt that being able to inspire passion in others was very
important for organizational success for each of the above, but that it was
essential for the Executive Director and the Board Chair.
Being passionate about your work and being able to inspire passion seem
to be critical for the success of organizations. But what increases it and
what reduces it? We asked people what the three most important factors are
for each. Here are a few example statements we received.
Reduces Board Member’s Passion
- Wasting time and effort because of disorganized/ineffective
processes.
- Non-inspiring leader. Leader doesn’t follow through or practice what
they preach.
- Roles/responsibilities not made clear.
Reduces Other Volunteer’s Passion
- Not being able to voice opinions in an objective climate.
- Lack of trust from supervisors/micromanagement.
- Lack of appreciation for their work. Not being thanked by staff,
board, ED, etc.
Reduces Staff Person’s Passion
- Micromanagement by the volunteers.
- Being treated like an employee, not a team member.
- Lack of executive director passion, leadership, vision or
management.
Increases Board Member’s Passion
- Clarity on what is expected from them and being able to see results
from their efforts – whether media, programmatic, funding, planning.
- Energetic staff, also believe and understand mission statement,
enthusiastic about being there.
- Feeling confident that the goals are going to be accomplished,
continued momentum to achieve goals. Feeling important to the
organization’s success.
Increase Other Volunteer’s Passion
- Feeling appreciated/rewarded.
- Outlet for skills and creativity, whether existing skills or chance
to develop new ones.
- Believes in the organization’s purpose, has a personal interest in
it.
- Increase Staff Person’s Passion.
- Feeling that the board/chair/director are behind them 100%.
- Thanks from board and members.
- Opportunity to stretch themselves in their jobs as desired, when
appropriate (input ideas, learn/use new skills, use creativity, etc.)
Going Forward
Passion seems to be essential for your non-profit organization’s
success. What are you doing to increase it or reduce it? And are you
passionate yourself? If we asked the people who work all around you if you
are the kind of person who is passionate and inspires passion in others what
would they say? Is it time for a personal passion tune-up yourself?
Jean Block
Consulting, Inc.
7915 Cliff Road NW
Albuquerque NM 87120
(505) 899-1520
Fax (505) 890-5285
Email:
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"I
love your newsletter! It's refreshing, fun
and filled with helpful hints"
Toni Paglia,
Director of Development, The ARC
Syracuse, New York |
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