Direct Mail Fundraising

Like most efforts to raise money, direct mail fundraisers emphasize giving, an important, human responsibility. "He that hath a bountiful eye shall be blessed; for he giveth of his bread to the poor" (Proverbs 22:9). Non-profit organizations depend on giving to survive. They use a number of means to increase giving, one of the most popular being direct mail fundraising. Non-profits use the U.S. Postal Service to deliver letters and other forms of communication to encourage donor pledges and support. Despite the rise of the Internet, this remains, by far, one of the most effective ways to raise money today. Interestingly, raising money through the mail involves far more than a letter and a stamp. The approach and presentation of the mailing is extremely important to the pledge response. Although every organization's results are different, there are common trends in responses with the use of certain types of mailings. Any organization, small or large, can benefit from support mailings after testing the waters and finding out what approach is most effective.

Every non-profit organization has to plead their case to potential supporters. Most Americans just won't remember to give on their own and have to be prompted with a letter of reminder. Direct mail fundraisers usually involve a letter with just this purpose. The letter typically states what the non-profit does, previous successes, current projects and how the donor can help. Typically, there is something specific that they are raising funds for, a particular campaign. Specifics tend to raise more funds because people want to know exactly what their money is supporting. This is why many mailings will also include statistics or a budget breakdown for the organization. The more information the supporter has in hand, the more comfortable the potential supporter will feel making a large donation. The overall direct mail fundraising goal, however, is not just to increase the average pledge, but to increase the number of donors.

Increasing the number of supporters involves some tactics that few people would think matter. The very look of the envelope used in direct mail fundraising actually corresponds with the amount of pledges and the number of donors. Testing has showed that between a plain, white envelope and a decorated envelope, the plain white envelope actually results in greater donor response. Although a decorated envelope with graphics is attractive and eye-catching, most people pay more attention to the plain envelope because it seems more personalized. It looks far less like a solicitation, and therefore, they are more likely to open it and read the contents. The same can even be said for the form of postage used in direct mail fundraisers. People tend to have an increased response when organizations use actual stamps on the response envelope versus Postage Paid stamps. Again, a personal touch seems to create a greater response.

Unfortunately, to make money, you have to spend money. Fundraising is never a free effort. Whether the organization throws a gala, conducts direct mail fundraisers or holds an auction, there are costs attributed to the campaign effort. Direct mail fundraising involves the cost of letterhead, envelopes, printing, postage and any other special, additional mailing. The goal of the should be to make the campaign as cost-effective as possible. Plain envelopes versus decorated ones not only save on printing costs, but increase donors and pledges. Actual stamps cost more than prepaid postage, but the results can often balance out the extra cost. Some will spend extra money and offer a special gift or premium to potential supporters, regardless of whether or not they give. Premiums are usually complementary calendars, note cards or other stationary and only cost a few dimes each, but the response tends to even out the cost. Many non-profits will send an initial letter asking for donations and promising the arrival of a special gift in a few weeks. Response tends to increase after the premium mailing.

Before a non-profit organization, large or small, takes on direct mail fundraising, it is wise to test their tactics to see what is most effective. If the non-profit plans to mail letters to 2,500 potential donors, they should start by sending letters only to 250 potential donors to test the different approaches. Although there are trends in direct mail fundraisers, every organization tends to see different results. They should send out half of their mailings in one form, i.e. plain envelope with actual stamp, and the other half in another form such as graphics envelope with paid postage. By logging responses and calculating the number of donors and average amount of pledges, they can determine which tactic will be most effective for the rest of their campaign. In addition to keeping records, Christian groups should pray about their work towards gaining support. It will take some trial and error, but a little research will go a long way in running a cost-effective fundraising campaign.

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