Direct Marketing for Nonprofit Organizations

1. Direct Marketing for Nonprofit Organizations Chapter 14 Contemporary Direct Marketing - Chapter 14

2. How Does Nonprofit Direct Marketing Rank? • Second in consumer direct marketing sales • Ninth in B2B direct marketing sales Contemporary Direct Marketing - Chapter 14

3. Uses of Nonprofit Direct Marketing • Gaining awareness & supporters • Driving memberships • Securing volunteers • Raising funds • Etc. Contemporary Direct Marketing - Chapter 14

4. 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

5. 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

6. Nonprofit Direct Marketing Users • Health concerned organizations • Environmental organizations • Educational institutions • Religious institutions • Political organizations • The government • Etc. Contemporary Direct Marketing - Chapter 14

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. Five key elements in fundraising appeal • Audience/lists/segments • Basic membership offer/ suggested gift • Copy • Format/presentation • Premiums/benefits Contemporary Direct Marketing - Chapter 14

15. A Fundraising Appeal … must do three things… • Strike fast • Personally grab and shake • Make action easy Contemporary Direct Marketing - Chapter 14

16. 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

17. 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

18. Political Campaign Direct Marketing Objectives • Raising money • Gaining support for their cause • Securing new members • Obtaining votes Contemporary Direct Marketing - Chapter 14

19. 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

20. In Conclusion… Case: The National Trust for Historic Preservation Contemporary Direct Marketing - Chapter 14