Convio Newsletter
October, 2001 - Issue 7

Communicating with Constituents After September 11th

Persistent communication with supporters is important for donor retention in these times, as many organizations are halting near-term fundraising campaigns. Email represents a powerful, fast and low cost way to touch supporters and maintain relationships.

The ground swell of donations to organizations supporting victims of the Sept. 11 attacks has demonstrated the convenience and effectiveness of online fundraising. LibertyUnites.org, formed after the attacks, reports that over 90 million dollars have been contributed online to disaster relief efforts as of October 1st. 

Clearly, the Internet is proving capable of delivering on its promise for fundraising. Meanwhile, non-disaster- and non-victim-related organizations are trying to figure out how and when it is appropriate to resume marketing and solicitation efforts. Some organizations have postponed and even cancelled events and active solicitation campaigns until late October or November. The Direct Marketing Association (DMA) issued a statement recommending postponement of all direct marketing campaigns - a stunning recommendation in its own right but especially as we approach the holiday "giving" season which so many nonprofits rely on each year for major fundraising.

As non-disaster/victim groups put direct mail-based contact on hold, it is even more important that they reach, engage and retain constituents as loyal supporters. Email represents a powerful, fast and low cost way to touch supporters and maintain relationships. Within days of the attacks, the CEO of one of our clients, Planned Parenthood Federation of America, emailed a stewardship-centered communiqué to supporters. She mentioned the impact of the terrorist acts and went on to reiterate the value of Planned Parenthood's work, reinforcing the organization's mission and goals in the minds of its supporters and keeping the group top-of-mind at a time when it's easy to focus on the terrorist crisis to the exclusion of other very important issues. Another client, a social services agency, sent out a similar type of email and also used it as an opportunity to promote an upcoming event.

Other organizations have used email to disseminate pertinent information to their constituents related to the disaster. Within hours of the attacks, the Austin Children's Museum, also a Convio client, sent an email to supporters on how to discuss the day's events with children. Several of our public TV and radio stations emailed constituents to convey condolences and sorrow while also highlighting relevant programming, especially programming changes, in coming days.

In the post-attack landscape, not only is persistent communication with supporters important for donor retention, but it is also critical given the increasing need for additional funding felt by many organizations. Market declines have severely impacted organizations with endowments that include significant stock portfolios. These groups have suffered reductions in interest income. But even in normal times, donor acquisition through direct mail is costly -- typical programs cost in excess of one dollar per dollar raised. With current economic conditions and people heavily focused on recovery from the attacks, marketers are forecasting lower response rates for non-disaster/victim groups, making it even more expensive to recruit donors. Beyond communication and stewardship, fundraisers should increasingly turn to the Web as a cost-effective donor acquisition tool. Online solicitation campaigns have higher response rates than direct mail-based campaigns, and the viral nature of the Internet makes viral marketing - constituents soliciting their own network of family and friends -- much easier.

This summer, the Austin Children's Museum sent an email solicitation and a direct mail solicitation at the same time to comparable groups of constituents. The email solicitation achieved a 12 percent response rate while the mail campaign produced a 2 percent response rate. Also, the cost of executing the email campaign was significantly lower than the mail campaign because it involved creation of an email versus design, production and postage costs. The overall result is that the email campaign yielded a 625 percent higher net contribution.

Consider the experience of Harvard University, which has achieved an average 14 percent response rate through email campaigns versus an 11 percent response rate with mail campaigns. Planned Parenthood's 2001 Presidents Day campaign is another example - it raised $300,000 online in a few weeks; 85 percent of contributions came from new donors as friends forwarded email messages to each other to encourage them to give.

In coming weeks and months, the sensitivity and skill with which nonprofits communicate will undoubtedly impact short-term and even long-term fundraising goals, but there's no doubt that organizations will need to embrace email as a "must have" tool for communications, stewardship and fundraising.