Transform First-time Direct-mail Donors Into Repeat Givers

Transform First-time Direct-mail Donors Into Repeat Givers

Feb. 14, 2006

By Alan Sharpe

I know an executive director who, over the course of a 20-year career at the helm of a national charity, signed every single donor acknowledgment that left his office. He took them home after work, sometimes working his way through a pile of 300 thank-you notes before retiring for the evening.

To my knowledge, he never tested his method against generic, computer-generated gift acknowledgments. But you can imagine which method worked best at turning his first-time donors into repeat givers. He seemed to know intuitively that the most important gift in direct-mail fundraising isn't the first gift. It's the second one. Here are some tested guidelines for converting your one-time direct-mail donors into annual supporters.

1. Say thanks using the "Four Ps."

The first step to generating a second gift is to thank your donor profusely for the first one. Donors who aren't thanked for their first contribution are almost guaranteed not to make another. Say thanks like this:

Promptly. Mail your gift acknowledgement within 48 hours of receiving the gift. Each day of delay adds to the impression in your new donor's mind that you are either ungrateful or unprofessional (or both).

Personally. Address the donor by name. Acknowledge his or her thoughtfulness and concern. Put your warmth and enthusiasm onto the paper. Hand sign with a contrasting ink (blue, if possible). Mail using a closed-face envelope, with First Class stamp. No teaser. No postcard.

Particularly. Shun the generic thank-you. Mention the gift amount and date received. Refer to the project, issue or emergency that prompted the gift. Say what you are doing with the donation. More specifically, say what the donor is doing through his gift to your organization.

Politely. Don't ask for a second gift in your thank-you letter. Ever. You haven't earned the right to. In a study conducted by Penelope Burk and Cygnus Applied Research Inc., 53 percent of individual donors said asking for another gift in the body of a thank-you letter is rude. Eight percent said they stop giving if this happens. Enough said. (Ed. Note: The sector seems to be divided over whether or not it's appropriate to ask for a second gift in a thank-you letter. Past stories in FundRaising Success have suggested that it's not only perfectly fine, but almost necessary. What has your experience been? Tell us by e-mailing asanticola@napco.com.)

2. Before asking again, W-I-N them.

You have work to do between receiving a donor's first gift and asking for a second one. First-time donors need a reason to repeat their generosity. I recommend you W-I-N over your new donors, as follows.

Give them a WELCOME. Mail a welcome kit or new-member package within a week of receiving the first gift. Your goal is to inform and inspire your new donors, helping them see that they made the right decision in mailing you a gift, and that your organization deserves their continued support.

Get them INVOLVED. In 1993, according to fundraiser Kent Dove, the average gift among households with volunteers was 55 percent higher than among households with no volunteers. So invite your first-time donors to sign a petition, answer a survey, volunteer or drop by for a tour. Involvement leads to commitment -- and that second gift.

Give them NEWS. First-time donors have attended one game, but they aren't fans yet. To transform them into long-term, loyal supporters, you need to educate them with newsletters, updates and progress reports. To attract that vital second gift, the most important thing to tell your new donor is what you did with his first gift. Donors want to see proof that you have used, or are using, their last gift as they intended.

3. How to ask for the second gift.

Don't kill your budding friendship with a "dear friend" letter. Address your donor by name. Somewhere in the opening paragraphs, thank the donor for her recent support. Recognize her recent interest and generosity. Describe what the donor accomplished with her gift, and explain why her continued support is needed right now. Stress the need for renewed support or a renewed gift. Do this again in your close.

One last thought

The easiest way to attract a second gift is to ask for it first -- in your mind, that is. Before you sit down and craft your acquisition package, determine what you're going to mail after that. What's most important in direct-mail fundraising isn't the first package that acquires the donor, but the second package (or third or fourth) that renews the donor.

Alan Sharpe is a direct-mail fundraising copywriter, instructor, newsletter publisher and author of the popular Hands-On Fundraising Series. He can be reached by visiting http://www.raisersharpe.com