Eight Advantages of Fundraising Letters Over Other Methods

Fundraising Tips For Your Nonprofit Group

1. PersonalFundraising letters are about as personal as you can get with a donor without meeting face to face or talking on the phone. Unlike special events, fundraising letters let you have a one-on-one "meeting" with each donor.2. Can be passed alongUnlike personal visits, phone calls and special events, fundraising letters can reproduce themselves. Your appeal on paper has the opportunity to reach more than one donor, potentially doubling or tripling your efforts.

Member-Get-A-Member letters are a perfect example of this dynamic at work.3. Can be testedBecause you can measure your direct mail results, you can also test your mailings. Test one package against another, one list against another, one ask against another, and you'll discover what works and what fails. That way you'll spend your dollars where they are most effective (without relying on guess work or hunches).4. Measurable ROIDirect mail is one of the best mediums for measuring the return on your investment.

Simply code your reply cards, and count how many return to you in the mail with a gift. With fundraising letters, you can know immediately--and exactly--how effective your mailing has been. Direct mail numbers never lie. Some simple calculations will tell you the following:

• Your response count (number of donors who responded)
• Your response rate (percentage of donors who responded)
• Average gift
• Gross income (before expenses are deducted)
• Net income (what's left after expenses are deducted)
• Cost to raise a dollar

Results (donations) are just as quick, usually arriving within days of your mailing.6. Build your base of supportThe majority of non-profit organizations receive 80 percent of their income from individuals. Since the average gift sent through the mail by an individual is $35, you need a broad base of individual donor support for your existence. You will want to attract gifts from foundations, businesses and government, certainly, but for long-term survival you need to build a large following of individual supporters who send you small gifts year after year. The most cost-effective way to build and sustain this base of support is a comprehensive, well-planned, well-executed, annual fundraising letter program.7.

Strengthen relationshipsCapital campaigns and banquets are excellent ways to raise awareness and funds, but they are costly and time-consuming. You cannot run one every month. And you cannot rely on them to strengthen the relationships you have with your supporters. Fundraising letters and donor communications (such as newsletters), on the other hand, are cost-effective ways to build credibility, increase trust, inform donors and build relationships with your donors over time.8. Reach donors anytimeFor your telemarketing campaign to be effective, your donors have to be near their phone.

For your annual golf tournament to be profitable, your donors have to meet you at the green. With a major gift campaign, your calendar and your donor's calendar must have the same day free or you will never meet. With fundraising letters, all you need to know is that your donor still lives at the address you have in your database. You don't have to mail at the right time of day to catch them at home, or invite donors to meet you at their mailbox. All you need to do is mail your appeal package to a valid address and then let the donor read (and respond to) your letter at their convenience.

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