Tag: appeals

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

Steven  |  Ask
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

Steven  |  Ask
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.

The Regular Kind, or ‘How to Break Through the Noise’

Steven  |  Ask

There’s a “regular” kind of fundraising.

You’ve seen it before:

  1. Letters and emails that begin with a thank you, then tell a story of something good that the organization has already done, then a request for support that’s not particularly strong.
  2. The details of what the donor’s gift will help accomplish are often hidden behind abstractions like “you’ll deliver hope” or “please help their dreams come true.”

This “regular” kind of fundraising works OK when there are a lot of people are interested in your cause. Think top-ten subjects like hospitals, cancer, feeding children, higher education, you get it.

But if fewer people are interested in or affected by your cause, “regular” fundraising just doesn’t work that well.

In that situation, if you want to break through, your fundraising must be better. Sharper. Bolder. Clearer.

You’re going to have to make fundraising that leads, fundraising that’s different from the “regular way.”

Here are two pieces of advice to help you create fundraising that breaks through the noise and makes people care more about what you do.

#1 – Figure Out What It Is About Your Cause That Makes People Emotional

Notice I said your cause, not the specifics of your work. What is it about the underlying need for the work you do that makes people emotional? Talk about that when you’re asking for support.

To illustrate, I know of a Men’s Choir that figured this out. They used to do their fundraising the “regular way.” They highlighted how good their singers were, how technical their arrangements were, how impressive they sounded.

They raised a regular amount of money.

But their fundraising took off when they started talking to their donors’ emotions about the music. Turned out that many donors got emotional about preserving and sharing old songs. Other donors got emotional because the music reminded them of their parents.

Can you feel the difference between “Your gift will make the choir’s impressive sound possible” and “Your gift will preserve your musical heritage, and you’ll hear music that will take you right back to listening to it with your parents”?

#2 – Talk About the Consequences of Your Work

What’s the change your work causes that makes people emotional?

When you’re Reporting back to donors on what their gift accomplished, talk about that change. Not about your organization itself, or about what your organization does to make the change.

Your donors care more about the change than they care about how you make it.

When you Report back to donors and share stories that illustrate the change they’ve helped make, your donors will be thrilled they gave and more likely to give again.

***

The “regular way” doesn’t work very well for small nonprofits.

If few people care about your cause or issue, does it make sense to spend your fundraising talking about the details of your programs? (Think about it – do you want to hear the details about a subject you’re not interested in?)

Instead, find out what makes your current donors emotional about your issue or cause. Get good at talking about that, and you’ll raise more money.

And you’ll have the added benefit of being more attractive to potential donors. Why? Because many of your potential donors have those same emotions that you’ll be talking about. This enables your conversations with potential donors to start on common ground. And that’s a much more inviting place for a donor than having to hear about the details of your programs.

It’s the difference between a potential donor receiving your fundraising and thinking, “I don’t really care about that” and them thinking, “huh, that’s more powerful than I realized.”

Three Lessons from Writing Fundraising with Chat GPT

Steven  |  Ask
Writing robot.

I recently had an experience with AI that opened my eyes to a couple things that I think you’ll benefit from knowing. Here’s the story…

At Better Fundraising we have a letter that asks donors to consider leaving an organization in their will. We create versions of this letter for our customers, and it’s quite successful.

But we want to make it easy for all our customers to create their own version of the letter.

So, I pasted the letter into ChatGPT and asked ChatGPT to “anonymize” it. My goal was to keep the letter the same, but take out the organization it was written for, resulting in something like a template.

ChatGPT successfully anonymized the letter… but without being asked added a mass of nonprofit-ese. It took short, simple sentences and made them longer & more complex. It took casual language and made it formal. It took personal writing and made it corporate. Ugh.

Lesson #1: Chat GPT does not naturally differentiate between the types of writing needed for different types of fundraising. AI lumps “grant applications” and “direct response e-appeals” and “brochure copy” all under “fundraising.” In a nutshell, the letter it wrote for me “had too much grant application in a direct response fundraising appeal.” The writing for those two types of fundraising should be significantly different – but AI doesn’t know that.

Lesson #2: The dataset that AIs are based on is full of fundraising writing that’s overly formal, lacks specificity, and is difficult to read. This is a “garbage in, garbage out” situation – if most of the writing that ChatGPT used to create its understanding of fundraising is poor, then the writing that ChatGPT creates is going to be poor.

So, to be more specific and teach ChatGPT what I was looking for, I went ahead and wrote the anonymized letter/template myself. Then I pasted my version into Chat GPT and told it that my letter was they style I was looking for.

For fun, I asked it to analyze the letter and describe what was different about my version.

Here’s how ChatGPT replied…

Let’s analyze the differences between the two versions.
  1. Directness: Your version gets straight to the point, with a direct appeal right from the start. My initial version began by establishing context, potentially adding unnecessary fluff.
    2.
  2. Specificity: While my version aimed to generalize various aspects, your version maintained specificity in areas crucial to the appeal’s emotional resonance, like discussing the importance of the work done by the organization.
    3.
  3. Language: Your language is more personal and direct. For example, “You didn’t have to donate, but you did.” is a straightforward acknowledgment of the donor’s choice to give.
    4.
  4. Structure and Flow: Your version flows more like a conversation, emphasizing gratitude and then transitioning to the ask. It feels more personal and less formal.
    5.
  5. Reference to Beneficiaries: Your letter consistently references the beneficiaries of the work, focusing on the impact the donations have. My version was slightly more focused on the organizational aspect.
    6.
  6. Narrative: Your letter includes a personal story about revising wills, making the ask more relatable. While my version had this as well, the context and personal touch felt stronger in your version.
    7.
  7. Call to Action: Your version includes a clearer call to action, specifically about using the enclosed card for notifying about the bequest. It gives readers a tangible next step.
    8.

In summary, while both versions aimed to maintain the letter’s integrity and goal, your version manages to be personal, direct, and emotionally compelling.

Color me impressed with how well ChatGPT defined the differences between our approaches. And I couldn’t help feeling that the AI had given me a compliment, which was weirdly satisfying.

Those seven principles above are GREAT advice for writing effective direct response fundraising. When you are creating appeals, newsletters, e-appeals, etc., follow those tips and you’ll immediately be a more effective Fundraiser. I bet you could paste any piece of individual donor fundraising into ChatGPT or any other AI, then ask the AI to modify it by applying the 7 principles above, and the fundraising would be more effective.

Lesson #3: AI looks at all fundraising writing as equal – it doesn’t know how each piece performed, so it doesn’t know which approaches and types of stories raise more. At Better Fundraising know from experience & data that “personal, direct, and emotionally compelling” fundraising writing will tend to raise more money. But ChatGPT doesn’t know that because it doesn’t see results!

ChatGPT does not know that one appeal letter got a 2% response rate and another one got a 5% response rate. So when ChatGPT creates fundraising, it’s pulling from “everything it’s seen, regardless of how it worked.” When Better Fundraising creates fundraising, we’re pulling from “everything we’ve seen that we know worked great.” There’s a big difference.

ChatGPT is an incredible tool. But, at least for now, there’s no danger that it’s going to replace an experienced Fundraiser.

PS — If you’re interested in learning more about creating fundraising with AI, there’s a popular video of me using Chat GPT to write an appeal on the fly for an organization that I’d never spoken to before. People like it because you’ll quickly see all the strengths and negatives of using AI to write fundraising for individual donors. You’ll be able to decide whether it’s a good tool for your workflow or not. You can watch the video here.

Save the Education for Someone Who Needs It

Steven  |  Ask
Save the education.

Your individual donors, and the non-donors who have signed up for your email list, already care about your beneficiaries or cause.

They cared enough to give a gift, or to sign up.

So you don’t need to “educate them into giving a gift.” They already care. They don’t need to know more!

This is why donors respond better to “news about what’s going on” than they respond to “data about what’s going on.”

Here’s an example. There’s an organization called Ronald McDonald House that provides a place for families to stay when they’ve traveled to a hospital so that their child can get the care they need. They could begin a letter with the intent to educate donors into understanding how large the problem is, thinking that would result in more gifts…

“I’m writing you today to let you know that 1 in 5 families who have to travel long distances to take their child to a hospital are unable to afford a place to stay for more than two or three days.”

That’s education. Those are data about what is going on.

But what works better is a story like this…

“I’m writing you today because there’s a family in town from out of state so that their child can be cared for at Children’s Hospital. But the family can’t afford a hotel, so they are crashing in their car and couch-surfing with friends when they can.”

That’s news about what’s going on. Because it’s more emotionally engaging, more donors will continue to read. And when more donors continue to read, more donors will give gifts.

So save the education for someone who needs it before they will give, like a foundation, or a local government agency you’re making a case to, or a major donor who is an expert in your category.

Your individual donors are more interested in news about what’s going on and what their gift will do about it.

Aiming at Different Targets

Steven  |  Ask
Targets.

Every piece of fundraising has a purpose. Think of it as a target the organization is trying to hit.

For instance, one organization aims their appeals at “convincing donors that the organization really knows what it’s doing.”

Another organization aims their appeals at “inspiring donors.”

While another aims at “sharing what’s happening and what the donor’s gift will do about it.”

Each target results in a completely different letter.

Has your organization chosen which target your appeals shoot at, or was your target inherited or assumed? Oftentimes organizations have a target – or “internal rules” around what their appeals will and won’t talk about – without ever having realized it.

If your organization is aware that there are other targets, have you tried any of them?

Sometimes the most impressive increases in fundraising come from simply switching which target you’re aiming for.

Things That Happen When You Don’t Really Like Fundraising

Steven  |  Repeat
Below the surface.

We love fundraising around here.

But we have discovered, through deep observation, that some people do not like to fundraise.

(Theatrical Gasp!)

Please know that there’s absolutely no judgment here. The nonprofit world is overflowing with people who got into nonprofit work to do something else… and found themselves doing fundraising for one reason or another.

But a person’s dislike or discomfort with fundraising almost always manifests itself in ways that cause their fundraising to raise less money.

Here are four of the top recurring behaviors of people who don’t really like to fundraise, and how those behaviors manifest in fundraising to individual donors (appeals, e-appeals, newsletters, etc.). And how the behaviors reduce the amount of money people raise.

  1. They do most fundraising tasks at the last minute. Looking at my own life, I do this when I’m trying to avoid something or am afraid I’m going to fail. I think the same thing is true of some people when they do fundraising functions; they would prefer to avoid it, and they fear failing. They avoid writing the Ask at the big event until the day before the event. They delay writing the year-end appeal until December. And when words matter, writing fundraising at the last minute rarely raises as much as it could.
    2.  
  2. They do far more “education” than fundraising. Rather than doing the emotionally vulnerable work of boldly asking for money, people instead educate donors about the cause and the work. They create fundraising materials that go far deeper into the details than most individual donors would be interested in. They achieve the very real “good” of a few donors being more educated, but don’t realize that education-focused fundraising creates a barrier that keeps most casual donors away. Almost no individual donor wants to have to learn a bunch of things before they give a gift.
    3.  
  3. The fundraising they create never actually communicates that help is needed. Some people don’t like to communicate that negative things are happening to their beneficiaries. So they create fundraising that makes it look like everything is going great and no one needs help today. This is a great message when an organization is Reporting back on donors’ previous giving. But when “things are going great” is consistently the primary message, the organization is raising less money than it could be.
    4.  
  4. They don’t ask donors to send in money. Many people who don’t like fundraising will avoid the discomfort of asking directly for a gift. Instead, they’ll ask for things like “partnership” and “support.” Or they’ll insert wiggle-room words like, “Would you consider making a gift today.” By beating around the bush, they avoid the discomfort of asking for financial gifts… but raise less money.

If you see any of these behaviors in yourself or another person, be kind.

These behaviors are usually symptoms of a discomfort or a dislike of fundraising. Help them see how embracing vulnerability is key, and how it will deepen their connection with donors.

Once they understand more about donors, and about how donors process the fundraising they receive, you can’t help but drop some of these behaviors. They’ll start raising more money and become a happier fundraiser!

What 90s TV show ER™ can teach you about fundraising appeals

Sarah Lundberg  |  Ask
urgent

It’s the worst day.

You get a deep cut on your hand while preparing for a summer barbeque. It looks bad to you. So you head to the emergency room!

But when you get to the ER… some bored receptionist takes your name, gives you a load of paperwork, and tells you to sit down and wait.

So you wait. And wait.

Then the automatic doors BURST open, and they wheel in a guy who’s bleeding and eerily still!

“Fell through a plate glass window! We’re losing his pulse!” a paramedic yells.

They wheel the gurney right past where you’re waiting. And a guy who looks a lot like George Clooney LEAPS into action to try and save his life!

You may think you’re in an episode of ER™ (the early years), but you’re actually… in the fundraising ER.

You see, you ended up in your donor’s waiting room because you forgot the urgency in your fundraising appeal.

When asking your donors to give in your appeal letter, you used phrases like:

“Will you consider making a gift today?” or “Please support our organization.”

Meanwhile, another organization used phrases like:

“”Here’s why your gift is needed TODAY” and “Here’s the [negative consequence] that will happen if this problem isn’t solved.”

Here’s why this matters:

Your donors triage their mail a lot like ER docs triage their patients.

Right now! Stat!
For your donor, these are the personal letters, the mysterious envelopes, and fundraising appeals that share the urgency to give today. In the ER, this is the guy on the gurney.

Later!
For your donor, this is bills and other stuff she doesn’t dare throw away yet. It may also be fundraising appeals from organizations she especially cares about. In the ER this would be a kid with the stomach flu.

When we get to it.
For your donor, this is everything else. Junk mail and the fundraising appeals that don’t give a good reason to give a gift today. In the ER, this is you with the cut hand… still waiting.

A lot of organizations make the mistake of hiding the urgency from their donors. And their appeal ends up in the “later” or “when we get to it” pile.

Big mistake.

Here’s where my ER metaphor breaks down.

The ER docs will eventually get to you with your cut hand.

But if your appeal gets put in the “later” or “when we get to it” pile, chances are your donor will never get to it.

She’s busy. And there’s more mail arriving tomorrow. So mail that gets set aside tends to get recycled… it just takes a bit longer to get to the recycling bin.

You must SHARE the urgent reason to give with your donor — quickly! On the outer envelope. Right at the start of your letter. Repeated throughout the letter. In the P.S. On the reply card.

That’s what it takes to get noticed in your donor’s mailbox AND in the ER.

Your cause is important — you wouldn’t be writing to your donor otherwise. Make the urgency crystal clear! And tell the donor exactly how she can help.

Time-Sensitive Reminder: Donors Aren’t Thinking About Your Cause

Steven  |  Repeat
reminder

I wrote last Thursday about how donors put themselves on the hook.

Donors have chosen to take some responsibility for what is happening in the world, and to do something about it through their giving.

But that doesn’t mean donors always remember that they care, or even think about your organization.

Personally, I don’t remember very often that there’s a lack of affordable housing in the Seattle area. It’s just not something I think about. But I’m thankful that a couple organizations regularly remind me, because it’s an issue I care about.

I think most donors are in a similar situation: donors aren’t inclined to think about your cause or beneficiaries often, but it’s in their values to do something about it.

At Better Fundraising, we think that one of the functions of fundraising is “to remind people who care that there is work that needs to be done.”

I say all this because Fundraisers and organizations are often uncomfortable sending out fundraising that reminds donors of the work that needs to be done. It can feel awkward.

So I want all Fundraisers to remember that your donors chose to be responsible. They know that work needs to be done. They care. But they probably don’t remember right now.

Your fundraising provides the invaluable function of reminding them and giving them a chance to do something about it.