Category: donor psychology

  • Reaching mid-level donors with direct mail

    You probably hear a lot about mid-level donors, and that’s for good reason. For most nonprofits, these donors represent a major opportunity for short-term and long-term growth. It’s a revenue source that’s largely untapped. The potential is there, waiting to be realized.

    So, who are mid-level donors? Defining mid-level donors will vary for different nonprofits, of course, depending on the size of your nonprofit. But in general, for many nonprofits, mid-level donors are those who give about $1,000 to $9,000 a year.

    Another way to look at it comes from Sean Triner of Moceanic. The Pareto Principle tells us that 80 percent of your donations come from about 20 percent of your donors. That 20 percent consists of about 4 percent for major donors and about 16 percent for mid-level donors. Keep in mind, this is a rough guideline. It won’t work out exactly this way for every charity, but it gives you an idea of where to start in determining who your mid-level donors are.

    Defining your mid-level donors is a good first step. Because the real problem is that most nonprofits tend to overlook these important donors. That’s because they give too much to be considered typical annual fund donors, and at the same time, they give too little to be considered typical major donors. They’re the “middle child” in fundraising – the ones with loads of potential who nevertheless go unnoticed.

    And that’s too bad. Because when nonprofits cultivate and communicate with mid-level donors, it’s possible to:

    • Generate game-changing growth. Remember, mid-value and major donors give almost 80 percent of your revenue. But for many nonprofits, mid-level donors are underperforming. The potential is there for them to give more.
    • Create a class of donors who can be cultivated to move up to major giving.
    • Provide a stream of promising leads for planned giving and legacy gifts. Along with mid-level donors, bequest donors represent one of the best opportunities for revenue growth.
    • Increase donor retention, since donors who give at higher levels tend to remain more loyal.

    Successfully cultivating mid-level donors will require research, data analysis, as well as some means of personal contact, such as telephone calls or even personal donor visits. You’ll want to contact these donors in various ways – ways that correspond to their preferences, of course.

    It takes a comprehensive program. But one key to the program is a specialized direct mail appeal. All the analysis and fundraising strategy will come to nothing unless the approach to communicating with these donors is the right one.

    In general, mid-level donors are less transactional in their giving than most annual-fund donors and far more relational. This is why standard direct mail probably won’t work for them. But specialized direct mail can and will.

    What’s needed is a bigger, better, more strategic direct mail pack – not simply a fancier version of a typical annual-fund mailing.

    Mid-level donors need to be approached in a unique way that demonstrates the impact, stewardship, and engagement they expect. In general, they respond best when there’s a specific program or initiative, when they receive plenty of information, and when they’re acknowledged as being part of a group of select supporters.

    This specialized mail pack has higher production values than you’d use for regular donors. It often has a 9 x 12 envelope. It has a multiple-page letter, with copywriting that conveys the right tone and copy voice for higher-dollar donors. It’s on better-quality paper. It’s highly personalized throughout. It has multiple components – brochures, lift notes, inserts, and so on – that provide plenty of information, both in terms of factual information and emotional content. And it has a full-page reply device that not only presents the ask but reinforces the reasons to give. This is the kind of direct mail appeal that will tend to cut through the clutter and attract attention.

    A pack like this will of course cost more than the mailings you send to regular donors. But to reach mid-value donors and cultivate them, it’s important to focus not on cutting costs but on maximizing revenue. There may be areas in your fundraising where it makes sense to pinch pennies, but not here. A cheap direct mail appeal for mid value donors is likely to fail. But a higher-quality appeal that communicates the exclusivity, personal attention, insider status, and insider information that mid-level donors expect is likely to succeed and generate the revenue you want.

  • Should you do a year-end fundraising appeal?

    Yes, and here’s why.

    It’s one of the easiest appeals to create. And it can be one of the biggest revenue producers of the year. About 30 percent of most nonprofits’ revenue comes in between Giving Tuesday and December 31. At year end, donors are looking for a place to give. That place could be and should be your nonprofit.

    The messaging for the appeal is usually pretty straightforward, emphasizing the Dec. 31 deadline  and how your donor’s gift will help your nonprofit end the year strong and begin the New Year strong.

    The design of the appeal should be equally simple and straightforward. No need to go overboard on photos and graphics. In most cases, simple is best for year end.

    And don’t forget email. A lot of online giving happens in the last three or four days of the year. Your emails can and should be showing up in your donors’ inboxes, so that they can support the good work your nonprofit is doing.

    For more on year end fundraising, see Best Practices for Year-End Fundraising (nonprofitpro.com)

  • The offer in fundraising

    In direct response fundraising, what’s an offer?

    Is it like the offer in commercial direct marketing, or is it completely different?

    Why does the offer matter?

    Is it really the most important thing in a letter appeal or email appeal, as some say?

    If you include an offer in an appeal, won’t that just make your fundraising seem too transactional?

    Is the offer just an exchange of money for outcomes, or does it do more to actually motivate and inspire donors to give?

    Sure, an offer may work in a letter, but what if you’re more interested in your nonprofit’s brand. An offer doesn’t have anything to do with that, does it?

    Good questions, all. Let’s take a closer look at some answers here: https://tinyurl.com/22e74ea4

  • When fundraising is too cautious for its own good

    You can just see the fundraising team around a conference table trying to create an appeal that doesn’t draw any complaints, doesn’t raise even one hackle, doesn’t offend in any way, real or imagined.

    And the result is this:

    For many of our community members, living without shelter can be traumatic and dangerous.

    That’s the first line of the email. Talk about stating the obvious. “Living without shelter can be traumatic”? The only possible response to that generalization would be “no kidding.”

    It continues:

    And in the summertime, extreme temperatures make the experience even more perilous.

    Another obvious point, made even less impactful by the cautious, corporate-memo-style phrasing. But there’s more going on here. So, being homeless is an “experience” now? And in the summer, it’s “perilous”? That’s an understatement. In the southern part of the country where this nonprofit operates, the temperatures are in triple digits, have been for weeks, and will continue to be. For someone who’s out on the street, that must feel like living on the surface of the sun. You would bake out there. And even if you could find some piece of shade, it’s so hot that it would feel like the life is being drained right out of you. “Perilous” doesn’t begin to cover it.

    It continues:

    Neighbors will face the risk of dehydration, heat exposure, and worse… 

    Actually, they’ll die. Their hearts will stop beating, and they’ll die from the heat. As many homeless people do. Just as, in the winter months, homeless people freeze to death.

    It continues.

    That’s why I am writing to you today. This is a critical time of need in our community. Our community members without permanent shelter are looking for friends to stand up and help make summer not only bearable, but hopeful too.  

    A couple things going on here and in previous paragraphs. Referring to someone who’s homeless as a “community member” or as “living without shelter” or as “community members without permanent shelter” or as “neighbors” just wouldn’t ring true for donors, either when it comes to what they might know about homelessness or what they might presume about it. These are obvious, hollow euphemisms.

    Imagine you’re a donor, and you see a homeless man picking in a trash can for a half-eaten hamburger, do you think “Oh, there’s a community member without permanent shelter” or do you think “that man is homeless, he’s hurting, he deserves help”?

    Of course there are real concerns about ‘otherizing’ the beneficiaries of a nonprofit in fundraising, and they’re valid. But when those concerns result in bland, cautious, and sterile fundraising, it’s a problem.

    It’s a problem because it fails to convey the actual lived reality of the very people that the nonprofit hopes the donor will help. And in the end, that’s a disservice to the purpose of fundraising and to the people who need help. And it’s a disservice to donors, who want to accept the reality of a social ill like homelessness, confront it, and make a difference for the people caught up in it.

  • One sure way to make your fundraising better

    The single best thing you can do to improve your fundraising?

    Come to terms with a hard truth: You are not your donors.

    They’re probably older than you, for one thing, which means they have a completely different frame of reference, and for another thing, they have a completely different perspective about your organization, because they’re on the outside, not “in the bubble” like you are.

    These differences in perspective between you and your donors can cause problems when you’re creating your fundraising appeals.

    For example, these differences will influence the photos you use in your direct mail and email appeals, the kinds of stories you tell in your appeals, and how you write and structure your appeals.

    And all three of these will have a huge impact on how much money you’ll raise. There’s more to this. Get the whole story here: https://tinyurl.com/ewntb8h9

  • Want more of your regular donors to become monthly donors?

    Nonprofits love monthly donors for obvious reasons. Monthly donors give consistently, require less frequent fundraising, and tend to be more loyal.

    But to get regular donors to opt into monthly donor status, you have to make this seem like something they would want to do. Which makes this email effort so puzzling. It begins:

    I’m deeply grateful for your support as we work together to bring needed resources to our neighbors experiencing homelessness. 

    As our partner, you’ve truly provided a lifeline to many local community members, especially with the current high cost of living and the uncertainty that accompanies it. 

    That’s the opening. And for these two paragraphs, I’m wondering why they’re writing to me at all, except to express gratitude and suggest that our work is completed, since I’ve apparently already “provided a lifeline.”  I’m thinking “what’s this about? Is it a thank-you email?” It goes on:

    Because I know we share the vision of a community without homelessness, I’m inviting you today to join the [monthly donor program name], the [nonprofit’s] monthly giving circle. 

    Members of [monthly donor program name] donate monthly to ensure vital services are available all year long. This support is critical in ending the cycle of homelessness. 

    Oh, so that’s it. They want me to become a monthly donor. But wait a second, I thought that as an occasional donor I was already ‘sharing the vision’ and ‘ending the cycle of homelessness’ with the gifts I give, at least that’s what they’ve been telling me. It continues:

    With your [monthly donor program name] membership, you can help countless neighbors regain self-sufficiency and hope for the future.  

    Again, I thought I was already doing this with the gifts I currently give. It continues:

    And by signing up online, you can automate monthly gifts, save money on postage, and help reduce administrative costs, too — all while providing access to vital care for community members facing homelessness. 

    It’s only at this point, at the end of the email, that I see some reasons why I might actually want to become a monthly donor. But these reasons are only tacked on as an afterthought.

    A couple things about this. First, there’s this idea that every communication to a donor has to open with gratitude for their support. Sure, there’s a time for thanking and appreciating donors. But not in every communication. What’s more, by telling me that I’ve already provided a lifeline to community members, they’re suggesting that the job is completed, so what do you need me for as a donor?

    Second, if you want me to change my pattern of behavior – like going from an occasional donor to a monthly donor – you better give some pretty good reasons to do it. And those reasons should probably be at or very close to the beginning of the email in order to get my attention.

    Even more to the point, those reasons should be compelling. In this email, I’m offered the opportunity to “automate monthly gifts, reduce postage costs, and help reduce administrative costs.” These aren’t exactly barnburners. Not many donors are sitting in front of their computer thinking, “Gee, I’d really like to automate monthly gifts.”

    There are good, solid reasons a donor would consider becoming a monthly donor, but you have to lay out those reasons explicitly and do it in a way that’s interesting and advantageous for the donor. You can’t expect donors to fill in the gaps on their own and convince themselves. They won’t. Instead, they’ll just move onto the next email.  

  • When disaster fundraising works and when it doesn’t

    If you haven’t already, you’ll probably soon receive a barrage of emails appealing to you for donations to help the victims of the horrible earthquake in Turkey and Syria. This is of course a worthy cause. The need is overwhelming. And the rest of the world should do everything possible to help.

    Which makes this email subject line so puzzling. Here it is:

    “How we’re saving lives in Turkey right now.”

    Huh.

    Then in the email itself, there’s this headline:

    “How we’re saving lives in Turkey right now.”

    Double huh.

    Imagine you’re a potential donor. What’s your reaction to that line? Mine is that it looks like they’re got everything covered. Time to move onto the next email in the inbox.

    With that subject line and headline, I’m left completely out of this as a potential donor. And that’s too bad.

    Because the quake zone is total devastation. Tens of thousands killed. Survivors left without shelter, food, sanitation. The risk of cholera and other diseases. It’s destruction on a mass scale.

    However much this nonprofit has done, it’s a drop in the bucket. There’s sooooo much more to do. They need my donation. And I want to give it. But they’re not making it easy. They’re not engaging me. In fact, they’re suggesting that I’m not needed.

    The text of the email begins by referencing the death and destruction. But in the second paragraph, it reiterates the work that the charity is doing. Again, giving the impression that they’ve got this covered and don’t need my gift.

    This is followed by a bulleted list. But it’s not a list of what needs to be done. It’s a list of what they’re already doing. Further on in the email, it says that their teams do whatever it takes.

    Granted, there is a donate button with the words “Rush your gift.” But still, the messaging has an inside-our-four-walls, organizational framing, not a donor-centric one. There’s a lot of “we,” “us,” and “look at what we’re doing,” instead of “you” and “here’s how you can help.”

    Of course this email will probably raise a lot of money. That’s the thing with disaster fundraising. It often does well even if it’s done badly, because donors are generous people who do want to help. Still, donors want to be involved. They want to feel like their support is needed. So instead of making it about what the nonprofit is already doing, it should be more about how much you, the donor, is urgently needed now to save lives. Messaging along those lines can raise even more revenue. Which would save even more lives.

  • How to keep your donors interested in your fundraising appeal

    It’s the age-old problem: how to engage the readers of your direct-response fundraising appeal to, first, start reading and then to continue reading.

    Luckily, we have some tips from Clarification blog:

    • Talk less about us (the nonprofit) and more about you (the donor).
    • Use shorter paragraphs to make copy more inviting and easier to read.
    • Don’t stop at a compelling headline or subject line. Also consider the subheads, the PS, the salutation, and other components to keep readers engaged.
    • Use a metaphor to paint a picture for your readers.
    • Use quotations but keep them short, so they’re more likely to be read.

    These are all good tips.

    But there’s one additional aspect to good copywriting to add to this list. It’s vital if you want to keep readers motivated, and that’s using transitions.

    Transitions are invaluable if you want to keep your readers moving from one paragraph to the next like a slinky toy going down stairs.

    And in linking your paragraphs together, transitions also make a piece of copy seem like a coherent, crafted whole – a good thing.

    The transitions to use? There are an infinite number, limited only by your imagination. But some that are frequently used include phrases like “that’s just the beginning,” “and don’t forget this,” “and here’s the point,” “we’re not done yet,” “what does this mean to you?” and many, many others.

    Using transitions is one of the best ways to help ensure that your readers take in your complete fundraising message. And that’s your best chance of moving them to give.

  • Two ways to begin a fundraising appeal – from Jerry Huntsinger

    In Jerry Huntsinger’s “86 Tutorials in Creating Fundraising Letters and Packages,” he makes a point about how to begin a fundraising appeal.

    He makes his point with an example. It’s an appeal for a cancer charity. It begins:

    “Children shouldn’t have to face the devastation of cancer and death. But they do. Each year, hundreds of children…”

    It’s the standard, institutional, boilerplate blah, blah, blah. Jerry notes that where the letter actually begins is in the fifth paragraph, with this:

    “Lance was diagnosed with leukemia two days before Christmas. He was 2 years old. ‘Lance was so sick that they flew us to Twin Cities for immediate treatment,’ his mother said. ‘His platelets were so low that his teeth bled through the night.’”

    BAM – there you are, right in the middle of the drama. Nothing institutional about that. Nothing blah, blah, blah about that. Especially that detail about the boy’s teeth bleeding – that detail gets you.

    Sure, starting an appeal with a story is a tried-and-true approach. But here’s the point. The first opening – “Children’s shouldn’t have to face …” – is basic expository prose. It’s simply explaining something. It’s simply conveying a generalization about children and cancer. It’s not trying to involve you. (It’s something you’d get from ChatGPT if you asked it to write an appeal about childhood cancer.)

    The second opening – “Lance was diagnosed …” – is meant specifically to involve you. It’s telling you that this letter is about a human drama playing out right before your eyes. It’s one human being talking to another.

    As Jerry says, the second opening will raise more money.

  • What makes a good offer for a fundraising appeal and what makes a bad one

    Why does the offer matter so much in direct mail fundraising? Let’s take a look at an appeal to find out.

    This is a fundraising appeal from a military nonprofit, and in the body of the letter, the first ask is this: Please let your service members know you stand with them by sending your most generous donation you can to [charity name] today.

    So that’s the call to action – to “stand with” service members. To be honest, that’s a problem. Because “stand with” is vague. It’s a generalization. It’s an abstraction. It’s up in the clouds, instead of being down-on-the-ground concrete.

    The donor isn’t being asked to solve a specific problem, help a specific person, or even to fund a specific initiative of this nonprofit. But to stand with service members. That doesn’t give the donor much to go on.

    The second ask in the letter doesn’t give much to go on either. It’s this: We rely on the generosity of individual Americans in supporting our military. That is why I am asking you to support our troops and their families by giving whatever you can afford to [charity name]. Your gift of $15, $25, or more will make a real difference in the life of a brave hero who is fighting for every one of us.

    A couple things here. The donor shouldn’t be asked to give to a charity. Donors aren’t motivated by giving to a charity. They’re motivated by helping someone or solving a problem or righting a wrong.

    But even beyond that, this ask is again general, vague, and nonspecific. The donor is asked to “support our troops,” but there’s no indication of what that means in this context or how giving a gift will accomplish it.

    Those two calls to action are in the body of the letter. Let’s take a look at the main call to action in the response device. It says: Please help strengthen our service members by keeping them connected to family, home, and country. Your tax-deductible gift to [charity name] will also provide other much-needed services to our military heroes and their families.

    So, first we have “help strengthen our service members,” which is vague. Then we have “keeping them connected to family, home, and country.” Okay, that’s a hint of something. It’s good for service members to be connected to home. But how my gift would do that is not explained. Then there’s this: “…will also provide other much-needed services…” Other much-needed services? Like what?

    This offer provides almost nothing for the donor to latch onto. And in doing so, it fails to answer the donor’s most basic questions. Like, How will my gift help? What will it do? What problem will it solve? Who will it help? These are the questions that must be answered for the donor before she’ll even consider giving.

    In addition to that, instead of being asked to fund a small, specific part of the nonprofit’s mission, the donor is asked to fund the whole thing. That’s too big. It’s too much. Especially when that mission is something vague like keeping service members connected with family, home, and country.

    In direct mail fundraising, with the exception of the list, the offer that you make to donors is probably the most important part of the whole project. In large measure, it’s the offer that determines whether the appeal soars or sinks. Less so for the writing, the graphics, the logo, the size of the envelope, and so on. Those things are important, of course. But ultimately it’s the offer that provides the motivation to give. And if that offer is vague and mushy, then you can expect the response to be too.