Cover Story : Ask & Receive

Maryland Food Bank retains new donors by asking them to give again before the window of opportunity closes

August 2008 By Amy Syracuse

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Rohrbach adds that work for one L.W. Robbins Associates client indicated the critical time period for renewing new donors is three months. After that, the greatest amount of erosion occurred.

This, in particular, presents problems for many nonprofit organizations. Lead times associated with production schedules often mean new donors aren't inserted into a nonprofit's normal mail program until several months after their first gifts are received. By then, the critical time for renewal has already passed.

To help its clients overcome this challenge and reach new donors before the window of opportunity closes, L.W. Robbins Associates came up with the idea for a new donor second gift mailing. This mailing is timed to reach new donors while their donations are still fresh in their minds. It aims to inspire them to invest in the nonprofit's work, both emotionally and financially.

"We look at each mailing as giving the donor the opportunity to continue to participate in the work that they've begun with their first gift," explains Rohrbach.

The Second Gift Mailing Package
Maryland Food Bank rolled out the new donor second gift mailing in 2007. The package consists of a folded notecard, which contains a thank-you message letting donors know how their donations are being used. Below the message, in handwriting, is the statement: "Thank you for your gift. Repeating your gift of (amount) would mean so much." The latter is personalized with the amount of the individual's original donation.

The package includes a #6-¾ closed-face return envelope. The return envelope is pre-addressed to Maryland Food Bank in handwriting and bears a return label with the donor's name and address.

These two pieces are mailed in a closed-face baronial carrier envelope with First Class postage. The outer envelope does not include a return address; the donor's name, address, city, state and ZIP code are handwritten on the outside.

The new donor second gift mailing is sent to any first-time donor who has made a donation of $5 or more. The number of mailings per month, as well as the number of pieces mailed, varies with seasonal fluctuations in new donor acquisition. During peak periods, Rohrbach estimates there are several thousand pieces per month, sent via two monthly mailings.

Because such quantities are relatively small, statistically speaking, segmenting new donors and delivering more customized packages is prohibitive. "We do the same package for everybody, but the gift amount is individualized ... based on the amount that donor first gave," Rohrbach says.

A Level of Sophistication
The new donor second gift mailing includes a number of personal touches: the size of the envelope, which is similar to that of an invitation or greeting card; the use of First Class postage; and the use of handwritten addresses and inscriptions.

L.W. Robbins Associates Account Supervisor Casie Craycraft believes these elements help the new donor second gift mailing stand out from the typical mailbox clutter. "It took me quite a while to get used to receiving these packages in the mail," she says. "I honestly thought someone I knew was sending me a note."

The use of handwriting does increase the cost of the package, adds Craycraft. The mailing costs 31 percent more than a regular appeal. But for Maryland Food Bank, the results justify the means.

"From a fundraising standpoint, there's a level of sophistication that we continually aspire to so that all of our activities give us a greater yield," says Flateman. She adds that this sophistication has helped the organization achieve an average gift size across all donors of $80.

The tone of the new donor second gift mailing copy is warm-even personal. As for messaging, "We always try to talk about a life changed ... the work of the food bank is the most important thing to exemplify to each donor what [his or her] gift has done," says Rohrbach.

Year One New Donor Communications
Of course, the new donor second gift mailing is just one part of Maryland Food Bank's year one new donor solicitations. It is actually the second communication a new donor receives from Maryland Food Bank following her donation. The first is a thank-you letter that is produced and mailed by Maryland Food Bank staff, usually within two weeks of the time the donation was made.

The thank-you letter is mailed in a #10 window envelope with a Maryland Food Bank return address. For donations in excess of $100, the letter is sent in a closed-face envelope. And donors who give $500 or more, whether acquisition or renewals, receive a printed letter that includes a handwritten note from Flateman.

Roughly two weeks after the thank-you acknowledgement hits, new donors receive the second gift mailing. Then, a month or two later, they are inserted into the normal contact cycle.

Craycraft says new donors typically receive between four and six renewal letters in the first year. Timing of mailings is closely monitored to avoid any negative impact, and renewal letters are typically sent four to six weeks apart.

"Each letter has a different offer and tells the donor about a different Food Bank program, allowing them to see the scope of the services the Food Bank provides for hungry Marylanders," Craycraft explains.

A Rebound in Retention
Response rates for Maryland Food Bank's retention mailings range from 8.5 percent to 13.5 percent, depending on the time of the year. Craycraft says response rates to renewal mailings have not been affected by the introduction of the new donor second gift mailing.

The average response rate for the new donor second gift mailing is 10 percent. It generates an average gift of $38, and the cost is $0.50 on the dollar, says Flateman.

Though the revenue the new donor second gift mailing generates is important, Craycraft stresses that the true measure of its value is new donor retention. Following the mailing's introduction in 2007-it was the only change in Maryland Food Bank's new donor contact strategy that year-retention of newly acquired donors rebounded from 34.9 percent to 38.85 percent.

Thrilled with the mailing's success, Flateman has no plans to change the organization's new donor contact strategy in the near future. But that's not to say she is feeling complacent about Maryland Food Bank's direct mail fundraising.

On the contrary, the success of the new donor second gift mailing has prompted the organization to reconsider how and how often it approaches all donors for support. "By having this experience and seeing the response rate, it's helped us to embrace a more aggressive schedule with number of mail drops, packaging and messaging," she concludes.

Amy Syracuse is a London-based freelance writer, who profiled Consumers Union in the June 2008 issue. Read the article at http://www.targetmarketingmag.com/r/?s=106040

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