List Management

When it comes to the question of which list strategies work to build and develop a base of annual giving donors, the obvious answer is to look for more names that are similar to your regular annual donors. Common industry wisdom says to analyze what your best donors are like and then go find more like them.

While that statement certainly is true, the problem with a simplistic approach is that it neglects important discussions of gift size, lifetime value, future giving potential and other key ingredients of a successful annual-giving program.

Acquisition means bringing in new donors, as many as possible. But with donor-list universes shrinking and the cost of acquisition rising, fundraisers are left in quite a quandary.

A chronic non-responder (CNR) is an individual who has been mailed a succession of times and has not gifted your organization. Mailers feel the effects of these non-responders with respect to the expense of postage, handling, list rental and materials. So how long should you continue to mail to these potential donors? Should you suppress these names? Is it worth the special handling? And just how do you figure it all out?

Anyone who works in direct mail donor development can tell you that it’s a challenge to find ways to bring in new donors while operating under an ever-tightening budget. With so many organizations mailing to the same lists of donors, fewer new lists being brought to the market and expenses always on the rise, creativity and willingness to take calculated risks will help you reach your new donor goals.

Many organizations that have poorly performing files are not adequately investing in new lists, resulting in meager prospect-response rates and low new-donor retention rates, writes Margaret Guellich, CFRE, senior director of development for the American Life League, in her new booklet, “Reviving Your Donor File: Prescription for a Healthy Direct Marketing Plan.” The booklet recently was released as the fourth in the Association of Fundraising Professionals’ Ready Reference Series.

Renting lists for your mailing campaigns is a necessary — but inherently risky — expense. You’re spending money for an uncertain outcome because you can’t gauge exactly how names on a given list will respond at any particular moment.

So your priority in any list-rental situation should be to maximize return on investment. Here are five strategies for getting the most value out of your list-rental dollars:

Assume that you have just stepped into the marketing job for an established nonprofit organization. Your predecessor has disappeared in the midst of planning a 100,000-name prospecting mailing, leaving you with a clever new package, ready to test against an established control; an updated housefile; and a yellow sticky note on your computer screen that says: “Set to go. Just have to order the lists. Call our broker.” Where do you begin?

You can have the most deserving cause and a highly compelling appeal, but your direct mail is going to be wasted if it’s sent to the wrong lists. That’s why, for any direct mail fundraising campaign, the list is the most important element within the nonprofit organization’s control — that, according to Mal Warwick, chairman of Mal Warwick & Associates Inc., Berkeley, CA.