e-mail fundraising for nonprofit organizations: a direct marketing powerhouse

8/14/2019 E-MAIL FUNDRAISING FOR NONPROFIT ORGANIZATIONS: A DIRECT MARKETING POWERHOUSE

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E-MAIL FUNDRAISING FOR NONPROFIT ORGANIZATIONS: A DIRECT

MARKETING POWERHOUSE

A WHITE PAPER BY

EUGENE SEFANOV

NOVEMBER 2006


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CONTENTS

LIST OF ILLUSTRATIONS vi

LIST OF CASE STUDIES vii

PREFACE viii

Chapter Page

1. WHAT IS E-MAIL FUNDRAISING FOR NONPROFITS? 1

Economical

Instantaneous

Relevant and Intimate

Allows for Segmenting and Testing

Provides Quick Results

Results Are Easy to Analyze

2. DEVELOPING AN E-MAIL ADDRESS DATABASE 13

Obtaining E-mail Addresses Offline

Treat Every Opportunity Like Gold

Promoting the Benefits of E-mail Addresses

Obtaining E-mail Addresses Online

Promoting the Website

Online Registration

Viral Marketing Works Wonders

E-mail Address Appending

3. CLEANING AND MAINTAING E-MAIL ADDRESS LISTS 25


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Utilizing an E-Mail Delivery System to TrackBounces

Updating Donor Information Online

Updating Donor Information Offline

4. GATHERING DEMOGRAPHIC AND PSYCHOGRAPHIC 27INFORMATION

Gathering Via Online Surveys

Gathering Via Click-Through Data

Combining Online and Offline Data

5. THE IMPORTANCE OF PERMISSION-BASED E-MAIL 30MARKETING

Getting Permission

The Opt-In Technique

The Opt-Out Technique

Authenticating Permission

The Confirmed Opt-In Technique

The Double Opt-In Technique

Unsubscribing

Creating a Privacy Policy

6. BYPASSING THE SPAM BOX 38

Keeping the Message Relevant

Being Aware of Filters

Avoiding the Spam Label

Staying Fresh

Getting Exempt from Filters


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7. DEVELOPING E-MAIL CAMPAIGN GOALS 42

8. IMPLEMENTING SUCCESSFUL E-MAIL CAMPAIGNS 52

Integrating Direct Marketing Campaigns

E-mailing Frequency

Know When Enough is Enough

The Best Time and Day to E-mail

9. SEGMENTING E-MAIL LISTS AND TARGETING THE 57CONSTITUENT

10. DEVELOPING EFFECTIVE E-MAIL MESSAGES 62

Subject: The First Thing That Gets Read

E-mail Graphics and Layout

Above the Fold

E-mail Message Length

Encourage Recipients to the Website

Personalize the E-mail Message

Dear Sam

A Personal Touch

11. TESTING E-MAIL MESSAGES BEFORE DELIVERY 69

Testing Within the Organization

Different E-mail Clients

Testing Links

Testing Outside the Organization

Examining Initial Results

Checking the Handling Process


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12. TESTING AND ANALYZING RESULTS 73

13. THE FUTURE OF E-MAIL FUNDRAISING 81

14. CONCLUSION 88

Appendix

1. Collection of e-mail fundraising campaigns 94

2. Industry website addresses 115

REFERENCE LIST 117


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vi

ILLUSTRATIONS

Figure Page

Figure 1. American Civil Liberties Union: Spy Campaign 8

Figure 2. Humane Society of the United States: Stop 10Slaughter of Horses

Figure 3. Humane Society of the United States: Petition 12for Poultry

Figure 4. American Jewish World Service: Tell-a-Friend 21

Figure 5. Texas Watchs Anniversary Card Campaign 23

Figure 6. The V Foundations Privacy Policy 37

Figure 7. U.S. Fund for UNICEF 45

Figure 8. United Methodist Committee On Relief (UMCOR) 47

Figure 9. Catholic Relief Services (CRS) 49

Figure 10. Doctors Without Borders Online Donation Form 51

Figure 11. ASPCA 2003 Holiday Campaign 60

Figure 12. Screenshot of Heifers "Moo-vie 83

Figure 13. Screenshot of the End Of the Moo-vie 83

Figure 14. Screenshot of Heifers Gift Catalog 84

Figure 15. BBBSAs Holiday Photo Card Campaign 87


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CASE STUDIES

Page

Case 1. U.S. Fund for UNICEF: Promise to Children 7Pledge Partners

Case 2. American Civil Liberties Union: Spy Campaign 7

Case 3. Humane Society of the United States: Stop 9Slaughter of Horses

Case 4. Humane Society of the United States: Petition 11for Poultry

Case 5. Texas Watchs Anniversary Card Campaign 22

Case 6. U.S. Fund for UNICEF 44

Case 7. United Methodist Committee On Relief (UMCOR) 45

Case 8. Catholic Relief Services (CRS) 48

Case 9. Doctors Without Borders Online Donation Form 50

Case 10. ASPCA 2003 Holiday Campaign 59

Case 11. Heifer International 82

Case 12. Big Brothers Big Sisters of America: An 85Ongoing Partnership


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PREFACE

Direct marketers who work with nonprofits need to know and

understand the importance, features and benefits of e-mail

fundraising. E-mail is fast, economical and can be

implemented in record time. Individuals all over the globe,

particularly the United States, have started to embrace

this new technology, and realized it can generate

additional funds and at lower costs.

This paper will serve as a guide to individuals, both

professional and non-professional, who need the essential

tools and knowledge to develop e-mail fundraising campaigns

for nonprofit organizations in order to raise funds and

awareness. Although it should act as a reference guide for

basic e-mail fundraising strategies and techniques for

nonprofits, it should not be the only resource used.

Utilizing other material will only assist the reader in

making better choices in the future when it comes time to

raise funds through e-mail fundraising.

In this paper, e-mail fundraising will be discussed as a

supplemental channel to generate funds, and not one that


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replaces other fundraising methods. Some of the material

indeed comes from my opinions; however, I will support my

comments and statements with real-life examples and case

studies that certainly confirm my beliefs and ultimately

lead the reader to agree with my stated path. Magazines,

trade publications, newspapers, books and whitepapers will

all be used as support documentation.


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CHAPTER 1

WHAT IS E-MAIL FUNDRAISING FOR NONPROFITS?

Direct mail is no longer the only acceptable source of

fundraising for nonprofit organizations. Since the

inception of the Internet, e-mail fundraising has developed

into a powerful method of generating much-needed funds. It

has proven to be fast, affordable and immediate. 1 With

printing and mailing costs continuously on the rise, it is

important that there are ways for nonprofits to still

generate the money they need, even at a moment's notice.

From delivering medical supplies in natural disasters to

simply feeding hungry individuals, nonprofits can quickly

and inexpensively create effective e-mail fundraising

campaigns in order to make the world a better place.

1 Michael Stein, "Put Email to Work (Without Becoming a Spam Artist),"January 1, 2004.www.getactive.com/pdf/whitepapers/put_email_to_work.pdf. (accessed July8, 2006).


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ECONOMICAL

"Internet appeals and direct Web donations play an

important role in our fundraising efforts," said Mike

Kiernan, director of communications for Save the Children.

"Use of the Internet helps keep costs down while giving

donors the latest information about our response efforts on

our Web site." 2 Specifically, e-mail fundraising is one of

the most cost effective methods that can be used for

nonprofit fundraising. It can cost as little as fractions

of a penny per e-mail. 3 It is far more inexpensive when

compared to direct mail or telemarketing fundraising.

However, it is not recommended as a total replacement for

direct mail, telemarketing or any other fundraising method.

Instead, use them together. E-mail fundraising can

complement other fundraising channels very well, since each

has their strengths and weaknesses.

2 Dianna Dilworth, "Deliverability Aids Middle East Children," DM News,7 August 2006, 2.3 Gail Goodman, "E-mail Energizes Nonprofit Efforts," DM News, 21August 2006, 12.


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INSTANTANEOUS

Unlike direct mail campaigns, which can take several months

to develop and deliver, e-mail fundraising is as

instantaneous as one would like it to be. In just a few

steps, an e-mail fundraising appeal can be in a prospect's

inbox ready to be viewed. Not only that, but we also live

in a world that is susceptible to unforeseen events, such

as natural disasters and it is e-mail fundraising that

truly comes to the rescue. For example, if an earthquake

strikes or a tsunami hits, it is possible with e-mail

fundraising to very quickly generate funds so that

emergency assistance can be provided in those damaged areas

as soon as possible.

RELEVANT AND INTIMATE

It is well known that relevance is imperative when

implementing any direct marketing campaign. Individuals

tend to respond more to appeals when they find it relevant

to them in some fashion. Targeting e-mail fundraising

messages is very important and there are numerous ways to

target individuals especially if one has an established

donor database. Segmenting the database based on donor


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history fields for targeting is a must in e-mail

fundraising.

E-mail fundraising also allows one to personalize messages

based on the personal information provided, such as a name.

It is important to make recipients feel as if they are

truly important, and are not just a number. With today's

technology, it is crucial to personalize at every

opportunity. More about personalization will be discussed

in future chapters.

ALLOWS FOR SEGMENTING AND TESTING

Sending and testing different e-mail messages to multiple

segments of a mailing list can be done quickly and

inexpensively. Creating and testing multiple e-mail

messages that correspond and relate to the various target

audiences allows for the preliminary results to be analyzed

and the message to be modified as needed before sending to

an entire mailing list. Segmenting and testing will also be

discussed in later chapters.


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PROVIDES QUICK RESULTS

An enormous benefit of the Internet is its immediacy. The

Internet is an extremely rapid form of communication. As

soon as someone responds to an appeal via the

Internet, their results can be captured and analyzed.

Unlike direct mail, there is no longer a need to wait for

several weeks or months before finding out the results of a

campaign. And because of the Internet's immediacy, changes

can be made to a campaign as needed before losing too much

ground. With a fundraising channel like direct mail, it is

simply not possible to adjust a mailing without losing much

time and money.

RESULTS ARE EASY TO ANALYZE

E-mail fundraising allows numerous ways to analyze the

success of a campaign. As an example, tracking open and

click-through rates provides an effective method to

understand when certain content attracts certain

individuals. If specific links are being clicked on more

than others, it might make sense to generate more content

of that nature to increase those rates. Success is

about giving the reader what they want to see. If there is


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no interest among an e-mail campaigns recipients, little

success will be achieved with the campaign.

As one can see, e-mail fundraising for nonprofit

organizations can be a great tool for fundraising. However,

it should not act as a replacement for other fundraising

channels, but rather an additional form of raising money.

E-mail fundraising is a fairly new media when compared to

direct mail or telemarketing, so it is important to

understand and learn its new techniques. Always learn from

other nonprofit organizations, but remember that what works

for one organization might not work for another and vice

versa. This paper will enumerate the reasons why e-mail

fundraising for nonprofits is so beneficial and what it

takes to develop e-mail campaigns.

Here are several case studies that exhibit the overall

success an organization can achieve by utilizing e-mail

fundraising.

Donordigital is a firm that specializes in e-mail

fundraising for nonprofit organizations and has displayed a

tremendous amount of success with their clients. Below are

several campaigns they have implemented for them.


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U.S. Fund for UNICEF: Promise to Children Pledge

Partners

"Promise to Children Pledge Partners" is a growing

monthly giving program for the U.S. Fund for UNICEF.

As part of the effort to increase the number of online

sign-ups for this sustainer program, e-mails were

prepared inviting donors and other supporters to

become monthly givers. In response to the first

message, more than 270 people signed up, with an

average monthly gift of $27. Because sustainers often

continue on the monthly giving program for years - and

often increase their monthly gifts - their lifetime

value can be enormous.

American Civil Liberties Union: Spy Campaign

Calling for an end to the Bush Administration's abuse

of power, the ACLU has run a series of newspaper ads

and filed a first-of-its-kind lawsuit against the

National Security Agency, seeking to stop a secret

electronic surveillance program of warrantless

searches that has been in place since shortly after


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September 11, 2001. To raise money to fund the ACLU's

legal work, legislative advocacy and ongoing public

campaign, they prepared a set of fundraising e-mails

that garnered nearly 3,000 gifts and thousands of

additional gifts through its website.

Figure 1. American Civil Liberties Union: Spy Campaign


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Humane Society of the United States: Stop Slaughter of

Horses

In 2005, HSUS created a multi-channel campaign to save

wild horses in the Western United States, including a

campaign to contact legislators considering a ban on

horse slaughter, a fundraising drive to support the

Humane Society Legislative Fund, and organized house

parties in key Congressional districts. As legislation

to ban horse slaughter worked its way through

Congress, HSUS members sent 215,000 individual e-mail

messages to lawmakers and raised more than $150,000

for lobbying efforts. Although the house party drive

took place in the middle of the Hurricane Katrina

crisis (during which HSUS raised over $18 million to

rescue pets and other animals), more than 100 house

meetings were organized - and together they raised

$40,000.


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Figure 2. Humane Society of the United States: Stop

Slaughter of Horses


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Humane Society of the United States: Petition for

Poultry

When HSUS wanted to gather support for including

poultry in the federal humane slaughter laws,

Donordigital helped develop the Petition for Poultry

concept, web and landing page designs, and a series of

e-mail advocacy and fundraising appeals. Segments of

HSUS's list were asked to sign the petition, then

urged to ask their friends to sign. The results:

71,360 signatures from people already on the list, and

another 41,170 new names from tell-a-friend. This is a

multi-year campaign that continues to successfully

raise awareness and build HSUSs e-mail list.


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Figure 3. Humane Society of the United States: Petition for

Poultry


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CHAPTER 2

DEVELOPING AN E-MAIL ADDRESS DATABASE

Without someones home or work address, it is impossible to

send them direct mail. The same goes for e-mail. Without an

e-mail address, it is impossible to send an e-mail message.

That being said, obtaining valid e-mail address can be a

daunting task in itself that can ultimately make or break

your e-mail campaign. Most nonprofit organizations

have myriads of names and addresses, but lack a large

percentage of e-mail addresses. Building a solid file

of prospect and donor e-mail addresses is indeed difficult,

but there are techniques to help establish one.

Before describing the techniques, here is a perspective of

how many e-mail addresses one will need for a very

successful program. In order to receive 10 donations, a

minimum of 1,000 individuals need to receive an e-mail

message. Of those 1,000 individuals, 250 of them must open

the e-mail message and 50 of them actually need to click on

the link that takes them to the donation page. 4

4 Madeline Stanionis, The Mercifully Brief Real World Guide to RaisingThousands if Not Tens of Thousands) of Dollars with Email (Medfield,Massachusetts: Emerson & Church, 2006).


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Nonetheless, lower response rates are very acceptable since

sending e-mail messages is very inexpensive, whereas

traditional direct mail is not nearly as affordable.

OBTAINING E-MAIL ADDRESSES OFFLINE

The simplest way to gather e-mail addresses is by adding

material to other existing fundraising efforts. It should

not cost any extra money and could be the best source of

fresh e-mail addresses. It is crucial to ask for e-mail

addresses at all points of communication with prospects and

donors in order to maximize the file. 5

TREAT EVERY OPPORTUNITY LIKE GOLD

Utilizing the organization's current direct mail program

can prove to be the most effective method of generating e-

mail addresses. Every time an acquisition or renewal

mailing is sent, it is vital to ask for the recipient's e-

mail address. 6 Nonetheless, it should be voluntary so that

individuals are not turned off.

5 Groundspring.org, "Online Fundraising Handbook,"http://www.groundspring.org/learningcenter/handbook.cfm.(accessedAugust 2, 2006).6 Ibid


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When an organization is telemarketing, it is always a good

idea to ask for e-mail addresses from donors and prospects. 7

You already have them on the phone, so why not ask? The

more communication access points one has, the better the

chance of receiving an action.

If the organization holds events such as walks, those could

also be the perfect opportunity to gather e-mail

addresses. For example, a laptop could be set up to allow

attendees to enter their e-mail addresses while at the

event. 8

PROMOTING THE BENEFITS OF E-MAIL ADDRESSES

No matter how and where one is trying to gather e-mail

addresses, it is important to let individuals know why they

should provide their e-mail addresses. Let them know how

they will be used, and that they will save the organization

money when sending communication pieces. Recipients will

benefit by receiving relevant and important news flashes

and updates pertaining to the organization. They will also

7 Ibid8 Ibid


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appreciate that the organization is trying to save money.

Reinforce the fact that all parties benefit.

OBTAINING E-MAIL ADDRESSES ONLINE

Another smart way to gather e-mail addresses is through the

organization's own website. Individuals have already come

to the website to seek additional information about the

organization, so this provides an ideal opportunity to ask

for their e-mail addresses. Also, these Internet surfers

prove to be better responders. They generally seem to be

more comfortable with the Internet; therefore, they can

possibly be more receptive to receiving and responding to

e-mail messages.

PROMOTING THE WEBSITE

We all know that "free" is the best offer in direct

marketing. When an organization uses other channels to

promote itself, it makes sense to present its website

address on all communications. After all, an organization

can only benefit from receiving more awareness from a

website, as well as the possibility of generating

additional funds and new e-mail addresses. Also, if there


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is space on the communication piece, it could be beneficial

to let the public know what resources are available to them

on the website. Last but not least, it is important to make

sure the website is continuously updated there is a huge

opportunity loss if visitors to an organizations homepage

see the same displays each time they visit. Keep it fresh,

keep it live; this proves the organization is dynamic and

on the move.

ONLINE REGISTRATION

Encouraging individuals to sign-up or register online when

entering an organization's website is very important. 9 It is

an easy way to capture the most recent and correct

information and best of all, it has no direct cost. If a

prospect registers online, they can automatically be

considered a strong lead. When developing an online

registration form, it is critical to focus on the

information you are seeking. The more information you can

receive the better and the more targeted your message can

be. However, a registration form that takes a long time to

fill out can work against the organization. Individuals are

busy and might not have the time necessary to complete all

9 Ibid


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the fields. If a question can be answered in more than one

way, it would be ideal to provide an example of how you

would like the information to look. For example, if you are

looking for the date to be filled in a certain format,

explain how you would like it to look. It will eliminate

any confusion and it will help standardize the information

you receive. Drop-down boxes are often helpful for guiding

the applicant in the form-filling process, and ensure

standardized input. In addition, they sometimes speed the

information gathering process.

Always explain to the reader why they should register. Let

them know how their information will be utilized and how

the organization will benefit from it. Are there member

benefits, premiums or freebies?

Another tactic an organization can use is a quick

registration form. A quick registration form is a simple

form that requests only the most essential information, for

example, an e-mail address. It takes very little time to

fill out, but still provides the organization with an

opportunity to reach out to them. A quick registration form

can be displayed in a pop-up or somewhere static on the

homepage.


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The positioning of online registration forms is critical,

and is one of the most important features that an

organization's website will carry. Include links to the

registration page whenever possible. All in all, the more

names and e-mail addresses the organization can capture,

the more they can take advantage of the benefits of e-mail

marketing.

VIRAL MARKETING WORKS WONDERS

It is no surprise that viral marketing, also known as word-

of-mouth marketing, can have an enormous impact on an

organization. What we hear from our friends or associates

carries an immense amount of weight. We take what they say

into consideration because we tend to trust the people we

know. Viral marketing can play a very positive role in any

organization. The more individuals who talk positively

about the organization the better; therefore, e-mail

messages should encourage individuals to pass them along to

the people they know. For example, a "Tell-a-Friend"

link within the e-mail message is an excellent way to get

other individuals acquainted with the organization and it


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is possible to get them to join your e-mail mailing list. 10

E-mail messages that come from friends or people we know

are almost guaranteed to be opened.

10 Sheeraz Haji, and Emma Zolbrod, "Creating an Effective E-newsletter,"http://www.ephilanthropy.org/site/DocServer/QuickTips_2.pdf (accessedAugust 4, 2006).


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Below is an example of a successful approach to using viral

marketing with e-mail. It was implemented by the American

Jewish World Service. On the following two pages is a viral

marketing e-mail campaign that was created by Texas Watch,

a non-partisan advocacy organization working to improve

consumer and insurance protections for Texas families.

Figure 4. American Jewish World Service: Tell-a-Friend


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Texas Watchs Anniversary Card Campaign

The first program in Texas Watchs online plan

included a viral campaign to grow the organizations

file of email addresses. Built around the first

anniversary of Texas homeowners insurance reform, the

campaign began with an email to Texas Watchs existing

email file of just over 4,400. The email encouraged

recipients to click on a link and sign a card to

Texas Governor Rick Perry, Lt. Governor David Dewhurst

and House Speaker Tom Craddick that called for more

stringent insurance reform. The email also encouraged

recipients to forward the message to others the

viral component of the campaign.


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Figure 5. Texas Watchs Anniversary Card Campaign

The Texas Watch e-Mail Campaign Results

2,935 (67%) of recipients opened the initial email

767 (17%) clicked through to sign the anniversary card

745 (17%) signed the card

2.03 viral index (for every one constituent, 2.03additional individuals opened a forwarded message)


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E-MAIL ADDRESS APPENDING

It is not uncommon for organizations to have large donor

and prospect databases containing home mailing addresses

but very few e-mail addresses. However, there are services

available that offer e-mail appending, which ultimately

attaches a known e-mail address to a persons name and home

mailing address. Of course, many e-mail addresses might not

be known or even be legitimate, but an acceptable portion

can usually be developed. It is crucial to note that

having an e-mail address does not mean that person wants to

receive e-mail from you. The laws of permission marketing

should always apply, and these will be treated in Chapter

5.


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CHAPTER 3

CLEANING AND MAINTAINING E-MAIL LISTS

Once an organization has accumulated a sufficient quantity

of e-mail addresses, it is vital to focus on their

quality. An e-mail address is of little value if it

is invalid. Many individuals have multiple e-mail

addresses and they can change frequently as well.

Maintaining and cleaning an e-mail list database will help

significantly improve response rates.

UTILIZING AN E-MAIL DELIVERY SYSTEM TO TRACK BOUNCES

To maximize an e-mail campaign's efficiency, an e-mail

delivery system can be used to track the delivery of e-mail

messages and addresses. A system that flags hard and soft

bounces will let the sending organization know which e-mail

addresses should be taken off the list and which ones

the e-mail message should be re-sent to.


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UPDATING DONOR INFORMATION ONLINE

People move, change their phone numbers and more

importantly, change their e-mail addresses. Also, their

personal interests might change regarding what type of e-

mail messages they want to receive and at what

frequency. Allowing donors and prospects the opportunity to

update their personal information in a simple online format

can save an organization time and money. At the bottom of

every e-mail, it is a good idea to include a simple

reminder to go visit the website in order to keep their

personal information recent. The same message can be added

to other communication pieces across all direct

marketing channels.

UPDATING DONOR INFORMATION OFFLINE

It is not uncommon for donors to change their personal

information through the mail, phone and Internet. There

should be a method in place in order to make the essential

changes to ones profile in the database as soon as

possible. If someones e-mail message bounces, the

organization should contact them via phone or mail in order

to quickly obtain their correct e-mail address.


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GATHERING VIA ONLINE SURVEYS

The easiest way to gather personal information is through

online surveys. 11 Ask questions and they will answer. Once

all this information is received, it can be processed in

the database and then used for list segmentation and/or

back-end analysis.

GATHERING VIA CLICK-THROUGH DATA

Another way to obtain this type of information is by

placing trackable links within the content of e-mail

messages. This will provide the organization with valuable

information, such as what content was looked at more than

others.

COMBINING ONLINE AND OFFLINE DATA

If an organization has more than one database, it is a good

idea to combine their information. For example, one

database might contain certain information about a donor's

11 Madeline Stanionis, The Mercifully Brief Real World Guide to RaisingThousands if Not Tens of Thousands) of Dollars with Email (Medfield,Massachusetts: Emerson & Church, 2006), 22.


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interests that was sent online, while another database

might contain information about a donor's demographic

information that was sent through a direct mail piece.

Combining both databases will allow for e-mail messages

(and other communication channels) to be more targeted and

personalized. It will also allow the organization

to shorten the time it takes to develop e-mail campaigns,

which in turn saves the organization a tremendous amount of

money. Once the data is centralized, fewer individuals will

need to be involved in the entire creation of the e-mail

campaign.


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CHAPTER 5

THE IMPORTANCE OF PERMISSION-BASED E-MAIL MARKETING

The rapid growth of the Internet has inevitably impacted

the quality of e-mail messages sent to donors and

prospects. Individuals and organizations that abuse e-mail

marketing damage the credibility of even the most reputable

organizations. This has caused e-mail service providers to

fight back and protect their e-mail systems and users. 12

Nonprofit organizations that utilize e-mail fundraising

must now adopt these new strategies and techniques in order

to effectively implement e-mail fundraising campaigns. 13

Permission e-mail marketing allows organizations to

regain credibility and differentiate themselves from

abusers. It will also help boost response rates.

12 Bill Pease, "E-Mail Deliverability in the Age of Spam: Navigating NewPaths to the Inbox," December 2004, GetActive Software,www.getactive.com/pdf/white-papers/Email_Deliverability_020105.pdf(accessed July 12, 2006).13 Ibid


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GETTING PERMISSION

Many individuals who visit a nonprofit organization's

website do so to sign up to receive specific information on

an event, news story or to receive a specific offer.

However, signing up for one of these features does not mean

they automatically signed themselves up to receive all e-

mail messages from the organization.

It is important to spell out all the details on the e-mail

registration form, so that the responder knows how their e-

mail address will be used. 14 The following are various

methods of asking for permission to e-mail someone:

THE OPT-IN TECHNIQUE

Opt-in is a method of asking the donor or prospect if they

would like to receive e-mail messages from the

organization. It is the most basic form of permission

marketing and should be utilized at the very least. An opt-

in can be a simple box located on the registration form

that is required to be checked in order to receive e- 14 Michael Stein, "Put Email to Work (Without Becoming a Spam Artist),"January 1, 2004.www.getactive.com/pdf/whitepapers/put_email_to_work.pdf. (accessed July8, 2006).


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mail communications. If the approved organization wants to

share an e-mail address with another organization, a

different box should be placed on the form that asks for

this additional permission.

THE OPT-OUT TECHNIQUE

The opt-out technique is almost exactly the same as the

opt-in, except that the opt-out box is generally checked

beforehand to receive e-mail message from the organization.

One is required to uncheck the box for them not to receive

any messages. Unchecking the box simply means opting out.

Some organizations use the opt-out technique because there

is a higher chance of someone accidentally missing the box,

providing the organization with the opportunity to send

them e-mail messages.

AUTHENTICATING PERMISSION

To take it a step further than opt-in and opt-out,

validating permission makes sure that the opt-in box was

purposely checked.


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THE CONFIRMED OPT-IN TECHNIQUE

Once the recipient opted-in to receive e-mail messages from

an organization, another e-mail message to confirm their

registration is sent to them. The e-mail message would

simply include a link that allows the recipient to

unsubscribe if they did not mean to subscribe in the first

place. If everything goes as planned and they still want to

receive e-mail messages from the organization, they do not

need to take any action. Providing them with the

opportunity to opt-out again is just to make sure they

intentionally signed up. It is a kind gesture on behalf of

the organization and gives them additional assurance of the

organizations anti-spam policies.

THE DOUBLE OPT-IN TECHNIQUE

The best and most effective way to ensure delivery of e-

mail messages and achieve higher response rates is by

using the double opt-in technique. This method will make

sure that those who signed up still in fact want to

receive an organization's e-mail communications. Once a

user has signed up, an e-mail message is sent to them

confirming their registration; however, the recipient must


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click on the link within the e-mail in order to give

permission to the organization to send e-mail messages to

them. Using this particular method could steer users away

since it gives them more time to think about whether or not

they want to receive e-mail messages. Nonetheless, those

who sign up and click on that link will have a very high

interest in the organization and will probably be more

likely to donate in the future.

UNSUBSCRIBING

People change their minds often, so it is important to give

them an ongoing opportunity to unsubscribe from an

organization's e-mail list. 15 Any e-mail messages sent after

the individual unsubscribed can be viewed very negatively

and can ultimately hurt the organizations credibility.

A link to unsubscribe should be included in every e-mail

message. In truth, this technique might motivate some

subscribers to unsubscribe, but in the long run the

organization will have gained trustworthiness that is vital

15 Groundspring.org, "Online Fundraising Handbook,"http://www.groundspring.org/learningcenter/handbook.cfm. (accessedAugust 2, 2006).


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to their success. Plus, the response rates of those who

remain should be higher.

CREATING A PRIVACY POLICY

Privacy has been a long time concern of Internet users.

With all the greatness e-mail has brought to our society,

there are in fact some downsides such as irrelevant and

obtrusive e-mail messages called spam. A website privacy

policy should explain to donors and prospects that the

information they share with the organization will be

confidential unless otherwise noted. 16

There are several steps to creating an effective privacy

policy:

No one likes to read documents they do not understand, so

it is necessary to explain what the organization wants

their readers to know in layman's terms. In simple terms,

describe how their information will and will not be used.

If the organization has partners with whom they share their

lists, that should also be divulged. Clarity and simplicity



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is very important when it comes to creating a privacy

policy.

Once an organization has a privacy policy, where should it

be placed on their website? A link to the privacy policy or

the actual policy itself should always be in a very visible

area, and on all pages that ask for personal information.

There should be no need to hide from donors and prospects

that faithfully pledge to your organization.

Donors and prospects might actually read the privacy

policy, but are not likely to read it more than once. The

privacy policy should contain information that will

ultimately stay untouched because the user will likely only

know what they read the first time.

On the next page is a privacy policy from The V Foundation.

It is clear and easy to understand. The organization is up

front about what information they obtain from the

applicant, as well as what they do with that information.


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Figure 6. The V Foundations Privacy Policy


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CHAPTER 6

BYPASSING THE SPAM BOX

Determining what is considered spam and what is not, is a

difficult task. It is impossible to guarantee 100 percent

e-mail message delivery; however, it is an organization's

responsibility and in their best interest to try and

achieve the highest delivery rates as possible.

KEEPING THE MESSAGE RELEVANT

Individuals consider irrelevant e-mail messages that they

receive to be spam. It is extremely important to manage the

e-mail messages an organization sends out and make sure

that each one sent out is one that is considered relevant

and to the point.

BEING AWARE OF FILTERS

When most people think of spam, they often relate it to

pornography or other offensive subjects. Filters generally

look at the e-mail message's content to determine what is


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Assuming the organizations e-mail does get through spam

filters, it is still necessary to prevent recipients from

tagging the e-mail as spam after the fact; otherwise, they

will get blocked in the future. To minimize this event,

make sure that the individuals who signed up to receive the

organization's e-mail messages are completely aware of how

their information will be used. In addition, always provide

them with the opportunity to unsubscribe or opt-out by

clicking a link or unchecking a box.

STAYING FRESH

If someone chooses to unsubscribe, there is no choice but

to accept his or her request. Sending e-mail messages to

individuals who do not want to receive carries significant

risk from both an organizational and legal perspective.

Moreover, Internet service providers view organizations and

individuals that have high bounce rates (caused by bad and

rejected addresses) as spammers. 17

17 Bill Pease, "E-Mail Deliverability in the Age of Spam: Navigating NewPaths to the Inbox," December 2004, GetActive Software,www.getactive.com/pdf/white-papers/Email_Deliverability_020105.pdf(accessed July 12, 2006).


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Therefore it is important to put serious efforts into

removing old, bad and opt-out e-mail addresses.

GETTING EXEMPT FROM FILTERS

Nonprofit organizations typically send e-mail messages to

an individuals personal or home e-mail address rather than

to their business or work e-mail address. Sending e-mail

messages to one's personal or work e-mail address is

perfectly acceptable as long as certain precautions are

taken place. Large Internet service providers such as

Hotmail or Gmail have very strict filters and they are all

used in good faith to prevent spam from reaching the

recipients inbox. In order to avoid getting an

organizations e-mail messages marked as spam, the

recipient sometimes needs to check that their e-mail

provider has a "white list of email marketing companies

that agree to abide by its policies, and it will allow them

to send graphic-laden emails. 18

18 Jim Hu, "AOL Shift E-mail Graphics Policy, November 14, 2004.http://news.com.com/2100-1024-5107785.html?tag=cd_top. (accessed June8, 2006).


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CHAPTER 7

DEVELOPING E-MAIL CAMPAIGN GOALS

In order to successfully implement an e-mail fundraising

campaign, its objectives need to be set before any work

begins. What is the objective of the e-mail message? Is it

trying to raise money or simply trying to inform donors and

prospects of some important news?

One very good example of an e-mail campaign that both

informs and solicits funds is an e-newsletter. This e-

publication, which could be done on a monthly or quarterly

basis, keeps donors aware of the current issues that

surround the organization in order to build a more solid

relationship with them. It also serves as an opportune

vehicle for letting supporters know how much they mean to

the organization, and even asking for an additional gift.

Other e-mail fundraising campaigns can be geared towards

current donors. Because these individuals are already

familiar with the organization, a series of e-mail messages

can be sent that discuss more specific and pressing

important issues; for example, a developing country that


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has recently asked for financial support from the

organization.

Although not common, natural disaster e-mail messages tend

to be very successful in generating lots of money. When a

disaster strikes, such as the recent Asian tsunami, an e-

mail message can be sent out to ask for urgent support.

These types of e-mail messages scream urgency and need, and

people definitely react positively to them. According to

Madeline Stanionis from Donordigital, Upwards of $350

million in relief funds poured in online within weeks of

the Asian tsunami. And hundreds of thousands of people

donated online for the first time. 19

The following success stories are from the software

provider Kintera, Incs website. They discuss the

tremendous support several organizations received at the

time of the tsunami in Southwest Asia in December 2004.

Much of the money raised after the tsunami struck was

attributed to the e-mail messages sent to the

organizations supporters.



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Figure 7. U.S. Fund for UNICEF

The U.S. Fund for UNICEF raised more than $18 million

online in the first week from an estimated 117,000 onlinedonors, greatly aided by the new website that UNICEF launched earlier in 2004 .

United Methodist Committee On Relief (UMCOR)

Within hours of receiving a signed contract from

UMCOR, Kintera went live on December 31 with the

nonprofits splash and donation pages to collect

donations for the victims in Asia. Besides rushing

relief to the area, UMCOR was also concerned about the

safety and security for their online donors.


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The organization processed 4,685 donations totaling

$711,000 within the first week.

As of February 10, 2005, UMCOR collected over $4

million, including more than 10,000 online donations

totaling over $1.8 million. The group also added over

2,500 individuals to their mailing list from the

Kintera-hosted site.


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Figure 8. United Methodist Committee On Relief (UMCOR)

Things have gone well in this, our first major experiencewith online giving," states Glenda Survance, director of

information services at the United Methodist Board of Global Ministries. "We know it is the wave of the future,and we are ready at UMCOR."


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Catholic Relief Services (CRS)

For Catholic Relief Services, Kintera created online

donation forms and other webpages featuring the CRS

look and feel, and redirected the web traffic to a new

Kintera Sphere empowered site.

Since the December 26, 2004 tsunami, CRS has raised

more than $75 million, receiving over $13 million

online.

In the first week after the disaster, the

organizations website collected over $7.5 million,

with an average online donation of $216.


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Figure 9. Catholic Relief Services (CRS)


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Doctors Without Borders

Not only did generous contributions help change the

lives of millions of victims of the tsunami, an

interesting trend emerged in the nonprofit community

with regard to accountability, transparency and

upfront honesty to supporters: organizations are

telling donors when they have raised enough.

By January 4, 2005, Doctors Without Borders had posted

a note saying it had collected enough funds to manage

its relief efforts there. The U.S. branch of the

organization has raised over $20 million for the

crisis, with over $16.8 million contributed via the

Internet.


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Figure 10. Doctors Without Borders Online Donation Form


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CHAPTER 8

IMPLEMENTING SUCCESSFUL E-MAIL CAMPAIGNS

Like with any direct marketing channel, an e-mail direct

marketing plan is almost always needed in order for a

nonprofits e-mail fundraising campaign to be successful.

An e-mail fundraising campaign can entail one single e-mail

message or it can be a series of e-mail messages. For

example, the organization might want to send it to a

specific group of individuals based on the number of past

donations, donation amounts or specific interests.

There are numerous steps to take when developing a powerful

e-mail fundraising campaign, which will be discussed within

this chapter.

INTEGRATING DIRECT MARKETING CAMPAIGNS

A seasoned nonprofit organization likely has several direct

marketing campaigns or programs going on at the same time.

It is important to promote intra-company coordination

between these activities. If another campaign is planned to

launch at the same time as an e-mail campaign, it might


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make sense to work together in order to create an

integrated marketing campaign. Often times e-mail

fundraising can complement other fundraising efforts very

well and can bring that much more success to the

organization. 20 For example, if a direct mail campaign is

being launched in a particular month, it might be a great

idea to create an e-mail fundraising campaign at the same

time. 21 This could include a follow up e-mail message to a

direct mail piece, or an e-mail thank-you follow up to all

responding donors of a direct mail campaign.

When launching an e-mail fundraising campaign, it is

necessary to make sure no one else in the organization will

be using those e-mail addresses at the same time. The last

thing an organization wants to do is send multiple e-mail

messages to a donor or prospect at one time - a negative

feeling can arise from such a mistake.

20 Bronto Software, "Ask and You Shall Receive: Nonprofits and EmailMarketing, http://bronto.com/solutions/resources/papers/nonprofits-and-email-marketing.21 Ibid


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KNOW WHEN ENOUGH IS ENOUGH

We have all received e-mails from different companies,

organizations and even our good friends. We often mentally

note when we receive too many messages. Some individuals

like to receive them more frequently than others, but most

of us can agree that there is definitely a limit. 22 That

limit needs to be established by the organization. It

might take several months, if not longer, to truly

understand how often a particular organization should e-

mail its donors and prospects. The best way to know

whether or not an organization is sending e-mail messages

too often or not enough is by listening to their promoted

audience. An organization's donors and prospects will let

the organization know when enough is enough, and it would

be very wise to hear them out and take action. Even if an

organization does not hear from their promoted base, they

would be wise to do some limited market research to ensure

that their e-mail promotion levels are not offensive. It is

also very important to find out if donors feel they are



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being abused by direct mail or telemarketing campaigns, and

whether any negative feelings halo into e-mail campaigns.

THE BEST TIME AND DAY TO E-MAIL

Over the years, there have been many debates about the time

and day an e-mail message should be sent. It is generally

accepted that weekends are not good days to send e-mail

messages, and Mondays and Fridays are not the best either.

These days tend to be the busiest for most individuals;

therefore, the e-mail messages do not get the attention

they deserve, and tend to be deleted or forgotten. On the

flip side, during the mid-week and daytime hours tends to

be the best time to send e-mail messages, and they have

proven to generate better response rates.


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CHAPTER 9

SEGMENTING E-MAIL LISTS AND TARGETING THE CONSTITUENT

Nonprofit organizations often ask how they can increase

their response rates while decreasing costs. In general,

the key to making e-mail campaigns work is relevancy

through sending targeted messages that address a segmented

market. 23

Segmenting and targeting are among the most important

factors when sending out e-mail communications to an

organizations donors and prospects. It allows

organizations to send out relevant and targeted content

that is more likely to be read, rather than sending content

to individuals that have nothing to do with their interests

or concerns. 24 The more information an organization has on

its donors and prospects, the more relevant the e-mail

message can be and the more respect it will gain from

recipients.

23 Dianna Dilworth, "Show Starts With E-mail Marketing Day," DM News, 14August 2006, 25.24 Bronto Software. "Ask and You Shall Receive: Nonprofits and EmailMarketing," http://bronto.com/solutions/resources/papers/nonprofits-and-email-marketing.


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In order to be able to segment and target e-mail messages

most effectively, donor and prospect interests and concerns

need to be captured. To gather this information, an

organization needs to regularly ask its supporters to

provide information about themselves, such as their

preferences for specific causes or regions in the world,

which will then allow e-mail messages to be more

personalized. 25

Besides segmenting by interests and concerns, a powerful

way of segmenting the base is by RFM, which stands for

Recency (when their last gift was made), Frequency (how

often they give), and Monetary amount (how much they gave).

The ranges of recency, frequency and monetary amount vary

by organization, but it is almost universally found that

the better RFM segments perform better in future

campaigns.

According to the American Society for the Prevention of

Cruelty to Animals (ASPCA), segmented and personalized e-

mail messages generate far more revenue than untargeted

non-personalized e-mail messages.

25 Sheeraz Haji, "Meet, Beat Challenges to List Growth," DM News, 21August 2006, 12.


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Below is a summary of an e-mail campaign that the ASPCA

implemented in 2003 to find out the impact relevancy and

personalization has on individuals.

Case in Point: 2003 Holiday Campaign

Approach

Based on user profile information, the ASPCA campaign

segmented constituents into three groups: dog people,

cat people and non-specific constituents for whom no

profile information was available. Recipients were

asked to sponsor a pet and send in a donation to the

organization. Appeals were sent both to past donors

and to non-donor online prospects for whom the

organization had profiles.

Messaging

An overall Help us find safe homes for the holidays

message was altered slightly in the subject line to

personalize it for the dog people and the cat people,

and the order of appearance of dogs or cats on the


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message was different based on which category of

recipient was receiving the message.

Figure 11. ASPCA 2003 Holiday Campaign

The ASPCA campaign segmented constituents according totheir interests, then modified the predominantmessages accordingly.

Results

Based on the ASPCAs experience, it is possible to

measure the impact of targeting groups with profile

information and personalizing an email fundraising

appeal. To assess the impact of this particular

campaign, the organization measured response rates for

personalized appeals (dog or cat) vs. non-personalized

appeals (neutral recipients), both in general and in

the context of donors vs. non-donors.


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Response rates for personalized appeals were

significantly higher than those for recipients who had

not provided an advanced profile. Among donors, the

response rate was 230% higher on average for the

personalized message, and among non-donors, it was 86%

higher on average for the personalized message.


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CHAPTER 10

DEVELOPING EFFECTIVE E-MAIL MESSAGES

As in direct mail, the strategy and list are the most

crucial aspects to make a campaign successful. The next

most important element is the creative and actual e-mail

message content. It is extremely important to have a strong

message that will encourage recipients to read it and

hopefully take action.

SUBJECT: THE FIRST THING THAT GETS READ

The subject line is like the outer envelope of a direct

mail piece. What you write on the outer envelope forces the

recipient to make the decision whether or not to open or

throw away the piece. In order to get the recipient to

open the e-mail message, there are several techniques and

strategies that can be used. Never use more than 50

characters in the subject line or shouting symbols ($,!,


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CAPS,*). 26 Any subject line too long looks unprofessional

and furthermore, some e-mail messaging programs have length

limits. Shouting symbols can easily trigger spam filters so

it is best to avoid using them when possible. 27

The subject line should always tell the recipient who the

message is from and what it is regarding. It is a good idea

to clearly identify from whom the message is coming. 28 Is

there a specific person the e-mail message is from whose

name should be included in the subject line? The more

specific the subject line, as long as it is short

and sweet, the greater chance that the e-mail message will

be opened.

E-MAIL GRAPHICS AND LAYOUT

The way an organization designs its e-mail message will

inevitably have an impact on response rates. HyperText

Markup Language, or HTML, is the most commonly

used technique when designing e-mail messages. HTML

26Madeline Stanionis, The Mercifully Brief Real World Guide to Raising

Thousands if Not Tens of Thousands) of Dollars with Email (Medfield,Massachusetts: Emerson & Church, 2006), 55.27 Ibid 28 Michelle Keegan, "10 Tips on Getting and Keeping Permission,"http://www.constantcontact.com/email-marketing-resources/hints-tips/volume6-issue8.jsp. (accessed August 6, 2006).


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allows an organization to incorporate colorful images or

photographs as well as different styles of fonts and

colors. It is more intriguing and easier to read than plain

text, plus it gives the organization the opportunity to

display their brand by inserting their logo into the e-mail

message. 29

Nonetheless, not all e-mail service providers accept the

HTML format. Because of this, it is important to use e-mail

software that that detects whether or not a person can read

HTML e-mail messages. If someone cannot accept e-mails with

graphics, the software that supports multi-part e-mail

distribution will send a text e-mail message instead.

ABOVE THE FOLD

Many e-mail message programs now allow users to preview

their messages before even opening them. Some users only

like to preview the first few sentences, while others like

to see up to a quarter of the entire message. Whatever the

preview size may actually be, it is important to display

the most central aspect of the message, one that usually

29 Groundspring.org, "Online Fundraising Handbook,"http://www.groundspring.org/learningcenter/handbook.cfm.(accessedAugust 2, 2006).


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talks about the action that needs to be taken. This could

be displayed at the top of the e-mail message to maximize

efficiency.

E-MAIL MESSAGE LENGTH

In direct mail, it is widely understood that there is no

rule in regards to the length of the letter. The letter

needs to be as long as it takes to get the point across.

The same goes for e-mail messages, except there are some

aspects that need to be considered. Recipients are

generally reading their e-mail messages online, so

scrolling is necessary at times. To make it easy for the

recipient to read, the e-mail message should be limited to

less than two screen lengths in order to reduce the amount

of scrolling. Preferably, the message should be brief

and to the point. 30

ENCOURAGE RECIPIENTS TO VISIT THE WEBSITE

Since it is important to keep the e-mail message brief, if

the message needs to be longer, it is always possible to



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write just a few lines or paragraphs and include a link to

the organization's website (or a landing page) where the

full version of the message can be read. Sending

recipients to the website or a landing page has another

advantage in that it allows the organization to do

tracking. Has website traffic increased through e-mail

referrals? 31 The organization will also be able to see what

links have been clicked in the website and how often. These

indicators will let the organization know what the

recipients' highest interests are. With that said, it not

good to just get them to the organization's homepage you

should send them to a landing page where they can read the

rest of the story and immediately take action, such as to

donate money.

PERSONALIZE THE E-MAIL MESSAGE

E-mail messages have the ability to be personalized and

relevant to donor and prospect interests and other

variables. Based on these interests, beliefs, location and

other personal information, it is possible to deliver to



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their inbox content that they see as worthy to be opened

and read. 32

DEAR SAM

Like direct mail, e-mail embraces the idea of personalizing

messages. The most basic personalization technique is

addressing the recipient by name it is simple and very

welcomed. Addressing the recipient by name can sometimes

make a world of a difference in terms of response rates.

Most e-mail fundraising software available today allows the

organization to input names and other variables within the

content, which adds a personal touch.

A PERSONAL TOUCH

Although addressing the recipient by name is important,

even more important is including relevant and tailored

content for the recipient. When developing e-mail messages,

it is critical to pay attention to any information that

recipients provided, such as interests and beliefs, and

should be recognized whenever developing e-mail messages.

The more pertinent information a nonprofit organization

32 Ibid


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utilizes, the higher the response rates will be. This is

why it is so important to ask questions and build profiles

for an organization's donors and prospects.


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CHAPTER 11

TESTING E-MAIL MESSAGES BEFORE DELIVERY

Now the organization has come up with the e-mail list and

the actual e-mail message, the next thing to do is test its

compatibility and overall effectiveness.

TESTING WITHIN THE ORGANIZATION

Sending the e-mail message to several individuals within

the organization will allow it to undergo scrutiny, all in

order to save the organization from any disaster once sent

off into the real world. Internal staff should check for

certain things to make sure everything is the way it should

be, in addition to making sure that it makes overall sense

and properly communicates.

DIFFERENT E-MAIL CLIENTS

Since different e-mail service providers display e-mail

messages in a different manner, it is important to set the

organization's testers up with e-mail accounts on various

e-mail platforms in order to make sure the message is


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targeted e-mail list(s). 33 If their response rate is

unexpectedly low, it indicates a need for program

adjustment.

EXAMINING INITIAL RESULTS

Sending the e-mail message to a small group of targeted

recipients also allows the organization to do some limited

testing. For example, an A/B split test can be performed in

order to see if one particular subject line or message

performs better than another. Creating a small split A/B

test before going out to the entire mailing list will allow

the organization to maximize results. 34

CHECKING THE HANDLING PROCESS

Besides checking how the e-mail message functions and

performs, testing to a small group of individuals on the e-

mail list also allows the organization to see how well they

can handle responses. The test will make sure the

organization has enough employees or volunteers to answer

33 Sheeraz Haji, and Emma Zolbrod, "Creating an Effective E-newsletter,"http://www.ephilanthropy.org/site/DocServer/QuickTips_2.pdf (accessedAugust 4, 2006).34 Madeline Stanionis, The Mercifully Brief Real World Guide to RaisingThousands if Not Tens of Thousands) of Dollars with Email (Medfield,Massachusetts: Emerson & Church, 2006).


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incoming e-mail messages and telephone calls. If the

organization sees that they are not equipped to handle the

initial response, they will have time to adjust so that

once the final e-mail message is out to the entire list

they will be ready to respond in an efficient manner. The

last thing an organization wants is to have an overflow of

response (good or bad) that they are not able to properly

take care of.


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CHAPTER 12

TESTING AND ANALYZING RESULTS

The beauty of direct marketing is that its efforts can be

measured with hard numbers. Therefore, e-mail

fundraising enables direct marketers to test and measure

the success of their campaigns. With each and every

campaign implemented and analyzed, it is possible to refine

future strategies that create even more successful

campaigns. 35

Most e-mail marketing solutions offer tracking and

measurement tools that allow the organization to measure

campaign effectiveness. 36 It is critical to keep track of

these results in order to compare campaigns against each

other. Just as with direct mail, a control is always needed

for comparison purposes. Once results come in, it is

important to evaluate them and see how the organization can

beat them the next time around. When analyzing results, it

35 Madeline Stanionis, The Mercifully Brief Real World Guide to RaisingThousands if Not Tens of Thousands) of Dollars with Email (Medfield,Massachusetts: Emerson & Church, 2006), 95.36 Gail Goodman, "E-mail Energizes Nonprofit Efforts," DM News, 21August 2006, 12.


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is recommended to look at the following variables and

metrics:

1. Appeal Name: the title of the e-mail message. The

title should be clear and easy to understand, so that

it is quickly recognized. As an example, Pediatric

Nutrition 2006 can be an appeal name.

2. Subject: the content placed into the subject line of

the e-mail message. It has a tremendous impact on

response, so it is important to make sure it is well

thought out.

3. Segment/Target Audience: the group of constituents who

are being targeted with the appeal. It can be current

donors, prospects or even a more specific group such

as past donors who have gone without donating for 12

or more months (i.e. lapsed 12+ months).

4. Date: the calendar date the e-mail message was sent to

an audience.


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5. Day of the Week: the day the e-mail message was sent.

As mentioned previously, the best single day to e-mail

is still a largely debated matter.

6. Time of Day: the exact time the e-mail message was

sent. Many people believe certain times of the day are

better to send e-mail messages than others because of

individuals habits. For example, many nonprofit

organizations feel that in the early morning, people

tend to overlook e-mail messages that do not relate to

work.

7. Number of E-mail Messages Sent: the total number of e-

mail messages that were attempted to send.

8. Number of E-mail Messages Received: the total number

of e-mail messages that were delivered. This number

includes those going through spam filters.

9. Bounce Rate: There are two types of bounces. A soft

bounce will occur if the recipients mailbox is full

or there is a problem with the server. These e-mail

messages will be attempted to deliver again. A hard

bounce occurs if there is no such e-mail address. Hard


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bounces should be kept on file and deleted from future

mailings. The bounce rate is the percentage of bounces

that occurred from the total number of sent e-mails.

10. First Online Gifts: the number of constituents who

made a donation online for the very first time.

11. Conversion to Giving: the number of constituents who

went to the donate page and actually donated, rather

than simply exiting the page.

12. Total Revenue: the total revenue that was generated

due to the e-mail message.

13. Average Gift: the average donation amount that was

received due to the e-mail message. It has been noted

that gifts donated via the Internet are generally

higher than those donated via offline channels.

14. Open Rate: the percentage of individuals who opened

the e-mail message by actually clicking on it as well

as those who saw it through a preview mode. The open

rate is not an indicator of those who truly read the


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e-mail message, but rather a good estimate of the

subject line's impact on recipient base.

15. Click-through Rate: the percentage of individuals who

click on any link that is within the content of the e-

mail message that takes them to a different page for

additional information or to place a donation. The way

to track click-through rates is by placing trackable

links in the e-mail message. This will allow the

organization to see the click-through rates for every

available link there is. In order to obtain a click-

through rate, divide the number of clicks by the

number of e-mail messages sent. This metric allows the

organization to see if a particular link had more

interest among recipients than others. If one

particular link had a significantly higher click-

through rate, it is important to understand why. Was

it the placement of the link? Was it a breaking news

story? Was the link embedded in a photo? Once it is

understood why, future e-mail messages can be adjusted

to maximize the click-through rate.

16. Response Rate: The most important metric is the

response rate. The response rate is the percentage of


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individuals who actually fulfilled the e-mail

message's objective or call to action. The objective

of an e-mail message could be to get recipients to

donate money, fill out a survey, sign a petition or

something else. The response rate is a true indicator

of the e-mail message's success.

17. Abandonment Rate: the percentage of recipients who

opened the e-mail message and did not click through

or those who have clicked through the e-mail, but

never took any action. This is an important metric

because it can tell an organization where they are

having problems. If recipients are opening the e-mail

message and clicking through, why are they not taking

any action? Is the message not clear? Is the call-to-

action not strong enough? Whatever the reason may be,

the problem should be fixed so that the response can

be maximized.

18. Unsubscribe Rate: the percentage of recipients who

receive the organization's e-mail messages, but decide

to no longer receive them for one reason or another

and ultimately unsubscribe. All e-mail messages should

include an unsubscribe link so that recipients can


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opt-out at any time. Organizations should pay

attention to the unsubscribe rate because it can

possibly mean that too many messages are being sent or

that the messages are no longer relevant. However, it

could also just mean that the recipient does not have

the time to read any more e-mail messages and would

rather not overfill his or her inbox. Nonetheless,

before coming to any conclusion and deciding how to

react to a larger than usual unsubscribe rate, it is a

good idea to go back and evaluate the relevancy of

your e-mail messages. Periodically ask your donors and

prospects what information they would like to receive

via e-mail and the frequency at which they would like

to receive them.

19. Forward Rate: the percentage of recipients who

forward their e-mail messages to other individuals.

This type of viral marketing is very important to

direct marketers because it is an easy method of

obtaining additional donors as well as building their

e-mail address list. Remember, when a recipient

forwards an e-mail message to family or friends, it is

more likely to be read than if it is directly from an

organization.


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20. Average Time on Landing Page: The average time spent

on a landing page can tell you how effective that page

really is. If the average time spent on one particular

page is far less than another, why is that? The longer

an individual stays on a website or landing page, the

higher the chance of them taking positive action is.


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CHAPTER 13

THE FUTURE OF E-MAIL FUNDRAISING

The exact future of e-mail fundraising for nonprofit

organizations is hard to predict, but we are seeing more

and more new and innovative ways for organizations to

generate funds with e-mail.

Some organizations have already implemented interactive and

multimedia e-mail fundraising campaigns that truly engage

the donor or prospect. With the number of e-mail messages

that pile up every day in our inbox, it is a battle for

which ones actually get opened.

Interactive and multimedia e-mail messages use advanced

technology that brings the e-mail message to life. They are

supposed to grab ones attention and hopefully get them to

take action. The idea is that they are supposed to be

interactive, different and unusual just hope not too many

organizations are doing the same type of thing because it

will just become stale. Interactive and multimedia e-mail

messages can be moving greeting cards, video messages,

movie clips, as well as other types of rich media.


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Several companies have been on top of the interactive and

multimedia e-mail fundraising trend more so than others,

such as Beaconfire. Below are several case studies from

Beaconfires website that discuss the successes different

nonprofit organizations have had with interactive and

multimedia e-mail fundraising.

Heifer International

Heifer International's Gift Catalog is likely its most well

recognized and successful program. The concept is simple

and catchy: donors support the organization and its mission

of providing livestock and training to communities in need

- by giving a gift in the name of a friend or loved one.

All over the world, users are logging in to send baskets of

chicks, goats, and yes - even Heifers - in recognition of

birthdays, anniversaries, and other special occasions.

Heifer sought a new way to excite its donors to give again

and make others aware of its giving program. The Heifer

"Moo-vie" was a humorous piece that highlighted the

difference between Heifer's meaningful gifts of hope and

the often bizarre gifts that people sometimes receive. The

piece blended humor with mission education to create a


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movie that compelled thousands of individuals to give

holiday gifts through Heifer.

Figure 12. Screenshot of Heifers "Moo-vie

Figure 13. Screenshot of the End of the Moo-vie


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Figure 14. Screenshot of Heifers Gift Catalog


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Big Brothers Big Sisters of America: An Ongoing Partnership

Beaconfire partners with a number of its clients, such as

Big Brothers Big Sisters of America, in an agency-style

relationship to conceive and execute their online marketing

programs. They assign a dedicated team that works week in

and week out across program needs ranging from email

communications, campaigns and media outreach, site

improvements, and special creative projects to integrated

efforts with other mediums. Beaconfire's retainer-based

services provide clients with predictability around costs

and a dependable, creative client team at their service.

The Challenge: It is well known that Big Brothers Big

Sisters of America (BBBSA), the oldest and largest youth

mentoring organization in the United States, needs

volunteers to carry out its mission. However, the

organization also has major fundraising needs to create and

support "Big" and "Little" matches. With no direct mail

program, BBBSA looked solely to the Web to reach out to new

volunteers and donors.

The Solution: Beaconfire began working with BBBSA in the

summer of 2004 to help promote its Centennial and was later

retained on a monthly basis to serve as the organization's


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online marketing and fundraising partner. Sample projects

include:

Holiday Photo Card Campaign: For the 2004 holiday campaign,

Beaconfire developed the messaging for an innovative

approach to reach out to BBBSA's constituents - they

invited them to "Be part of something BIG!"

e-mail fundraising for nonprofit organizations: a direct marketing powerhouse

Documents