Acquisition

Remember the story of the boy in Holland who noticed a hole in the dike? Fearing a leak could flood the entire town, he shoved his finger into the hole, potentially avoiding a major disaster.

In the Network for Good webinar "Broadening Your Fundraising Net: Diversifying Your Fundraising Channels to Build a Financially Healthy Organization" in late April, Cindy Adams, president and CEO of GrantStation, discussed how organizations can diversify fundraising income streams to help become financially healthier. She looked at how and why organizations should assess their existing revenue streams, ways to boost the bottom line by building on what you already have, and best practices for developing a funding plan. She also recommended some practical assessment tools.

Put simply, modeling means finding like characteristics about people that, when combined, enable you to predict future behavior. There are several inexpensive ways to model your data yourself (and some more expensive ways to use external data sources to help you) that can yield more revenue at lower cost from your direct-response program.

If you haven’t gotten it yet, the memo is probably on its way. It says, with a great many words: You must cut your fundraising budget!

The second installment in our year-long series on fundraising basics focuses on acquisition.

Temptation No. 1: Starting the project by writing the letter.
Here’s what’s happening: You’ve been assigned to create an acquisition package. You’re up for it because you have a great idea. You feel really good about that idea. You are sure it’s a winner. So you sit down and start writing the letter, right? Wrong. The letter is the very last thing you should create.

Sugarcoat it all you want, but offering premiums in an acquisition campaign is, essentially, bribery. And pretty unsubtle bribery at that.
You’re saying to a prospect, “Look, I’m afraid you don’t care enough about my organization’s work to support it out of 
passion or principle, so I’ll offer you this trinket to try and buy your loyalty.”
The dilemma is obvious. You’re going to have much greater loyalty from people who support you because they believe in your cause. But those premiums sure can bring in more donors. At least in the short run.
To a development director, the promise of the premium can be very alluring. For a relatively small investment in mailing labels or tote bags or whatever, you can reasonably predict that significantly more people will respond to your mailing.

Sure, raising money online is a bit more 
complicated than renting a mailing list and testing various packages on the names to see what works and what doesn’t. For starters, in the spam-challenged online world, you need donors’ permission to continue communicating with them. And to be sure, your organization can raise serious cash online without sending a single e-mail, particularly during December when many donors seek you out. Heck, you can even raise a few dollars (but only a few) on Facebook these days.
But eliminate all the jargon and the steady 
stream of innovative ideas, and you’ll find that acquiring donors online boils down to five key steps.

I recently came across an announcement that Do Something, an organization missioned to empower teens to make a difference in their communities, is accepting applications for its annual Do Something Awards. Bulleted at the top of the announcement were three questions: "Have you identified a social problem and done something about it? Have you created measurable change that has tangibly improved the lives of people in your community? Are you 25 or under?"

The 800-pound elephant in the room at the DMA Nonprofit Federation’s 2009 Washington Nonprofit Conference that took place in Washington, D.C., in January was, of course, the economy and how fundraising execs planned to cope with what could be a very tough time for charities.