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! 

It’s trending up, not down.
By Jim Hussey

I recently attended a parent's meeting at my church to discuss future activities for my teenage son’s youth group. Now stick with me — this actually addresses an important issue for all fundraisers.

The youth minister in charge of the group was outlining what would be happening and casually said, “The kids want the annual calendar and notices about events sent to them by (snail) mail. So please look out for any church envelopes addressed to your son or daughter, and please pass them on.”

I, the bored parent who was struggling to keep my eyes open, was instantly awakened by the direct marketer within that usually tries not to think about such matters on the weekend.

“Whoa!” I said to the group. “You mean these text message-crazy Internet addicts want to use old-fashioned mail? Why?”

“Because they fear the messages will be lost in the mass of information they receive,” he said. “And they want a hard copy of the schedule.”

“Wow!” I thought. I didn't think that kids today knew what “hard copy” means.

This tidbit of information had a profound effect on me. I had been hearing all of the predictions that the new technology of the Internet will replace the older technology of snail mail. But then I witnessed an example of the newest generation — which is incredibly Web-savvy and greatly dependent upon it for communication and information — actually backsliding into the use of the centuries-old medium of mail.

With so many cynics preaching about the end of direct mail, while advocating Internet-exclusive strategies, we need to take notice of what is actually happening out in the world around us.

If you look around, not just at my son’s youth group but also at what the major commercial marketers are doing, you quickly will learn that the two mediums of direct mail and the Internet actually complement one another. Instead of clashing in a life-or-death struggle, the Internet and direct mail are actually proving to be quite chummy bedfellows.

As a case in point, in recent years, one of the top mailers in the nation also is our nation’s largest Internet provider, America Online, which mails hundreds of millions of its disks annually.

USA TODAY recently quoted respected advertising forecaster Robert Coen’s estimate that marketers’ spending on direct mail will increase by 7.5 percent in 2007, after growing by 8.5 percent in 2006. This compares to a growth of only 4.8 percent for all forms of ad spending.

The United States Postal Service, while reporting decreases in First Class mail in fiscal year 2006, also estimated that the quantity of Standard mail (which is chiefly used for commercial and marketing purposes) increased by almost 3 percent. They also are predicting further growth for the 2007 and 2008 fiscal years … despite higher postage rates.

So what does this information tell fundraisers that use direct marketing? It tells us that the commercial world has rejected a “one or the other” attitude about the Internet and direct mail. It has learned through the past decade of experience that the best marketing strategies mix the two mediums.

And the same rule applies to fundraisers. Just as any fundraiser today is crazy to think about fundraising efforts without the use of the Internet, you'd be just as crazy to consider fundraising efforts without the use of direct mail.