Why New Non-profits Shouldn't Use Direct Mail Fundraising Donation Request Letters to Raise Funds

"body">Here's an example of what I mean. I received
Be warned. If you're starting a non-profit andaphone call from a non-profit on the west coast
don'thave $100,000 in the bank, don't use direct mail.thatwas in a financial crisis. So they intended to rent
Youliterally cannot afford to use direct mail toamailing list of strangers andmail an appeal letter,
raisefunds right now.soliciting a donation. Theircause? Temporary shelter
Launching a new non-profit is like launching afor lost reptiles. I'm notmaking this up. This tiny
newbusiness. You need to spend money to makenon-profit provides homesto lost pet boa
money.constrictors, lizards and other exoticreptilian pets until
You cannot start a non-profit with no moneytheir owners can befound.
anymore than you can start a business with noI think you'll agree that this non-profit does
money.notchampion a cause that has popular appeal,
You need to raise start-up capital somehow, butthatexcusethe pun. They are not going to raise much
somehow shouldn't be direct mail fundraisingletters.money orattract many donors with direct mail. Their
Here's why.area ofoperation is small and their cause is unpopular,
Direct mail fundraising loses moneyinitiallyif notdetested.
You should expect your first direct mail appeal toloseDirect mail fundraising needs volume to besuccessful
money. You are new. People don't know you.You are not likely to operate a successful direct
You have no track record. Plus, direct mailmailfundraising program if you have only a few
donoracquisition mailings almost always lose money.hundredsupporters. For one thing, you will not qualify
Theygain new donors, yes, but usually at a costfordiscounts on postage. And for another, your
ofspending $1.25 to raise $1.costsfor hiring professional writers and designers will
I'll say it again: "Donor acquisition mailings losemoney."beprohibitive. Direct mail fundraising works best
This is the main reason that direct mail isineffectivewhenyou mail to tens of thousands of donors over
at raising start-up capital from strangersfor newtimeasking for small donations. Canyou afford that as
ventures. The business case is actually theother waya new non-profit? Probably not.
around. You need start-up capital tolaunch a directDirect mail fundraising needs frequency to
mail program.besuccessful
Direct mail fundraising requires a popular causeDirect mail fundraising usually works only when
Direct mail is an effective way to raise fundsyoumail at least eight times a year (four appeals
whenyou have a cause that has broad appeal,andfour newsletters). If you do not have money in
eitherlocally ornationally, such as heart disease, sickthebank for that kind of mailing frequency, then
children orabandoned pets. If you're starting a small,directmail is not the way to go for your new
obscurenon-profit in a small town, don't expect tonon-profit.
evenbreak even with direct mail. You won't.Not yet, anyway.