We initially posted this blog in November of 2014. At that time, it gained serious traction. Yet since improving fundraising results is an ongoing requirement for nonprofit organizations (NPOs), we thought it’d be helpful to share our list of proven strategies one more time. Luckily, we support many savvy NPOs that are leveraging the following tactics to overcome today’s fundraising obstacles, and we hope you, too, find success with these approaches.
Seven proven marketing methods for nonprofits today
1. Turn Data into Donations – Prospering nonprofits are now using more data and behavioral characteristics to optimize their prospect targeting, communication frequency, and donor relevancy. Even basic segmentation approaches for NPOs that haven’t leveraged segmentation aggressively in the past have shown improvements of 100 to 200% or better. On a more progressive basis, we’re finding that marrying demographic lifestyle and interest information with a donor’s history and their connection with a cause is often driving a step-change in results.
If you haven’t dramatically improved your data strategies in the past 18 months, you are probably leaving donor dollars on the table.
2. Get Aggregated Answers – Operating in a vacuum is hugely problematic for NPOs. Without a broad body of insights, analytics, and creative tests to draw from, NPOs have to formulate their own fundraising hypotheses, implement them, wait an inordinate amount of time to analyze their effectiveness – and then hope they work, so they can be expanded.
Many progressive NPOs are leveraging the services of strategic partners that have a significant depth of current experience with what is working. Leveraging “aggregated answers” enables these nonprofits to expedite their fundraising success and improve the net revenue they derive. A couple of trends that we see working include using tested “Thank You” and “Conversion/Second Gift” strategies. Thanking all donors early and “personally” and/or providing a second gift to new donors quickly have both proven very successful in converting these donors to repeat givers.
3. Get Personal – The 2014 Burk Donor Survey indicated that many donors are limiting the number of organizations they support, opting to have a bigger impact on fewer causes. The implication of this finding is that nonprofits must figure out how to efficiently and effectively communicate with their donors. Some approaches that are working for NPOs include using swappable paragraphs, more relevant imagery, and previous gift information – all conveyed through integrated direct mail, email, and web marketing activities.
4. Do Digital – In this case, we’re talking about digital printing. Direct mail is still the workhorse of many fundraising acquisition and reactivation campaigns, but the rules are changing. The old one-size-fits-all approach is losing effectiveness. New digital print techniques and technology are enabling many NPOs to improve response rates 25% or better by delivering more relevant messages to donors as indicated above.
5. Retain Rigorously – The AFP 2014 Fundraising Effectiveness Survey reported that for every 100 donors gained in 2013, 105 were lost through attrition. Additionally, for every $100 gained in upgraded, new, and recovered gifts, $96 was lost from downgraded and lapsed gifts. This vicious cycle must change. Many successful nonprofits are putting increased emphasis on digital communications for retention marketing activities, leveraging more use of video and emotionally compelling imagery, and balancing these retention activities with smarter use of direct mail for acquisition.
6. Give to Get – Premium mailings are still working for a huge number of NPOs. These include label and greeting card mailings – and “useful” premiums like tote bags, scarves, and garden gloves also continue to get traction. The secret today is combining impactful premium creative with more sophisticated data targeting strategies to maximize response and net revenue while minimizing unnecessary expense.
7. Create Captivating Creative – Donor receptivity to more relevant imagery and video continues to grow. More specifically, we are seeing up to 150% improvement in readership, click-throughs, and conversion from effective use of visuals – and personalized video can improve performance even more. Additionally, donors who are provided with clear evidence of how their previous gift was making an impact also are responding positively.
In closing, fundraising obstacles are still prevalent, but hopefully some of the “surefire” strategies to overcome these obstacles are now apparent.
Don McKenzie is President & Chief Growth Officer of Innovairre Communications, which supports more than 500 nonprofit organizations around the world. For more information on fundraising strategy, contact us at Answers@Innovairre.com. Subscribe to our newsletter here, and Follow us on LinkedIn and Twitter.