Not-for-Profit

Cautiously Optimistic…

“Cautiously optimistic” is the catchphrase so many of us in the not for profit world were throwing around the end of 2008, when fear of the impact of a recession first hit as we were planning our 2009 budgets. We all knew that biggest hit would be in major gifts, and had learned from previous economic downturns that some charities would possibly not even feel the effects on other donation streams.

Fast forward to 2009, a third of the way through the year. Charities I’ve spoken to are reporting a decrease in direct mail results from that of the previous year, and for those of us doing telemarketing, those results are down as well. Specifically, the lapsed donor segments seem to be particularly hard hit.

Do we give up on them, to save the cost of mailing or calling? I'd say not yet. Or do we invest a bit more and truly integrate telephone, e-mail and direct mail strategies?

So, e-mail/call, mail/e-mail, call/e-mail, mail/call, call/mail?

Previous tests have found that sending lapsed donors an e-mail (with a story, photos, no ask) prior to a telephone call will help lift results of that telephone call (interestingly the results were not the same for active donors). We also find that sending an e-mail shortly after a direct mail appeal helps drive in some more donations, as well as an e-mail to those who just pledged to a telemarketing campaign. These are easy and affordable solutions for those charities with the ability to send e-mail on their own, or with a service provider who will do it for them as part of their overall fee structure.

But the reality is that most of our donors don't have an e-mail address - so what do we do about those donors for whom we currently have no e-mail address?

We're thinking of sending a postcard, digitally produced so that the image on the face of it reflects what their previous gift helped support (i.e. a country, a program, a sector). But at a time of cost cutting and revenue concerns, this unaccounted-for expense (a cost of about 85 cents a postcard in the mail), untested activity to an ever growing lapsed file may not be possible. So perhaps we'll test to a small segment only at this time. The obvious timing for this would be before a scheduled phone call or before a monthly donor is about to lapse.

Likewise, a call to more recently lapsed mail donors will serve to reactivate some of them but, since this is an unbudgeted activity this year, a solution we may not be able to afford. Or perhaps we can't afford to not try it when, frankly, if they're not reminded to support us again, they may support another charity that does call them.

There are a lot of uncertainties for charities today but I, for one, will continue to remain cautiously optimistic....

Authored by Dusanka Pavlica, Director, Resource Development, Canadian Feed The Children

Going Once, Going Twice, Gone!

In these difficult economic times, all charities are trying to find new ways to raise funds. A client of ours, The Canadian Hearing Society is one of those groups. They have just launched their third eBay auction. This initiative is an innovative way for the Society to solicit support in addition to their traditional direct mail, major gift asks and events. Wendy Quick, The Manager of Individual Giving for the Society says. “Our key objective was to find a new way to fundraise that would hopefully also attract younger support. The traditional ways to raise money are our bread and butter, but they have not allowed us to break into the potential younger supporters.”

The Society finds the items and then offers them up on eBay for a specified period of time. This is also a unique potential opportunity for nonprofits as all the items are donated and the charity gets to keep 100% of the dollars raised. You can check out their auction which is live now for the entire month of May. Log-on to their website www.chs.ca and follow the links…

Authored by Angie Mackie, Partner, The Donnée Group

What’s a Fundraiser to do During Tough Economic Times?

You can’t open a newspaper or magazine or turn on the radio or the television without being bombarded with something about the economy. The downturn will be around for a while, and we need to deal with it. So what is a fundraiser to do?

Some say you should ‘stay the course’; while others say ‘you need to cut back’. Some charities are mandated to cut back, but how do we do this and stay competitive in a highly competitive marketplace? There are good, solid charitable organizations trying to raise funds for so many worthy causes. We are all trying to get the first gift or the next gift from a shrinking wallet.

How does a fundraiser help to keep costs down and donations up? Here are three ideas I’ve heard recently from fundraising friends:

Reduce the number of mailings

Well, this will save money because you didn’t spend it. But consider the revenue you won’t get if you drop a mailing. It’s better to cut out weaker performing segments and reduce the volume in a campaign, than drop one entirely (unless it’s really not working – then your next steps are obvious).

Also consider that if you aren’t asking for a donation, someone else is, and guess who will get the donation? The one who asked.

Don’t use premiums during a recession

They yield the strongest results when acquiring new donors. Perhaps we reduce the amount of premiums we send to existing donors, but keep in mind that if you acquired the donor with a premium, you probably need one to get the next gift. So, think about these two points before you drop premiums from your strategy.

Don’t bother mailing your long lapsed donors

If they donated a few years ago, then remind them of the time they gave, and why we still need them!

And, don’t be afraid to tell the donor you need them now more than ever! Without our supporters, we can’t do the great work we do. So I think you should “stay the course”, but look at your program, and “cut back” where it makes the most economic sense.

What have you heard lately?

Head and Shoulders Knees and Toes

I recently attended a special event hosted by The ALS Society of Canada and had the honour of viewing a new video launched by the society ‘Head and Shoulders Knees and Toes’. The campaign is intended to raise awareness about Amyotrophic Lateral Sclerosis (ALS) and the ALS Society’s efforts to fund research towards a cure for the disease. It has done that and more.

Created by Lowe Roche on a pro bono basis, the 60-second television public service announcement, “Head and Shoulders” is composed of a montage of clips, each one focusing on a man with ALS in emotionally charged moments as his disease advances to different parts of his body. Set to the children’s song, “Head and Shoulders, Knees and Toes”, as the spot progresses, and his conditions worsen, the cheerful singing becomes a sad whisper.

“We chose to create a spot that was musically and emotionally driven to raise awareness for ALS,” said Christina Yu, Vice President, Creative Director, Lowe Roche. “This song is one which everybody can relate to and we wanted to use it unconventionally to illustrate how this disease eventually affects every body part.”

“Lowe Roche has created a very powerful commercial that we think will help the public better understand what ALS is all about,” said Bobbi Greenberg, Director of Communications, ALS Society of Canada. “We’re very appreciative of their dedication to this project and of those who donated their time and services during the production process. We’re certain that their efforts will help us raise the funds we desperately need to proceed with research initiatives that will ultimately help us find effective therapies and a cure for this devastating disease.”

ALS, also known as Lou Gehrig’s disease, is a rapidly progressive and fatal neuromuscular disease that causes the degeneration of nerve cells in the brain and spinal cord. As the nerve cells die, people with ALS lose control of their muscles, which makes breathing, eating and even smiling almost impossible. Eighty per cent of those diagnosed will die within two to five years. There is no known cure or effective treatment of ALS.

Go directly to the ALS Society’s website to view the video.

Tough Economic Times Hit the United Way…

The United Way of Toronto announced last week they have two weeks left in their campaign but are $4 million short of their campaign goal. It’s the kind of announcement many in the non-profit sector have been concerned about.

In an article published in the Toronto Star, UW President & CEO Frances Lankin is quoted as saying “this is one of the toughest campaigns that we have ever experienced.”

Is this a sign of more to come?
Is the United Way so unique because of their reliance on corporate support?
How are your campaigns performing?

Using Social Networking Tools in the Non Profit World

More and more nonprofits are experimenting with social-networking tools such as Twitter and Facebook. In some cases, these tools are helping them raise funds. In most cases, it seems awareness and integration with other fundraising activities are the main goals. These tools do offer organizations an opportunity to build connections with their supporters and donors.

When you think of the Salvation Army, you may think of a very traditional organization likely more focused on established offline communication methods like direct mail. While they are still very focused in the mail, they are also ahead of the game in the online world dedicating resources to this pursuit. You’ll find the Salvation Army using Twitter and Facebook on a daily basis. Their Facebook page is active with links about donating, volunteering and connecting with the organization and is a fantastic example of how to take control of these tools and their content. Here’s the kind of information they provide on the page:

The Salvation Army in Canada
Global
Basic Info
Type: Organizations - Non-Profit Organizations

Description: The international Salvation Army gives hope and support to vulnerable people in 111 countries around the world, offering service in 175 different languages. As one of the largest social service agencies in the world, and through its role in the global community, The Salvation Army seeks to alleviate poverty, suffering and oppression by helping people build secure, sustainable and productive communities.
Contact Info

Website: http://SalvationArmy.ca

Recent News
Become a Salvation Army Fan!

http://www.new.facebook.com/home.php#/pages/The-Salvation-Army-in-Canada

Cost of Quality

We all know it is more cost effective to keep an existing customer than find a new one. This is especially true in today’s economic times where customer acquisition is becoming harder and harder.

Which begs the question; why is quality of call not included in the ‘success matrix’ of the telemarketing score card at most organizations?

While some companies look at quality of an inbound call, it is often underweighted, behind the almighty dollar. How long the call takes to resolve is always number 1. Short calls may come at a cost much higher than the price of the call; many of your customers will feel like they are being cut off, that their concerns aren’t being heard – that they are just another number. If you’re lucky, they will call back to get a sense of satisfaction from another agent. If you aren’t so lucky, they won’t call back - they will just find someplace else to spend their money. A customer’s satisfaction with the way a call is resolved should be the top priority. Some companies say this is addressed through 1st call resolution rates, my question is “how do you gauge those people who don’t call in a second time”, if they simply choose to find another company to work with?

If your cost to acquire a new customer is 3 or 4 times more (and sometimes higher) than to maintain your existing customer, shouldn’t the level of quality during the call be a priority?

Outbound telemarketing numbers can be much more staggering. I was recently part of an analysis that looked at the long term value of customers that were acquired. Due to the length of the initial calls, Organization A’s costs were $250,000 for the campaign; Organization B’s costs were $350,000. Initial response rates were almost identical. On the surface, everyone would say it is an easy decision - go with Organization A every time, as we are getting the same response for 60% of the cost. Responses were generating regular purchases every month on an ongoing basis. But once we started to look at the data and follow the trends, those that were acquired by Organization A were dropping off by as much as 24% per year, while those by Organization B were dropping off at 5% per year.

Customers acquired by Organization B felt valued during their call; the length of time spent with them on the phone was more than by Organization A – they showed an affinity toward the organization. As these customers were tracked over a number of years, the acquisitions of Organization A contributed just over $4,000,000. Acquisitions of Organization B contributed over $5,700,000. What looked like an easy decision based on initial costs, has ended up costing the company $1,600,000 over 5 years.

Maybe the decision wasn’t so easy after all.

A Call to Action

My great thanks to Pat for bringing this video to my attention. I’ld like to share it with you as it's an amazing tour-de-force crafted to mobilize the Obama vote on election day. I think marketers can learn much from it.
Have a look...

Is it any wonder the 2008 US presidential campaign will be studied for years?

In case you weren't counting, there were 12 spots totaling 47 seconds out of this 97 second video devoted to delivering a 'personalized' message based on the input of three pieces of information, my first/last name and my email address. For anyone still sitting on the fence about the power of social media...

It showcases a highly sophisticated level of on-the-fly personalization that just a few years ago we were touting as major capability enhancements in the lettershop and email trades. I wonder how many months before we have the capability to stitch together a complete narrative (opening #1, Paragraph #3, offer #5, call to action #2, closing #8) tuned to what the CRM profiles or BT algorithms indicate our customers are most receptive to seeing/hearing - the birth of video messaging beyond the mass messaging video banner ads. But that's a discussion for another day.

What REALLY excites me about this video is its powerful “Your choice makes a difference" message.

That call to action got me to thinking of what success might be had if we applied a similar personal video tactic directed to brand purchases and major retail events. For example:

Christmas: Because you shopped at HBC(Sears), the cherished Christmas morning family moment will be perfect.
Valentine’s Day: Women around the world rally in protest against the 'inadequacy', some even call it a mockery of the Valentine's day gift from their significant other.
RRSP season: This is what your retirement life may look like if you plan today.

Obviously I'm not a copy writer - but I hope you get the point I’m trying to make. We are so busy promoting the price point and the "buy now" call to action, that we forget to communicate the impact of our customer’s decision to buy or not buy the brand in concrete "Visualize the End Result or Benefit"
(VERB) ways.

Taking this up a couple of notches, we can infuse an even stronger call to action by linking brand purchase events with trickle down community benefits, in what I call “Share of Life” marketing. Perhaps it’s a perception bias, but I truly think with the interconnectedness brought about by social media and the economic fallout from “Wall Street” onto “Main Street” - that consumers are looking for more community leadership from our brands.

Whichever path you choose, I hope you appreciate the power this personalized video/call to action approach can have in adding relevancy to brand purchase events ....and if you decide against it at least you've gained a peek into the near future.

Cheers
Miro

The One Dollar Give

I recently attended a CMA conference, for Not-for-Profit organizations, where a term used clearly resonated with me: the One Dollar Give.

Many social networking sites attract an overwhelming young demographic and getting their attention as donors for life is critical. The One Dollar Give may be just the ticket.

Organisations venturing into the online space were encouraged to consider the One Dollar Give because it's attainable, achievable, and doesn't alienate very young donors who have limited funds. It's not always about money though, or the lack of. The One Dollar Give allows a donor to give without too much thought to a variety of causes with immediate results (ie: a dollar today provides a carton of milk for three kids). This led me to think, that in this age of integration and convergence (the buzz-word du jour), it is important to target the right audience through the most appropriate platform.

The "quick and dirty" approach works for teenagers because it requires little commitment and the results are tangible - well, as tangible as the Internet can be. I'm not yet convinced that integrating wholly online for charitable organizations will be the instant panacea many think it will be but at relatively little cost, it's certainly worth a shot.

Keeping it All in the Family…

More and more nonprofits have come to the realization that if you can’t count on your family who can you count on? Through social networking, electronic or otherwise, many charities are finding new ways to connect with core audiences.

Parkinson Society Canada’s Family Fund is a fantastic example of a nonprofit that is both getting into the “social networking” game and also building a group of leadership supporters drawn from their family & friends. The brainchild of a long-time Parkinson’s volunteer, the “Parkinson’s Society Canada Family Fund’ has been created to provide Family members of those affected by Parkinson’s a way to pool their dollars to help support the Society’s work towards finding a cure.

Together members' dollars will help build a pooled fund of $3 Million. Families are asked to contribute to the fund to collectively help it grow.

The program is being introduced to “family” members using a multi-faceted, integrated approach that includes: highly personalized mail, phone, online and face-to-face visits.

Through the mail, a personalized invitation package will be sent to prospective members. The Manager, Major & Planned Giving will then be following up with personal calls.

Feedback from a recent donor whose siblings pooled their funds to donate several thousand dollars to the fund, says it all,

“This was the best way for my sister, brother and I to really make a difference for our dad who has Parkinson’s.”

Isn’t that what our philanthropic work is all about?

A Win Win For Both Parties

Thanks to changes at Revenue Canada over the past few years, gifts of stock have become more attractive donation vehicles. Charities receive a donation and stock owners reduce the amount of tax they need to pay. But, while there are donors searching to give via stock, not all nonprofits are taking full advantage of ths improved opportunity.

At a minimum, a number of nonprofits have created small informational insert pieces included in donor receipt packages. Donors are asked to consider a gift of stock. Most also include details on how to start the process (you can find simple charts on the website).

How else are groups attracting stock?

Some have created and branded their very own 'gift of stock' website. The William Osler Health Centre Foundation is one example. You can find their site at: 'www.givestock.ca'. Potential donors can identify with the donor testimonial that is front and centre on the home page of this website - an address the foundation has secured as their own. Potential donors googling this option have a very strong chance of seeing their page. The home page also briefly but concisely explains the process of stock giving via a welcome message from the Foundation's CEO.

Why Charles and Lenore Armstrong Donate Securities

Charles and Lenore Armstrong know a winner when they see it. The long-time Brampton residents have seen great success in the breeding and racing of Standardbred horses, ranking among the leading breeders in North America since 1965 so when Brampton Civic Hospital became a reality, Charles and Lenore recognized the importance to Brampton and the surrounding areas.“We are excited Brampton and the surrounding community will soon have this tremendous asset and we want help make sure William Osler has all the resources to make it the best hospital around,” says Charles.

The Armstrongs met with the Foundation and discussed several giving options, including gifts of securities. In the end, a gift of stock appealed most to them. "We chose to donate stock because it made the best sense for us. The Foudantion met with us, discussed the advantages and processed everything with our financial advisor."

Whether nonprofits go as far as creating a unique website or an insert, what's most important is for groups to let prospective stock donors know they should be considered. Not all nonprofits have the resources to set-up a website similar to the one set-up by the William Osler Foundation, but a simple info checkbox also gets the message across and may attract a new supporter looking for a way to both decrease their tax burden and give back.

Please, please can you give us a gift before the end of the year...

As the end of 2007 approached, the number of email requests flooded all of our inboxes. Most had a very similar strategy - encourage recipients to give an additional gift before the end of the year.

They all accomplished the task of getting an ask into the inbox of their email supporters. But for the most part, they did not contain compelling reasons to give to their solicitation over all of the others. With so many competing asks being received, an opportunity to distinguish themselves from the rest of the pack was missed by most of these groups.

I am happy to say that in my inbox, a few did stand out. One example was an erequest I received from Save The Children USA.

Their esolicitation included an interesting matching gift opportunity.

....Special opportunity to have your donation DOUBLED by Sam Simon, co-creator of The Simpsons ends tonight at midnight!

Between now and midnight (EST) tonight, December 31, Sam will match every donation that supports our mission made through our website, up to a total match of $1,000,000....

Using a well known personality helped to add confidence and excitement to the ask. In addition, offering a compelling matching gift opportunity with a timeline to match the end of year deadline gave potential donors a compelling reason to choose this ask over a multitude of esolicitations sent at the same time.

The twist on the 'end of the year' theme provided a winning combination for a very worthy cause.

Caring About the Environment…How Chic!

I had the honour of attending the First Annual Fashion Auction Eco-Couture Gala & Benefit the other week.

Billed as Toronto’s Greenest Fashion event, guests were invited to get “green” with envy by strutting the grass carpet. Potential ticket purchasers were invited to see haute–couture pieces made from soy, hemp, bamboo and organic cotton.

And the marketing didn’t disappoint… Everything from the lighting, organic food & drink, right down to the Green Limousine was eco-friendly to ensure the lightest of eco foot prints were made.

Even better, this was a fundraiser with the proceeds going to support one of Canada’s leading environmental organizations: Environmental Defence (www.environmentaldefence.ca). This group is responsible for many eco wins since their formation in 1984 including – greater protection of our greenbelt, creation of the Oak Ridges Moraine as well as the protection of several endangered species in Canada.

The organizers thought of many creative ways for attendees to part with their money. As guests entered the event, they were encouraged to purchase a “swatch” of eco material used for the clothes to tie on a tree. There was also a fantastic silent auction featuring eco friendly products, a ‘green’ scooter for raffle and the piece de resistance?...five beautiful outfits available for live auction following the runway portion of the show.

In the fundraising world, it seems everyone is asking the same question. “How do we get more young people engaged and giving to our causes?” As I looked around the room, this group of young hipsters represented the very same group everyone is yearning for.

KUDOS to the organizers!

Oh look – more labels and cards…

As I retrieved my mail today to find 8 separate premium mailings – all lovely collections of personalized labels and note cards, I asked myself, “how many pretty flower labels do I really need?” Then I remembered the key findings of a recent paper on this topic presented at the last Non-Profit Direct Marketing meeting in Washington DC.

The findings were that mailings with labels and cards are on the increase and so is the response to them. Judging from the contents of my mailbox, my colleagues have seen and/or experienced similar findings and are responding accordingly.

But have we prepared ourselves if the market shifts? What happens if the day arrives when their effectiveness (labels/cards,etc) begins to wane?

In the event that day is on the horizon, I thought I would share some recent successful alternatives to this popular creative approach. At the same conference mentioned earlier, many different charities from across different sectors presented countless examples of test against premium packages. In most cases, the label and card return on investment won hands down. But there have been a few notable exceptions.

One such example was an acquisition package sent on behalf of an international development agency in the US. They created a MAP package in 2006 (a WALL map insert illustrated descriptions of their work around the world) that beat an existing labels package (that had been the organization’s control prospect package for more than a decade). The MAP package has become the new control in 2007.

In Canada, a national health charity has managed to introduce a compelling envelope with ‘message based’ contents and no premium that has outperformed a label test package across all metrics including: gross revenue, average gift, return on investment and net revenue. To date, this control has managed to remain in place for 4 years.

Both of these examples represent an organization’s ability to create a mission-based appeal – one that introduces a donor to their specific cause and need. This is much different from the labels and cards which are for the most part, generic and not dissimilar between different groups. I was reminded of this recently during a visit with a major supporter (and frequent label responder) of many Canadian charities. I asked her how she decided which to respond to amongst all the packages she received each week. She told me her decision was simple – “whoever has the prettiest labels”. I couldn’t help but think relationship opportunities were being missed with this individual.

With the two non-premium test examples, the organization’s have not only been able to “sell their cause”. In addition, in both cases, packages were produced at a much lower package cost. The organization’s were able to both reduce cost per package and increase return on investment.

While it is clear, premiums are an essential mix of nonprofit marketing programs, hopefully these examples will encourage more charities to “think outside of the label and card box” and keep trying something new.

Do Not Call Registry – Are We Exempt or Not?

There has been much confusion lately as to whether charities are or are not exempt to the list that will be created.

The answer is yes.

You can review a copy of the news release issued by the CRTC.

While there are still question marks as to how individuals who are on the list will react to charities and other exempted groups calling them, there is a legal OK to do so.

I would be interested to hear how your call program might be planning to deal with possible public reactions when the list is in operation.

Have you considered revisions to scripts? Exempting Do Not Call List registrants anyway? Something else?