McPherson Associates, Inc.
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Think Inside the Box!

Given the current economic and fundraising climate, many organizations have not solicited recurring gifts as aggressively as in past years. Monthly or quarterly gifts to a “sustainer” program may seem like too much of a commitment for a donor during a recession. Interestingly, the trends are saying quite the opposite.

Many donors are finding small monthly gifts to be a more convenient (and easily budgeted) way to support their favorite nonprofit. It seems $5 or $10 per month is an easier pill to swallow than a one-time gift of $60 or $120.

That’s good news for Development officers since sustainer donors typically equate to higher lifetime giving. Consider the case of Twin Cities Public Television (tpt).

As Fiscal Year 2009 (FY09) began, tpt made increasing the number of donations to their Station Partner (the branded name for their sustainer program) a top priority.

Begun in 2004, the Station Partner program at tpt owed much of its growth to telemarketing efforts. It seemed the most cost-effective way to start and grow the program. These efforts began to slow down, though, so tpt formulated a new, integrated approach to adding more sustainer members.

First, they added online capabilities to the mix. You can now join the Station Partner program online and there is a prominent label on the home page with a link to the Station Partner giving form. They also began running on-air spots encouraging viewers to join as sustainer givers. The spots drove viewers online to join the program.

Two new sustainer invitation letters were created and mailed in Sept. and Nov. The segmentation for the letters included pledge installment givers, consecutive year add gift donors, multiple gift givers, etc. – the typical sustainer audience.

The biggest change came in January, beginning with their annual tax appeal mailing. For this mailing, we added a sustainer box on the reply slip. The box was so successful that it was added to subsequent add gift appeals and the R1 in their renewal series. The box was simple, and just gave prospective donors another option for how to give a gift. There was also intentionally no mention of joining a Station Partner program – it was merely an opportunity to make a monthly gift, “Some members find it easier to make small, ongoing monthly gifts to tpt…”

In tpt’s case, they also only offered payment through EFT. This was done to avoid the higher fees charged for receipt of payment by credit card. The success of the sustainer box, though, may have them reconsidering and offering both EFT and credit card.

So just how successful was tpt?

The integration of the program and the use of the sustainer box on reply devices resulted in a net of more than 900 more sustainer donors from Sept. 1, 2008 to July 1, 2009 (Fig. 1-1), representing a growth in the program of more than 19.5%

 
   
Figure 1-1
The invitation letters sent in September and November resulted in an average response rate of 1.4% and an average gift close to $95, both pretty typical for mailings of this type.
 
The response to the box, though, was a real eye-opener. The tax mailing (Fig. 1-2) saw 2.76% of the respondents convert to sustainer giving and the March 2009 additional gift had a 1.24% conversion.

The additional cost to convert was zero because these were add gift appeals that were going out anyway. The first couple of months of the box in the R1 renewal letter saw an even greater response. All told, more than 16.5% of new sustainers have come in via the sustainer box – clearly a nice option to add to any appeal or renewal letter.

Figure 1-2
   

Lessons learned and tips for growing your sustainer program:
  • A mature sustainer program can be jump-started by adding more channel integration. If you are just starting a program, include the use of all channels for promotion and giving.
  • Offering multiple ways for donors to become a sustainer can only help the program
  • Test a sustainer option without branding it with your organization’s official name for those types of donors. Not everybody wants to commit to being part of a special giving group, but they may really like the option of giving monthly or quarterly.
  • Think inside the box! Test the sustainer box on your next additional gift appeal or renewal mailing

 

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