How effective is a newsletter as a development tool? (6/9/96)

Summary:

If used correctly, newsletters can be a valuable fundraising tool.

In March 1996, someone asked in the talk-amphilrev mailing list about
newsletters as a fundraising tool:

"As the only current member of a team of 2 in a social service agency
($3 million budget -- $150,000 raised by Development office in
individual gifts), how effective is a newsletter as a development tool?
4 pages, some about our annual event which just occurred, some about
programs. Followed up with direct mail appeal. Worth the time and
energy?"

Bill Krueger provided one answer:

Yes. Almost invariably, if done correctly, newsletters can be a valuable
fund raising tool. Some points to remember ....

1. Quality first. Poorly written/designed copy is a great turn-off. Make
it informative as well as interesting. A little self-serving is o.k.,
but don't over do it. Remember, no newsletter is valuable if it doesn't
make the reader want to read it. Doesn't have to be expensive ... just
good.

2. Always enclose a BRE for gifts ... and don't be afraid to tie a fund
raising appeal with the articles. For example, after writing about a
program you provide, don't be afraid to also say how donors dollars can
help that program.

3. Do you have a donor list to mail to? Newsletters work best with
people already committed to your cause, but you can purchase/rent
targeted lists and use your newsletter as a relatively inexpensive donor
acquisition/public information tool.

Bob Curley, of Join Together RI, another:

As someone who writes these for a living, I'm tempted to sing the
praises of newsletters to the heavens.

Realistically, however, a newsletter is best suited for maintaining
existing relationships -- vesting donors with a sense of ownership and
involvement and keeping them up to date with how their money is being
spent. A well-crafted newsletter *can* increase donor participation,
especially when stories help to put a human face on your work. Too much
rah-rah, however, can smack of self-promotion, which could turn donors
off.

My sense is that the success of direct solicitation through a newsletter
is most effective when it links directly to one or more of the stories
you are telling in the publication. If you tell a story about how
'Angie' has recovered from heroin addiction because of your program, for
example, then include a BRE asking for a donation to 'help people like
Angie.' The more passive the request -- simply putting in a blurb in the
publication asking for money, or asking readers to cut out a card and
return it with a donation -- the less effective it will be.

Rare is the new donor who gives simply because he or she read the
publication from cover-to-cover and says "Wow, what an organization!"
Usually, a quick glance is all you can expect, so the same journalistic
rules apply here as in a newspaper or magazine -- put the important
stuff up front, and keep stories concise and focused.

Charles R. Putney a third:

My experience is that a newsletter is most useful after a community
attitudes audit--after you know what the community does and does not
know about the organization. When working with a mental health center we
did a community assessment and learned, for instance, that a sizable
percentage of people thought people worked in community mental health
rather than in private practice only because they couldn't survive on
their own. We then made sure the newsletter highlighted the experience
and commitment of staff to community mental health.

A newsletter works best in development when you know the attitudes and
interests of present and potential donors. It won't generate money, but
it creates a climate for giving. To know those attitudes and interests
you have to ask.

Cyndi Layne commented:

I think we need to make a distinction between types of newsletters.
Because I disagree strenuously with the suggestion that newsletters
should not be sent until AFTER someone has made a gift.

One type of newsletter contains mainly information about the
fund-raising effort, projects at the institution, etc. This newsletter
does indeed go to donors, not prospects.

Another type of newsletter contains helpful financial/estate planning
information. It's an ongoing, (usually) quarterly publication that forms
the core of the education phase of your development program. You send
this newsletter to prospects as well as donors, for instance: prospects
age 45 and older; donors above a certain amount (this varies according
to the institution); board members; key staff members; CPAs, attorneys
and trust officers from the community; and the like.

The bottom line in any marketing program is, of course, soliciting
gifts. But with the financial/estate planning newsletter, the focus is
much more subtle. You want the reader to benefit from the information
whether or not they give you a dime. You don't include a BRE asking for
a donation -- you include a BRE inviting the reader to request more
information on the subject.

This is also part of the trust-building process. A prospect for a
major/planned gift has to learn to trust both the organization AND the
development officer who represents it.

The type of newsletter I've been describing doesn't operate
independently, of course. You don't just send out the newsletter and
expect it to single-handedly build trust, educate prospects, promote
your mission and fill your coffers with charitably motivated dollars.
The newsletter is PART OF your marketing program. But -- used properly
-- it can be a powerful tool.

It also gets expensive to mail out such publications to everyone, so
target them as you would any other marketing promotion. I suggest you
look at what you want to accomplish. If you want to keep donors apprised
of the progress of your capital campaign, annual fund, whatever, then
consider a "newsy" newsletter. And be judicious in the number of times
you enclose a BRE asking for money.

But if you want to build a lifetime relationship with a prospect;
educate him in the subject of wills, trusts, retirement planning, estate
taxes, etc., as well as charitable giving; promote your mission in a
subtle, low-key and highly effective way; and ultimately increase your
endowment through major/ planned gifts, then launch a financial/estate
planning newsletter.

And Bob Curley continued:

Excellent points, Cyndi. I would add only this: Content is key. Readers
will quickly see through shallow articles that are really a shill for
donations. Take the job of developing story ideas seriously. Also, it is
worthwhile to investigate if other non-profits in your area are doing
similar work. These types of publications lose their impact if they are
sent out by 10 different groups and contain similar, general content.
One idea for getting around this: find an informational niche to fill.