“Don’t Box Me In”

February 01, 2006
FundRaising Success Magazine

direct mailfundraising

When you hear the words "direct mail," what's your first reaction? If you want to do a jig, you likely work at a larger nonprofit with a direct-mail program that runs like a well-oiled machine. But if those words make you reach for an over-the-counter pain reliever, you may be suffering from a direct-mail dilemma common to many smaller nonprofits.

The diagnosis: a limited or no direct mail program. Don't worry — you're not alone. The remedy? Create unique direct mail pieces that do more than just fundraise &mdash they also generate advocacy and goodwill.

If you are a smaller nonprofit and pursue only housefile or smaller acquisition mailings, your response rate will be low. This could be because you have no reliable direct-mail program. A .05 percent to 1 percent acquisition response or 3 percent to 5 percent housefile response is viewed as a good result for nonprofits. That's why building a direct mail program and designing pieces that do more than just fundraise add value.

Read below to discover how three different nonprofits have successfully used unique direct-mail pieces to their advantage.

1. Parent Project Muscular Dystrophy, 2005 Mother's Day Tea Mailing

In May 2005, Parent Project Muscular Dystrophy (PPMD) seized Mother's Day as an opportunity to honor mothers everywhere, especially those within its community whose lives have been shaped by a child diagnosed with Duchenne muscular dystrophy (DMD). The objective was to raise goodwill among the PPMD community, raise awareness of DMD and include a soft ask by including a business reply envelope. The solution was a "virtual tea party" invitation.

The direct mail piece was designed to look like a (5" x 7") tea bag, which unfolded in a surprising way to reveal a green tea bag inside. The copy invited mothers to enjoy a cup of tea at 4 p.m. on Mother's Day. The idea behind it was that other mothers around the country would also have a cup at the same time, strengthening PPMD's message that families are not alone in the fight against this disorder.

PPMD Mother's Day Tea Mailer

PPMD's 2005 Mother's Day Tea Mailer

Project Snapshot:
  • Strategy: a goodwill and advocacy piece sent to core housefile segments, timed to coincide with a holiday of personal significance
  • Total Cost (includes creative, printing & postage): $10,000
  • Number of Mailers Sent: 5,000 mailed to parents and grandparents in their house list
  • Money Raised: $12,367
  • Average Gift Size: $102

PPMD views the success of pieces in more than dollars. While it brought in only a little over the amount needed to break even on the cost to produce, it cultivated goodwill and thanks from the community. It helped build relationships and kept the organization in people's minds at a time of year when it might otherwise drop off their radar.

"This was a wonderful way to salute and honor the strength of mothers in our community," says Kimberly Galberaith, PPMD's executive vice president. "While fundraising is critical to working toward our mission, our success is measured in more than just financial ROI."

Takeaways:
  1. As a grassroots nonprofit founded by parents, Mother's Day was a great holiday to honor parents.
  2. Raising goodwill is critical to building a loyal donor base.
  3. Pass-along value via word of mouth is invaluable.
  4. Try an innovative, unique format (tall, square, narrow, wide) to differentiate you from your competitors.

2. New York City Mission Society, 2003 Year-End Appeal

In 2003, New York City Mission Society (NYCMS) decided to take a different approach to direct mail, because the results of its past annual year-end appeals weren't so appealing.

To kick its appeal up a notch and get more mileage out of its investment, NYCMS created a dual-purposed piece: a year-end appeal and an overview. Its once uninspired direct mail package became a unique (5" x 8.5") self-mailer that unfolds vertically with a tear-off reply card and a BRE included. As the recipient unfolds the piece, he finds compelling facts about the historic New York City organization's mission and its success with the children it serves.

NYCM Year-end Appeal

New York City Mission Society's 2003 Year-End Appeal

Project Snapshot:
  • Strategy: create an unexpected year-end appeal that can improve ROI by serving as a brochure for an extended period of time
  • Total Cost (includes creative, printing & postage): $8,000
  • Number of Mailers Sent: 4,000 mailed to housefile
  • Money Raised: $8,500
  • Average Gift Size: $80

NYCMS views this dual-purposed piece as a success despite limited income. It shifted its direct mail strategy to something more valuable to the organization: a smart, strategic, long-term investment. This double-duty piece paid for itself in another way by becoming a programs and advocacy piece too. It's still in use today as a brochure.

"A few years ago, we were in a real direct-mail rut. This piece really turned that around." says Stephanie Palmer, NYCMS executive director. "We can more effectively reach our audiences, whether they're interested in donating, learning more about us, or both. This piece generated some of our best direct-mail financial results to date. Here we are, two years later, and it continues to work for us as an awareness raising and advocacy piece."

Takeaways:
  1. Building a direct mail program takes time, but it's worth the investment.
  2. Shifting the direct-mail strategy turned out to be a fundraising catalyst for NYCMS, which inspired a fresh new look to old approaches.
  3. A direct mail piece that doubles as an overview brochure offers terrific bang for the buck.
  4. For a piece with a long shelf life, use copy and images that don't date.
  5. Self-mailing formats can inspire more people to open and read further.

3. City Harvest, "Brown Bag" Acquisition Package

Have you ever found a brown lunch bag in your mailbox posing as an envelope? If so, you might have seen City Harvest's extremely simple yet creative acquisition control mailer. In the mid-1990s, City Harvest, a New York City-based food-rescue organization, pioneered this unexpected package, which has since been copied by many other organizations.

City Harvest's brown bag direct-mail package is what nonprofit development dreams are made of. Along with surprising the recipient with an unexpected format, it automatically communicates "food" (the mission) and begs to be opened. Inside is a folded one-page, one-color letter, a reply card and a BRE sandwiched between the paper bag's folds. Mailed flat and sealed at the open end with clear tabs, it stands out from the pack of mail on someone's desk, and is such an effective fundraising and acquisition tool that City Harvest has used it ever since as its acquisition control package.

City Harvest's Brown Bag

City Harvest's "Brown Bag" Acquisition Package

Project Snapshot:
  • 1996 Strategy: reinvent the expected acquisition package
  • 2004 Strategy: sustain strong acquisitions
  • Total Cost (includes creative, printing & postage): $275 / M
  • Approximate Number Mailed in FY2004: 500,000
  • 2004 Response rate: .75%
  • Average Gift Size: $51

Even though acquisition response rates for the brown bag acquisition package are lower than they used to be (nearly 1 percent, which is very good), this control piece is still City Harvest's reigning champion when pitted against new tests.

"Every organization's direct-mail program has to start somewhere," says Heather Wallace, senior manager, direct mail, at City Harvest. "As long as you continually ask, 'How can we make our brand break through the direct mail clutter?', you'll find your 'brown bag.'"

Takeaways:
  1. Reinventing the expected package was a risk for City Harvest, but a risk grounded in sound strategy is often one worth taking.
  2. Hand-fulfillment is expensive, but costs can be recovered with inexpensive printing and higher average gifts.
  3. Ditch a direct mail-dud: Don't be afraid to do it a little differently!
  4. Keep track of what the "big guys" are doing and how it's working for them.
  5. Measure results: Testing a new package against a control piece to see what makes your audience tick.

Five tips to get your direct mail machine up and running


  1. Plan and budget for direct-mail every year, instead of reacting to an immediate need and rushing to get an appeal out of the door in a hurry.
  2. Customize mailings to specific times of the year (holidays, seasons, back-to-school), and around issues that are unique to your organization.
  3. If you are mailing to under 10,000 people, surprise and delight them with an unexpected package. This manageable number makes it cost-effective to ditch a standard, expected size (like a "# 10" business envelope), and create something that begs to be opened.
  4. Use email to increase responses by following up with non-responders. A friendly, well-written email is often the reminder someone needs to take action.
  5. Don't be afraid to mail more than once a year. The big guys mail as often as nine times a year or more. To mail two to three times is perfectly acceptable for many small organizations.