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Eight Advantages of Fundraising Letters Over Other Methods
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By Alan Sharpe
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1. Personal
Fundraising letters are aboutas personal as you can get with a donor without meeting face toface or talking on the phone. Unlike special events, fundraisingletters let you have a one-on-one "meeting" with each donor.
2. Can be passed along
Unlike personalvisits, phone calls and special events, fundraising letters canreproduce themselves. Your appeal on paper has the opportunityto reach more than one donor, potentially doubling or triplingyour efforts. Member-Get-A-Member letters are a perfect exampleof this dynamic at work.
3. Can be tested
Because you can measureyour direct mail results, you can also test your mailings. Testone package against another, one list against another, one askagainst another, and you'll discover what works and what fails.That way you'll spend your dollars where they are most effective(without relying on guess work or hunches).
4. Measurable ROI
Direct mail is one ofthe best mediums for measuring the return on your investment.Simply code your reply cards, and count how many return to youin the mail with a gift. With fundraising letters, you can knowimmediately--and exactly--how effective your mailing has been.Direct mail numbers never lie. Some simple calculations willtell you the following:
- Your response count (number of donors who responded)
- Your response rate (percentage of donors whoresponded)
- Average gift
- Gross income (beforeexpenses are deducted)
- Net income (what's left afterexpenses are deducted)
- Cost to raise a dollar
5. Quick
Unlike capital campaigns, majorgift campaigns and special events, fundraising letter campaignscan be conceived, planned and launched within weeks instead ofmonths. Results (donations) are just as quick, usually arrivingwithin days of your mailing.
6. Build your base of support
Themajority of non-profit organizations receive 80 percent of theirincome from individuals. Since the average gift sent through themail by an individual is $35, you need a broad base ofindividual donor support for your existence. You will want toattract gifts from foundations, businesses and government,certainly, but for long-term survival you need to build a largefollowing of individual supporters who send you small gifts yearafter year. The most cost-effective way to build and sustainthis base of support is a comprehensive, well-planned,well-executed, annual fundraising letter program.
7. Strengthen relationships
Capitalcampaigns and banquets are excellent ways to raise awareness andfunds, but they are costly and time-consuming. You cannot runone every month. And you cannot rely on them to strengthen therelationships you have with your supporters. Fundraising lettersand donor communications (such as newsletters), on the otherhand, are cost-effective ways to build credibility, increasetrust, inform donors and build relationships with your donorsover time.
8. Reach donors anytime
For yourtelemarketing campaign to be effective, your donors have to benear their phone. For your annual golf tournament to beprofitable, your donors have to meet you at the green. With amajor gift campaign, your calendar and your donor's calendarmust have the same day free or you will never meet. Withfundraising letters, all you need to know is that your donorstill lives at the address you have in your database. You don'thave to mail at the right time of day to catch them at home, orinvite donors to meet you at their mailbox. All you need to dois mail your appeal package to a valid address and then let thedonor read (and respond to) your letter at their convenience.
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