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1 AFP Information Exchange The Shrinking Donor: How to Combat the Reality of Today y s Shrinking Number of New Donors ~ This AFP Information Exchange resource is provided by: Contact: Wilson Boulevard, Suite 300 Arlington, VA (U.S. & Canada) (Mexico) fax afp@afpnet.org

2 The Shrinking Donor: How to Combat the Reality of Today s Shrinking Number of New Donors Last December a news story came out of San Francisco. The sea lions that were living around Pier 39 for more than 20 years had disappeared. Where did they go? The locals were concerned. We keep hearing the same thing about donors. They are disappearing. The generation that is the most responsive to direct mail is aging and younger donors cannot be found. Donor files are shrinking. Something else to consider The Direct Mail Association (DMA) predicts that online commercial transactions will outnumber offline transactions by Research indicates that this same shift will occur for fundraising. Chip Grizzard, CEO of Grizzard Communications, projects that by 2016 the most successful nonprofit organizations will receive more donations online than they do through traditional channels such as direct mail. No matter when exactly this shift takes place, the trend is clear. The Internet has become the central hub for how people gather information, make choices, and spend their money; therefore, digital media needs to play a key role in your current fundraising, and increasingly so in the years ahead. OK, you say. I ll update my website. Well, that s only the first step. It will take much more to reach and KEEP donors, especially younger ones. Developing an integrated communication strategy for your mission will set you on the right path and focus your efforts on the items that you can execute consistently and professionally. The acquiring of new donors can no longer be handled separately from the cultivation of existing donors. You must find a way to cut through the clutter of almost 4,000 daily advertising messages each of us are bombarded with to make your mission stand apart. By now you are probably thinking this is a sales pitch for online fundraising efforts. And online is important, but it is not the sole answer. This isn t an either/or choice. You still need to cultivate direct mail responsive donors that have been, and for the meantime still are, the backbone of your fundraising efforts. And you need to continue to acquire new

3 donors in the most efficient ways possible within your community. That may be mail, newspaper ads or inserts, radio or TV ads, events, phone calls, the list goes on. In that mix, you also need to reach out to prospects that are not captured through traditional methods. And you need to reinforce your mission s message and build relationships with existing donors. Because (and this is key) donors who give through both online and mail channels are more than twice as valuable as donors who only give through one channel. So, as you re probably seeing, the new reality is about multiple points of contact. It s not just about the prospect or donor feeling that they understand what you are doing and how you are spending their donations. It s about them feeling that they are a part of your mission. This is where social media really helps. I receive Twitter and FaceBook updates from quite a few missions. Even though I ve never visited most of them, I feel like I know what s going on there, and what their needs are. Sometimes it s as basic as we need condiments mustard and ketchup please help! Other times it is a compelling story or picture. But it s a very different approach to be sure. Social media is not where you re going to get your donation (at least not yet). It is how the donor or prospect is going to get to know you and ultimately decide if they want to give/give again to your mission. In practical terms, there are three key reasons to do integrated campaigns. You expand the number of people you reach in your community by using vehicles that target different segments of the population Your overall response will be increased You educate prospects as well as raise awareness among your existing donor base Let s take a look at each of these reasons in more detail Expand your reach in your community When you take into account the demographic makeup of your donors, at best you are only reaching 30% of the households in your community. By using such communication channels as newspapers, freestanding inserts, magazine advertising, broadcast, and outdoor, we expand the reach well beyond the 30% of the mailable households. We also increase the frequency of impressions made on the potential donor. If you purchase mailing lists only, you ll only reach the population that buys things through the mail. Or those who perhaps subscribe to a certain magazine.

4 However, if we do that AND place outdoor signage in high traffic locations in your community AND post updates on your FaceBook fan page a couple of times a week AND put bulletin inserts in as many churches as will take them, you ll reach far more people. And equally important, you ll reach some people several times. This allows them to get to know your organization through a variety of different interactions, which greatly increases the likelihood of the prospect giving a gift. Positively impact all communication channels A consistent message across all communication channels is the single most important component of a successful integrated campaign. The message cannot vary. Equally important, the message must work within the brand of the organization. To illustrate this point, think of Toys for Tots. When I say the name, you remember the organization, what season it is in, every poster, every TV ad, and that every collection site reinforces the same message and the same offer: Donate toys for needy kids. Raise awareness, educate prospects and build trust with donors Top of mind awareness is how we are going to combat the thousands of images bombarding your prospects each day. When they wake up in the morning, they will hear your message on the radio. While driving to work, your message is seen and heard again. When reading the newspaper online your banner ad is seen. When the prospect arrives home, your letter awaits them in the mail. This type of frequency increases the recognition of your brand. As prospects see your message consistently over multiple channels, they want to learn more about your offerings, programs and services. Your website and other online resources provide that education as well as a vehicle for donations. Your website and social media sites (Twitter, Facebook, Flickr to name only a few) also provide effective ways for you to communicate with your donors. With communication you can build trust and loyalty, the most important components in your donor relationship. Social networking we ve discussed. Another powerful tool is search engine marketing or SEO. By utilizing SEO you pay a small amount per search to have your organization s name and website appear at the top of a search page like Google or Bing. This enables people who are searching to find you as quickly as possible. For example, the person may type in homeless shelter Mayberry RFD. The regular search may net government agencies, other social service agencies, or the local SPCA. With a paid Search program, your organization can be in the box at the top of the page when the search results come up. This allows people who are looking for you to find you as quickly and easily as possible. Integrated Marketing keeps fundraising effective

5 Integrated marketing spreads your message and is key to keeping your fundraising efforts viable. In fact according to Target Analytics, it s the only proven strategy to counter the declining direct mail trends. So, if you are to attract younger donors who give high average gifts and stay loyal, you must keep them engaged and informed. Today s donor wants to know how they are helping you with their funds; they want to be communicated to and kept informed at all times. Technology is moving at warp speed and therefore so must we. For your mission to stay viable, you must utilize the most powerful tools in your communications arsenal to convey your message. And that means you must cast a much wider net than just direct mail. Direct mail will continue to decline in effectiveness. Our task is to evolve strategies and techniques to meet prospects and donors where they are, provide ways for them to get answers to any questions they may have, and ultimately offer a meaningful way for them to support your work. So, back to the Pier 39 sea lions. For a few weeks no one knew what had happened to them. People feared the worst. Then in early January, they turned up in Oregon. Seems they needed a change of scenery for reasons no marine biologist could figure. So, is the number of donors really shrinking? Perhaps. More likely, they ve just moved and the methods of reaching them have to change as well. As fundraisers, we need to be more creative, flexible and nimble to keep up with our donors and more importantly continue to find new donors. Article Originally Published:

6 The Shrinking Donor: How to Combat the Reality of Today s Shrinking Number of New Donors was developed by Grizzard Communications Group Contact: The 90-year-old Grizzard Communications Group works with more nonprofits than any other agency in the United States. Through offices in Atlanta, Los Angeles and several other major U.S. cities, Grizzard Communications Group serves nonprofits across America. Clients include: The Salvation Army, American Red Cross, ALS Association, National Parkinson Foundation, Operation Blessing International, Rescue Missions, Food Banks, Sidney Kimmel Comprehensive Cancer Center at Johns Hopkins, State Sheriffs Associations, Prostate Cancer Foundation and various Animal Welfare and Humane Societies. More information can be found at Grizzard Communications Group is part of Omnicom Group Inc., a leading global marketing and corporate communications company. Omnicom s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to more than 5,000 clients in more than 100 countries Wilson Boulevard, Suite 300 Arlington, VA (U.S. & Canada) (Mexico) fax afp@afpnet.org 2010 AFP