Category: Report

What the purpose of your newsletter SHOULD be

Steven  |  Report
Newsletter.

This is the first in a series of posts that will show you how to create donor-delighting, money-raising newsletters.

We’re talking about newsletters that your donors love to open, the kind that increase the chance they’ll keep giving to your organization year after year, and the kind that raise way more money than they cost to send out.

What Is Your Newsletter’s Purpose?

Here’s our approach, and it’s been successful for every type of organization in every sector we’ve tried:

Your newsletter exists to show your donor how her gift made a difference, and to show her what her gift today will do.

There’s a lot in that one sentence, which we’ll unpack during this series.

But it’s just as helpful to understand what your newsletter should not be:

  • It should not a newspaper, full of all kinds of
    stories
  • It should not be about your organization, your programs,
    your staff, your volunteers, your sponsors, or your partners
  • It should not be about how much money you’ve
    raised
  • It should not be a “playbill” about the
    upcoming events and ways a donor can get involved
  • It should not “hide the good news” by only
    mentioning the donor at the very end of stories

And yet, those are the things that most nonprofits use their newsletters for.

 That’s why most newsletters don’t get read.

 That’s why they don’t measurably help organizations keep their donors.

 And it’s why most newsletters don’t raise much (if any) money.

Here’s the Big Idea:

Your donor is more interested in reading about herself – about what she and her gift did – than she is reading about any of those other things.

So if you want her to read your newsletter, write to her and write about her.

You Need a To-do list and a Not-To-Do List

Newsletters don’t raise a lot of money by accident.

The content is curated and the offer decided. Then it’s written and designed with the intent to raise money.

Everything included in it is done with a purpose. That means that a bunch of things are also excluded on purpose.

For smaller organizations, this is hard, because it means telling some staff that their program will never be featured in the newsletter. It means getting more stories and photos of beneficiaries. It means the “save the date” for your next event needs to be an additional mailing, not in your newsletter.

It’s hard, but it’s worth it. This approach works measurably better than any other approach I’ve ever seen in my 27 years of fundraising.

If you’d like to know more, stay tuned (and subscribe to our blog if you haven’t already)!

This post was originally published on February 20, 2020 in a series of 10 posts on Donor-Delighting Newsletters. This series has been published as an e-book that can be downloaded here.

Reporting Email ‘Template’

McKenzie Mitchell  |  Report
Report email.

Today I’m sharing a simple tool to stay in touch with your donors… an e-story.

What’s an e-story?  It’s a reporting email for donors that’s short, simple, personal, and story-forward – written as though you couldn’t wait to share a story of success with a special donor.

I challenge you to write an e-story (maybe right now?!) and share it with your donors this summer!

Here’s the big idea: the email shares one story of success, one person your organization helped or one thing your organization accomplished.

And here’s a template (I guess it’s more of an outline) to get you started!

Dear <First Name>,

[Donor-focused gratitude statement – thank the donor for helping cause the outcomes of your organization’s work]

[Summary of problem donor helped to solve for one person or thing]

[Introduce story]

[“Before and after” story about a specific beneficiary. It should describe the “before” (what was happening that help was needed) and then describe the positive “after” that your work and the donor’s gift made possible.]

[Statement that makes it clear that the transformation from the “before” to the “after” would not have happened without the donor’s generosity]

[Warm, emotional closing thank you statement]

Signature

The whole thing is usually around 250 or 300 words.  This keeps it short and easy to read.

Sending an e-story to your donors this summer will ensure you don’t “go dark” on your donors.  And your donor will feel great knowing the incredible difference they made possible!

Inconvenient and Inefficient

Steven  |  Report
Inconvenient.

We all want more people to just show up at our nonprofit, love what we do, and become donors for life. 

Yet we all have “the donors who need to be convinced.”  The donor with a complaint who, after a real conversation, gives their biggest gift ever. The Foundation that just doesn’t get it… but once convinced, becomes your biggest fan.

And we know those donors make a huge difference to the bottom line.

It’s nicer when it’s easy.  It’s not convenient to stop what you’re doing to talk to someone with a complaint or questions.  It’s not efficient to email the foundation for the eighth time.

But both are worth it.  Because what we’re really here for are the long-term results of the “easy & fun” and the “inconvenient & inefficient.”  Both are part of the deal for organizations that want to maximize their impact.

Three Questions to Get the Best Newsletter Stories

McKenzie Mitchell  |  Report
Questions and stories.

Want to write newsletter stories that show your donors the incredible impact they have had on your beneficiaries?

It’s easy, and I’m going to show you how.  But first you need to know one thing…

Most donors give because they want to make change.  They want the world to be noticeably different and better because of their gift. 

The best way to show donors the change that their gift made is to clearly demonstrate what the beneficiary’s life was like before and after the donor’s gift (and your organization) helped them.

Here are three questions you can ask a beneficiary that will give you everything you need to write a story that will make your donors feel amazing:

  1. What was your life like before <your organization/program/staff> helped you?
  2. What is your life like now because of the help you received?
  3. If you could say anything to thank donors who gave to support <your organization>, what would you tell them?

Ask these three questions and you’ll have a story that shows the change the donor’s gift help make.

By telling stories like this when you “report back” to your donors, you’ll build trust because your donors will see that their gifts cause change.  And because of that, they’ll be more likely to say “yes” the next time you ask for support in an appeal.

The Danger of Focusing on One Metric

Steven  |  Report
Secret meeting.

A friend who’s a Fundraiser recently shared a story with me.  It was about a nonprofit who received a pitch from a consultant that he would increase their average gift size.

Sounds great, doesn’t it?  What nonprofit wouldn’t want all of their donors giving more?

So the nonprofit hired the consultant.  And their average gift size went up! 

Sounds great, doesn’t it?

Too bad what also happened is that their response rates went down.  And their retention rates went down.  So despite the increase in average gift, the organization is raising less total money than they used to be.  And they have fewer donors.

That doesn’t sound great.

This is a great illustration of the danger of focusing too much on one fundraising metric.  All the main metrics are important, but none of them exist in a vacuum.

It’s relatively easy to increase any one metric.  Need higher response rates to your direct mail?  Include a freemium!  (Your response rate will go up… but your package now costs more.)  Want to increase the ROI on your next campaign?  Don’t send direct mail, only send email!  (Your ROI will go up because you’ve lowered costs by so much, but you’ll raise less money overall.)

The trick is understanding the whole system and the tradeoffs made with every tactic.

Any time someone wants to optimize one metric, always be wary.  Ask what the consequences will be to the other metrics.

And always remember: the only metric you can use to pay for programs is Net Revenue.

How to Increase Your Email Open Rate by 14%

Steven  |  Report
Email Open Rates.

A client of ours started sending monthly “e-stories” last November. And since November, their average email open rate has increased from 24% to 38%.

Most organizations would sacrifice a Board member for a 14% increase in open rates!

So you might ask, “What’s an e-story?”

An e-story is a low-fi, simply-formatted email from your E.D. to your donors. It tells one “before and after” story.

Here’s the outline:

  1. Warm, personal greeting
  2. Directly tell the donor that you are going to tell them a story that’s a good example of how their gift made a difference
  3. Tell a “before and after” story from your organization’s work
  4. Reaffirm to the donor that they helped make that ‘before and after’ happen
  5. Let the donor know that they can give again if they’d like to
  6. Thank the donor for their generosity

You want your e-stories to look like they came from your E.D.’s personal email. No formatting, no header image, no photo, no links to social, you get it.

It should feel personal.

Why E-stories?

Most “reporting” to donors via email answers questions that nobody is asking.

Typical “e-news” or “e-newsletters” have abysmal open rates. No one was reading them.

So how can organizations fulfill the need to “report back on a donor’s gift” via email?

If they aren’t reading the e-newsletters, that means e-newsletters aren’t relevant for most donors.

So we asked ourselves, “What would be relevant to most donors?”

Telling and showing the donor that their gift made a difference.

The Results

Your e-stories will raise more money than your e-newsletter.

Your e-stories will have higher open rates than your e-newsletter.

Your e-stories will cause more engagement than your e-newsletter (you’ll know this because of the replies and feedback you’ll receive).

Some organizations have been able to cease their e-newsletter all together. (And there was much rejoicing!)

Relevance

It all comes down to relevance. The organization I mentioned found that e-stories contained information that was relevant to their donors. (After all, donors want to know what their gift did more than they want to know what your organization is up to.)

When the content of the email was more relevant, more people opened the emails. And now, because their donors are more likely to find relevant content in their emails, their donors open all of their emails at a higher rate.

You can guess what’s going to happen next:

More relevant emails → higher open rates

Higher open rates → more people reading their fundraising

More people reading their fundraising → more people giving

More people giving → more mission work done!

Go look at your organization’s email communications. Are you reporting in a powerful, relevant way? If not, add a few e-stories. You’ll be glad you did!

Note: if you want me to walk you through creating an e-story (or donor reporting letter) for your organization, there’s inexpensive training at Work Less Raise More.

Attention Deficit

Steven  |  Report
Grab attention.

When you’re starting out, you don’t have anyone’s attention.

That’s true whether you’re starting a nonprofit, starting a food truck, or starting a political career.

But when you’re starting a business or a YouTube channel or an advocacy campaign, you work hard to get people’s attention.  Those folks wave their arms around.  They say edgy things.

One of their driving principles is ”Without anyone’s attention, this venture will not succeed.”’  So they make a ruckus.

Why don’t more nonprofits make a ruckus like that?  Why don’t more nonprofits say and do edgy things?

I think it’s because so many of us are nice.  We want to be warm to people.  We don’t want to make people uncomfortable.  We want to convince people of our competency. 

One of our driving principles is ”We want the power of our work to inspire people to give.”  And that’s not even a principle – it’s just a desire.

But can’t we remain “nice” while making it a priority to earn more attention for our cause? 

And as nonprofits, don’t we have the ultimate motivating reason to generate more attention?  We know that that the more attention we earn, the more donors we’ll acquire, and the more of our mission we’ll accomplish.

The standard nonprofit toolkit does not have “generate a ton of attention” in it.

But shouldn’t it?

And as you look at your plan for this year, are you intentionally making at least one concerted effort to get more people to pay attention to what’s going on with your cause? 

10 Fundraising Tactics You Should Use This Fall

Steven  |  Ask, Report, Thank

Want to amp up your fall fundraising? We recommend these ten tactics to all our clients because they’ve been proven to work again and again and again:

  1. Report to your donors this fall — show them what their previous gift accomplished! Your donors are less likely to give you to at year-end if they haven’t heard lately what their gifts accomplish. We often produce an October Newsletter for our clients and work hard to highlight amazing stories made possible by the donor’s gift.
  2. Reporting is especially important for Major Donors. Make absolutely certain each major donor reads or hears a story of impact each fall.
  3. Focus on your donors more than on your organization. In all your communications, emphasize the donor’s role (“You helped make this happen!”) more than your organization’s role (“We helped 347 people this year…”)
  4. Make your communications to Major Donors stand out. When sending them an appeal letter, use a nicer envelope and hand write the address. When sending them a newsletter, put it in a 9×12 envelope and don’t fold the newsletter. Trust us; it’s worth spending the extra time and money to ensure your major donors pay attention to your communications!
  5. Communicate more than you think. If you only mail your donors a couple times, mail them at least one more time. For smaller organizations who mostly use email for fundraising, please mail your donors at least twice. We recommend most organizations mail their donors at least 4 times from September through December.
  6. During December, review your list of major donors. For all majors who have not yet given a gift this year, ask them!
  7. Have a campaign for Giving Tuesday, not just one email. Email your list on Sunday, Monday and Tuesday. Pro Tip: having a match for giving Tuesday really increases results. So many nonprofits are asking for gifts that day — having gift-doubling matching funds really helps your organization stand out.
  8. After giving Tuesday, change the first/main image on your website to a simple call-to-action to give a gift before the end of the year. Keep that as the main message on your homepage until January 1.
  9. During year-end, mail another appeal letter. Most organizations only mail one letter, but they should mail two. Mail the first letter the Saturday after Thanksgiving, and mail the second letter around December 11th. The second letter will raise about 1/3 the amount your first letter raises, and it won’t reduce the effectiveness of your first letter.
  10. Send 3 emails the last 4 days of the year. Everyone’s inbox is crowded – make sure they see an email from you when they are so likely to give a gift!

Awareness of the Problem > Awareness of the Work

Steven  |  Report
awareness

The previous post showed how fundraisers can harness awareness and tension to raise more money.

There’s a key thing to note, and it’s worth taking a whole post to say it well…

You want awareness of the problem your organization exists to solve more than awareness of your organization’s work to solve the problem.

When a nonprofit’s fundraising creates awareness of the problem they are working on, recipients of the fundraising experience tension and are compelled to action.

Note: if causing your donors to experience tension doesn’t sound like your cup of tea, remember that tension is the source of almost all actions taken by humans:

  • If I’m having health problems because of what I eat, I experience tension with what I eat, and I take an action to eat healthier.
  • If I’m wanting a new TV, I experience tension with my current TV, and I take an action to buy a new TV.
  • If I see a family who is losing their apartment because they are caring for a daughter who is in the hospital for several months, I experience tension with that situation, and I send in a gift to help them keep their apartment.

It’s all the same thing.  This type of tension is your friend in fundraising.

So, when a nonprofit creates awareness of the problem that the organization works on, donors experience tension with that situation, and send in a gift to help solve the problem through the nonprofit.

But when a nonprofit creates awareness of the work the organization is already doing on the problem… where’s the tension?

Why would people feel tension?  It sounds like the organization has everything taken care of.  They are helping so many people!  That’s so great!

In your fundraising, make sure you’re raising the right kind of awareness.  If a nonprofit is always and only telling stories about people who have already been helped… you’re raising the less helpful kind of awareness, so you’re raising less money than you could be.

In our experience, the organizations that raise the most money and retain more of their donors have about a 2:1 ratio – they “raise awareness of the problem their organization is working on” about twice as often as they “raise awareness about the work their organization is doing.”