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8/3/2019 A Letter Once Per Yr Doesn't Make It
http://slidepdf.com/reader/full/a-letter-once-per-yr-doesnt-make-it 1/4
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8/3/2019 A Letter Once Per Yr Doesn't Make It
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Annual Giving: A Letter Once a Year Does Not an Annual Appeal Make! Many organizations describe themselves as having an annual appeal, but upon further
investigation, what the annual appeal consists of may be a letter sent to donors or prospective
donors once a year. A strong annual giving appeal consists of far more than just an annual
direct mail appeal. For most successful organizations, annual giving may include, personal visits
with individual major donors, a corporate appeal, a telephone campaign, Internet fundraising
and direct mail.
Annual giving is an important component of any organization’s development program for
several reasons:
• It is generally unrestricted money and can be used for operating expenses such as
salaries
• It helps build relationships with new and existing donors
• The methods and techniques used can lay the groundwork for other fundraising efforts
such as planned giving and capital campaigns
• It is the best way to bring donors into the organization for the first time‐‐donors that
can be cultivated for major gifts in the future
The annual giving appeal should be a major focus of the development plan and should attempt
to
diversify
the
constituent
base
and
the
fundraising
methods
to
be
used.
Diversifying Constituents As most development professionals know, approximately 85% of all contributions in the United
States come from individuals, approximately 12% come from foundations and 6% from
corporations and businesses. Therefore, for an organization to be successful, it should focus
most of its fundraising efforts on individual giving. However, foundations and corporations
should not be ignored as these are also good sources of funding. Foundations, in general, prefer
supporting specific programs, so they will not be addressed here. Corporate fundraising,
however,
is
often
unrestricted
and
should
be
also
considered
as
part
of
the
annual
giving
program.
The annual approach to individuals does not necessarily mean that the organization contacts
donors once a year. Some donors respond to direct mail as often as monthly, others will give
several times a year if a good case has been made. Major donors may prefer being approached
just once a year. It is important to have a plan that outlines who will be contacted, how they
will be approached, how often and when.
8/3/2019 A Letter Once Per Yr Doesn't Make It
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When planning how each group of prospects will be approached, one good rule of thumb is to
look at the 95/5 Rule (or the 90/10 Rule), recognizing that 5% of all donors will generally
account for 95% of an organization's donations, (this may be translated as 90% of contributions
coming from 10% of donors for some organizations). A little research of the organization’s
donor records
will
help
establish
a plan
to
contact
the
top
5‐10%
of
donors
in
person
each
year.
Other donors, falling in the majority of 90‐95 percent of donors who account for 5‐10% of
contributions can be approached by mail, telephone, or the Internet. Telephone approaches
work best when the organization contacts people who already have a relationship with it—
members, existing donors, clients, etc. Others, such as names contributed by staff or board
members, names acquired through list brokers, etc, are often best approached by direct mail.
Approaching current donors or friends by phone is almost always more effective than direct
mail appeals, because it is more personal. Volunteers or professional telephone fundraising
firms can be used effectively for phone appeals, depending on the number of individuals to be
called, the purpose of the call, and the availability of volunteers.
Direct mail, likewise, can be done in‐house or through a direct mail firm. Again the number of
individuals to be approached, the organization's budget, the ability of the organization to
prepare and mail the appeal will usually dictate the method to be used.
Internet fundraising is becoming more effective as it becomes more popular. Again, it can be
done in‐house if the organization has the tools to effectively set up and manage the program.
Third party vendors are also available to set up programs, usually with a small percentage of
operating costs.
In person calls should be made to that top 5‐10% of the donors. Approaching these donors in
person is always the most effective way to raise money. Board members and other volunteers
are often very effective in making personal calls especially when teamed up with the Executive
Director or Chief Development Officer.
Corporate contributors should always be approached n person, unless there is a corporate
foundation that handles requests through a grant proposal process. When approaching small
businesses or corporations that do not have a foundation, often the decision is made by either
a committee or one individual, usually the owner or manager. For this type of approach,
volunteers
who
represent
the
local
business
community
can
be
very
helpful
in
planning
and
implementing a corporate annual appeal.
Each organization should establish a plan to use the most effective methods to reach the
broadest base of constituents with the greatest number of staff board and volunteers it has
available.
8/3/2019 A Letter Once Per Yr Doesn't Make It
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