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Direct Marketing for Nonprofit Organizations. Chapter 14. How Does Nonprofit Direct Marketing Rank?. Second in consumer direct marketing sales Ninth in B2B direct marketing sales. Uses of Nonprofit Direct Marketing. Gaining awareness & supporters Driving memberships Securing volunteers

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Direct Marketing for Nonprofit Organizations

Chapter 14

Contemporary Direct Marketing - Chapter 14


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How Does Nonprofit Direct Marketing Rank?

  • Second in consumer direct marketing sales

  • Ninth in B2B direct marketing sales

Contemporary Direct Marketing - Chapter 14


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Uses of Nonprofit Direct Marketing

  • Gaining awareness & supporters

  • Driving memberships

  • Securing volunteers

  • Raising funds

  • Etc.

Contemporary Direct Marketing - Chapter 14


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Non-Profit Organizations are America’s Largest Employer!

  • Do you work for a non-profit organization?

  • 80 million people in America do!

  • Are you a volunteer?

  • 44% of all adults volunteer (3.6 hours per week average)

Contemporary Direct Marketing - Chapter 14


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Model of Individual Charity Giving Behavior

  • Outlines the components of a donor’s giving behavior, these include

    • Inputs

    • Perceptual reaction

    • Extrinsic determinants

    • Intrinsic determinants

    • Processing determinants

    • Outputs

Contemporary Direct Marketing - Chapter 14


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Nonprofit Direct Marketing Users

  • Health concerned organizations

  • Environmental organizations

  • Educational institutions

  • Religious institutions

  • Political organizations

  • The government

  • Etc.

Contemporary Direct Marketing - Chapter 14


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Customer Relationship Building

  • For nonprofit organizations, customer relationship management (CRM) simply means developing a relationship with donors, thus ensuring their future support.

  • Most nonprofit organizations do NOT use the word “customers”

  • Donors, volunteers, clients, board members, etc.

Contemporary Direct Marketing - Chapter 14


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Customer Relationship Maintenance

  • Nonprofit organizations can effectively maintain and strengthen relationships with their customers by adding a feedback element to each form of communication

Contemporary Direct Marketing - Chapter 14


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Forms of Direct ResponseCommunication with Donors

  • Newsletters

  • Telephone calls

  • Video tapes

  • On-line computer bulletin board service

  • Audio tapes

  • Financial reports

  • Strategic plans

  • And more!

Contemporary Direct Marketing - Chapter 14


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Direct Marketing for Nonprofit Organizations

  • The single most important way to enhance customer relationships is to listen to the customers

  • Beyond customer retention, cultivating partnerships with businesses is another way to support a nonprofit organization’s cause

Contemporary Direct Marketing - Chapter 14


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Corporate Partnerships

  • Cause-related marketing is defined as a commercial activity by which businesses and charities or causes form a partnership with each other to market an image, product, or service for mutual benefit

  • See Figure 14-3 for examples

Contemporary Direct Marketing - Chapter 14


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Basic Fundraising Principles (from Bob Stone)

  • Form a committee of influentials with the charge to make contacts with potential contributors, establishing a targeted contribution amount for each potential donor

  • Mount a direct response campaign to a list of identified prospective contributors

  • Organize a follow up campaign to support the direct response campaign

Contemporary Direct Marketing - Chapter 14


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8 Step Fundraising Plan

  • Listen to your donors

  • Keep your mission in mind

  • Tell your story vividly

  • Go high-tech, but keep people focused

  • Let your donors fund projects

  • Target your audience

  • Involve the CEO and board

  • Launch a fundraising campaign

Contemporary Direct Marketing - Chapter 14


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Five key elements in fundraising appeal

  • Audience/lists/segments

  • Basic membership offer/ suggested gift

  • Copy

  • Format/presentation

  • Premiums/benefits

Contemporary Direct Marketing - Chapter 14


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A Fundraising Appeal … must do three things…

  • Strike fast

  • Personally grab and shake

  • Make action easy

Contemporary Direct Marketing - Chapter 14


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Media strategies and Award Winning Campaigns

  • Direct Mail

    • The stellar medium for nonprofits

    • Used to maintain contact, build and sustain donor/member relations

  • Telephone

    • Example- Jerry Lewis Marathon for Muscular Dystrophy

Contemporary Direct Marketing - Chapter 14


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Media strategies and Award winning Campaigns

  • Television

    • Mostly in the form of infomercials

  • The Internet

    • The Internet has not been overly successful as a fundraising medium for most nonprofit organizations; however, since 9-11 “donate here” buttons are no longer idle

Contemporary Direct Marketing - Chapter 14


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Political Campaign Direct Marketing Objectives

  • Raising money

  • Gaining support for their cause

  • Securing new members

  • Obtaining votes

Contemporary Direct Marketing - Chapter 14


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Political Campaign

  • The ultimate question is “just how successful are political direct marketing efforts?”

    • Unlike most nonprofit organizations, political parties don’t measure their success by response rates or dollars.

    • They measure it by votes.

Contemporary Direct Marketing - Chapter 14


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In Conclusion…

Case:

The National Trust for Historic Preservation

Contemporary Direct Marketing - Chapter 14


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