Bittersweet Moments of Clarity

Clear thinking.

When you get better at something, there’s that bittersweet moment where you’re thinking two things almost simultaneously:

  • Oh man, I’ve been doing it wrong all along… and
  • Hey, I know how to do that better now!

In those moments, it’s as if you see the world a little more clearly than you did before. You understand how things work a little better than you did a moment before.

I had one of those “moments of clarity” recently, thanks to the impressive and irrepressible Jen Love.

We were on a panel at the Storytelling conference talking about direct response fundraising. I shared one of my writing tools: starting the first draft of every appeal and e-appeal with the sentence, “I’m writing to you today because….”

(I’ve written about why that’s an effective tool here and here.)

Jen then said something like, “Yeah, I love that. I’ve taken it a little further and what I use is, ‘You’re hearing from me today because…’.”

Cue my moment of increased clarity.

Her version is better than mine! It starts with the magical word, “you.” It places the donor in a more active role with more control. It leads to more writing about the donor and what they care about, and less about the organization.

I share this with you today because… You’re reading this today because you know that the more moments of clarity you can have, the more effective a fundraiser you’ll be.

But there are Fundraisers and organizations who don’t really want those moments of clarity. They like their way of doing things. Or they can’t believe that your moment of clarity could apply to them, their communications, or their donors. For those organizations, getting better at fundraising is a challenge.

But if you seek out those moments – if you’re eager to find out that what you’ve been doing is a little wrong, and that there’s a better way to do it – getting better at fundraising and raising more money is delightful.

In my experience, the most effective fundraisers are having “moments of clarity” all the time. Because of those moments, they see the world a little more clearly. And they create fundraising that’s more effective.

Hey, about your envelope…

star company envelope.

This blog post from Five Maples shares the results of a head-to-head test of the envelope on a direct mail appeal for a nonprofit.

Their donors were split into two equal groups. One group received a letter in an envelope that included the organization’s tagline. The other group received the exact same letter, but the envelope did not have the tagline on it.

The tagline on the envelope was the only difference.

The test showed that including the tagline on the envelope reduced the number of people who responded by 65%. Put another way, putting their tagline on the envelope reduced the number of people who sent in a gift by over half.

Let’s notice that this test isn’t about all taglines. It’s about that organization’s tagline, on that piece of direct mail.

But still, that is a massive impact.

You can take three lessons from this simple test that will make you a more effective fundraiser.

Lesson #1

If your organization is putting its tagline on your outer envelope, do you know if it’s helping or hurting?

If you don’t know, it’s time to ask questions instead of making assumptions.

(By the way, there is ZERO judgement here if you’ve been making assumptions. We all do it at the beginning of our fundraising journey.)

Lesson #2

A bigger lesson this data teaches is that what you put on your envelope matters. A lot.

There are very smart people who argue that what you put on the envelope matters more than what you put in the envelope. How’s that for a brain-breaker? Because if your recipient doesn’t open your envelope, what good does the incredible message inside do?

I don’t spend much time on that argument because I think it’s a chicken-or-egg situation – but it is fun to talk about with other Fundraising nerds over a drink.

Moving forward, you want your organization to be thoughtful about what’s on your envelopes and in your email subject lines (which are more-or-less equivalent). And if you want to know more about this right now, the blog post mentioned above is a great place to start.

Lesson #3

Data about fundraising will help you know what’s important and where to spend your time.

For instance, I spend a ton of time on outer envelopes, and on the description of what a donor’s gift will accomplish. I spend almost no time trying to make sure an appeal matches a nonprofit’s “voice.” I make those decisions because data shows how much envelopes and descriptions matter, and how using an organization’s voice in the mail usually causes them to raise less money, not more.

For what it’s worth, in my career I’ve tried to develop what I think of as an “evidence-based worldview” for how to be successful in fundraising. That worldview is made up of as many test results (like this one!) and facts that I can get my hands on.

If you can build a worldview like that, you’ll have a good idea of what path/tactic/approach will have the best chance of success, regardless of the situation.

And if you’re just beginning to build your worldview, this little test about a tagline on an envelope is a great place to start!

Response Rate Goals

Reply envelope.

At last week’s Storytelling Conference, I was asked a really good question:

“My organization is new to direct mail. What kind of response rates should I be getting?”

In case it’s helpful to you, here’s my answer:

For printed appeals my goal is a 4% response rate

For printed newsletters my goal is a 3% response rate

Those are helpful benchmarks, and I hope they help you judge how your mail is performing.

But I have to mention, things start to get interesting right away. Take a look at these variables:

  • The more donors you have, the lower your response rates tend to be. For an organization with 40,000 donors, achieving 3% for an appeal and 2% or 2.2% for a newsletter might be success.
  • The fewer donors you have, the higher your response rates tend to be. If you have 500 donors, you might be getting a 6% response rate on appeals, and a 4% response rate on newsletters.
  • Finally, who you include on the mailing list is another big variable. If you include your monthly donors, your response rates tend to go up. If you include lapsed donors who haven’t made a gift in 36 months, your response rate will go down.

I hope this helps you or your team have benchmarks and goals to aim for. And that there are variables that need to be taken into account. What “success” looks like varies quite a bit from organization to organization – even from mailing to mailing.

The important thing is to measure your results so you know what works best for your organization, and then do more of that!

Trust Your Donors

High trust.

If you’re at an organization that has a hard time approving new ideas in fundraising, keep reading.

(And maybe you’ve just arrived home from last week’s Nonprofit Storytelling Conference with your head full of new ideas you’d like to try!)

To many people working in nonprofits, new fundraising messaging and tactics can feel deeply risky. And so, some of your team will push back against your new ideas.

To those people, when they push back, here’s what I want you to say…

“I want you to trust our donors. I want you to trust that they could be giving more, and that they are adults.”

“I want you to trust that their support is deeper than a new message, new tactic, or new appeal could shake.”

“Let’s trust that our fundraising right now is not the best it can ever be. And let’s trust that, like larger organizations, we can regularly try new things and improve over time.”

Will each donor say “yes” every time we try something new? Of course not.

Will every “something new” work better than the thing it replaces? Of course not.

But until you trust your donors enough to regularly try new things, to ask for support more often, and try new messages, you’ll never tap into all the giving available to you.

Don’t let internal worries and fears put boundaries around your donors’ generosity. It’s your donors’ job to set their boundaries, not yours.

Trust your donors. Their generosity will astound you.

‘Pre-Existing Condition’

condition

Your donors have what’s called a “pre-existing condition”…

They cared about your beneficiaries or cause before your organization came into their life.

Three examples:

  • Say your organization is a library.  Your donors cared about books, literacy and your community before they had even heard of your library.
  • Say your organization helps a tiny village in Ethiopia.  Your donors cared about kids, and people having enough food & an education before they had even heard of your organization or the village.
  • Say your organization provides access to activities for people with disabilities in the Tri-state area.  Your donors cared about people with disabilities, and about everyone being able to participate, before they heard about your organization.

Knowing this, what should your fundraising to individual donors primarily be about?

Should it primarily be about your organization?  Should it focus on your programs?  Should it be about what the organization has accomplished in the past? 

No!  Your fundraising should focus on the values and interests that caused your individual donors to pay attention to your organization in the first place.  (Note that I’m not talking about your comms to Foundations and other donors for whom your programs and your effectiveness are core necessities for them to donate.)

If you look at your appeals and e-appeals and find that they talk primarily about your organization… for instance, if you’re sharing the names of your programs and how they work… you could be raising more money from individual donors.

When we help organizations see their donors’ pre-existing conditions – and then change the organization’s fundraising to talk about what the donors cared about before they met the organization – the organization raises more money.

When you create your fundraising, don’t think, “We need to inspire our donors to give to our organization.”

Instead, think, “Let’s talk about what our donors already care about, and the difference their gift will make.”

5 Tips For Your Most Successful Digital Year-End Campaign

5 Tips For Your Most Successful Digital Year-End Campaign

Are you ready?

According to Network for Good, most nonprofits raise about 1/3 of their revenue in December. And 11% of their annual total during the last three days of the year.

Year-end is the easiest time to raise more money online! Think about it this way:

Your donors are more likely to give during the last weeks of the year than any other time of the entire year.

And because year-end is such an important time for digital fundraising, we want to give you 5 tips that will ensure a successful year-end for your fundraising.

# 1: Use the same message in every channel

Some of your donors are online, some aren’t. Pick your strongest message, then repeat it through direct mail, email, your website, and social media. It’s more powerful for your donors to see the same message in different media channels than it is for them to see two different messages.  Repetition is your friend!

# 2: Ask early and often

You’ve been talking to your donors all year about what your organization does, you’ve told them how they can help. So this time of year, don’t Thank them. Or Report to them. It might feel counterintuitive, but our testing showed that Thanking and Reporting this time of year will cause you to raise less money than you could. Follow the advice below and just Ask well!

# 3: Emphasize the deadline

A deadline communicates urgency. December 31 is a natural deadline — for the tax year and for your organization. Tell donors your deadline and repeat it multiple times in your messages.

# 4: Set a goal

How much do you want or need to raise? What would it take for you to meet your budget? Feed everyone you want to feed by year-end? Shelter abandoned pets through the end of the year? Overcome a financial shortfall? Tell your donors the goal.

We need to raise $XX,XXX by midnight, December 31.

# 5: Communicate consequences

What will happen if you don’t meet the goal? Connect the donor right to the heart of your work.

We need to raise $XX,XXX by midnight, December 31 or we will have to cut back on the number of pets in our shelter in the coming year.

Or

We need to raise $XX,XXX by midnight, December 31 or we will not be able to advocate for the arts as effectively next year.

Whatever your organization does, if having less money means you would be able to do less next year, say so!

Most important tip? Start now!

10 Great Questions to Help You Collect Better Stories

questions

As you know from our involvement with the upcoming Storytelling Conference, we believe storytelling in your fundraising can be very effective. A good story will help to support your fundraising offer and connect your donor to what your nonprofit does.

There’s good reason for this, too. Telling stories is what humans do best. Ever since we were drawing pictures onto the side of rocks, storytelling has been our go-to form of communication. With a good story, we’re able to share our passions, our hardships, and our joys. It’s often the best way to explain how things work, how we make decisions, how we persuade others.

For us fundraisers, a good story is vital to engaging our donors. A moving story, if told simply and well, will invoke emotion and motivate her to give. But putting a story together is not always easy. Especially when you’re dealing with beneficiaries who may be embarrassed, shy, or reluctant to share about the difficulties they’ve faced.

So how can you collect the information you need to tell a compelling story in your fundraising communications?

To collect a good fundraising story (including emotional quotes that you can use to help the donor feel something) you need to first see several sides of the beneficiary. And one great way to do that is to interview a beneficiary in person, over the phone, or via email.

But it’s not just a matter of asking them to “tell their story.” You need to ask specific questions that are worded and framed correctly. Do this, and you will get the responses you need.

To help you get started, here are 10 interview questions I’ve used to get great responses from beneficiaries. If you end up using any of these questions, make sure that you adjust the wording to suit your cause and your nonprofit.

  • Tell me your first memory of (what your nonprofit prevents or supports)?
  • What did you find most challenging about (the cause)?
  • What was the best/worst thing to happen?
  • What would someone be surprised to know about you?
  • Tell me how you first got involved with (your nonprofit)
  • What did you think when you first met (your nonprofit)?
  • Tell me how (your nonprofit) helped you
  • If you hadn’t met (your nonprofit) what do you think your life would be like?
  • What does your future look like now?
  • If you had the chance to say something to those who have helped you, what would it be?

You can also pepper any answers with follow up questions like, “What makes you say that? Can you give me an example? How did that make you feel?”

Stories inspire us to act. So whatever it is that your organization does for others – providing food, clothing, safe housing, safety, or spiritual support – capturing and then telling a beneficiary story can support your offer and help you raise more money.

Happy Fundraising!

How you can use the 80/20 rule to raise more money

80/20 rule

At Better Fundraising we see a LOT of examples of the 80/20 principle in fundraising. 

Shoot, they even use an example from fundraising as the graphic on the Wikipedia page!  (A great summary of the 80/20 principle is to say that 80% of the effects come from 20% of the causes.)

A couple of common examples:

  • 80% of a company’s sales usually come from 20% of its customers
  • 80% of a country’s land is often owned by 20% of its people

What follows are three examples of this principle in fundraising, along with how you can use them to raise more money for your organization.

The 80/20 Rule in Major Donor Fundraising

About 80% of your individual donor revenue will come from 20% of those donors.  (And in recent years it’s been closer to 90% of revenue coming from 10% of donors).

The organizations that make the most of this reality (especially this year) are the ones who intentionally prioritize those donors with how they spend their fundraising time and budget. 

The 80/20 Rule in Direct Mail

If you look at eye-tracking studies, you’ll notice donors only read about 20% of appeals or newsletters. 

To be great at raising money through the mail, you need to know what portions of your letters or newsletters are most likely to be read.  Then you put the content that’s most likely to drive action in those locations.

The 80/20 Rule for Small Shops

For organizations that only send out a couple of fundraising pieces a year, 20% of their communications typically raise 80% of their individual donations.

In our experience, those organizations can always raise more money immediately.  All they must do is isolate the types of communications that raise the most money, send out more of those, and send out fewer of the type that raise less money.

That’s such a radically simple idea that most small shops believe it can’t be true.  But it IS true.  We’ve done it so many times I can give three examples off the top of my head:

  • Annual reports
  • Most e-news
  • Appeals that are general calls for support

We cancelled those by the bushel and never – not once – saw a drop in revenue. 

The Double Benefit

Here’s the great thing about applying the 80/20 rule: you get a double benefit.  You save the time and money from not doing an inefficient activity.  And you get that time and money to do more of an efficient activity.

The Questions for You

Look at your organization’s fundraising activities.  What activities don’t produce measurable results, and you should cancel them?

What activities drive the most revenue, so you should do more of those with your freed-up time and budget?

In your mailed communications, are you putting the most important content in the 20% of your letter your donors are likely to read?  

Savvy organizations are constantly measuring their fundraising results, so they know what should be jettisoned and what should be done more often.  Because there’s always a way to raise more by doing less.

This post was originally published on September 29, 2020.

Top 5 Appeal Tips

Top 5 Appeal Tips.

I’ve reviewed a LOT of appeal letters.

Recently someone thought to ask, “What’s the advice you give most often?”

What a great question! I immediately wanted to know because it seemed like the top 5 pieces of feedback would make a great “checklist” to share with organizations who want their appeals to raise more money. So we did the research.

From hundreds of reviews, here are the Top 5 pieces of advice I give most often when reviewing an appeal or e-appeal…

#5 – Avoid using pronouns in underlined or bolded copy

The main reason to highlight specific sentences and sentence fragments in appeals is to pre-select what you want most people to read.

Here’s what I mean by “pre-select.” Most people will scan, not read, an appeal letter. As they scan, their eyes are most likely to stop on emphasized copy. So by bolding and underlining, you are in effect choosing for the scanner the parts of your appeal they are more likely to read.

And if you’re going to take the time to choose a sentence for a person to read, make sure they can understand that sentence without having read the rest of the letter. Which brings us to underlining pronouns and why not to do it.

If you underline a sentence that reads, “He needs it today” the person scanning your letter does not know who “he” is and doesn’t know what “it” is. The person’s limited attention has just been taken by something they can’t understand. Not good.

Whatever you highlight in your letter should be able to be easily understood without the context provided by the rest of the letter. It needs to make sense if it’s the only thing the person reads.

#4 – Ask donors to help one beneficiary, not to help all the beneficiaries

Appeals and e-appeals tend to work better when the donor is asked to help one person – one beneficiary – instead of asked to help all the beneficiaries.

To give you an example, a foundation that supports a hospital would likely write, “Your gift today will help cancer patients.” But the appeal or e-appeal would raise more money if the ask was, “Your gift today will help a cancer patient.”

Why? Because when a donor is asked to help just one beneficiary, it’s easier for her to say “yes” then when she’s asked to help an unknown, larger number of beneficiaries.

Additionally, it’s more believable. Say I’m a $1,000 donor to an organization that helps kids. Do I really believe them when they say, “Your gift will help all the children we serve”? I know the organization helps thousands of children, and I’m pretty sure my gift isn’t going to help all of them.

There’s a rule I have in mind as I create or review any piece of fundraising: I need to convince the donor to help one person before they will be interested in helping more than one person.

#3 – Include no more than 1 or 2 numbers in an appeal

Most numbers in appeals need context and thought before the donor recognizes why those numbers are important.

But because most donors don’t have the context, and are unlikely to put in the thought, the numbers become a part of the appeal that the donor doesn’t really understand.

Think about that for a second; the organization is using numbers to establish credibility and expertise… but is pushing donors away. The numbers have the opposite effect than the organization intends.

The numbers can be GREAT for Foundations, Partner organizations, Government grants, etc. But not for mass donor appeal letters and e-appeals.

And of course there are some numbers that are good to have in your appeals – you can read about those here.

#2 – Avoid “we” and “our” language

Your fundraising appeals and e-appeals should sound as if they were written by one person, for one person.

It should not sound as if an organization is writing a donor. It should sound as if a person is writing a donor.

Are there times with the editorial “we” makes sense? Sure. Some parts of annual reports come to mind. Your website. Blog posts, too.

But in your direct response fundraising, sounding 1-to1 is the way to go.

#1 – The only good news in an appeal should be that the donor’s gift today will help

Here’s something we see again and again – it’s like clockwork.

We’ll start working with an organization. Their previous approach to appeals was to “share a story of something they’ve already done, then ask the donor to do more of that thing.”

We change their approach to appeals that “share what’s needed today and how the donor can help.”

Their appeals begin to raise more money immediately.

Note: you should absolutely share past successes. That’s how your donors see that their gift to your organization was a good decision. But share the successes in separate publications; your newsletters, your blog posts, stories on your website, in e-stories, and your annual report.

Focus your appeals on something the donor cares about but that needs help, and the fantastic news that she can make a difference with her gift today.

This is hard because it’s counter-intuitive. But it works like crazy.

This post was originally published on October 19, 2021.