Not-for-Profit

What Charities Need to Know about the National Do Not Call List Service

Together with my colleagues on the CMA Not-for-Profit Council, we've customized these FAQs for charities that clarify the rules governing the use of the National Do Not Call List Service (NDNCL) and other telemarketing regulations.

The key message is that as a registered charity, you do not need to use the National DNCL for your own telemarketing activities. However, you do need to maintain numbers on your own do not call list for a period of 3 years and 31 days from anyone requesting not to be called. Additionally, you still must comply with all other telemarketing regulations (see FAQs) and be aware of and comply with additional registration and regulations that each province may have.

While the regulatory framework may seem restrictive and maked it more challenging to raise money for important causes, the rules benefit both consumers and businesses. The telemarketing regulations are the best practices that a reputable agency or charity would want to follow any way. After all, these are your donors we are talking about. They deserve to be treated with these common sense courtesies.

By following the rules and best practices that help maintain a “clean” market place, our goal should be to improve telemarketing so that it is generally accepted as having a positive and helpful conversation with your donors.

P.J. VanAuken
Vice President of Client Services, Wyers Direct Communciations

Can Charities Fundraise on Facebook?

One of our clients, Lupus Canada, has found a way to raise both awareness and cash on Facebook.

They’ve accomplished this by partnering with Jergens Canada on a campaign called ‘SHED LIGHT ON LUPUS ‘. It’s an online campaign that saw Lupus Canada receive $1.00 for the first 5,000 people who became fans of Jergens Canada on Facebook and wrote “Shed Light on Lupus”.

This ongoing campaign is geared to drive people to the Jergens Canada Facebook page and from there includes a link to the Skintervention Campaign site where there is more detailed information about lupus, the campaign and where you’ll find the videos shot by the charity’s celebrity ambassadors Colin Mochrie and Debra McGrath. You can also follow along on Twitter@Skintervention.

Even though the funds raised are small (if you visit the site, you’ll see they’ve already received their 5,000 visitor goal), they have found a way to generate revenue and in addition, receive much needed public awareness for a charity that has a tough time competing in a space with much larger and more recognized health charities.

What about [other] examples of successful Facebook campaigns involving charities?

Angie Mackie

What can Brands Learn from the Not-for-Profit Sector?

The importance of engagement.

I revently had the opportunity to participate in a retreat as a new board member of the MS Society of Canada.

The first day of the retreat included a session led by an expert facilitator (recipient of the Order of Canada) with expertise in volunteer engagement. Several of the topics which she discussed have direct relevance to corporate Canada and successful internal branding practices.

The session started with a discussion of the core values of engaged volunteers which included the attributes: helpful, committed, caring, motivated and team oriented. Indeed these are several of the key values which corporate Canada promotes to engage its employee base. However, the non-profit sector does have an advantage in that their employees and volunteers also possess a passion for their cause.

Non-profits acknowledge that volunteers are the glue of their organization. Their focus is not about how to manage volunteers but how to engage volunteers. If only corporations could take more of this type of focus with their employees. Imagine if employees were passionate and engaged in their work and treated more as a customer and less like human capital; a resource to be managed and measured.

With a re-newed emphasis on Employer of Choice status, several corporations appear to be moving in this direction. Or are they?

Patricia McQuillan

Will Reduced Direct Mail Acquisition in 2009 Hurt Fundraisers in 2010?

Recently, Cornerstone concluded a study of our Fundraising Clients’ 2009 mailing activity versus 2008. Results from early in the year showed a significant decline in mailing levels – particularly in the area of new donor acquisition. Overall, our clients mailed 12% fewer solicitations in 2009 than in the previous year, including both prospect and house file mailings. Although mailing levels increased to previous levels for existing donors by the end of the year, prospect mailings continued to be significantly reduced.

So what will be the impact of that decline in volume? The good news is that response rates and revenue per donor increased in 2009 for both prospect and house file mailings, indicating that fundraisers have a stable base of high quality current and future donors. However, those fundraisers who severely curtailed their prospecting activity in 2009 will be in a weaker position in 2010 due to smaller growth in their house files – which represents the most lucrative source of ongoing donation revenue available.

Moving in to 2010, we recommend that Fundraising Clients start prospecting more aggressively again to make up for this shortfall. Results from 2009 demonstrated that Canadians are clearly willing to give and smart fundraisers will want to benefit from their generosity.

For Cornerstone’s complete 2009 Direct Mail Performance Analysis, click here.

By Kamy Zarbafi, Vice President, Publishing Services/Fundraising Services, Cornerstone Fundraising Services and Chair of CMA’s Not-For-Profit Council

Are Canadians Giving Less in 2009?

That’s the question on every fundraiser’s mind right now. So what impact has the global recession had on direct mail fundraising in 2009? Recently, we undertook a study of our Client’s 1st quarter acquisition and retention activity to find out and there were some interesting results.

The first significant finding was that our Clients reduced their efforts to acquire new donors via direct mail during the 1st quarter of 2009. Total outbound solicitations dropped 42%, while responses and donation revenue dropped at an even greater rate of 73% and 60% correspondingly. One bright note however – those prospects who did respond donated more on average. While the reduction in new donor acquisition likely saved fundraisers money in 2009, it could have a significant impact on their ability to fundraise in 2010 and beyond.

Surprisingly, there were 13% fewer solicitations to house files in the 1st quarter of 2009 versus 2008. Those donors that responded contributed more than in previous years. The average gift climbed by almost 3%, resulting in an increase in the gross revenue per mail piece. However, as with prospects, existing donors responded less frequently than in previous years – although the decline in response was no where near as severe as with prospects.

So what can we take away from these results? There seems to be no question that fundraisers were cutting campaigns in early 2009 as a result of the recession. However, given the results from the mailings that did occur, it’s unclear whether that strategy was the right one. In the case of house mailings, response rates stayed relatively consistent with the previous year while average gift increased indicating that those fundraisers who cut back on their house programs left money on the table. In the case of prospect mailings, results were down. However, those fundraisers who did prospect will be in a much better position to take advantage when the recession ends as they’ve added to their house file. So while it appears that Canadians are giving less in 2009, those organizations who continue to fundraise will stand to benefit during a recovery when Canadians begin to open their wallets again.

Authored by Kamy Zarbafi, Vice President Publishing Services/Fundraising Services at
Cornerstone Fundraising

Cautiously Optimistic…

“Cautiously optimistic” is the catchphrase so many of us in the not for profit world were throwing around the end of 2008, when fear of the impact of a recession first hit as we were planning our 2009 budgets. We all knew that biggest hit would be in major gifts, and had learned from previous economic downturns that some charities would possibly not even feel the effects on other donation streams.

Fast forward to 2009, a third of the way through the year. Charities I’ve spoken to are reporting a decrease in direct mail results from that of the previous year, and for those of us doing telemarketing, those results are down as well. Specifically, the lapsed donor segments seem to be particularly hard hit.

Do we give up on them, to save the cost of mailing or calling? I'd say not yet. Or do we invest a bit more and truly integrate telephone, e-mail and direct mail strategies?

So, e-mail/call, mail/e-mail, call/e-mail, mail/call, call/mail?

Previous tests have found that sending lapsed donors an e-mail (with a story, photos, no ask) prior to a telephone call will help lift results of that telephone call (interestingly the results were not the same for active donors). We also find that sending an e-mail shortly after a direct mail appeal helps drive in some more donations, as well as an e-mail to those who just pledged to a telemarketing campaign. These are easy and affordable solutions for those charities with the ability to send e-mail on their own, or with a service provider who will do it for them as part of their overall fee structure.

But the reality is that most of our donors don't have an e-mail address - so what do we do about those donors for whom we currently have no e-mail address?

We're thinking of sending a postcard, digitally produced so that the image on the face of it reflects what their previous gift helped support (i.e. a country, a program, a sector). But at a time of cost cutting and revenue concerns, this unaccounted-for expense (a cost of about 85 cents a postcard in the mail), untested activity to an ever growing lapsed file may not be possible. So perhaps we'll test to a small segment only at this time. The obvious timing for this would be before a scheduled phone call or before a monthly donor is about to lapse.

Likewise, a call to more recently lapsed mail donors will serve to reactivate some of them but, since this is an unbudgeted activity this year, a solution we may not be able to afford. Or perhaps we can't afford to not try it when, frankly, if they're not reminded to support us again, they may support another charity that does call them.

There are a lot of uncertainties for charities today but I, for one, will continue to remain cautiously optimistic....

Authored by Dusanka Pavlica, Director, Resource Development, Canadian Feed The Children

Going Once, Going Twice, Gone!

In these difficult economic times, all charities are trying to find new ways to raise funds. A client of ours, The Canadian Hearing Society is one of those groups. They have just launched their third eBay auction. This initiative is an innovative way for the Society to solicit support in addition to their traditional direct mail, major gift asks and events. Wendy Quick, The Manager of Individual Giving for the Society says. “Our key objective was to find a new way to fundraise that would hopefully also attract younger support. The traditional ways to raise money are our bread and butter, but they have not allowed us to break into the potential younger supporters.”

The Society finds the items and then offers them up on eBay for a specified period of time. This is also a unique potential opportunity for nonprofits as all the items are donated and the charity gets to keep 100% of the dollars raised. You can check out their auction which is live now for the entire month of May. Log-on to their website www.chs.ca and follow the links…

Authored by Angie Mackie, Partner, The Donnée Group

What’s a Fundraiser to do During Tough Economic Times?

You can’t open a newspaper or magazine or turn on the radio or the television without being bombarded with something about the economy. The downturn will be around for a while, and we need to deal with it. So what is a fundraiser to do?

Some say you should ‘stay the course’; while others say ‘you need to cut back’. Some charities are mandated to cut back, but how do we do this and stay competitive in a highly competitive marketplace? There are good, solid charitable organizations trying to raise funds for so many worthy causes. We are all trying to get the first gift or the next gift from a shrinking wallet.

How does a fundraiser help to keep costs down and donations up? Here are three ideas I’ve heard recently from fundraising friends:

Reduce the number of mailings

Well, this will save money because you didn’t spend it. But consider the revenue you won’t get if you drop a mailing. It’s better to cut out weaker performing segments and reduce the volume in a campaign, than drop one entirely (unless it’s really not working – then your next steps are obvious).

Also consider that if you aren’t asking for a donation, someone else is, and guess who will get the donation? The one who asked.

Don’t use premiums during a recession

They yield the strongest results when acquiring new donors. Perhaps we reduce the amount of premiums we send to existing donors, but keep in mind that if you acquired the donor with a premium, you probably need one to get the next gift. So, think about these two points before you drop premiums from your strategy.

Don’t bother mailing your long lapsed donors

If they donated a few years ago, then remind them of the time they gave, and why we still need them!

And, don’t be afraid to tell the donor you need them now more than ever! Without our supporters, we can’t do the great work we do. So I think you should “stay the course”, but look at your program, and “cut back” where it makes the most economic sense.

What have you heard lately?

Head and Shoulders Knees and Toes

I recently attended a special event hosted by The ALS Society of Canada and had the honour of viewing a new video launched by the society ‘Head and Shoulders Knees and Toes’. The campaign is intended to raise awareness about Amyotrophic Lateral Sclerosis (ALS) and the ALS Society’s efforts to fund research towards a cure for the disease. It has done that and more.

Created by Lowe Roche on a pro bono basis, the 60-second television public service announcement, “Head and Shoulders” is composed of a montage of clips, each one focusing on a man with ALS in emotionally charged moments as his disease advances to different parts of his body. Set to the children’s song, “Head and Shoulders, Knees and Toes”, as the spot progresses, and his conditions worsen, the cheerful singing becomes a sad whisper.

“We chose to create a spot that was musically and emotionally driven to raise awareness for ALS,” said Christina Yu, Vice President, Creative Director, Lowe Roche. “This song is one which everybody can relate to and we wanted to use it unconventionally to illustrate how this disease eventually affects every body part.”

“Lowe Roche has created a very powerful commercial that we think will help the public better understand what ALS is all about,” said Bobbi Greenberg, Director of Communications, ALS Society of Canada. “We’re very appreciative of their dedication to this project and of those who donated their time and services during the production process. We’re certain that their efforts will help us raise the funds we desperately need to proceed with research initiatives that will ultimately help us find effective therapies and a cure for this devastating disease.”

ALS, also known as Lou Gehrig’s disease, is a rapidly progressive and fatal neuromuscular disease that causes the degeneration of nerve cells in the brain and spinal cord. As the nerve cells die, people with ALS lose control of their muscles, which makes breathing, eating and even smiling almost impossible. Eighty per cent of those diagnosed will die within two to five years. There is no known cure or effective treatment of ALS.

Go directly to the ALS Society’s website to view the video.

Tough Economic Times Hit the United Way…

The United Way of Toronto announced last week they have two weeks left in their campaign but are $4 million short of their campaign goal. It’s the kind of announcement many in the non-profit sector have been concerned about.

In an article published in the Toronto Star, UW President & CEO Frances Lankin is quoted as saying “this is one of the toughest campaigns that we have ever experienced.”

Is this a sign of more to come?
Is the United Way so unique because of their reliance on corporate support?
How are your campaigns performing?

Using Social Networking Tools in the Non Profit World

More and more nonprofits are experimenting with social-networking tools such as Twitter and Facebook. In some cases, these tools are helping them raise funds. In most cases, it seems awareness and integration with other fundraising activities are the main goals. These tools do offer organizations an opportunity to build connections with their supporters and donors.

When you think of the Salvation Army, you may think of a very traditional organization likely more focused on established offline communication methods like direct mail. While they are still very focused in the mail, they are also ahead of the game in the online world dedicating resources to this pursuit. You’ll find the Salvation Army using Twitter and Facebook on a daily basis. Their Facebook page is active with links about donating, volunteering and connecting with the organization and is a fantastic example of how to take control of these tools and their content. Here’s the kind of information they provide on the page:

The Salvation Army in Canada
Global
Basic Info
Type: Organizations - Non-Profit Organizations

Description: The international Salvation Army gives hope and support to vulnerable people in 111 countries around the world, offering service in 175 different languages. As one of the largest social service agencies in the world, and through its role in the global community, The Salvation Army seeks to alleviate poverty, suffering and oppression by helping people build secure, sustainable and productive communities.
Contact Info

Website: http://SalvationArmy.ca

Recent News
Become a Salvation Army Fan!

http://www.new.facebook.com/home.php#/pages/The-Salvation-Army-in-Canada

Cost of Quality

We all know it is more cost effective to keep an existing customer than find a new one. This is especially true in today’s economic times where customer acquisition is becoming harder and harder.

Which begs the question; why is quality of call not included in the ‘success matrix’ of the telemarketing score card at most organizations?

While some companies look at quality of an inbound call, it is often underweighted, behind the almighty dollar. How long the call takes to resolve is always number 1. Short calls may come at a cost much higher than the price of the call; many of your customers will feel like they are being cut off, that their concerns aren’t being heard – that they are just another number. If you’re lucky, they will call back to get a sense of satisfaction from another agent. If you aren’t so lucky, they won’t call back - they will just find someplace else to spend their money. A customer’s satisfaction with the way a call is resolved should be the top priority. Some companies say this is addressed through 1st call resolution rates, my question is “how do you gauge those people who don’t call in a second time”, if they simply choose to find another company to work with?

If your cost to acquire a new customer is 3 or 4 times more (and sometimes higher) than to maintain your existing customer, shouldn’t the level of quality during the call be a priority?

Outbound telemarketing numbers can be much more staggering. I was recently part of an analysis that looked at the long term value of customers that were acquired. Due to the length of the initial calls, Organization A’s costs were $250,000 for the campaign; Organization B’s costs were $350,000. Initial response rates were almost identical. On the surface, everyone would say it is an easy decision - go with Organization A every time, as we are getting the same response for 60% of the cost. Responses were generating regular purchases every month on an ongoing basis. But once we started to look at the data and follow the trends, those that were acquired by Organization A were dropping off by as much as 24% per year, while those by Organization B were dropping off at 5% per year.

Customers acquired by Organization B felt valued during their call; the length of time spent with them on the phone was more than by Organization A – they showed an affinity toward the organization. As these customers were tracked over a number of years, the acquisitions of Organization A contributed just over $4,000,000. Acquisitions of Organization B contributed over $5,700,000. What looked like an easy decision based on initial costs, has ended up costing the company $1,600,000 over 5 years.

Maybe the decision wasn’t so easy after all.

A Call to Action

My great thanks to Pat for bringing this video to my attention. I’ld like to share it with you as it's an amazing tour-de-force crafted to mobilize the Obama vote on election day. I think marketers can learn much from it.
Have a look...

Is it any wonder the 2008 US presidential campaign will be studied for years?

In case you weren't counting, there were 12 spots totaling 47 seconds out of this 97 second video devoted to delivering a 'personalized' message based on the input of three pieces of information, my first/last name and my email address. For anyone still sitting on the fence about the power of social media...

It showcases a highly sophisticated level of on-the-fly personalization that just a few years ago we were touting as major capability enhancements in the lettershop and email trades. I wonder how many months before we have the capability to stitch together a complete narrative (opening #1, Paragraph #3, offer #5, call to action #2, closing #8) tuned to what the CRM profiles or BT algorithms indicate our customers are most receptive to seeing/hearing - the birth of video messaging beyond the mass messaging video banner ads. But that's a discussion for another day.

What REALLY excites me about this video is its powerful “Your choice makes a difference" message.

That call to action got me to thinking of what success might be had if we applied a similar personal video tactic directed to brand purchases and major retail events. For example:

Christmas: Because you shopped at HBC(Sears), the cherished Christmas morning family moment will be perfect.
Valentine’s Day: Women around the world rally in protest against the 'inadequacy', some even call it a mockery of the Valentine's day gift from their significant other.
RRSP season: This is what your retirement life may look like if you plan today.

Obviously I'm not a copy writer - but I hope you get the point I’m trying to make. We are so busy promoting the price point and the "buy now" call to action, that we forget to communicate the impact of our customer’s decision to buy or not buy the brand in concrete "Visualize the End Result or Benefit"
(VERB) ways.

Taking this up a couple of notches, we can infuse an even stronger call to action by linking brand purchase events with trickle down community benefits, in what I call “Share of Life” marketing. Perhaps it’s a perception bias, but I truly think with the interconnectedness brought about by social media and the economic fallout from “Wall Street” onto “Main Street” - that consumers are looking for more community leadership from our brands.

Whichever path you choose, I hope you appreciate the power this personalized video/call to action approach can have in adding relevancy to brand purchase events ....and if you decide against it at least you've gained a peek into the near future.

Cheers
Miro

The One Dollar Give

I recently attended a CMA conference, for Not-for-Profit organizations, where a term used clearly resonated with me: the One Dollar Give.

Many social networking sites attract an overwhelming young demographic and getting their attention as donors for life is critical. The One Dollar Give may be just the ticket.

Organisations venturing into the online space were encouraged to consider the One Dollar Give because it's attainable, achievable, and doesn't alienate very young donors who have limited funds. It's not always about money though, or the lack of. The One Dollar Give allows a donor to give without too much thought to a variety of causes with immediate results (ie: a dollar today provides a carton of milk for three kids). This led me to think, that in this age of integration and convergence (the buzz-word du jour), it is important to target the right audience through the most appropriate platform.

The "quick and dirty" approach works for teenagers because it requires little commitment and the results are tangible - well, as tangible as the Internet can be. I'm not yet convinced that integrating wholly online for charitable organizations will be the instant panacea many think it will be but at relatively little cost, it's certainly worth a shot.

Keeping it All in the Family…

More and more nonprofits have come to the realization that if you can’t count on your family who can you count on? Through social networking, electronic or otherwise, many charities are finding new ways to connect with core audiences.

Parkinson Society Canada’s Family Fund is a fantastic example of a nonprofit that is both getting into the “social networking” game and also building a group of leadership supporters drawn from their family & friends. The brainchild of a long-time Parkinson’s volunteer, the “Parkinson’s Society Canada Family Fund’ has been created to provide Family members of those affected by Parkinson’s a way to pool their dollars to help support the Society’s work towards finding a cure.

Together members' dollars will help build a pooled fund of $3 Million. Families are asked to contribute to the fund to collectively help it grow.

The program is being introduced to “family” members using a multi-faceted, integrated approach that includes: highly personalized mail, phone, online and face-to-face visits.

Through the mail, a personalized invitation package will be sent to prospective members. The Manager, Major & Planned Giving will then be following up with personal calls.

Feedback from a recent donor whose siblings pooled their funds to donate several thousand dollars to the fund, says it all,

“This was the best way for my sister, brother and I to really make a difference for our dad who has Parkinson’s.”

Isn’t that what our philanthropic work is all about?