| Your organization is doing well if 85 percent of your | | | | response rate of one percent, then you must mail |
| donors renew their support each year, according to | | | | 100 packages to acquire one new donor. |
| Stanley Weinstein in his book The Complete Guide to | | | | So how many packages must you mail each year to |
| Fundraising Management. | | | | reach your donor acquisition goals? |
| To put it another way, you are doing well if no more | | | | Well, using our previous example, if you have 10,000 |
| than 15 percent of your donors fall away each year. | | | | active donors in your house file, and if you lose 15 |
| So do the math. | | | | percent of them each year through attrition, and if |
| If your organization has 10,000 active donors, and if | | | | you want to increase the size of your list by 10 |
| 8,500 (85 percent) of them renew each year, then | | | | percent each year, then you must acquire 2,500 new |
| 1,500 (15 percent) of them will drop off every year. | | | | donors each year (25 percent of your total list of |
| Ouch. | | | | 10,000). |
| This is the main reason that you need to create and | | | | So, if your acquisition package attracts one new |
| manage a well-planned, annual donor acquisition | | | | donor for every 100 packages that you mail, then to |
| program. You cannot afford to simply mail to your | | | | attract 2,500 new donors each year you must mail |
| existing donors only. You need to replace the donors | | | | 250,000 donor acquisition packages each year (1% of |
| who never renew. Without a steady influx of new | | | | 250,000 = 2,500). |
| donors, you will be moving backwards each year, not | | | | 4. Aim to raise friends, not funds |
| forwards. | | | | Most acquisition mailings lose money or barely break |
| Here are some tips for running a successful annual | | | | even. According to James Greenfield, in his excellent |
| donor acquisition program. | | | | book, Fund Raising (second edition), you can expect |
| 1. Know your attrition rate | | | | to pay anywhere from $1.25 to $1.50 to raise $1 with |
| Naturally, if you are to replace the donors who fall | | | | an acquisition mailing. That doesn't sound like a wise |
| away each year, you need to know how many need | | | | use of your resources, does it? But with acquisition |
| replacing. That means you need to calculate your | | | | fundraising letters, you need to have your eyes fixed |
| attrition rate. Your attrition rate is simply the rate at | | | | on the lifetime value of your donor, not the |
| which donors do not renew their gifts, usually | | | | short-term value of their first gift. |
| expressed as a percentage of active donors. | | | | 5. Agonize over your list more than your package |
| 2. Recruit as well as replace | | | | The single most important factor in determining your |
| Your donor acquisition program likely needs to | | | | success in direct mail donor acquisition is your list. A |
| increase your donor base as well. You not only need | | | | poor letter mailed to a great list will generate a |
| to replace the donors who stop giving each year. | | | | response. But a terrific letter mailed to the wrong |
| You need to add new donors as well. So if your | | | | people will generate nothing. |
| attrition rate is 15 percent annually and your goal is to | | | | So before you rent a list of names and drop an |
| increase your donor file by 10 annually, then you | | | | expensive direct mail acquisition package in the mail, |
| need to increase your donor file by 25 percent each | | | | examine the potential donors on your list. Make sure |
| year. | | | | they are good prospects for a donation today--and |
| 3. Mail in sufficient numbers to meet your acquisition | | | | tomorrow. They need to meet at least three criteria: |
| goals | | | | 1. have the capacity to make a donation now |
| Another number that you need to know is your | | | | 2. have an interest in your cause or the people you |
| response rate for acquisition mailings. If your | | | | help |
| acquisition control package currently generates a | | | | 3. |