Traditional Fundraising Isn't Dead After All

Maybe you’ve heard a presentation recently or had an annual fund expert talk about how to reduce costs when it comes to annual fund solicitations. They may have even suggested eliminating some portions or segments of annual fund mailings. I certainly have heard that over the last several years.

In late January, the Nonprofit Times published an article talking about the trends in direct response fundraising.  It was based on its reporting on the study Response Rate Report Across Digital Media.  Fascinatingly, it indicated that using the Postal Service produced the best ROI (return on investment) of any direct response outreach, including digital. The ROI for postal solicitations was reported at 112%.  Surprising, yet also incredibly interesting.

And while email is still the largest connection/vehicle where individuals make gifts, averaging an 82% usage rate amongst respondents, its efficiency was down 6%.   Unless cost structures have changed dramatically, that would indicate to me that people are making smaller gifts via email than in the past.

Overall, the study indicated that a direct marketing effort with solicitations is still a powerful engine for brand growth and low-end revenue production. And that the convenience of making a gift is critically important, regardless of the channel a nonprofit uses.

I guess the pronouncement of the death of annual giving is a little premature. While there’s very little doubt larger gifts are making up more and more of an overall percentage of philanthropy, the study indicates the importance of having a strong, segmented, and comprehensive annual giving process.