Posts tagged ‘beginning-of-the-year appeal’

October 1, 2018

Here are 3 Simple Steps to Avoid a Year-End Appeal Disaster

We’re now in the fourth quarter of the calendar year. It’s that special time of year when most charitable giving happens. That’s due, in part, to the fact that charities are out in force soliciting contributions as the year nears a close.

While there are many things you can and should do, I’m going to keep it easy. I’m going to give you three simple steps (and a bunch of useful tips) that will help you avoid a year-end appeal disaster:

Step 1 – Make a Year-End Appeal: You should test doing a beginning-of-the-year appeal in January/February since tax-avoidance is less of an issue for more people under the new tax code (see my post about this by clicking here). However, the fourth-quarter season-of-giving certainly remains the traditional time to ask for support. So, unless you have data for your organization that suggests otherwise, make sure you have a year-end appeal. The surest way to have a disastrous year-end fundraising appeal is not to have one.

As you plan your appeal, be sure to segment your prospect file. Treating your prospects as one homogeneous group may make your job easier, but it won’t help you keep your job. You’ll achieve much better results if you segment your prospect pool and target each segment with a tailored appeal.

For example, your message to existing donors will be different from your message to acquisition prospects. For starters, you’ll want to thank existing donors for their support before asking for another gift. Other segments might include monthly donors (You do have a monthly-donor program, right?), volunteers, past service recipients, event participants, etc.

In addition to tailoring your message to each segment, be sure to customize the ask. It’s inappropriate to ask an acquisition prospect for $1,000. Conversely, it’s also inappropriate to ask a $500 donor for $50. Just as bad, it’s a horrible mistake to not ask for a specific dollar amount or not to ask at all.

Step 2 – Have a Solid Case for Support: If you want people to give money to your organization, you need to make a compelling case for support. This is particularly true at this time of year when virtually every other nonprofit organization is out there looking for donations, too. Why should people respond to your direct-mail appeal (or phone solicitation, or face-to-face ask, etc.) instead of the appeal from another organization, perhaps one with a similar mission to yours? Address that question, and you’ll have greater success.

A strong case for support is particularly important when appealing to folks who have already contributed this year. They’ll want to know how you spent their money, the impact they have already had, and why you need more. Tell them those things, and you’ll increase the chance of getting another gift.

In addition to having a solid case for support, you’ll want to create some urgency. Why should people give to your organization now? If you’re the Salvation Army, people automatically get why you’re asking around holiday time. For pretty much any other organization, you’ll have to give prospects a good reason. And if that reason magnifies the impact that the donor’s gift will have, so much the better.

For example, you can have a challenge grant that matches all gifts received through the end of the year. Or, you could have the cost of your appeal underwritten by a major donor so you can legitimately tell prospective donors that 100 percent of their contributions to the appeal will go toward mission fulfillment. Both of these ideas will create urgency while magnifying the impact your donors can have.

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February 5, 2016

It’s Not Too Late to Think about Year-End Giving

No, the headline does not contain a typo. It’s not too late to think about your 2015 year-end giving. It’s also not too early to begin planning for your 2016 year-end appeal strategy. Let me tell you why.

Only about one-third of tax filers itemize on their tax returns. Therefore, year-end giving for tax avoidance is simply not that important to the majority of donors. Furthermore, survey after survey indicates that tax avoidance is a very low motivating factor for most donors. So, why put a tremendous amount of energy and resources into doing a year-end fundraising campaign? Here are some of the rationales:

Herd Mentality. The fourth quarter of the calendar year is a busy time for charity appeals. The largest number of direct mail appeals is sent at that time. For phone fundraising, it is also the busiest time of year. So, since everyone else is doing it, fundraisers think they should be out there, too. #GivingTuesday helps perpetuate this mentality.

Heaping Pile of Mail by Charles Williams via FlickrIt’s the Right Time. For some charities, doing a year-end campaign around the holidays is appropriate given the mission and/or history of the organization. Consider The Salvation Army and its red-kettle campaign, or the Toy-for-Tots effort geared to providing holiday presents for children. For other organizations, donors are simply accustomed to seeing and responding to a year-end appeal.

Year-End is a Time of Giving. With Hanukah and Christmas falling at year-end, there is certainly a giving spirit leading into the end of the year. Charities hope to piggyback on that giving spirit.

Charities Simply Must Appeal at Year-End. This relates to the first two reasons above. Fundraisers think they have to do a year-end appeal because it’s the thing to do or because the organization has always done one. Without giving it much thought, fundraisers conclude that a year-end appeal is simply something that is best practice.

Despite the conventional wisdom, doing a year-end appeal might actually short-change your organization. There might be a more effective way for you to raise money.

I’ve worked with charities that have tested a year-end appeal against a beginning-of-the-year campaign. Many of these charities found they could raise far more money in January and February instead of at year-end.

Why did those charities raise more money at the beginning of the year rather than at the end of it?

Interestingly, the reasons can be found when taking a closer look at the reasons I’ve outlined for year-end giving:

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