AH&A's Industry Voices

Check your politics - and your big mouth - at the conference door.
By Jim Hussey

Something disturbing happened at a recent DMA Annual Washington Nonprofit Conference (not this year's).

It occurred at the beginning of the question-and-answer phase of a panel discussion titled “How to Beat a Long-Standing Control.” According to accounts, a member of the audience stood up and harangued the DMA for allowing one of the participants — who works for the national office of Planned Parenthood — to be on the panel.

He lectured the audience and the panel about the supposed evils of Planned Parenthood, and he upset many of those who attended.

When he finished, another person stood up to offer a countering opinion. Before others could jump into the debate, the moderator stepped in and did an excellent job of calming everyone and steering the discussion back to the session’s true subject.

This incident greatly concerns me. In this increasingly partisan world, conferences and other activities organized by the DMA and other industry groups should be a welcome refuge from the mudslinging that often can dominate discussions concerning sensitive issues.

Along with their coats, participants should check their politics and partisanship at the door. No one should feel threatened or open to harassment at these functions.

Like most people, I have my own opinions, but I'm not about to use this blog to argue the complicated issues of abortion, birth control and reproductive rights — or any other issue, for that matter — or to rail against those who oppose my viewpoint.

Industry events should be free of politics. Industry events should offer tools to help fundraising professionals improve their skills and raise more money for their organizations. No one will benefit by transforming industry events into debating societies - unless, of course, you’re debating analytical tools or the use of one direct-marketing strategy over another.

The effectiveness of these events would be greatly endangered if such outbursts become more common. These conferences provide educational opportunities for those seeking growth within our sector and a vital chance for all of us to network.

The next time you attend an industry conference, if you happen to sit in on a session that includes a panelist from an organization that really upsets you, keep quiet or walk out. If you don't think you can do either, pay attention to the information in the program you receive when you register. If someone's participation will be troubling to you, don't go to that session.

Voicing protest at these events will not win converts. Many attendees of the session in question were greatly angered by the incident, according to a source who read the feedback comments submitted afterwards.

If you’re really opposed to a panelist’s viewpoint, what better way to counter it than to attend his session, learn all about the successful strategies the organization is using, and then go back to your office and try to figure out how to apply your new knowledge on behalf of a mission that you do support?

That way, you’ve made a real-world difference without compromising the conference experience for your colleagues — all of whom, believe it or not, are as passionate about their beliefs as you are about yours.

Don't you agree? 

Properly leveraged, good press can power through a sea of
skepticism.
By Jim Hussey

I’m confident that few of my colleagues who’ve been in the business over the past two decades will disagree when I say that potential donors are far more skeptical about fundraising solicitations than they were 20 years ago.

The evidence can be found in numerous places:

• Comments noted on response forms or to telemarketers making calls; 
• Inquiries made to the Better Business Bureau or to state attorneys; 
• More and more additions to the National Do-Not-Call Registry and the Direct Marketing Association’s Mail Preference Service.

What are the causes? There probably are many.

• The increasing volume of solicitations in the mailbox and the increasing use of telemarketing over the past two decades certainly have taken a toll. 
• Internet users are inundated by spam. As a result, donors face an onslaught of fundraising solicitations every day via their mailboxes, telephones and e-mail inboxes.

Major scandals within the nonprofit community, which have drawn attention to irregularities concerning the use of funds, haven’t helped the situation. The United Way scandals, the American Red Cross’ post-Sept. 11 controversy and other hullabaloos have affected many nonprofit donors’ confidence. Unfortunately, the mistakes of a few have tainted all of us to some degree.

So what can you do about it? How can you combat increasing donor skepticism and protect your fundraising program? It's not practical to trim your own use of direct mail, telefundraising or e-philanthropy. If you pull back on your solicitations, some other nonprofit will fill the void with its own fundraising campaigns. Out of sight, out of mind… your donors and potential donors simply will direct their contributions elsewhere.

The best way to combat donor skepticism is by addressing the issue head-on. You need to illustrate your organization’s effectiveness and efficiency within your fundraising campaigns.

The importance of this concept was illustrated in a test conducted by my firm for one of our clients. The organization was favorably noted in an article in a well-known national magazine, which named the organization one of the most effective charities in the country. We developed a small insert that referenced the endorsement, and then tested it as a new component within that organization’s donor-acquisition control package.

The inclusion of this simple insert dramatically boosted results. This positive outcome led to other tests:

• A quote from the magazine was included in the letter, 
• A teaser that announced the favorable rating was placed on the envelope.

And this isn’t an isolated case. Many examples of similar tests with other organizations also have proved to be successful. Organizations that have received favorable comments by publications or efficiency ratings from nonprofit watchdog groups have used these flattering reviews to their benefit. Simple charts that illustrate the fiscal efficiency of an organization have proven successful, as well.

Ironically, the success of these tests also proves my original point that there’s a level of major skepticism on the part of at least some donors. Otherwise, why else would there be such a favorable response to efforts to tout efficiency? This must mean that they suspect many nonprofit organizations are not efficient.

To figure out how to reassure your donors and potential supporters about your organization’s efficiency, ask yourself the following questions:

1. Does my organization spend a majority of its funds on its mission versus administration and fundraising? 
2. Have watchdog groups given my organization good ratings? 
3. Have any magazines, newspapers or other publications given us good reviews?

If you have a positive response to any of these three questions, then you need to convey this information to your donor audience. You’ll be rewarded for the effort.

Do believe donors are getting more or less skeptical? Is your organization making use of these three tools? If so, in what ways?  

Here, a peek at some of your more esoteric associations.
By Jim Hussey

All of us are aware of behemoth associations such as the NRA or AARP. Huge groups such as these wield major power in the halls of government and hold great sway over vast legions of donors and supporters.

But for every well-known major association, there are a hundred other tiny ones that most Americans have never heard of. I'm based in Washington, D.C. — home to thousands of associations. And whenever I visit an office building in the area, I always take time to look over the tenant directory in the lobby. Almost always, the building will house one or two small associations that address some obscure issue.

This has led me to a new hobby. Over the years, I’ve compiled a list of little-known associations from across the nation. Virtually any issue or interest is covered by an association. Here are two of my favorites.

American Association for Nude Recreation
In addition to providing information and acting as an advocate on behalf of nudists, AANR also provides a Web site (www.aanr.com) with photos of nude people running through fields, playing volleyball, jumping into pools and even skydiving. You also will find good tips about using sunblock in unusual areas. I have only one question: Why does this Web site’s “shopping” area sell clothing?

National Onion Association
I love the introduction to this association’s Web site (www.onions-usa.org), which simply features a pile of onions with the headline: “Bring on the Onions!” NOA's goals include hosting onion conventions, monitoring legislative and regulatory issues and, of course, increasing the consumption of onions. By the way, there isn’t a National Halitosis Association.

What other esoteric associations do you know of?

The most powerful word in fundraising?
By Jim Hussey, President AH&A

As we embark on a new year, so too have begun the membership/donor renewal efforts for many organizations.

Renewal programs are a series of contacts with the member/donor, asking that individual to renew her support for the organization’s work for another year. Renewal formats should include direct-mail packages, telemarketing calls and e-mail.

For those who are new to the industry, there are two types of membership/donor renewal programs: 

• calendar-based - seeks to renew the annual support of current members/donors at the same time, typically at the end of one calendar year or at the beginning of the next.
• expire-based - seeks to renew based on the anniversary of that individual’s first contribution.

There are pros and cons for each type of system. Expire systems take the donors’ giving habits into better consideration and allow the organization to spread income throughout the year. But expire renewal systems also are much more expensive, for mailings are scattered across the year; as a result the quantities of each mailing often are small - driving up production costs.

Since a calendar-based renewal system typically starts at the beginning of the year, it takes advantage of the most productive time to renew a donor’s support. And since all donors are mailed at once, mail quantities are much higher and production costs are much lower. Calendar-based systems generally are best for small and fledging organizations.

In many ways, renewal solicitations are the easiest to produce. Asking a donor to simply renew her support is one of the most basic forms of fundraising, and it doesn’t take a creative genius to prepare such a package.

Despite the relative simplicity of such efforts, I’m still amazed by how many renewal programs lack some of the basic elements that can achieve the best results.

Stating the obvious
The best example - using the word “renewal.” I often have heard colleagues say that “free” is the most powerful term you can use in marketing. In regards to fundraising, I respectfully disagree. I believe the term “renewal” is the strongest.

Often, the only thing necessary to generate a contribution is some variation of the word “renewal.” Amazingly, I am often surprised to see some renewal packages that do not even use the word on the outside envelope. Check your current renewal series. If any of the packages don’t use this term on the carrier, test it and see if it doesn’t perform better with it than without.

In addition, this word should be used throughout the package. Once I’ve written a renewal letter, I count the number of times I’ve used the word “renewal” or some variation of it within the copy. If it’s less than a dozen, I add more. In addition, make certain that the reply form uses the word liberally. And it doesn’t hurt to even add it to the return envelope, such as a teaser that says, “Expedite ... Membership Renewal Enclosed.”

Testing into frequency
Many organizations also do not include enough solicitations within their renewal series. But how many constitutes “enough” varies among organizations. I have one client that has more than 13 notices within its renewal series, and another with only four. The number of renewal notices in a series should be determined through testing. With a young program, my general rule is that renewal notices should be mailed until the point that diminishing returns fall below the average response rate of appeal packages.

All healthy renewal programs also should include at least one telemarketing effort. If you lack a telemarketing effort in your renewal program, test the inclusion of a call. If you have tested telemarketing and it failed, try another vendor or different placement within your series. Some element of your member/donor file should be responsive to calling.

And increasingly, e-mail is a major part of renewal efforts. Whether you use e-mail to directly solicit renewed support (as you should for any Internet generated supporters) or merely to inform recipients about an upcoming renewal mailing, the use of e-mail should not be ignored.

A direct-mail twist on a holiday classic.
By Jim Hussey

’Twas the week before Christmas, and out front of the house

Not a creature was stirring, not even a mouse.

The mailbox hung by the front door with care,

Anticipating that a deluge soon would be there.

My wife was watching “Oprah,” our dog in her lap,

And I had just settled down for my afternoon nap.

When out on the lawn there arose such a clatter,

I sprang from my La-Z-Boy to see what was the matter.

Away to the window I flew like a flash,

Tore back the curtains and threw open the sash.

When, what to my wondering eyes should appear,

But a parked, white minivan; maybe a repairman from Sears?

With a tired-looking driver, red-faced and obviously ticked,

From his disposition, I knew it wasn’t St. Nick.

Dragging a heavy gray bag, he slowly came,

And he cursed and he shouted, and he called them by name:

“Oh, American Cancer! Oh, World Vision! Oh, St. Jude!

Oh, the soup kitchens! And all of the other charities, too!

My bag is so full, it’s as high as I am tall.

Oh darn them! Darn them! Darn them all!”

So up to the porch he slowly stewed,

With a mailbag full of fundraising letters, and a few bills, too.

His back was aching, bent down to a bow,

But he was keeping his promise to deliver even in snow.

He spoke not a word, but went straight to his work,

And filled up my mailbox, then turned with a jerk.

Trudged back to his van, and slumped into his seat,

Away he drove, another load of mail to meet.

But I heard him exclaim, as he made a hard right,

“Will the new year ever come? There's no end in sight!”

Happy Holidays All!