Find that Pot of Gold!
by Dick McMahon, Senior Vice President
The legend of the pot of gold was enthusiastically claimed by many of my ancestors and probably by some of yours too. For centuries children have been told that beautiful, young fairies put gold at the end of the rainbow and leprechauns watch over it for safe-keeping.
From the time I first heard about the pot of gold from my grandfather, every time after a rainstorm I would crane my neck every which way, searching for a rainbow and its elusive end. Even if I did spot a rainbow, however, I could never see the end no matter how I twisted and turned. All I could do was dream about that pot of gold. Eventually, in a science class I learned how a rainbow is created by the interaction of light and raindrops. But, what about the pot of gold? I still wanted to find it!
There are people today, even some fund-raisers, who feel they have an answer to finding a pot of gold in a capital campaign. And, the answer they often give is Direct Mail. After all, it's easy. Write a letter, send it to lots of prospects, and wait for checks to arrive. In almost every case though, that approach brings a long wait without reward.
There are no legendary tricks in fund-raising. Campaigns are hard work based on tried and true plans that are tailored to individual institutions or non-profits.
But, how about direct mail? Does it have a place in campaigns? Is there gold in the mailings?
Yes! Direct mail definitely has a role in capital campaigns. If personalized, properly designed and targeted to the right prospects, direct mail can bring desirable results near the end of an effective campaign. It can "top off" the campaign, put a few more dollars in the tank, and provide additional benefits.
There are multiple criteria for recipients of mailings. Two key guidelines are to select prospects who:
- Are deemed low in gift capability, hard to reach or would not return calls to schedule appointments.
- Were solicited, but did not respond to follow-ups or gave "I will let you know" responses, but didn't.
Direct mail has a relatively low response rate, maybe 5% + or -. Why again should it be used at all?
- Direct mail gives every constituent not yet solicited an opportunity to give to the campaign.
- The effort provides a method of wrapping up a campaign, "closing" the door to the solicitation process.
- Direct mail provides another way to announce the enhanced capacity to achieve the mission.
- Some money is indeed raised through direct mail, usually far more than enough to pay for the activity.
- Importantly, direct mail publicizes the progress made and lays some groundwork for the next campaign.
Keep the direct mail appeal simple. In virtually all cases, everyone who receives a letter should be asked to consider a gift of a flat amount. Ask amounts ranging from $300 to $1,000 are often appropriate.
A campaign is best served by neither overdoing nor under doing direct mail. A pot of gold may not be waiting, but nuggets, shimmering brightly in the colors of the rainbow, are there to be found.
