Monday, December 8, 2008

Multichannel Challenge for Fundraising

The following is a review of an article in Advancing Philanthropy

The the most recent issue of Advancing Philanthropy has a very interesting article by Beth Isikoff who conducted a fascinating fundraising experiment last holiday season. She choose six large, well-known nonprofits and gave each a $35 gift through a different channel the last week of December. The busiest time of the year for nonprofit fundraising. She wondered how they might respond and how the channel of giving might affect the response.

Ms. Isikoff had never given to any of these organizations before. Her gifts were given in six different in response to six different fund-raising channels. The channels were: a direct mail acquisition appeal; a viral e-mail message; a DRTV spot; via an unsolicited call to an information hotline; via a personal check with a note to a federated headquarters; and finally by an online donation through a website.

She reports that the online gifts were acknowledged almost immediately. The call to the hotline resulted in a thank you letter in seven days. It took more than a month to hear from the other organizations. In her view, this was far to long. She talks about the great feeling of making the gifts, but how disappointed she began to feel as each day without a response went by.

Most followed by asking for another gift. Some kept her in the same giving channel as her original gift, but others quickly tried to pursue an online/offline strategy. Sadly she received another 54 appeals from 37 competing nonprofits who must have sold her “charitable heart” to them, as she put it. She seems most satisfied with the nonprofit’s viral email response. She had identified a specific interest to them, and although they continue to introduce her to other facets of their work, she says, “the people there know of my interest and use it to cultivate our relationship. It is very personable and feels different than some of the others.”

One organization asked her to renew only three months after she joined. Pretty confusing! The one she received the first response from sent a thank you note response and a newsletter but nothing since even though the person she talked to originally asked if they could continue contacting her.

She concludes that the fundraising industry is becoming better at measuring these channels and the impact they have on a donor’s behavior. All those who received an online gift have made efforts to communicate with her offline. But none of the offline channels have made efforts to contact her online—not even those that have her email address.

All nonprofits could learn from her little experiment. She says, “Fundraising is difficult, and finding the right channel with the right message is not easy. However, the little things, such as acknowledgement, are what matter the most. Donors are smart, recognize good service and actually respect organizations that provide it.” She encourages nonprofits in the rush to check out and integrate online and offline approaches to be sure to get the small things right first.

(Beth Isikoff’s complete article can be found in the November-December 2008 issue of Advancing Philanthropy, pages 35-40)

Posted by Howard Barlow, NRS, Fargo

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