5 things to know about direct response fundraising

That's me in the middle at this month's DER luncheon, flanked by Judy Frankel of Project Open Hand and Nicci Noble of the Salvation Army, two amazingly talented development professionals. I came away with too many notes to reprint here, but here are just a few of Judy's top tips.

1. Not all causes translate equally into direct response appeals, which can be extremely expensive. If your mission can’t easily be translated into a powerful human story or if your target donor is not reachable via lists, you might find other ways to build your annual fund. A well-structured Board networking effort or strategically run house party campaign may have greater payoff with less effort.
2. The beauty of a postal appeal is that the mail package is a trusted and respectful first contact; it provides enough “real estate” to tell your story in a very personal way; and it continues to be the most cost-effective way to generate new donors, according to nationwide studies.
3. If you do determine you’re a strong candidate for direct response appeals, plan on making a long-term investment. Understand that you’re not just raising money for annual operations: you are also building a donor database, which should be viewed as a big relationship-building machine, and will eventually be one of your organization’s most valuable assets. This may be a 3-5 year investment before real returns are realized.
4. In acquisition appeals, getting the list right has the most impact on the mailing’s success or failure, so list testing is a very high priority. A distant second after list is package in its collective components.
5. Direct response fundraising is an excellent way to move people up the giving pyramid. Contact your donors frequently year-round -- unless they request fewer communications -- to thank them for their support, ask them for money, and keep them familiarized with your work, especially with the people that you serve. This prompts people to increase their giving levels, because you are building relationships for the long-term through respectful and continuous communication. In time you will have a long and detailed giving history, making prospecting for major donors fairly straightforward.