Update...

It’s going to be a busy next few weeks.

At the end of this week I’ll be in Copenhagen, Denmark and meeting with one of our largest international clients. They look to expand their implementation of DonorPerfect Online across the world, and are looking forward of using our multiple currency tracking and local custom settings to make each system work with their unique government regulations.

After returning for a brief home visit, I’ll be once again attending the National Catholic Development Conference (NCDC). This year it’s being held in Orlando, Florida, so my family will be joining me for some R&R and a couple of visits to Disney. Luckily, my father in law is joining us and he has graciously agreed to help with the kids while I’m at the convention.

Finally, at the end of this month we’re releasing our latest version of our desktop software, DonorPerfect Version 10. It’s like Christmas morning each time we release a new version- I can’t wait! Version 10 will be sporting some advanced features, including an integrated Special Events module to easily track, manage, and schedule almost any kind of special event. Like all of our new improvements, it was developed with flexibility in mind, and should fit any organization’s special event process like a glove. As always, the upgrade is provided as a FREE benefit to all of our clients enrolled in one of our support maintenance programs.

We’re targeting the release later this month- stay tuned!

5 Tips to Raise More Money in a Down Economy

The state of the economy has certainly been the talk in our industry, especially as it relates to giving forecasts as we approach the holidays. However, it’s not all doom and gloom. Even during the last recession (2001), individual giving still rose from the previous year- though at a paltry .5% increase and when adjusted for inflation was actually a decrease (source: http://www.homepages.indiana.edu/062102/text/giving2.html).



Here’s 5 quick tips for a successful fundraising campaign this year to try and break the trend:

1. Be honest. Mention the economy in your appeal. One of the reasons people give is to help others not so fortunate.
2. Offer an upgrade path. As outlined in my previous blog entry, encourage people to give more than in the past (while still offering their same support level).
3. Offer a monthly giving program or pledge option. Donors usually contribute more when they have the ability to spread out payments over time.
4. Offer a credit card option. Average donations for credit card gifts are up to 20% higher than other forms of payment.
5. Be persistent. The number one reason people give is because they are asked. In fact, it usually takes 3 to 4 ‘impressions’ before people make a donation.

Any more ideas? Share them here!

The Secret to Asking the Right Amount...

It's turning in that time of year again where non profits across the country are preparing their direct mail file for their largest direct mail fundraising effort- The Holiday Ask.

It's so important that in a study conducted by the Center on Philanthropy at Indiana University, they found that:



"The Secret"

"...the researchers also asked respondents about how much of their giving occurs from Thanksgiving to New Year's. On average, people make 24 percent of their annual donations in those six weeks--or about twice what one would expect if giving were equally distributed throughout the year."

--Source: Giving and Volunteer Research, The Center on Philanthropy at Indiana University

Since about 1/4 of the total giving is made during this important time frame, it's even more important to make sure that your direct mail campaign not only targets the right donors, but that it also targets the right amount for each donor. In fact, since the number one reason people give money to charity is because they are asked, then it also holds true that you should make sure to ask the right amount.

You certainly wouldn't want to ask a major donor for a $25 gift when they are capable of giving $500 or more. Likewise, asking a new donor for $500 when their largest previous gift was $30 is also nonsensical. The secret is to ask more than they gave in the past but not too much more to dissuade them from giving at all.

As a result, direct mail operators have for years used 'secret' formulas to calculate the ask amounts in the direct mail piece. Using a combination of research, experience, a little voodoo and a bit of luck, these experts can take your donor file and create the perfect ask amount for each of your donors.

Typically, to take advantage of this tactic, direct mail vendors will require these pieces of information for each donor:

• Last Contribution Amount
• Last Contribution Date
• Maximum Contribution Amount
• Initial Gift Amount

Other fields to consider include the dates of both the maximum and initial gift amounts. For users of our DonorPerfect CRM fundraising software, it's very simple to include these calculated fields with your export- in fact they are always included in our standard donor export.

Now, what happens if you aren't taking advantage of a direct mail vendor's expertise? Is there anything you can do? The answer is YES! Basically, all of these 'next ask' variants rely on a combination of the donor's history to reasonably predict an upgraded gift amount.

For example, one could simply use the Maximum Gift Amount * 1.20 and round off to the nearest $5. This way, you could maximize your potential by asking for amounts that are 20% more than their maximum gift.

Another variant would be to simply take the Last Contribution Amount and again multiply it by 1.2 rounding off to the nearest $5.

Yet another way that works is to blend both the last contribution amount and maximum gift amount, and take a certain percentage of each, add them together, and then round. For example:

(70% * (Maximum Gift Amount) + 30% * (Last Contribution Amount)) *120% =
New Ask Amount

Larger organizations can and do spend a lot of time asking the right amount. Because their donor files are so large, a 1% difference in the amount of each response could make or break the success of their mailing. For the vast majority of smaller organizations, using the blended approach will most likely do the trick.

Finally, one should always show at least three ask amounts in the direct mail piece, along with a spot for "Other"- for those cases where we completely missed the mark, or when the donor may have won the lottery!

As with any direct mailing, you should test, test, test, and then test some more. Though the above tactics are generally recognized as a good rule of thumb, each organization is different and like the infomercial says, "Your results may vary."