Direct mail is an excellent way to increase critical donations to an organization, but there tends to be a lot of confusion surrounding the best ways to accomplish a successful direct mail campaign. How simple or complicated is it? Is physical mail more effective than digital fundraising?
With so many fundraising channels, many have lost the concept either through lack of experience or exposure to the simplicity and impact direct mail can have for a nonprofit trying to raise critical donations to fuel its mission. Direct mail fundraising is a marketing strategy to raise funds by sending physical mail to potential donors. This strategy may sound simple, but it's no easy feat to make it truly successful. Some key components include (but are not limited to) messaging/copywriting, visuals, project production, and digital integration, all of which must syncretize to create a profitable direct mail appeal or cultivation mailing.
The aim should be to engage donors, build relationships, and encourage prospective donors to contribute financially to support the organization's mission. Still, you may have some questions before getting started...
No, direct mail fundraising is (thankfully) not dead. While digital fundraising methods have become increasingly popular, they can't bear the weight of your entire nonprofit fundraising strategy. Direct mail is a tried-and-true method that still yields great results and works best when integrated with (rather than being replaced by) leading-edge fundraising innovations. Here are some reasons why:
Personalization: Direct mail allows for personalized communication, which can help build relationships with donors and foster trust.
Tangibility: The digital world is noisy and extremely oversaturated. Your physical appeals or cultivation pieces are far less likely to be drowned out in a mailbox than in an email inbox.
Targeting: Direct mail allows nonprofits to target specific audiences based on demographics, past giving history, and other factors.
Trust: Studies have shown many donor classes experience a higher level of trustworthiness and authenticity of direct mail over digital communications.
Integration: Digital marketing efforts complement direct mail. A multi-channel approach in which an organization's digital campaigns sync perfectly with their mail campaigns is a match made in fundraising heaven.
Stability: Organizations utilizing direct mail to acquire donors are investing in long-term stability. They realize that while the initial costs of a direct mail prospecting program can add up, there will be a positive return on their investment over time.
The reality is direct mail may be the strongest in today's digital world when you consider these statistics from 2023:
A successful direct mail acquisition program provides the seedbed for sustainable giving, mid-level, and major donor upgrades, and planned giving efforts. Acquiring new donors will help ensure there are donors to replace those lost through attrition. Direct mail is not an isolated channel. Integrating digital outreach initiatives with direct mail campaigns, including email chasers, social media posts and interactions, website highlights, and more, will create a seamless fundraising flow to ensure your organization's success.
Although there are many benefits to direct mail acquisition, some nonprofit organizations are hesitant to engage in direct mail prospecting. They often believe direct mail donor acquisition is too expensive, "doesn't work" for them, or even hurts their brand image. In our increasingly digital world, direct mail may seem outdated or replaceable by digital programs.
When direct mail is done poorly, all these things may be true. But when direct mail is done well, it is a worthwhile long-term investment that will increase, rather than detract from, an organization's effectiveness in pursuing its mission.
The timing of a direct mail fundraising campaign can significantly impact its success. Several factors can influence when it's the right time for your nonprofit to conduct a campaign:
Consider if there are specific times of the year when donations are typically higher for your organization. For example, year-end campaigns often capitalize on the holiday spirit and tax benefits.
If you're planning a significant event or campaign, a direct mail fundraising campaign can help generate momentum and support before the event.
Celebrating a milestone, such as an anniversary or achievement, can be a great opportunity to engage donors through a direct mail campaign.
Ensure you have the budget and resources to execute a direct mail campaign effectively. This includes funds for printing, postage, and staff time.
Consider where donors are in their engagement cycle with your organization. For example, new donors might receive a different type of appeal than long-time supporters.
Be aware of any competing campaigns or events that could impact the effectiveness of your direct mail campaign.
Ensure your organization can manage the influx of donations and responses resulting from the campaign.
Ultimately, the right time for a direct mail fundraising campaign will depend on your organization's specific circumstances, goals, and audience. It's essential to plan strategically and consider these factors to maximize the impact of your campaign.
Nonprofit organizations rely on fundraising to fuel their growth and make a greater impact, but those funds don't raise themselves. The success of those fundraising efforts hinges on three core elements: brand awareness, donor retention, and donor engagement.
These three pillars aren't buzzwords to ignore or jargon to shrug off. They're the foundation on which a nonprofit can build lasting connections to secure vital support. Direct mail is the most effective weapon in your fundraising arsenal and delivers the most bang for your fundraising buck. Here are the three core elements that you will want to consider before launching your direct mail campaign:
Provide a clear and concise representation of your nonprofit's mission and values. When individuals see this visual and emotional roadmap, they gain confidence in the organization's dedication to their work.
As any rhetoric teacher will insist, appealing to people's logos, ethos, and pathos is key to persuasion. In an attempt to hammer home their nonprofit's mission and competency, fundraisers tend to appeal only weakly to pathos (emotion) in their fundraising campaigns. This is a critical mistake. Your appeal letters should keep the human in mind, stirring empathy, compassion, AND logical or ethical agreement.
Hammer home that your organization isn't a fleeting entity but one with a consistent track record of accomplishing goals. Consistency is the key to trust-building and should be easily identifiable by the look, messaging, and highlighted outcomes
Every organization wants volunteers or advocates who strongly support its cause and vision. To find these supporters, you must ensure your brand allows your prospects to identify with and relate to you. A clear, easy-to-recognize brand will help achieve this end.
Trust building benefits healthy personal relationships; the same principle applies to an organization's relationship with its donors. Brand consistency, mission clarity, appreciation for donors, and more contribute to creating the loyal, engaged base of support your organization needs for longevity.
Public awareness is only one part of successful brand identity—to ensure a fruitful brand that works for you, you must foster a sense of identity and membership in your donors. Through consistent, engaging direct mail outreach, you can bring donors into a larger community that shares their values and aspirations. They become part of a group effort to effect meaningful change. Don't view brand-building as a side issue in your nonprofit's work. The good you do can only grow and improve with committed donors; their feeling of belonging is essential to maintaining that commitment.
Reliable communication encourages a sense of trust, and the same principle cultivates donor retention or, for lack of a better term, "brand loyalty." Use the best tools in your arsenal (email, quarterly letters, social media, etc.) to send donors regular updates on your nonprofit's progress, influence, and plans or projects up your sleeve.
Donations shouldn't disappear into the ether. Provide detailed reports on how they support your mission and make a difference (send specific reports on particularly large gifts). Donors should know the "why" and the "what" behind their giving and appreciate knowing where their generosity is allocated!
Sending handwritten thank-you notes will go a long way, but to show extra gratitude, you should make an effort to publicly recognize your biggest donors for their support. Plaques, program names, web pages, and donor clubs are all wonderful ways to ensure donors know they're appreciated.
Include reply devices in your mailings to solicit feedback or ideas from donors. If possible, act on the feedback they provide to express that you value their input.
Some ways you can better connect and engage with your audience (in and beyond the mailbox):
Don't churn out one-size-fits-all communications. Personalize your letters and find ways to tailor your communications to fit donors' expressed interests.
Donors should feel like they are part of something bigger than themselves. You can achieve this by facilitating donor interactions, providing exclusive access to updates and events, and encouraging donors to share their stories and experiences. Building and nurturing relationships with donors is fundamental to long-term commitment.
Engaged donors become more than just supporters; they evangelize the cause. You should actively encourage this advocacy, providing tools and resources for donors to work actively to amplify your organization's impact through their personal networks. These advocates are likely to stay engaged with your organization for the long term, even becoming multigenerational supporters. Engagement transforms passive supporters into active advocates. Bring donors closer through captivating stories, informative content, and opportunities for advocacy. Above all, focus on fostering their emotional connection to your cause.
Brand awareness, donor retention, and donor engagement should align with your nonprofit's fundraising strategy. Those goals should also underlie every single one of your donor communications. A strong brand attracts attention, donor retention builds ongoing support, and donor engagement transforms supporters into dedicated advocates and "raving fans."
When these three pillars align, your nonprofit can secure the financial resources it needs and cultivate a community of passionate and committed individuals who will stick with it for the long run. Applying these principles in every letter you write will help your organization thrive and endure, ultimately improving the lives of every person you serve.
To conduct a direct mail fundraising campaign, follow these steps:
1. Set Success Markers: Ensure you have a solid plan, such as raising a specific amount of money, acquiring new donors, or promoting a particular program.
2. Know Your Audience: Identify the ideal audience for your mission and content based on previous or current donors, the geography of your influence, demographics, etc. This will help tailor your message appropriately.
3. Create Compelling Content: Develop persuasive materials, including a fundraising letter, brochure, reply card, and envelope. Ensure your content is compelling and concise and highlights the impact of donations.
4. Compile a Mailing List: Create a mailing list based on your target audience. This may include existing donors, supporters, or individuals who have expressed interest in your organization.
5. Design and Print Materials: Work with a designer and printer to create professional-looking materials that align with your organization's branding and messaging.
6. Personalize Messages: To make the communication more relevant, personalize each letter and envelope with the recipient's name and past donation history.
7. Include a Call to Action: Clearly state what you want the recipient to do, whether donating online, mailing a check, or attending an event.
8. Set Up Tracking Mechanisms: Establish methods to track responses, such as unique donation codes or dedicated phone numbers, to measure the campaign's effectiveness.
9. Send Out Mailings: Distribute your materials to the mailing list, ensuring they are sent promptly and comply with postal regulations.
10. Follow-up: Follow up with reminders or additional communications to encourage donations and engagement after sending the initial mailings.
11. Evaluate and Adjust: Analyze your campaign's results, including response rates, donation amounts, and feedback. Use this information to refine your approach for future campaigns.
12. Thank Donors: Acknowledge and thank donors promptly and sincerely, demonstrating appreciation for their support.
The costs of conducting a direct mail acquisition program can vary significantly. It depends on:
Quantity: The more mail you send, the lower the per-piece cost. Think bulk buying at Costco.
Postage: Organizations typically use a nonprofit postage rate of about $0.20 per piece. That said, some use larger packages that require a higher postage rate or even choose to use First-Class postage in certain high-dollar campaigns.
Complexity: The more complex the appeal package, the more it will cost. It's worthwhile to test various appeal styles to pin down the design and format that is most effective in winning over an organization's primary audience.
List Rental: The lists used will play a key role in the final cost and success of the mailing. Multiple list types, such as rented lists, coop lists, exchanged lists, and even lapsed donor lists, can be used. The mix of these implemented will determine the final cost.
The table below shows the average amount raised from 2017 to 2020 from donors who gave for the first time in 2016 (the data comes from 120 organizations surveyed by AmPhil). Most of these new donors were acquired through direct mail. This example illustrates how direct mail can pay off in the long run when paired with a well-functioning, systematic donor cultivation program.
Bad communication can sink your direct mail program, so find an agency that communicates clearly and directly.
A good firm will know what questions to ask to determine your needs. They will help you establish the precise objectives of your fundraising campaign, whether it's to grow your active donor file, reactivate lapsed donors, or increase your renewal rate. They'll help you iron out the details and adjust to changing circumstances. Flexibility is crucial—and open communication keeps everyone on the same page. Ask prospective agencies about their communication processes before signing that contract
Meetings are required because they foster collaboration
Biweekly meetings are a good place to start, although you may want to meet weekly for new or particularly complicated engagements. These meetings should help ensure deadlines are met, and necessary adjustments are made. Quarterly planning can also be helpful to ensure strategy and goals are on track. Ask an agency about their standard meeting cadence up front.
Extensive planning may feel like a slog, but trust us, the result is worth it.
Not only should your agency take the time to learn your organization's fundraising topography, but they should also provide a creative brief clarifying what is expected of each party at each engagement stage. Don't skip this step. You'll save time and money by asking the questions now to align your expectations and the direct mail agencies. Speaking of expectations, on to the next stop.
Good agencies provide a production schedule upfront.
This schedule should establish how long turnaround, materials review, and final signoff take. Most of the time, the agency will work in concert with at least two other vendors, which can lead to complications. It's extremely important to stay on track and look for possible delays. Scheduling conflicts (you decided to bum around in Bermuda during the week of initial proof editing) should be noted well ahead of time, and the agency should adjust the schedule accordingly.
Make sure to ask a potential agency about their onboarding process.
A good agency will have a set period for gathering preliminary information, brand assets, and data. After gathering this information, they should review the contract's communication processes and approval methods for agreed-upon items. If an agency doesn't have a robust onboarding process, consider it a red flag.
A good agency will have a strong plan for gathering and interpreting your organization's data.
The right agency will use your organization's CRM to track list segmentation, A/B testing results, KPIs, and more. Once again, your agency should have a plan for gathering that information, which may mean direct access to your database. It's always best to ensure that you have hard evidence of need before implementing any changes to your plan.