Gaining your donors’ e-mail addresses will:

• Provide an additional channel for reaching your donors

• Increase the ROI of your marketing investments

• Significantly reduce your donor acquisition and marketing costs

• Allow you to easily measure the impact of your marketing campaigns

• Increase your donor participation and retention rates

With ongoing postal and telemarketing pressuresimpacting marketing budgets for many nonprofitorganizations this year, e-mail marketing could become the silver lining for many nonprofit marketers. But, how do you create a successful e-mail marketing campaign if you do not have a substantial e-mail database? That question may be one of the largest Internet-related challenges facing nonprofit organizations this year.

Research shows that the majority of nonprofitorganizations have e-mail addresses for less than 10 percent of their postal files. So, how do you level the playing field, and start to add quality permission-based e-mail addresses to your database?

Here are some tips that you can use to cost-effectivelybuild your e-mail address database and increase your donorparticipation and retention rates:

Start to Ask for It!

Every communication or touch point with a donor shouldstart or end with a request for an e-mail address. By utilizingthe four points below, you should be able to add e-mail

addresses for 5 to 10 percent of your postal file over thecourse of one year:

1. Direct Mail Collection — Think about how much time and money you spent for copy and design on your last new direct mail piece. Most nonprofit organizationshave started to ask their donors for their e-mail addressinformation within these mailings. This is a great step forward; however, they need to look at one major improvement if they want to increase their e-mail addresscollection rates using this method. To date, most requestsfor e-mail address information have been pushed, shoved or jammed into whatever white space remains after the piecehas been written and designed. It should be no surprise

ALSO IN THIS ISSUELetter from the Chair . . . . . . . . . . . . . . . . . . . 2

Lessons Nonprofits Must Learn From the Dismantling of the Commercial Telemarketing Industry . . . . . . . . 6

Member Spotlight . . . . . . . . . . . . . . . . . . . . . 12

Walking the Walk: The Right Questions to Ask Online Technology Providers. . . . . . . . . . . . . . . . . . . 14

Public Policy Scorecard . . . . . . . . . . . . . . . . . 16

The Golden Rules for Writing and Answering Requests for Proposals . . . . . . 18

Volume 6, Number 3 September 2003

JOURNALJOURNALO F T H E D M A N O N P R O F I T F E D E R A T I O N

Continued on Page 4

Tips to Build Your E-Mail Address Database Michael F. Murphy, Vice President of Sales, FreshAddress, Inc.’s Nonprofit Group

2

Chair

Pegg NadlerPegg Nadler Consulting

Vice Chair

Jack DoyleAmergent

Kelly BrowningAmerican Institute forCancer Research

Ron BrowningVeterans of Foreign Wars(VFW) of the US

Tim BurgessDomain Group

Kory ChristiansonSaint Joseph’s IndianSchool

Phil ClaiborneElks Magazine

Christopher CleghornEaster Seals

Bob DavisDucks Unlimited

Bobby DeanCal Farley’s Boys Ranchand Affiliates

Connie DeBordDeBord & Associates

Craig FloydNational LawEnforcement OfficersMemorial Fund

Barry GiaquintoNorth Shore AnimalLeague America

Raymond GraceCreative Direct Response Inc.

Karyn JohnsonMoore ResponseMarketing Services

Lindy LitridesLitrides & Associates

Susan LothDisabled AmericanVeterans

Lori LueckenhoffExperian

Larry MayMay DevelopmentServices

Mary Beth McIntyreTarget Analysis Group

Dennis MeyerMeyer Partners

Sherry MintonAmerican HeartAssociation

Angie MooreAmerican Cancer Society

Kristin MooreElderhostel, Inc.

Mark SchulhofQuadriga Art Company

Nick StavarzSynergy Direct MarketingSolutions

Jo SullivanASPCA

Sue SwordChristian AppalachianProject, Inc.

Joan WheatleySpecial Olympics NorthAmerica

Kevin WhortonCatholic Relief Services

Staff

Senny Boone, Esq.Executive Director

Helen LeeOperations Manager

Jill MurphyMember ServicesManager

Dear Nonprofit Colleague:

These are most disturbing times for the nonprofit community,and especially for our Federation members. As each of us rely onfundraising for our survival, the numerous threats now posed bystate and federal regulators threaten our very existence.

By the time you read this, The DMA Nonprofit Federation’s(DMANF) New York Conference will have taken place. Itstheme, “Reality Fundraising,” is particularly appropriate toreflect upon, in the current regulatory environment. Today’sreality is that the hard-earned success of our nonprofits is nowbeing threatened by regulators who are moving ever closer to shutting down our organizations. Without the work of the DMANF, it is safe to say that nonprofits would face “Fear Factor” every day.

Just imagine: Without our work in the Supreme Court case,Madigan v. Telemarketing Associates, state regulators would beassigning specific percentages to the amount that your nonprofitcould use for your fundraising efforts. Let’s say that 10 percent, forthe sake of argument, out of each dollar raised would be allowedto go for non-program-related activity — including your advoca-cy work, your newsletters, your non-program-related staff.Otherwise, you would face criminal fraud charges. Your abilityto motivate staff and donors would be replaced by fear of prose-cution each time you took a new initiative.

Just imagine: Without our work in the postal arena, ensur-ing that postal rates remain affordable, and monitoring the over-reaching US Postal Service (USPS) in its day-to-day regulationof nonprofits, your postage would increase each year — as theUSPS seeks to profit from the mail rather than simply deliver it ina timely fashion. If you complained about it, your mail wouldnot be delivered, or your rates would increase.

Just imagine: Without our work at the state level, nonprofitswould become so hamstrung by the flurry of new paperworkrequirements, that you would need to hire additional staff to sim-ply spend time filling out forms — rather than working on yourprogramming. And remember, you would still face fraud chargesif the new staff expense was more than 10 percent of your over-all costs — a real Catch-22.

Letter from the ChairPegg Nadler, President, Pegg Nadler Consultingpegg@peggnadler.com

The 2003 – 2004 LeadershipFollowing are the members of the The DMA

Nonprofit Federation’s Advisory Council with leadership responsibilities:

UPCOMING EVENT!When $1 + $1 = $3:Creative Ideas for Integrated Marketing

2004 Washington Nonprofit ConferenceCapital Hilton, 16th and K Street, NWWashington, DC 20036

Just imagine: Without our work toachieve the exemption of nonprofitsfrom the Federal Trade Commission(FTC) Telemarketing Sales Rule(TSR), your telemarketers would not beallowed to call the millions that havealready registered at the FTC’s Do-Not-Call national registry. If your telemar-keters did call, they would be fullyprosecuted — along with your non-profit organization.

These are just four “Fear Factor”examples of the challenges we facetoday. But, what else looms on thehorizon? How might we be adverselyimpacted by growing concerns aboutthe use of e-mail? What effect couldthe new self-appointed charitywatchdogs have as they unfairly

critique our organizations? How farwill privacy advocates go to seek outnew ways to curtail the exchange ofinformation, striking at the core ofwhat our charities need most — dataabout donors?

The reality is that if we, asnonprofits who rely on our continuedcontact with and support from thepublic, become overregulated, ourability to survive will be jeopardized. Ifwe are forced to spend more dollars toadminister new regulations, then wehave even fewer funds for ourphilanthropic causes. In short, we willbe forced to cease operation. Wecannot allow state and federalregulators to drive us out of existence.We exist to help others, not to garner

profits for big business. This isprecisely why and where the DMANF makes such a difference in our nonprofit world.

As you visit with your fellownonprofits during our conferences, or work with other nonprofit organiza-tions, and they wonder why you belong to the DMANF,remind them of how vitally important this organization is to the survival of fundraising andadvocacy efforts. Encourage them to join, so that we can continue toprotect the nonprofit community.Without these new members and your continued support, I can assureyou that “Fear Factor” will be your new reality. �

3

For more information, or sponsorship opportunities,contact Helen Lee at 202.861.2496; or e-mail: hlee@the-dma.org For the latest updates, please visit our Web site at: www.nonprofitfederation.org

that the success rate has been less than stellar.

To improve on these efforts, youneed to provide your members with areason to release their e-mail addressesto you. E-newsletters, donationconfirmations, petitions, and specialdiscounts and offers are but a few of thebenefits that will encourage yourmembers to come on board.

2. Web Page Collection — Manyorganizations have an e-mail address col-lection function in place via the Web.What everyone can do to improve theirresults is to inform their visitors of thespecial e-mail benefits that they willreceive (i.e., e-newsletters, donation con-firmations, petitions, etc.), right below thee-mail request box. It may also be usefulto create a pop-up link to inform users ofthose special benefits only available via e-mail. Also, make your e-mail addressrequest function available on your homepage. Don’t make your users go and lookfor it. Every click away from your homepage reduces the chances of your userstaking an action and providing you withtheir e-mail address information.

3. Existing E-Mail DatabaseCollection — Don’t forget to ask themembers of your existing donor base forthe e-mail addresses of their friends, fam-ily, and associates. Viral marketing is apowerful tool to use, and is extremelycost-effective! You could ask them toprovide you with additional addresses, orsimply to pass on your newsletter, peti-tion, or other information to others thatthey feel have similar interests.

4. Telemarketing Collection —Don’t assume that your telemarketingagents are asking for e-mail addressesfrom potential donors. The key here isto ensure that your agents have an updat-ed script, which outlines the benefits topotential donors of providing an e-mailaddress. Some of those benefits includethe ability to: 1) forward up-to-dateinformation on your organization via ane-newsletter; and 2) send an e-mail con-firmation of a gift.

The suggestions above are a great start!Yet, they really should be viewed as asecondary plan for building your e-maildatabase. To exponentially andexpeditiously grow your e-mail database,read on.

E-Mail Appending

Utilizing an e-mail appending servicecan enable you to add e-mail addresses forup to 25 percent of your postal file, allwithin 3-4 weeks.

E-mail appending is the process ofadding an individual’s e-mail address tothat individual’s postal record inside anonprofit’s existing database. This isaccomplished by matching the nonprofit’spostal database against a third party,permission-based database to produce acorresponding e-mail address.

Best Practices — E-mail appendingis not a prospecting tool. The DirectMarketing Association and its interac-tive arm, the Association forInteractive Marketing (AIM) haveguidelines in place that dictate that e-mail appending only be used toappend e-mail addresses to your exist-ing opt-in postal record house file.

The Process — Your donor postal fileis securely transferred to an e-mail

4

Tips to Build Your E-Mail Address DatabaseContinued from Page 1

DID YOU MISSthe recent Western

Nonprofit Conference?Limited quantities of the conference

resource book are available

FREE to NF Members $5.00 to Non-Members

E-Mail Jill Murphy at jmurphy@the-dma.org to obtain a copy.

appending provider, who will do an ini-tial gross e-mail address match of yourfile against its opt-in database of postaland e-mail address records. Your append-ing provider will then send these matchesa permission-based message prepared byyou. All bounces and opt-out requestswill be removed from the list. At thatpoint, a valid permission-based e-mailaddress file of your members/donors willbe delivered back to you.

Summary

The first step of any successful e-mail marketing effort is to build apermission-based e-mail address list ofyour donors. The simplest, quickestand most cost-effective way to do thisis through e-mail appending, whichwill enable you to add e-mail addressesfor up to 25 percent of your postal file.Secondary efforts of e-mail address

collection via focused direct mail, theWeb, and viral and telemarketingpractices are also important, and willenable you to add an additional 5 to 10percent of e-mail addresses to your baseon an annual basis.

Best of luck, and remember that thekey to great marketing is to test, test,and then test some more! �

Michael F. Murphy is Vice President of Sales for FreshAddress, Inc.’s NonprofitGroup. FreshAddress, Inc. is committedto helping charitable organizations build and update their e-mail addressdatabases, reduce their fundraising costs, and maximize the participation of their members. For more informationabout FreshAddress, Inc., contactMichael at 617.965.4500, Ext. 205, or mmurphy@freshaddress.com, or visit:www.freshaddress.com/nonprofit.

5

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For more information on ad rates, please call The DMA

Nonprofit Federation at202.628.4380.

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Well, it has been quite interesting towatch the entire Federal TradeCommission (FTC) “Do Not Call”(DNC) list saga unfold. Hardly a daywent by this summer that numerouslocal newspapers and national mediaoutlets alike didn’t carry prominentlyplaced reports about it. In fact, theAmerican Telemarketing Association(ATA) sent regular e-mails to itsmembers compiling numerous articlesfrom outlets around the country.

After the creation of the list wasapproved, the mainstream newspaperand television reporters all seemed asgiddy as the munchkins after the finalshowdown in Oz. Most of the articlesincluded a quote or two from industryrepresentatives who cautioned that theimplementation of the list wouldultimately result in massive layoffs oftelemarketers. However, theseconcerns were by and large ignored,and one pompous reporter evensuggested quite arrogantly that thetelemarketers ought to find honestwork “like cleaning toilets.”

Such outrageous remarks served onlyto dehumanize the folks who toil awayin a tough, thankless business where agood call is one where you are greetedby indifference. The fact is that theseare real people just trying to earn aliving and feed their families. Ninetypercent are single mothers and/or

minorities, grinding out a living.Thirty percent come from welfare-to-work programs. I am eager to learnwhere these folks are going after theircall center closes down. Somethingtells me there are not that many toiletsthat need cleaning.

The tone of these stories has begunto change recently, though, as thewide-reaching repercussions of theseregulations are becoming more clear.The ATA estimates that as many as2,000,000 telemarketers may be out ofjobs. Add to that the related jobs thatmay be lost, and suddenly, there is atangible downside to the DNC list.For instance, what happens to the folkswho lose their lawn mowing jobsbecause the companies they work forcan no longer make cold calls in thespring to maintain their customer base?

If the industry really does shrink as predicted, the impact on theeconomy could be devastating. Mostproponents of the DNC List pooh-pooh this notion, but no one reallyknows for sure. Apparently, the FTCdid not bother to study its potentialeconomic impact before giving the goahead to the list’s creation.

You may be wondering at this pointhow this is relevant to nonprofits andfundraising, considering that nonprofitcalling is currently exempt from the

FTC’s list. Two important factsillustrate how relevant it truly is: 1) formany nonprofit organizations, tele-funding is a critical part of theirfundraising and donor developmentstrategy; and 2) many of the reportersand politicians who supported theDNC list in the first place arecompletely peeved that the FTC hadthe audacity to allow businesses tocontinue calling their existingcustomers, and charities to call theirdonors. They will be looking forreasons to expand the list to includecharities as well.

To prevent this from happening, it isworthwhile to examine why things gotto the point where the American publicfeels that two million lost jobs and thedecimation of an industry is a relativelysmall price to pay for relief from thecontinual bombardment of theirpeaceful evening lives.

So who’s the responsible party? Youcan’t blame the callers. They’re justdoing their jobs, trying to survive andfeed their kids. You can’t even totallyblame the telemarketers. They are inbusiness to provide a service — andbelieve me, they provide the service inwhatever form the demand is highest.(Although it can be argued that it was apretty stupid idea to fight the regulatorstooth-and-nail at every turn, when itwas perfectly clear that the public wasgrowing evermore desperate for relieffrom the dramatically increasing volumeof what they considered nuisance calls.)

Ultimately, I place the lion’s share ofthe responsibility squarely on theshoulders of the companies that hiredthe telemarketers. Largely, it was the

6

Lessons Nonprofits Must LearnFrom the Dismantling of the Commercial Telemarketing IndustryNick Stavarz, President, Synergy Direct Marketing Solutions

Continued on Page 8

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big telecom corporations and the bigfinancial institutions that made an art ofsaturation calling. They turned up thepredictive dialers as fast as they wouldgo, churning through the greatestnumber of calls as quickly and cheaplyas possible. They knew that if theymade enough calls per hour, they’d sell acertain portion, no matter how poor thequality of the calls. The problem wasthat they were only concerned with the1 percent who they knew would buy,and had little regard for the impressionthey were leaving on the 99 percentwho didn’t buy. That, by and large, wasthe main contributing factor to thegrowing negative sentiments among thegeneral public toward the medium.

Since the deregulation of the telecomindustry allowed long-distance providersto offer local service as well, the telecomcompanies have gotten back into thetelemarketing saturation game. In fact,beginning about two months ago, Ibegan receiving calls from AT&Toffering a bundled package. Each time,I simply told the caller, “No thanks.”

After about the fifth call in a two-week period offering the exact samepackage, I asked the caller to flag myrecord, and to let AT&T know not tocall my number again for six months,when I would be in a better position toconsider the offer. I was informed thatit was not possible to honor myrequest, and that my choices were toaccept the calls as AT&T made them,or to put my name on the DNC listand never be called again. I had nochoice but to pick the latter. I found it

completely ironic to read a few dayslater that AT&T was chosen by theFTC to manage its DNC list.

With the coming glut of capacity inthe commercial call centers, I suspectthat more than a few outboundtelemarketers may look towardnonprofits as a last chance to stay inbusiness, and will no doubt offer dirt-cheap telemarketing to any charity thatwill bite, as well as other incentives.While that may sound like a goodthing at first, does your organizationreally want to be represented by acompany that has no experience withfundraising, and is only doing itbecause they have no choice, their ownindustry having been decimated?

The following insights into theworld of the telemarketer may helpnonprofit marketers avoid suffering thesame fate as their commercialcounterparts.

Tips for Nonprofits WorkingWith Telemarketing Firms

1. The timing of a tele-funding con-tact should be dictated by the mar-keting strategy, not by when thetelemarketer needs the calls.

The number one priority of anyoutbound telemarketing company is tokeep its call centers filled with aconstant volume of calls. This mayseem innocuous enough, but in aninherently cyclical business, it is ofteneasier said than done. If a tele-marketing company makes a millioncalls one month, but only has half thatscheduled for the next month, theentire focus of the company becomesfinding another 500,000 calls.Otherwise, there won’t be enough work

to keep its employees busy, and a verycostly turnover will ensue. As a result,the telemarketer will push their clientshard for more calls, often offeringthem a variety of enticements.

Just as with direct mail, a tele-funding integration plan should bedeveloped for the fiscal year that isdesigned to most effectively achieve thenonprofit’s donor base developmentobjectives. It is easy to quickly set up atele-funding program to take advantageof a great appeal that might presentitself. The telemarketer’s call volumeneed, however, is not a great reason toalter the tele-funding plan.

2. As much effort should be put intoidentifying the donors who shouldnot be called as is dedicated toidentifying the donors who should.

Contrary to popular belief, noteveryone hates every “telemarketing”call they receive. Clear evidence is thatin 2001, 185 million customerspurchased $600 billion in goods andservices from telemarketers, accountingfor nearly 6 percent of the GrossDomestic Product. Additionally,hundreds of millions of dollars wereraised for charity that same year. That’saccording to The DMA and ATA.

When it comes to tele-funding,there is typically a spectrum uponwhich donors fall. A percentage of acharity’s donors actually prefer toreceive phone calls over direct mail toinform them about the organization’swork. Some never want to receive callsfrom the charity, or anyone else, forthat matter. Most donors fallsomewhere in-between. By analyzingwhat donors say in the phone calls, aswell as the outcome of previous

Lessons Nonprofits Must Learn…Continued from Page 6

telephone calls, it is possible to arrangedonors along the continuum, anddecrease calls to people who are lesstelephone responsive.

For instance, if you have made sixcalls to a group of donors over thecourse of the last three years, chancesare that some of the donors have hungup or said, “no” all six times. Chancesare, by eliminating these donors fromthe next call program, you will increaseyour response rate, ROI, and level ofdonor satisfaction.

3. The nonprofit should dictate the“rules of engagement” on the calls,not the telemarketer.

Most telemarketers will put a donoron the DNC list if she specificallyrequests it. However, if the donor onlysays that she doesn’t give over thephone, chances are, the telemarketerwill try to convince her why sheshould. How does the caller handlesomeone who is unemployed?Recently suffered illness? Retired? It isthe nonprofit’s job to dictate how thesecalls should be handled. If you allowthe telemarketer to dictate theprotocol, they will undoubtedly leantoward decisions that result in thegreatest number of calls being made inthe future.

4. Assessing your telemarketing firmshould be as much of a qualitativeprocess as a quantitative process.

When it comes to tele-funding,maximum ROI in the short run does notnecessarily equate to maximum long-term ROI. One of the most commonways of choosing a call center is to pickthe one that produces the best bottom-line results in a head-to head-split test.

Split tests are a good measurement tool, but the bottom line on a split testshould not be the overriding factor indetermining a winner.

The commercial telemarketingindustry operated on the basis ofgoing with the strategy that producesthe best bottom line on each program,and look where it got them. It is easy to generate higher results on aprogram by turning up the pressure,but at what expense to donorperceptions of the organization?

Assessing a call center providerought to be more about evaluating its quality and operating philosophy.Make sure to evaluate the call center’sexperience with nonprofit applications.There is little doubt that many of the commercial telemarketers will belooking to fundraising as a way to stay alive. They will no doubt offercut-rate prices and other incentives,but as the old saying goes: “You get what you pay for.”

Make sure to do a thorough on-site evaluation. You can’t get around touring the facility and listening to a significant number of calls to determine the skill level anddegree of training the callers themselvespossess. Personally meet the callers whowill be representing your organization.A common call center trick is tointroduce the client to the “best andbrightest,” and then when you go backhome, have the “B” squad actually makethe majority of your calls.

Make sure that your call centerprovider can provide you with amethod for “random monitoring.”

9Continued on Page 10

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It defeats your purpose if the call centermanagement knows when you are lis-tening in. Many reputable call centersrecord the calls digitally; you should beable to access any of your calls that youwant to listen to through this system.

5. Never, ever, absolutely never, allowa telemarketer to co-own any listthat it generates on your behalf.The only party that ever wins inthose deals is the telemarketer.

A good list is worth its weight in goldto an aggressive telemarketer. A com-mon practice is for the telemarketer tooffer “guaranteed net income” on a tele-phone acquisition program. However,in exchange, the telemarketer will retainownership of the list it creates. The tele-marketer not only continues to call thelist heavily for the initial organization; ituses it as a prospecting list for otherclients as well.

It’s only a matter of time, though,before the donors begin to growfatigued, unable, or unwilling to con-tinue supporting. By that time,though, the telemarketer has made afortune calling and renting the list,while the nonprofit has received littlemore than a few morsels along the way.

If the practice of commercialtelemarketers owning charity donor

lists were eradicated, the vast majorityof the nonprofit tele-funding activitythat is perceived negatively by thepublic would also stop.

Conclusion

Many nonprofits realize tremendousbenefits from their tele-fundingprograms, including increasedconversion and retention rates, upgradedaverage gifts, and significantly moreincremental net revenue in the short aswell as long run. At the same time, stateattorneys general and federal regulatorshave shown precious little reluctance topass misguided and onerous regulationsthat reduce income to charities whiledriving up costs — and consequently,the costs of fundraising.

The only way to ensure the ongoinguse of tele-funding as a tool forcharities is if the nonprofits educatethemselves about the dynamics of themedium and take control of the use ofthis tool. I’m afraid that, if we leave itup to the telemarketers, the outcome isalready revealed. �

Nick Stavarz is Founder and Presidentof Synergy Direct Marketing Solutions, a strategic consulting firm that developsand executes integrated inbound and outbound tele-funding strategies that putthe nonprofit’s interests first. For moreinformation call 330.869.5886 or e-mailnicks@synmar.biz

10

Do we have your most

updated information?Please fill out the form on Page 17.

Lessons Nonprofits Must Learn…Continued from Page 9

DID YOU MISSthe recent

Washington Conference?Limited quantities of the conference

resource book are available

FREE to NF Members $5.00 to Non-Members

E-Mail Jill Murphy at jmurphy@the-dma.org

to obtain a copy.

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Mission

The mission of Ducks Unlimited isto conserve, restore, and managewetlands and associated habitats forNorth America’s waterfowl.

DU’s conservation projects occurthroughout the United States, Canada,Mexico, the Caribbean, and LatinAmerica — wherever waterfowl breed,migrate, or winter.

History

The current founders of DucksUnlimited incorporated the originalfledgling conservation group in 1937,and within a year, 6,720 supportershad raised $90,000.

Since 1937, DU has raised morethan $1.7 billion dollars in itsconservation efforts. A majority ofDU’s habitat conservation work has

focused on nesting sites and wetlands in north-central US andsouth-central Canada, where 50percent of North America’s ducks originate. In 1974, DU turned itsattention to Mexico, where wetland projects offer secure wintering habitat.

12

This issue, we recognize:

Ducks Unlimited

The origin of Ducks Unlimited dates back more than 65 years, when a group of sportsmen banded together during the Dust Bowl of the 1930s to form an organization to protect America’s drought-plagued waterfowl — whose populations had plunged to unprecedented lows.

A new feature highlighting federation members

In 1984, DU began its work in theUnited States to provide waterfowlwith habitat and stopping places alongtheir migration corridors.

DU is currently the world’s largestprivate waterfowl and wetlandsconservation organization, with amembership of 712,729. It is agrassroots, volunteer-based organiza-tion; its members are conservationistsand lovers of the outdoors who live throughout the United States,Canada, and Mexico.

Recent Accomplishments

During the past fiscal year, 84 percent of DU’s support andrevenue was converted directly tohabitat conservation programs.

For the sixteen months ending June 30, 2002, DU volunteers hostednearly 6,200 grassroots fundraisingevents, such as member and sponsorbanquets, shooting and fishingtournaments, and golf outings. DUevents generated 32 percent of its totalrevenues for the 16 months, and 67percent of its membership.

These event dollars represent someof DU’s most important sources ofrevenue. Since event dollars aretypically unrestricted, DU is able tospend these funds in its highest priorityareas, and use them to leverageadditional funds from other sources.

Recently, DU has been able to leverage an average of six additionaldollars for every net unrestricteddollar raised. �

13

DU is a leader in implementing the North American Waterfowl ManagementPlan — an international agreement among the United States, Canada, and Mexico that establishes goals for rebuilding waterfowl populations to the levels of the 1970s.

Waterfowl are not the only beneficiaries of DU’s habitat work. Wetlandsimprove the overall health of the environment by recharging and purifyinggroundwater, moderating floods, reducing soil erosion, and providing recreation.Wetlands are nature’s most productive ecosystems.

Staff

John A. Tomke (volunteer)President

Don A. YoungExecutive VP

Robert SundbergSenior VP, Development

Jared BrownSenior VP Marketing Communications

David BlakemoreSenior VP Events Management/National Events

Contact Information:Ducks Unlimited, Inc.One Waterfowl WayMemphis, TN 38120901.758.DUCK (3825)www.ducks.org

Many of today’s nonprofit executiveshave begun to realize the importance of specialization when it comes tocommunication technologies. Withgrowing frequency, organizations are outsourcing large technologyinitiatives, leaving the installation and maintenance of online tools to the professionals, while staffmembers focus on using these tools to more effectively communicate with their constituencies.

In recent years, there has been aproliferation of Application ServiceProviders (ASPs) catering to thetechnology needs of nonprofits. Thisgenerally has been a boon to thenonprofit sector, enabling organizationsof all shapes, sizes, and budgets to takeadvantage of new technologies toimprove their Web sites, track theirconstituencies, accept online donations,and send targeted e-mails.

But, selecting an ASP involves morethan simply picking a vendor sellingcommoditized products and services.Nonprofits assessing ASPs should lookbeyond a simple line-item comparisonof features, and evaluate each vendor’sfitness as a potential partner. Unlike atraditional software purchase, whichcan be as straightforward as acquiring aproduct, using an ASP involves a long-term association.

Asking the following critical ques-tions up front will help ensure a long,stable, and productive relationshipbetween a nonprofit and its ASP:

1. How will my data be stored,managed, and backed-up? Who willhave access to it?

Your ASP will be directly responsiblefor planning, building, and executing a technical strategy to guarantee thatyour data will survive a physical,electronic, or financial disaster. At aminimum, every service providershould take a daily snapshot of thelatest constituent information forstorage on a system separate from theprimary database, in case of acomputer failure. There should be aplan in place to ensure that such asystem is immediately available, toreduce the risk of any loss of service.

Ask your potential ASP about the Internet data center it will use to manage its computing facilities.Third-party vendors should have aproven customer success record with resources to meet demandingbusiness conditions. Someone at every ASP you are considering should be available to answer your questions about network up-time or availability and physical security.

Additionally, inquire about therestrictions that your ASP has set upregarding internal access to your data.How many people have direct access tothe database? How many employeeshave the administrative passwords, andhow often are these changed? Clearly,the provider you select should treat thisaccess the same way that you do,limiting it to those who need tointeract directly with your account.Although virtually all ASPs collectaggregate data across their customerbase for trend analysis, they should notbe discussing highly sensitivemarketing data beyond the terms ofyour agreement.

2. How will you get the data inand out of our donor database?

You probably are working with anASP to further your overall marketingefforts and success. Therefore, you willhave to integrate data collected onlinewith your traditional “offline” donordatabase system. Almost every serviceprovider will claim the ability to exportdata in some format for this purpose.Be aware, though, that the mechanismand flexibility for this process varieswidely among ASPs.

The process of mapping specific datain the online world to your donordatabase is not a trivial undertaking.

Walking the Walk: The Right Questions to Ask Online Technology ProvidersVinay Bhagat, Founder, Chairman, and Chief Strategy Officer, Convio

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An ASP should be able to takeindividual fields, and transform,replicate, and assign them, as needed,within your existing system. Theactual process for executing this datasynchronization should requireminimal intervention, but should alsoallow some manual controls to ensurethe quality of the data exported,including the ability to removeduplicate profiles of constituents.

Most importantly, no matter howmuch confidence you have in apotential vendor, you must ask forreferences of customers with whom theyhave done similar integration. Ideally,each potential vendor will be able to putyou in touch with comparablecustomers in terms of size, donordatabase, and functional applications.

3. How do you handle credit cardnumbers?

An ASP offering online donation orvolunteer fundraising capabilities willhave to get credit card numbers fromconstituents. Be diligent aboutunderstanding exactly what happens tothese numbers during and after thedonation. In most cases, ASPs contractwith a third-party transaction vendorto handle the processing andinteraction with financial institutions.This not only ensures accurate andtimely execution; it also entrusts thestorage of sensitive information toorganizations that specialize in therequisite security.

More specifically, confirm with yourpotential ASP partner that it erases allcredit card information immediatelyafter passing it along. No matter howconfident you are in the security of the

transaction vendor, it is a moot point ifan inherently less secure ASP keeps acopy of the information in its systems.Although this is less of an issue forsingle transactions, an ASP may decideto store card information themselvesfor sites offering sustainer giving orrecurring payment programs. If youwill be using this functionality, askexactly where the card information isstored between scheduled transactions.

4. What software operating system and database is your systembased upon?

You may want to broach the subjectof software operating systems with aservice provider. A variety of tools arecapable of providing the reliableperformance needed for theseapplications, but if an ASP is usingenterprise products from Microsoft,you may want details regardingmeasures that they have taken tocombat their potential weaknesses.There have been a number of veryhigh-profile attacks on ASPs that havenot conscientiously applied Microsoftpatches that protect against softwarevirus attacks.

Generally, if a provider is using aUNIX-based operating system, such asSun Solaris, BSD Unix, or Linux, you canbe assured that these time-tested systemswill be much more resistant to suchattacks, and will not require the expensiveinvestment in your ASP’s technicalresources to keep operating smoothly.

5. How are fixes and improve-ments managed?

The features and functionalitiesprovided by an ASP boil down to a set

of software tools that require constantfixes and improvements. A true ASPwill have written most of theseapplications from scratch to meet thespecific needs of customers. It will beable to quickly correct mistakes, andrespond to new feature requests withminimal effect on system usability.

When speaking with prospectivevendors, try to find out about theirhistorical responsiveness. Ask abouttheir recent release schedule, orexamples of problems or new featuresthat they have quickly resolved.Progressive ASPs should have a systemin place to document and managerequests that are made for new features,and be able to discuss specific plans forupcoming development of new tools.

Conclusion

An educated, proactive consumerwill be prepared to ask the probingquestions to determine whichtechnology providers truly offer the tools his or her organization needs in the most dependable fashion.Although specific responses will varywidely, you should be able to create an “apples-to-apples” profile of eachpotential vendor and its investment inthe facilities, talent, and methodologiesto provide you the best quality of service. �

Vinay Bhagat is the Founder,Chairman and Chief Strategy Officer of Austin-based Convio, the leadingprovider of Internet software empoweringnonprofits to efficiently manage relation-ships with constituents. Visit them atwww.convio.com.

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For questions or comments, contactSenny Boone, DMANF ExecutiveDirector, at 202.861.2498, orsboone@the-dma.org

This is a critically important year fornonprofit organizations in the publicpolicy arena, particularly as issuesrelating to postal rates and service,privacy, and fundraising are shaped.The DMA Nonprofit Federation(DMANF) is involved in protectingyour interests in Washington, DC,before state legislatures, and before theUS Postal Service (USPS).

� Fundraising: On May 5, theUnited States Supreme Courtissued its decision in Madigan v.

Telemarketing Associates, Inc., themost important case for fundraisingin over a dozen years. TheDMANF had submitted an amicusbrief seeking to protect charitiesfrom attorneys general seeking toprosecute them for fraud, for notdisclosing to callers a particularfundraising percentage. The deci-sion is a big win for the nonprofitcommunity, upholding the veryimportant principle that charitablesolicitations are protected by theFirst Amendment. The percentageof fundraising proceeds turned overto a charity may not serve as thebasis to prove fraud, because thepercentage is not an accurate meas-ure of the amount of funds used fora charitable purpose; not offering a

fundraising percentage in a solicita-tion does not in and of itself consti-tute fraud, according to the Court.To spur a favorable decision, theDMANF asked its members to signon to the amicus brief effort togeth-er with other organizations, result-ing in the largest list of nonprofitsupporters in the Supreme Court’shistory. However, the Illinois attor-ney general may pursue a fraudaction against the defendants formisrepresentations they may havemade to potential donors duringtheir telephone conversations.

� Postal Rates: Legislation to change the funding formula for the USPS’s payment into the Civil Service Retirement Systempassed both House and Senate andwas signed into law by PresidentBush. It is a victory for nonprofitmailers who urged its passage,because it will save nonprofits millions of dollars in postal rateincreases. The USPS promises notto raise rates until 2006, whichmeans the next rate case will not be filed until 2005 — welcomenews for small organizations contending with large litigationexpenses for rate cases. TheDMANF worked with the mailingcommunity to secure passage of this legislation, and had many members contact their representatives. THANK YOU!

� Postal Reform: The PresidentialCommission on the Postal Servicewill issue its recommendations onreforming the agency by July 31,2003. Until the Commission acts,expect no postal reform effort toproceed on Capitol Hill. TheDMANF filed comments on behalf of nonprofits seeking to protect nonprofit postal rates anduniversal service. Individuals representing commercial mailersthat see the nonprofit rate as a subsidy, filed a few commentsseeking to increase rates for nonprofit mailers. Changing theway nonprofit rates are set wouldrequire legislation that the DMANF would strongly oppose.

� Telemarketing: Now that theFederal Trade Commission (FTC)has issued its final rules on a national do-not-call list, with a nonprofit exemption, due to theefforts of the DMANF, it remains to be seen how the rules will beimplemented. Commercial organizations working on behalf ofnonprofits will be subject to newrules — but will not be subject tothe national list. The DirectMarketing Association has filed alawsuit blocking implementation ofthe rules, to protect its commercialtelemarketing members. TheFederal CommunicationsCommission is at work on its ownnational do-not-call proposal thisyear — but has exempted nonprofitsfrom the rules. For a flowchart onhow the FTC rule impacts nonprof-its and their fundraisers, go to theDMANF Web site, www.nonprofitfederation.org.

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Public Policy Scorecard

Nonprofit Public Policy IssuesSenny Boone, Esq., Executive Director, DMA Nonprofit Federation

� States: New York State, under the leadership of Attorney GeneralElliot Spitzer, continues to be one of the least charity-friendly states inthe country. The latest version ofproposed New York regulations setforth a series of new charityaccountability measures that will be extremely costly and burden-some to charities that operate inNew York. The first set of regula-tions received vehement protestsfrom the nonprofit community, and has been revised to address some of the concerns. But Spitzerand his staff continue to seek waysto control the nonprofit fundraisingcommunity through stifling regula-tion, such as seeking a federal banagainst family-run nonprofits valued under $25 million. We will keepyou informed. �

Stay tuned to the e-mail bulletin News Update as we strive to keep youinformed and alert to these importantdevelopments. Your help and participationmay be needed. If you are not receiving our e-mail alerts, contact Jill Murphy at 202.861.2497, or jmurphy@the-dma.org.

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Please help us keep our records up-to-date!

Name ________________________________________________________________________

Organization __________________________________________________________________

Title __________________________________________________________________________

Address ______________________________________________________________________

City, State, Zip ________________________________________________________________

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Additional Contacts:

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THE DMA ANNUAL CONFERENCE & EXHIBITIONOrange County Convention Center, Orlando, FL

Pre-Conference: October 11–12, 2003Exhibition: October 12–14, 2003Conference: October 12–15, 2003

www.dmaannual.org Key Code: NPFNY

GAME TIP:

Look for conference

sessions that specifically

address issues of

interest for nonprofits!

Please fax back to 202.628.4383or mail to us at:

DMA Nonprofit Federation1111 19th St., NW, Suite 1180

Washington, DC 20036

As a fundraising agency, we deal on aregular basis with the joys and struggles ofanswering Requests for Proposals (RFP’s).Some organizations call them Requestsfor Information, some Requests forQuotes, Requests for Pricing, etc.

They can be as short as two pages or aslong as 100 pages. Sometimes, theyrequire a very specific sequence for theanswers; other times, that’s left to thediscretion of the recipient, as long as therequested information is included.

Sometimes the RFP is looking for abid for a single job. Other times, itincludes a complicated proposal formultiple mailings or multiple media.Occasionally, RFP’s require strategy andprojections for 3 to 5 years and more.And, more often than not, RFPresponses are expected to include so-called “spec” creative, proposed artexecuted specifically for the organization.Basically, all RFP’s come down to thesame thing: They typically need to beanswered within a fairly limited amountof time, and they require a lot of legwork, writing, and creativity.

Organizations often spend a great dealof time and resources putting together anRFP, thinking of the challenges theygenerally see within their organizations,and specifically within the developmentdepartments. So, how can theseorganizations ensure that the responsesthey receive to their RFPs will meet their

needs, and be similar enough thatcomparisons are accurate and relevant?And ultimately, how can they ensure thatthe agency they select truly fits theirneeds, and can help address theirfundraising challenges?

Ask the Right Questions

Fundraising is a “people business.” So,why is it that some RFP’s ask virtuallyimpossible questions? Or demandequally impossible deadlines? Is the goalreally to look for the most desperateagency that will jump through hoops toget the answers? Or is the goal to look forthe best agency for the job?

Creating a standard RFP is impossible.Every organization is different, and everyorganization has different requirements,and is looking for an agency that “fitsthem best.” However, there are somebasic “golden” rules to constructing anRFP that will work for both parties —organizations and agencies. These ruleswill ensure that answers to RFP’s providethe most relevant and pertinentinformation, and provide a goodoverview of the potential of the agency.

The RFP Writer’s Golden Rules

1. Give a realistic timeframe within whichto answer the RFP. A month is ideal.Two weeks is really too short if youwould like to receive quotes fordifferent elements from differentcompetitive vendors.

2. Provide correct and completeinformation. While it may be hard toshare response figures, do include atleast the following:

a. How many agencies have receivedthe RFP. You don’t need to share thenames, but it is often helpful.

b. The reason for sending out the RFP:new agency search, change, new ideas, orsimply because the organization isrequired to do an RFP every 3 years.

c. What challenges your organizationcurrently faces: acquisitions, renewals,major gifts, telemarketing, types of mediaused, overall income generated.

d. Your Web site address, and as muchbackground information on yourorganization as possible.

e. Samples of your current materials. If the agency has to hunt for them, it loses valuable time. Do indicate if you’renot happy with your materials and, ifpossible, why.

f. A description of your currentprocesses. Share your results if you can.This information will remainconfidential, but it will certainly guideagencies in their effort to come up withimproved strategies and tactics.

g. A description of the types of servicesfor which you’re looking.

h. Clear instructions. Be as clear aspossible about the documents you’d liketo receive, the deadline, where to send theproposal, to whom, how many copies tosend, the specific order of organization ofthe documents, etc. Provide the name ofa contact person who can answerquestions. If appropriate, share theseanswers with all of the agencies fromwhom you are awaiting a proposal. If oneagency has a question, it is likely that theothers may have the same question. Thegoal is to ensure that all agencies are

18

The Golden Rules for Writing and Answering Requests for Proposals Erica Waasdorp, Vice President of Fundraising, DMW Worldwide

working from the same basicinformation.

i. A description of the review andfeedback process. How long will it take?Will a presentation be required in thesecond stage?

j. Clear instruction about costestimates: how you’d like them presented,what should be included, what shouldnot be included. Indicate if retainer feesare acceptable or not.

3. Do not expect five-year plans. They’resimply not useful, because the agencydoes not know your current situation.A one-year plan example is fine ifsome basic information has beengiven. For instance, if a membershiporganization does not indicate that thecurrent membership rate is $40, andthat it does one acquisition appeal ayear, it’s hard for an agency to come up

with a relevant one-year plan. Are youtesting the agency on creativity,promises, or crystal ball reading?

4. Do you expect spec creative? Pleaseunderstand that this costs time andmoney. It is much more pertinent toexpect this in a second or third phase.Past examples of the agency’s workshould provide enough insight intohow creative the agency can be, andtheir production quality. Unless it isan RFP for creative test ideas, it’s notfair to expect an agency to spend manyhours of valuable time developingcreative ideas that cannot be used bythe organization, in any case, if theagency is not selected.

5. Do let the agency know that their response and proposal have been received.

6. Do let the agency know what the realreason was they made it, or did notmake it, to the next stage. Agenciesappreciate the opportunity to answerRFPs, and put significant time andeffort into their responses.

You want to be able to judge agenciesin an objective way, based on the samecriteria, and come up with the best fit. Ifthe above rules are followed, chances arethat the proposal process will become amore pleasant experience for both parties.And you will, much more quickly, findthat rewarding relationship with the bestagency to address your current needs. �

Erica Waasdorp has been with DMWsince May 2000, and deals with responsesto RFP’s on a regular basis. Erica can bereached at ewaasdorp@dmwdirect.com or774.773. 1200, Ext. 224.

19

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