Direct Mail

I’m beginning to think I’ve been placed on the equivalent of a No Fly List in one nonprofit’s direct-marketing database. Here’s what happened …

On Feb. 25, FundRaising Success hosted the webinar, “Integrated Direct Mail 101: An hour with Roger Craver.” Joining Roger, a fundraising guru and founder of Craver, Mathews, Smith & Co., for this lively conversation was his colleague Ryann Miller, managing director at the newly formed consultancy, DonorTrends.

Responding to the financial crisis, American companies sharply reduced their spending on direct-mail marketing last year, according to the Winterberry Group, a marketing consultancy. Winterberry said this was the first such decline in more than 60 years of record-keeping. The company arrived at the figures by surveying 305 companies in the direct-mail industry.

With the tightening of budgets, some large charities are scaling back on direct mail efforts, especially large scale donor acquisition mailings. However, the authors of a new book contend that it's important to keep direct mail as a fundraising strategy - just refine it so that it's more effective.

Rising postage rates and fewer solicitations from banks and credit-card companies have conspired to drive down direct mail in 2008.

2009?  Recession?  Bah.  Don’t give me any of your whining. I have aches and pains, too.  Oh, my back hurts … oh, I have a bum knee … oh, I just dislocated my shoulder … hey, my appendix just burst …

You don’t hear me complaining do you?  

My advice: Tough it out, baby — and get back in the driver’s seat. I don’t think the plan really was for the meek to inherit the earth — at least not when it comes to direct marketing. 

Anemic acquisition results. Sinking response rates. Shrinking average gifts. Serious budget shortfalls.

Aside from looming postal issues, the future of direct mail looks increasingly bright because of an inevitable massive expansion of your prime audience. It is well-known that among the various fundraising channels, direct mail appeals mostly to the oldest demographic. Your files typically have a median donor age of mid-70s.

We’ve dedicated four issues in 2009 to our Fundraising 101 series, which we hope will offer a solid look at some of the more fundamental issues involved in nonprofit fundraising. We start this month with a look at direct mail. In April, we tackle acquisition; in June, it’s special efforts, including monthly giving, lapsed donors, capital campaigns and planned giving; and, finally, we look at
e-philanthropy in October.

Whether you’ll be reading as a fundraising newbie looking for some entry-level guidance or as a seasoned professional looking for a refresher course to smooth the waters in this tough economic climate, we hope you’ll find these special reports immensely helpful. 

All donors are not created equal. As in the for-profit world, the most financially valuable ones are the ones who undertake long-term relationships with an organization — those who embrace a nonprofit’s mission and make donations again and again. In a perfect world, fundraisers would be able to discern these individuals from the 70 percent of newly acquired donors whose first gifts are also their last, and invest in them accordingly.