Direct mail fundraising is a powerful way for nonprofits to raise more money. It’s also an expensive and labor-intensive strategy that can be hard to scale effectively. That’s why many smaller nonprofits are wary of investing in direct mail as a standalone strategy. If you’re one such organization, continue reading with caution. But if you have the resources to invest in direct mail, read on! We know it’s not easy to convince your board and stakeholders that investing in direct mail is worth the cost. When we invest in new activities, it means taking resources away from something else (e.g., giving less grant funding, spending less on events). But that usually means that other activities will get even more impactful and efficient as a result of reallocating those resources from something else — especially if it makes us feel uneasy!
Why Direct Mail Can Be Worth the Cost
Every fundraising strategy has its advantages and disadvantages. Direct mail is one of the most expensive ways to raise money since you are paying for it all upfront. But it also has other advantages that make it worth the investment: Direct mail is the best channel for deeply engaging with the most loyal donors. It is the best channel for reaching donors who are not currently engaged with your organization. It is the best channel for creating donor relationships that last for decades.
A Checklist for Generating More Direct Mail Donations
For your direct mail fundraising to be successful, you need to understand your donors’ decision-making process. Below are a few questions to help you get started: Before the gift decision, what needs, interests, and issues do donors care about? What do donors want from your organization? What are the top donor challenges and needs? What are the top donor questions and objections? Before you invest in any new direct mail fundraising campaign, test out a sample of the mailing first. This is critical for understanding the true cost of the campaign and how it will affect your organization. Here are a couple of questions to ask before you run a test: What are the objectives of the campaign? How many people will receive the mailing? What is the size of the mailing? What are the mailing deadlines? How much will each mailing cost? How much revenue will each mailing generate?
Be Strategic About Which Events to Sponsor
Not all events are created equal! Events can be a fantastic way to engage with donors, but they can also be a money pit for nonprofits. That’s because the cost of an event is often not just the cost of the event itself, but also the cost of staff time, donor cultivation effort, and other expenses associated with the event. So, if your organization is doing too much event-based work, you can quickly overuse this fundraising effort and deplete your resources. Ask yourself the following questions before sponsoring an event: • What are the objectives of the event? How many people are expected to attend? What is the budget for the event? Who will be speaking at the event? How will the event be publicized? What will be the follow-up for attendees?
Add an Automated Welcome Sequence
Direct mail is a relationship-building activity, so you want to start cultivating relationships with your donors as soon as possible. That way, when they have a big gift need, they’ll know exactly who to ask, and they’ll be more likely to give to your organization out of habit. Here are a few ways to add automated welcome sequences to new donors: Include a welcome letter with a potential donor’s first gift receipt. Send a welcome letter and gift acknowledgment after a donor makes their first gift. Send a welcome letter and gift acknowledgment after a donor makes their first gift with a specific designation.
Add a Lead Generation Sequence After Event Emails
One of the best ways to engage new donors is to send them event emails about your organization’s upcoming events. That way, you can take advantage of the energy around those events and get new donors excited about your organization. You can also ask them for a gift in those emails. Here are a few questions to ask yourself before adding a lead-generation sequence after event emails: What are the objectives of the sequence? How many donors will receive it? How will the sequence be worded? What is the desired outcome of the sequence?
Add a Paid Acquisition Sequence After Lead Gen Emails
A paid acquisition sequence follows the same basic formula as an event-based lead generation sequence, but it happens outside of an event. Here are a few questions to ask yourself before adding a paid acquisition sequence to your direct mail fundraising: What are the objectives of the sequence? How many donors will receive the sequence? What is the desired outcome of the sequence? What is the budget for the sequence?
Wrapping Up
Direct mail fundraising is one of the most effective ways to raise money and cultivate donor relationships. But it’s an expensive and labor-intensive fundraising strategy that can be hard to scale. That’s why many smaller nonprofits are wary of investing in direct mail as a standalone strategy. By following this guide, you can make sure your organization is following a proven direct mail fundraising approach and is not falling into the trap of doing things that don’t scale.
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