Times are tough, even for altruis-tic causes. Although Americansgave $212 billion to charitable

causes in 2001, according to theAmerican Association of FundraisingCouncil (AAFRC), it is actually a 2.3%decrease from the previous year (whenadjusted for inflation). Nonprofitorganizations must therefore becomemore sophisticated and strategic withtheir fundraising. One proven solution:direct mail campaigns targeted tomajor and planned gift donors.

Consistent communicationAccording to Hank Zachry, president ofCaswell, Zachry, Grizzard—a Dallasplanned-giving consulting firm repre-senting many leading U.S. nonprofitorganizations—a successful direct mailand branding effort is based on consis-tent communication.

“Successful direct mail campaigns arethose that are continually mailed topeople who have demonstrated a commitment to an organization over a long period of time,” Zachry says.Continuous, consistent direct mailefforts ingrain an organization’s message into the minds of potentialdonors and build a foundation for theirfuture philanthropy.

However, “most organizations losemoney by changing every piece,” com-ments Christine Hershey, founder ofSanta Monica, California-based CauseCommunications, a consulting firm thathelps nonprofits succeed by using thesame marketing tools Fortune 500companies use to build market share.“Organizations need a well-plannedcampaign with consistent messaging, a repeated call to action and relatedvisuals to build brand equity andimprove effectiveness.”

Hershey further warns, “The biggestmistake nonprofits make is to havedirect mail efforts only when funds are

available, without regard to strategy.As a result, the recipient doesn’t have achance to get familiar with the organi-zation, their cause and their issues.Organizations really need to commit tofrequency and volume.”

Prime prospectsA successful direct mail campaignbegins with prequalified prospects.For planned and major efforts, Zachryencourages organizations to pursuesupporters of at least five years. “Adonor acquired over the last two orthree years is probably less commit-ted,” Zachry notes.

An ideal planned or major gift donoris in their mid-80s and is someone who can fund a gift with appreciatedassets (preferably stocks that haveyielded significant returns, despitemarket fluctuations).

Organizations should focus theirdirect mail efforts on donors with ademonstrated and significant financialcommitment to the cause. Donors whogive small amounts on a less frequentbasis typically abstain from giving dur-ing difficult economic times. However,major and planned givers are different.“They are the people that continue togive, regardless of the circumstances,”Zachry adds.

Competitive considerationsThe average charitably minded person gives to 12 related organiza-tions a year.

“The closer the emotional bond tothe organization, the more likely the

size and frequency of giving willincrease,” Zachry says.

As a result, disease-oriented and religious organizations tend to havemore dedicated and consistent donors.Conversely, due to the event-orientednature of their mission, groups like theRed Cross and Salvation Army tend tohave a less consistent donor base,which means their direct mail effortsneed to be more focused, targeted and effective.

“Nonprofits with a consistent, brand-ed look and message that reach donorson a regular basis have the best chanceof defining themselves, proving theirrelevance and being remembered,”Hershey adds.

Real resultsIn December 2002, a national charityfor which Zachry’s firm provides serv-ices notified donors about an impend-ing January 2003 charitable gift annuityrate reduction (approximately 0.5%across the board).

“We’ve raised $80,000,” Zachry says,“And the rates aren’t going down thatmuch. But, look at CDs. Eighteenmonths ago, CDs were paying 6%, nowthey’re paying a point and a half.”

Another client of Zachry’s initiated itsfirst planned-giving direct mail cam-paign in the fall of 2001 and six monthslater had created 15 new gift annuities,grossed nearly half a million dollarsand increased the visibility of theorganization to 40,000 people.

Future focusDirect mail is a major source of gifts and a key way to identify majorand planned donors. If crafted cre-atively, targeted correctly and followedup quickly, direct mail is a powerfultool for any nonprofit organizationlooking for a safe harbor in these turbulent times. ■

FEB. 17, 2003 / A PUBLICATION OF THE AMERICAN MARKETING ASSOCIATION WWW.MARKETINGPOWER.COM

Targeted campaigns bring in repeat donations

“The biggest mistake nonprofits make is to have

direct mail efforts only whenfunds are available, without

regards to strategy.”

BY MATTHEW A. GILBERT