Last week was quite typical, in that I received 78 items delivered to my mailbox by the USPS. There were a wide variety of items from a wide variety of senders, and as you’d imagine, most of them were advertisements and solicita-tions. The direct mail industry in the United States deliv-ers 4 million tons [1] of such materials annually to our homes and businesses, of which a signifi cant proportion is sent on behalf of nonprofi t organizations. This process has

Volume 10: Issue 2 | June 2007

Also in this Issue

3 Letter from the Chair5 Avoid the Postal Hike Blues8 Recycling & Polution Reduction in the Workplace

10 4 Reasons to Love the Under 40 Crowd 18 9 Channel Integration Tips to Make your Constituants Smile 21 Social Networking 24 The Evolution of Environmental Planning for Direct Marketers …and MORE

cont. on page 14

Send

Can Email Save the Environment?Correct Use of E-Mail Helps Save the Environment and Boost DonationsDr. David Crooke, Founder and CTO, Convio Inc.

CHAIRAngie MooreAmerican Cancer Society

VICE CHAIRChris ParadyszParadyszMatera

MEMBERSMary ArnoldChristian Children’s Fund

Vinay BhagatConvio

Kelly BrowningAmerican Institute forCancer Research

Paula Cain

Phil ClaiborneElks Magazine

Christopher CleghornEaster Seals

Brian CowartALSAC - St. Jude

Diana EstremeraMay Development Services

Craig FloydNational Law EnforcementOffi cers Memorial Fund

Barry GiaquintoWomen’s Sports Foundation

Jeanne HarrisSCA Direct

Susan LothDisabled American Veterans

Joel MacCollamWorld Emergency Relief

Steve MaggioDaVinci Direct

Kristin McCurryMINDset direct, LLC

Matthew PanosFood for the Hungry

Geoffrey PetersCreative Direct Response

Chris RagusaEstee Marketing Group, Inc.

David StraussNational Wildlife Federation

Jo SullivanASPCA

Joan WheatleySpecial Olympics

Kevin WhortonWhorton Marketing & Research

STAFFSenny Boone, Esq.Executive Director

Helen LeeDirector, Member Programs and Education

Jill MurphySenior Manager, Member Services

2006-2007 LeadershipFollowing are the members of the DMA Nonprofi t Federation’s Advisory Council with leadership responsibilities:

www.nonprofi tIntegrator.org

2

new BLOG!

The Power of Direct. Integrated and Blogged.

3

How many times have you looked back over time and realized how fast it has passed? In today’s world, the phrase “time fl ies” doesn’t seem to truly capture the essence of how quickly our lives, businesses, and industry are moving and, in fact, changing. Next month I will step down after two years as your Chair, and after seven years as a member of your Nonprofi t Federation Advisory Council. It is with great pride and pleasure that I look back on all that we have accomplished and overcome as an industry to ensure the continued focus on the critical missions we all support. But, before I talk about our industr y’s accomplishments and challenges from the last year, let me compliment all of you -- the members of the Nonprofi t Federation. It is because of your professionalism and commitment to this industry and your missions that being your Chair gave me such great pleasure. Being a volunteer leader in an association that is built on professionals who lead and persevere against tough odds, challenging market trends, and changing consumer behaviors was truly an honor. And while I prepare to step down from an offi cial role, I realize my involvement in the future is still critical – as is yours. In fact, your continued commitment to be involved, participate, and take advantage of the services and benefits of your membership cannot lessen. Members taking that step into volunteer leadership through the various DMANF event committees and educational opportunities, and into Advisory Council leadership roles is the reason we are successful today. I urge you to stay involved, and if you are not already, I urge you to contact me personally and talk about why you should be. If you are asking yourself why this is important, let me mention just a few of the issues we have been dealing with this past year alone, which have required your input, feedback, and support.

• After nearly 12 years, postal reform legislation passed with the support of DMANF and its members. It preserves the preferred rate for nonprofi t organizations, and creates a price index/price cap regime administered by a strengthened regulator, the Postal Regulatory Commission. This should stave off large rate increases, and enhances the future of this struggling federal agency.

• However, postal challenges continue to be on the horizon. Delivery is at an all-time low, which is affecting the great efforts of many of us. There is a continued focus on policy changes as to what types of mail qualify for nonprofi t rates. We cannot lose sight of these issues.

• The marketplace has changed dramatically over the last fi ve years, and continues to shift. Our industry is committed to being in front of and prepared for these changes. The sharing of ideas, expertise, and strategies has grown at a tremendous pace, with year-over-year increases in the number of top-quality professionals, companies, and speakers who are convening in New York and Washington, DC to talk about our challenges, successes, and opportunities.

• Regulation continues to be top-of-mind for Congress, and our continued focus must be on the education of mission impact relative to some of these regulation proposals. In fact, great attention has been paid, and will be required in the future, regarding the Do-Not-Mail proposals.

• And, a fi nal example of great importance, is our constituents. It is a simple fact that no mission can be met without the help of the millions of constituents in America, and in some instances, around the world. To count on people to “take

Letter from the Chair

Angie Moore, American Cancer Society

Dear Nonprofit Federation Friends,

4

care of us,” we must take care of them as well. As we build more affi nity and support for the causes we represent, support, and consult on -- we must also focus on ensuring the very nature of charitable involvement stays top-of-mind and “top-of-class” when it comes to in-tegrity and ethical business practices. Guard-ing consumer privacy should not be something up for discussion; nor should it be thought of as a “membership compliance” issue. Simply put, it should be automatic, and a way of do-ing good business. Through its leadership on ethics compliance, DMA has and will contin-ue to demonstrate those best practices, pub-lish ethical guidelines, and educate as widely as possible on the importance of integrity as a business strategy.

These are just a few critical issues facing our industry today -- and reasons why your continued involvement and leadership are needed. I believe that with the right strategies, the right segmentation, and the right messages,

we achieve tremendous relationships and make great progress for great causes. We provide people around the world the information they need to make decisions in their daily lives, and to foster their desire to give back to society and make a difference. When I wrote to you the fi rst time in 2005 as your new Chair, my perspective was that the road ahead continues to be wide and long, full of opportunity, and that I looked forward to traveling it with you. Well, it has been a tremendous journey, and while at times our road has felt like the autobahn, my travel partners have been the best! I look forward to our continued journey, and thank you for all that you do, every hour of every day, for this industry and in pursuit of your missions.

Angie MooreChair

5

For charitable organizations, raising funds has become more diffi cult than ever. Fundraising costs have risen while the number of charitable organizations and needy causes has skyrocketed, due to factors such as ever-increasing terrorist activities and catastrophic weather conditions. There is now much more competition for a portion of donors’ mindshare and wallets -- especially during the current extended presiden-tial election campaign season. Unfortunately, the traditional channel of communicating with one’s donors and prospects is becoming cost-prohibitive. According to The Chronicle of Philanthropy, the recent postal rate increase will cost charities an average of 6.7 percent more for sending fundraising letters, while nonprofi t periodical rates will increase an average of 11.7%. Moreover, even without the rate increase, nonprofi ts can’t afford to send direct mail pieces on a regular basis: the ROI just isn’t there.

GOING ONLINE IS KEY

The solution is to convert your offl ine donors to multichannel donors, and reach them through e-mail. E-mail will allow you to cost-effectively touch your members on a regular basis. The fi ndings of a recent study by Convio, Inc. and StrategicOne are signifi cant:

1. “Donors engaged through multiple communication channels have higher long-term value, retention, and lifetime value.”

2. “Dual-channel donors gave as much through offl ine sources as offl ine-only donors, indicating that the online channel does not cannibalize revenue from direct mail.”

3. Dual-channel donors “receiving e-CRM outperform those who only receive offl ine communication – giving twice as much or more over their lifetimes, primarily driv-en by a lift in giving frequency.”

4. “The increased value of adding an online donation and solicitation channel for do-nors acquired offl ine is $44.71 (a 39% increase) per donor over 12 months.”

Avoid the Postal Hike BluesGreen Your Operations and Avoid the Postal Hike Blues With E-Mail AppendingRita Allen, Manager, Nonprofi t Group, FreshAddress, Inc.

Austin Bliss, President, FreshAddress, Inc.

6

And a study released by the As-sociation of Fundraising Profes-sionals found that nearly 88% of the groups that raised money on-line said donations increased last year.

BUILDING AN E-MAIL ADDRESS DATABASE

“I’m convinced,” you say. “The problem is, I only have e-mail ad-dresses for a small percentage of my donor database. What can I do to quickly build my e-mail address database in an ethical and cost-ef-fective manner?”

• First, make building your e-mail address database a top priority. There’s nothing bet-ter you can do in the next 12 months to green your opera-tions while dramatically in-creasing your revenues.

• Ask for an e-mail address at every touch point with your donors. Your Web site, your direct mail pieces and solici-tations, and your call centers should all be striving toward obtaining e-mail addresses whenever possible.

• Be sure to understand that your members will not be as free to hand out their e-mail address-es as people were in the late 1990’s when the Internet was in its infancy. Give people mul-tiple reasons why they should offer up their e-mail addresses

-- saving paper, donation con-fi rmations, access to special research, updates on relevant legislation or local initiatives, cost-savings to your organiza-tion so you can use your funds

to help those in need rather than spend these dollars on postal costs, etc.

• And bring in an external ven-dor to help you add opted-in e-mail addresses to your postal donor database through a pro-cess called e-mail appending. When performed in a profes-sional and conscientious man-ner by a reputable vendor, e-mail appending can help you jumpstart your e-mail market-ing initiatives and dramatically increase the size of your e-mail database in a short period of time.

BENEFITS OF E-MAIL APPENDING

Here are some reasons to add e-mail appending to your list growth strategies:

• It’s Green. Tell your donors that you wanted to save a tree and contact them by e-mail in-stead. If you don’t have their e-mail address, you have no cost-effective alternative to sending them paper.

• It’s Fast. A vendor can fi nd 10-25+% of your missing e-mail addresses from among your constituent data in a matter of weeks.

• It’s Easy. You don’t have to make changes to your Web site; you don’t need to design a new creative, etc.

• It’s Inexpensive. You’ll prob-ably pay $0.30 or less per e-mail address found -- less than the cost of a postcard -- and the price goes down as the input fi le size goes up.

• It Increases Revenues. The

sooner you can contact your donors through the e-mail channel, the faster you can benefi t from the power of the multichannel relationship.

• It’s Repeatable. You can use your vendor every quarter, as new data are always arriving.

• It’s Easy to Calculate ROI. If you send out a postcard asking donors for their e-mail address, you can only estimate response rate and cost per e-mail ac-quired. With appending[how does this work???], you know your costs upfront, and ROI is easy to fi gure.

Many nonprofi ts are already utilizing e-mail append services to build their e-mail list. They’re insulating themselves against the postal rate increases while reach-ing potential donors faster and more cost-effectively.

MAKING IT WORK

To make sure your e-mail ap-pend runs smoothly, just follow some simple rules:

1. Get informed; fi nd and work with an experienced vendor whom you trust, who will pro-vide you with only 100% opted-in data, and who has robust e-mail hygiene processes in place so you won’t be sold junk addresses.

2. Only append your donor list, not your prospect list.

3. Understand the match-type your vendor is using -- and how to avoid sending a “Dear Sue” e-mail to Sue’s husband.

4. Budget for the right vendor. You get what you pay for, and in this industry, price is a good

7

indicator of quality. 5. Don’t drop your results in with

your house fi le. Take the time to message them separately and introduce them to the value of receiving e-mails from you. This is your opportunity to discuss the environmental benefi ts, cost savings, and oth-er values of your e-mails.

6. Have realistic expectations. In some cases, recipients may take some time to ‘warm’ to

this new communication chan-nel. But, over time, you will fi nd that recipients are strong responders and often less fa-tigued (and thus stronger do-nors) than your house fi le.

Remember, there’s a silver lin-ing in every cloud. The pressure to green your operations com-bined with the recent postal rate increase might be just the push you needed to consider augment-ing your e-mail marketing efforts. The nonprofi ts that will thrive in

this new environment are those that embrace change and lever-age e-mail marketing and tech-nology to help them build deeper, longer-term relationships with their donors. Go ahead, take the plunge and start utilizing an e-mail append to increase the reach of your e-mail campaigns. You’ll be glad you did.

FreshAddress, Inc., The E-mail Ad-dress Experts, offers customized solutions for nonprofi ts to build and update their e-mail address lists. Rita Allen is the manager of FreshAddress Nonprofi t Group, and Austin C. Bliss is the company’s pres-ident. For more information on Fre-shAddress, visit www.freshaddress.com/nonprofi t.

“Give people multiple

reasons why they

should offer up their

e-mail addresses --

saving paper, donation

confi rmations,

access to research,

relevant legislation

or local initiatives,

cost-savings to your

organization”

38 Years, 1,000+Organizationsand 93,000,000 Donors Later

We knowthere is still a lot of

work to be done to change the world.

Call us if you need

a hand with that.

1 3 0 0 C l a y S t r e e t , 11 t h F l o o rO a k l a n d , C A 9 4 6 1 2

4 1 5 - 9 8 9 - 3 3 5 0w w w. n a m e s i n t h e n e w s . c o m

LIST BROKERAGE AND MANAGEMENT

FOR NONPROFIT ORGANIZATIONS

8

If you have any doubt about the importance of environmen-tal issues to your constituents these

days than you haven’t been reading the pa-pers lately. As an example, in February, the largest buyout in US History ($45 Billion) was only completed after the Environment De-fense Fund said they would stop giving TXU a hard time if the buyers agreed to drastically cut back on TXU’s plans to build 11 coal fi red generating plants. It can be a little daunting to think about the entire planet Earth and to think that you can’t make much of a difference – but you can. Not only can you make a difference on our planet, you can also help your bottom line. As you look at the suggestions below, think how much money you can save by implementing these suggestions as policies. The environmental logo of three chasing arrows stands for Reduce, Reuse and Recycle. We say them in that order because that is the order of importance. If you reduce, you have less that you have to reuse or recycle. So fi rst of all, reduce your use of everything that can have an environmental impact.

1. Use electronic communications both in-ternally and externally as much as possible. Don’t print a copy of every email. Save it in a fi le on your computer.

2. Print and copy onto both sides of a piece of paper. Citicorp found that they could get a positive ROI for replacing every copier and printer in the company that could not du-plex print in sixteen months.

3. Use on-line systems for reports, projects and other work related activities to reduce paper generation.

4. Substitute durable materials for disposable products. Buy mugs with your name on them instead of paper cups. At home, use dish towels instead of paper towels.

5. Replace incandescent bulbs with compact fl uorescents. This has just been made the law in Australia.

6. Turn down thermostats.7. Replace old equipment with equipment

that uses less power, less water, fewer re-sources.

After you reduce, reuse.

1. Buy paper and packing materials made from recycled materials with post-consum-er content

Recycling & Pollution Reduction in our Workplace and Community

Richard Goldsmith, President, Horah Division/PGI Companies

9

2. Use recyclable materials and materials that don’t hinder the recycling process. For instance, use glassine windows on enve-lopes instead of poly.

3. Reuse fi le folders, hanging folders and binders where ap-propriate.

4. Save your paper or hot cup and use it again later in the day.

And of course, recycle

what you use.

1. Implement in-house recycling programs for paper, corrugat-ed cardboard, beverage cans and bottles, plastics, pallets, printing ink, toner cartridges and computers.

2. Coordinate recycling practices with other tenants in your of-fi ce building

3. Encourage building manage-ment in multi-tenant buildings to sort all garbage.

4. Participate in industry-specifi c or government programs for energy savings, increased re-cycled procurement and other environmental goals.

In addition, investigate your use of energy, water, materials and your waste management practices and set internal goals to reduce, reuse and recycle. Lastly, recognize and/or reward employ-ees for advancing your recycling policies and initiatives or sug-gesting new solutions. Here’s a big bonus. Reread this list and you’ll fi nd that most of the suggestions will actually save you money. We call this the Triple Bottom Line – reduce overhead, be environmentally friendly and

develop a great corporate reputa-tion. You can’t lose.

Once you’ve started at

the workplace don’t

stop there. Promote

and advance recycling

programs in your

community.

1. Tell your donors what’s not recyclable and where they can recycle those things that are.

2. Use the recycled symbol to identify paper and paperboard products made from recycled fi bers.

3. Make sure all your environ-mental labeling is clear, hon-est and complete.

4. Encourage donors to reuse, return or recycle materials where appropriate.

5. Provide information about re-cycling on envelopes, inserts or in your catalog or newslet-ters.

6. Encourage donors to start lo-cal recycling programs

7. Establish a recycling center on your grounds if your commu-nity doesn’t have one.

8. Partner with local environ-mental groups and make posi-tive environmental contribu-tions in your local community.

9. Volunteer your organization’s people for environmental projects.

10. Participate in local award or recognition programs.

This is a job that no one person or organization can do alone. We can do it if we all work together.

Dick Goldsmith is President of the Horah Div of PGI Companies and the author of “Direct Mail for Dummies.” He has been in Direct Marketing over 25 years. He is also a member of the DMA’s Committee on Environment and Social Responsibility. He can be reached at 212-921-4521 ext 207.

10

We can’t tell you how many times we’ve heard nonprofi t execu-tives and marketers blow off the under-40 population. Why? Because these “youngsters” are perceived not to donate. Be-cause they’re harder to reach and maintain contact with via conven-tional direct marketing (read: mail), especially in the younger age brackets. Because they are perceived by cause advocates to be less po-litically engaged and infl uential. Is this wise? We think not. Here are four reasons you should care about these folks, with some principles to consider while thinking through your approach to them.

1. First of all, Under-40s do give. It is a myth that Under-40s do not donate. Our own DonorTrends research (all stats in this piece are from the DonorTrends survey) in-dicates that 48% of “Post-Boomers” (those born after 1964, now 42 years or younger) already donate, and this group gives on average $791 per year. Most report giving to groups helping needy Americans, or-ganizations fi ghting disease, and projects/causes supported by their church or faith. Looking ahead fi ve years, 56% report that they will give more in the future, compared to only 12% of Pre-Boomers (those born before 1946) and 33% of Boomers (born 1946-1964). Sure, the average ages in many donor fi les are high: 60 years+ in most research we’ve seen. Still, there are plenty of Under-40s in most fi les, who are coughing up maybe 15-20% of the revenue of many orga-nizations. Go ask your CEO or CFO if they’d like to forego that modest contribution! Moreover, as more fundraising resources are devoted to online so-licitation, guess what? The average age of donors is driven down. So younger donors are out there, more effi ciently reached these days by the online medium they prefer. And the big news is that this group de-votes 41% of their contributions to causes and politics, as compared to the 25% so-allocated by Boomers and Pre-Boomers.

The Under 40 Crowd Tom Belford & Roger Craver, co-Agitators, The Agitator

Four Reasons You Should Care About

11

So, our fi rst principle is: Do your home-work. Before you write anybody off, examine the actual current age profi le of your donor base. Where have the Post-Boomer donors come from: were they recruited via special targeting and channels, or were they merely

“bycatch” caught in the net you used to capture your “normal” donors? If they were specially targeted, you can calculate the ROI on those

campaigns and donors, compare that ROI to older segments, and decide what allocation of fundraising resources might be targeted cost-effectively at the youngsters. Fully 56% of Post-Boomers claim they’ve never been solicited in the mail, and a surpris-ing 81% have never been solicited by e-mail.

2. Under-40s have proven themselves as valuable political activists and charity volunteers. Ever heard of MoveOn.org, or Howard Dean (or walked around the campaign offi ce of just about any candidate for public offi ce)?! Moreover, politics and advocacy aside, Under-40s volunteer in many non-political settings for social service and community improve-ment charities. Many of the Under-40s who might be less inclined to donate money are perfectly happy to donate time. For cause groups, activist fi les – most often built online these days – are typically much younger than donor fi les. An environmental group whose average donor is 63 years old might have a separate activist group whose average age is 41 years -- more than 20 years younger. Meanwhile, studies of civic volun-teerism consistently report a high level of volunteering by our student populations. In-terestingly, Post-Boomers seem equally com-fortable responding to action alerts in the on-line world or contributing hands-on services. Our second principle, then, is that today’s activist and volunteer needs to be valued in terms of mission support. Perhaps a more in-tangible value, but still one deserving a seri-ous level of investment. Moreover, he or she is also tomorrow’s donor -- adding to the total pay-off. And the lag time need not be years. Research and practical experience indicate a couple of forces at work.

• First, people take the small step before the big one. For many, indicating one’s po-litical or cause affi nity – say, by signing an

online petition – is the more natural fi rst, hand-raising step. In the old days, collect-ing handwritten petition lists through the mail or canvassing, and then mailing fund-raising appeals to those names, produced strong results, thank you. It’s just that the process was so cumbersome. The online environment has eliminated the cumber-some part, and smart direct marketers are fi nding that online-acquired names – at-tracted by issue campaigns, e-petitions, e-newsletters, e-referrals and other online engagement tools that capture e-mail ad-dresses – respond spectacularly to subse-quent direct mail solicitations. Learn how to generate and engage hand-raisers fi rst; donations will follow.

• Second, commercial marketing research indicates we are raising generations of experience-seekers. Books are written on “experience marketing.” The message: more and more: consumers want fi rsthand

“involvement” with the products and ser-vices they purchase, and with the brands they choose. The psychological underpin-ning: a Starbucks java is an experience, not a cup of coffee. One’s satisfaction with a “Dell computer” is defi ned more by the customer service than by the hardware. We think this will apply more and more to would-be donors; a greater chunk of them will want more engagement with the non-profi t “brands” they choose to support,

12

up to and including actual volunteer par-ticipation. Figure out how supporters can actually experience your organization -- be-yond fundraising solicitations and your de rigueur newsletter.

This includes causes and charities. Sure, it would be nice if all the issues and social needs

that charities and cause groups are working on would be successfully resolved before you and your boss move to the next job or retire. Then such organizations wouldn’t need to think about themselves as institutions that must survive into the future. Unfortunately, the issues will remain, and so will the need for the organizations (at least the more effective ones). Many nonprofi t types don’t like to think in such “institutional” terms; it’s the cause that matters, after all. For our part, we sure as hell hope that “institutions” like Habitat for Humanity, the American Red Cross, and the ACLU don’t fade away -- just to name a few! We believe the primary means of ensuring institutional renewal is to constantly test the appeal of your agenda, strategy, and tactics against new audiences -- specifi cally those to whom you expect to turn for future support. These future audiences might well have a dif-ferent, but friendly, way of thinking your is-sue. They might want to engage differently. And they will be a more diverse popula-tion, with signifi cantly larger percentages of people who are African-Americans, Latinos, or Asians. There is very little fundraising his-tory with these Under-40s with presumably different life-shaping experiences. You need to know your potential as an organization for channeling their interest and energy. And so, our third principle: Devote resourc-es to testing your brand appeal systematically with future donors and activists. Conduct re-search aimed at the younger “clones” of your current supporters, as well as any other seg-

ments you hypothesize might emerge in the future (eg, do Latinos play a part in your fu-ture?). If resources permit, do some “wet test-ing” against younger targets, but don’t obsess over immediate fundraising returns. Treat such expenditures as what they are -- product development, not revenue-producing sales ef-forts.

Here is what you need to fi nd out: • Do Under-40s think your primary concern

is a non-issue? If so, why? What are you go-ing to do about that?

• Do they buy the agenda, but favor different strategies and tactics or solutions than the ones you are employing? What are you go-ing to do about that?

• Do they buy the “category” (eg, poverty al-leviation), but show no awareness of your organization/brand? What about that?

• Among the Under-40s, which are the seg-ments that are most interested in your is-sues and approach? Are those prospective supporters different in some important and actionable way from your present do-nors? How might you deal with that as time goes on?

• Finally, how are you going to ensure that everything you learn in addressing these questions is preserved and transmitted to the folks who will succeed you in the orga-nization? Do you care enough to make that happen?

Issue interests can arise at any time for any individual. In many cases, these interests can

emerge well before the individual is prepared in terms of resources or priorities to join or contribute to a specifi c cause, charity, or or-ganization. The challenge: without wasting resources prematurely, how can your organi-zation manage to be on the radar of these new prospects when their catharsis occurs and

3. All brands need to refresh and renew themselves, and your “next” audience can help.

4. If you want them later, brand awareness matters now.

13

they need to act? Our DonorTrends research indicates that Post-Boomers are the age segment least famil-iar with groups already working on issues they do care about. So not surprisingly, they are the segment most open to supporting groups they haven’t already heard about (versus the tried and true). That’s not good news for es-tablished nonprofi ts. Some newcomer with a cool Web site could be as attractive as a group with 40 years of accomplishment. It’s “sur-vival of the fi ttest” out there. Thus, our last principle: Collaborate on the “categories,” but sell your brand, when-ever you can. We realize that for most non-profi ts, this challenge boils down to resources. If you’re struggling to fi nance today’s staff and programs, how can you divert resources to long-term seed planting? Perhaps we must simply hope that there are naturally evolving constituencies for the issues that concern us. That the confl uence of parental infl uence, formal education, re-ligious institutions, media saturation, and innate human sensibilities will somehow produce a seed bed of Under-40s who will at the hour of need charge to the barricades on behalf of good government, helping the dis-advantaged, tolerance, civil liberties and hu-man rights, war prevention, the environment, disease prevention, and other progressive concerns. We have to say we’re dubious about this! Not all boats will rise automatically. Our research indicates, for example, that Post-Boomers are twice as interested in human rights and family values as they are in confl ict and arms reduc-tion, or government integrity. They are more interested in issues that affect them as indi-viduals, as opposed to the collective. From a daunting list of possible “challenges to the future of America” (eg, the world becom-ing more hostile but lagging in educational at-tainment, global competitiveness, religious zealotry, ineffective political processes, aging infrastructures, etc.), only one – the environ-ment – is rated “very important” by more than 30% of Post-Boomers.

5. Targeting remains key We believe groups working in the same fi eld or on the same complex of issues should do much more – in an orchestrated, collective manner – to “sell their category” (eg, the im-portance of tolerance, care for the environ-ment, or respect for civil liberties) to targeted segments of the public. If the Under-40s give up on key categories (think of these as “pri-orities” if you prefer), we’re in big trouble. Given the formidable challenge of selling anything in today’s cluttered and fragmented communications environment (Forget that other stuff) “here’s something you should care about in the future”), category selling is only remotely possible at best if groups learn to cooperate strategically around long-term awareness objectives. OK. That said, your day job is laying the groundwork so that your organization is on the radar when Under-40s start scanning for opportunities to get involved. Again, a time and resource issue. But we’re not talking about all Under-40s: you can intelligently target segments and messaging if you’ve done the homework out-lined above. We’re not talking about mortgag-ing the family fortune; carving out a modest venture fund will do. And we’re not talking fundraising; for starters, you just want to be in the “consideration set” when Under-40s start shopping for causes and charities.

USE THE WEB! Fortunately, the Web and related online tools make far more affordable and routine the kind of targeted communications that can project your brand to the sub-audiences that ought to be aware of you.

The Donor Trends white paper “Four Reasons Why You Should Care About the Under 40 Crowd” is available at www.cravermathewssmith.com. Tom Belford and Roger Craver are veteran market-ers and currently write for The Agitator. Visit them at www.theagitator.net.

14

an enormous environmental impact -- not just in the consumption of paper itself, but in the energy to print and distribute it as well. Every single one of those 78 items in my mailbox, whether advertising mate-rial or not, had one thing in common: they were solely communicating informa-tion. Not one piece of the mail I got last week involved the delivery of any physical goods. Don’t we have a better way to distribute information? On fi rst inspection, e-mail seems like an obvious and perfect substitute for post-al mail. It has many similar format characteristics: it’s written, it’s point-to-point, and asynchronous -- the recipient can read it at their convenience. Moreover, the environmental impact in order of magnitude is less, as is the cost: it’s much quick-er, and in combination with the Web, sets a much lower bar for people to respond. For direct marketers, e-mail offers a wealth of data about programs that postal mail cannot match. However, all things e-mail aren’t quite perfect. By comparison with postal ser-vices, e-mail:

• Lacks ubiquity. E-mail has not yet fully matured as a medium. There is no such thing as an “offi cial” e-mail address for someone, and there are still tens of mil-lions of people in the US who don’t regularly check their e-mail.

• Lacks reliability: when we send something by postal mail, we’re almost certain it will be delivered, whereas it’s not unusual for e-mail to get waylaid by an over-eager spam fi lter.

AN ENORMOUS OPPORTUNITY

Despite these limitations, e-mail still represents an enormous opportunity for nonprofi t organizations to reduce their environmental impact by moving more communication efforts online, while also reducing costs -- especially in the face of rapidly rising postal rates -- and improving the quality of, and response to, those communications.

HOW TO INCREASE YOUR E-MAIL-BASED COMMUNICATIONS – AND RESPONSE

1. Collect e-mail addresses. The fi rst step in migrating toward more e-mail-based communications is to obtain your constituents’ e-mail addresses. A typical non-profi t organization has a direct mail house fi le accumulated over many years, but only has e-mail contact information for a fraction of those constituents.

Every interaction with a constituent is an opportunity to grow your e-mail address list. Ensure that all your direct mail and telemarketing vehicles have an “ask” for an e-mail address. Make sure there is a prominent e-mail subscrip-tion box on the home page of your Web site, and that every form on your Web site (online donations, membership, advocacy, etc.) includes the opportunity for the constituent to provide an e-mail address and opt-in.

Can Email Save the Environment?continued from cover

“Every single one

of those 78 items in

my mailbox, whether

advertising material

or not, had one thing

in common: they were

solely communicating

information.”

15

Consent is a key element. Unlike postal mail, where unsolicited communica-tions and list exchanges are common, the accepted practice online is to obtain the constituent’s consent before using an e-mail address for bulk communica-tions. This is an especially important consideration when using an appending service to convert your direct mail fi le into an e-mail one.

2. Proactively involve your constituents in the process of moving online, and make them aware of the benefi ts to both the organization and the environment. For example, if you offer a print newsletter as a membership benefi t, offer members the opportunity to receive it electronically instead via your Web site, and let them know how much money and paper the organization is saving as a result.

Direct response fundraisers are understandably cautious about moving their programs online. For many organizations, their direct mail program is their largest single source of funding. Nonprofi ts have been fundraising using direct mail for decades, and it’s a medium that is very well understood, with highly predictable economics and results. Internet contributions continue to grow rapidly [2], but the science of online fundraising is still evolving.

3. Go multichannel. The key to moving fundraising communications online with-out putting critical direct response programs at risk is to leverage the synergy of communicating with donors through multiple channels. Controlled studies have shown that donors with whom an organization has a regular e-mail rela-tionship will give more frequently and in higher amounts, even when they pre-fer to continue giving offl ine.

One successful approach is to use an integrated appeal series - early solicita-tions can be sent by e-mail, inviting donors to renew online; those who do can be suppressed from the subsequent direct mail phase, reducing both costs and en-vironmental impact. E-mail can also be used to prime direct mail donors for the receipt of a direct mail piece, increasing its conversion rate and reducing the need for follow-up mailings.

EXPLOIT E-MAIL’S UNIQUE PROPERTIES

E-mail is far more than just a replacement for direct mail. To maximize the value of e-mail, it is important to exploit the properties of the medium that are funda-mentally different from other communication channels. One such benefi cial property of e-mail is its relatively low cost: in direct mail, the cost of printing and distribution tends to be the governing factor in how of-ten organizations communicate with their constituents, and in whom they choose to target. Although e-mail is not literally free, it does have a far lower production cost than direct mail, and this empowers organizations to communicate more of-ten with a wider audience. A regular, informative e-mail newsletter is the cornerstone of any online com-munication program, and can be sent not only to current donors or members, but to any interested party. This allows an organization to build a relationship with an

“A regular,

informative e-mail

newsletter is the

cornerstone of any

online communication

program”

16

individual over time. Another property of e-mail that direct mail cannot match is its immediacy. With the correct business processes and careful planning, e-mail communications al-low nonprofi ts to respond to, and take advantage of, current events in the media, by getting a message out to constituents within hours of a breaking news story. There are two key elements to the process of immediate e-mail response:

1. Preparation. Make sure you have appropriate letterheads, layouts, and target lists set up in your e-mail marketing tools, and appropriate style guides for staff who are going to use them. If you will be leveraging breaking news for fundrais-ing, make sure the donation forms on your Web site are set up and working. The only thing the organization staff should need to do is generate a paragraph or two of text copy, and hit the send button.

2. Empowerment. Nonprofi ts are very consensus-driven, and it’s not unusual to have a process where e-mail newsletter content has to be approved by over half a dozen people in as many different departments. Clearly, that process won’t work when you’re trying to ride the media wave. Obtain consensus to empower individual staff members to write the copy and hit the send button; it might not be quite as polished, but it will get the message across in a timely manner.

STRATEGIC USE OF E-MAIL WORKS

Although we are still a long way from putting postage meters into retirement, strategic use of e-mail as a communication medium can empower an organization to improve outreach, reduce costs, and benefi t the environment.

[1] Wikipedia article: “Direct Marketing”

[2] Philanthropy Journal, April 4, 2007: “Online Fundraising Still Growing”

David Crooke is founder and chief technology offi cer for Convio. Visit www.convio.com for more information.

“Another property

of e-mail that

direct mail cannot

match is its

immediacy.”

Proud Printer of DMAnon-profi t Journal

Wayne Magoon 301 843-1995

17

For the past year or so, state legislators have introduced legislation that would create a state do-not-mail list registry for their constituents. (See www.Newdream.org, an organization supporting this effort.) Last year it was a mere handful, but now we are seeing more and more bills pop up. To date, there have been 18 bills in 15 states. Four bills have been tabled or withdrawn (AR, CO, MD, MT); 4 others have held hearings but with no further action (CT, RI, TX, WA); and 1 possible hearing is pending (VT, introductory only). The rest of the bills have had no action since their introduction. As you know, the introduction of legislation is far from a guarantee that the bill will pass. Legislation is introduced for many reasons -- ranging from providing a response to a constituent complaint to vetting a controversial idea through the legislative process. To actually pass legislation can be a Herculean task depending on the issue. In other words, nonprofi ts that focus on direct mail marketing and fundraising efforts need not hit a panic button -- yet. For the most part, the legislation introduced exempts 501(c) 3 organizations from a do-not-mail list requirement. But that will not fi x the problem for a nonprofi t if the organization counts on raising money through the mail. If states begin curtailing the amount of mail that can be sent, mail volume will drop off for the United States Postal Service (USPS). Without the needed mail volume to support its costs, the USPS will have to raise rates on its existing ratepayers to fund the universal postal system. Although we are now in a new rate-setting environment due to postal reform that requires a price cap at the rate of infl ation each year, the USPS could potentially argue for rates above the cap due to exigent circumstances -- and you can be certain that a widespread do-not-mail registry would be a good reason to go above the cap. Additionally, as members have pointed out, the

sources of names and their contact information would dry up as list providers and the marketing industry began losing ground due to these registries. Nonprofi ts would not have the necessary resources to obtain the lists they need to continuously recharge their fundraising efforts with new contacts. Fundraising and advocacy would be severely challenged by these registries. So, what happens now? The DMA is leading the way in opposing do-not-mail legislation state-by-state, and it is having success in pushing back some of the bills. It is bringing together a massive coalition of impacted companies, publishers, service providers, associations, and others that can mobilize at the state level to communicate with legislators about the impact of do-not-mail legislation -- not only on their particular business, but also on that particular local economy. There is a tremendous positive impact at the local level due to the postal channel that many take for granted. We certainly have complained regarding poor delivery and high postal rates, and will continue to seek better service and affordable rates from the USPS, but at the same time, we appreciate the fact that we do have this national resource that should be protected and preserved to allow local businesses that support so many individuals and families to grow. You know that a healthy local community is one that gives back, so it is quite important that your organization supports the DMA and the DMA Nonprofi t Federation in a battle to protect the USPS in the years to come. You need to brace yourself for the fact that now that legislation has been introduced, it will be hanging around for a very long time, and we will have to push back for a very long time. The genie has been let out of the bottle, and we need to remain at-the-ready at the local level, as well as on the national front.

Crisis of the Moment Do-Not-Mail Gains Steam at Local Level Senny Boone, Esq., Executive Director, DMANF

18

DonorsPlace your valued donors and prospects in the hands of a telefundraising partner you can trust.

Put our award-winning fundraising professionals to work for you and experience the difference.

For more information, contact Corey Gordon at 651.233.5009 or cgordon@strategicfundraising.com.

You’ve invested years and resources into developing and maintaining donor relationships.

You need a fundraising partner who believes in your mission. Someone who cares for your donors and prospects

as much as you do.

At Strategic Fundraising we design every campaign for ultimateeffectiveness, and deliver superior results because our experiencedfundraisers approach every donor with respect, ethics and integrity.

We extend your development reach by offering:Telefundraising and membership renewal (outbound/inbound)Solutions to cultivate, reactivate and acquire your donorsPre-recorded celebrity message campaigns and live surveysPredictive modeling and analytics

19

As telemarketing gave rise to direct mail, which gave rise to a strong Web presence and e-communication initiatives, nonprofi t fundraisers and marketers began to understand that new mediums shouldn’t negate what has worked suc-cessfully for decades. Rather, new technologies and avenues should be added to an organization’s existing communications strategy. The latest challenge, however, lies in not just incorporating multiple mediums, but in integrating the channels used in a campaign to share a consistent message, consistent branding, and consistent “ask” (or call-to-action.) All communication avenues must work together to support the same result. Constituents, while they may or may not consciously notice, appreciate consis-tency in their communication from nonprofi ts. For example, they may feel more compelled to donate to your organization after receiving three various appeals for $100 to support cancer research, than they would receiving a $25 appeal for tobacco prevention, a $125 appeal for asthma education, and a $500 appeal for air quality advocacy. To help organizations improve their channel integration strategy, Kintera has provided nine practical tips to help nonprofi t campaigns shine – and keep those constituents smiling.

9 CHANNEL INTEGRATION TIPS TO KEEP CONSTITUENTS SMILING

1. KEEP DONOR COMMUNICATION PREFERENCES AT THE FOREFRONT OF CAMPAIGN EFFORTS.

Your supporters are constantly communicating with you about how they like to be contacted by your organization. But are you taking note? And more im-

9 Channel Integration Tips That Will Make Your Constituents Smile Darryl Gordon, Vice President of Marketing, Kintera Inc.

portantly, do your communication efforts refl ect those preferences?

Best practice dictates that nonprofi ts of-fer a preference/unsubscribe option in each medium used for supporters to indicate they’d like to exclude certain communica-tion methods. For example, a particular donor may not have a problem with receiv-ing direct mail pieces, but strongly prefers e-mail communications, and detests being contacted via phone.

While a channel integration strategy involves incorporating multiple mediums for a well-timed, consistent campaign, do-nor communication preferences should be strictly adhered to, and campaigns modi-fi ed for specifi c constituents.

2. FORGET LOCATION, LOCATION, LOCATION: TIMING IS EVERYTHING.

The best channel integration strategy can be thwarted by poor timing. A critical component of an integrated campaign plan is to ensure that timing is included in the strategy. Nonprofi ts should be sure to look back historically on how frequently supporters have been contacted in order to determine future campaign timing to generate the most revenue. As multichannel campaigns frequently rely upon multiple departments -- such as the advertising, Web, and development teams -- providing an agreed-upon fi nal task calendar will ensure teams are on the same page, and communication mediums are used at well-spaced intervals. Historical campaign success metrics can provide specifi c timing data, such as the best day of the week and hour of the day to use specifi c avenues.

3. FIND STRENGTH IN SEGMENTATION.

Segmentation has become a widely accept-

ed practice among fundraisers, as organiza-tions understand the value of communicat-ing differently with 25-year-olds interested in saving whales than they do with recent retirees interested in rescuing household pets. Unfortunately, however, the power and value of segmentation seems to be for-gotten during the execution of large-scale, multichannel fundraising campaigns.

In an effort to achieve maximum impact and results, many nonprofi ts mistakenly use their entire database for every message and every medium, essentially contacting their supporter list in exactly the same way. Segmentation is as critical, however, in in-tegrated, multichannel campaigns as it is in smaller, one-channel fundraising efforts. In addition, fundraising results may in-crease by offering targeted messaging and appropriate “ask” amounts. Fundraisers should look at their integrated campaign as several mini-campaigns, which each use multiple channels, such as direct mail, phone, and the Web, to appeal specifi cally to unique database segments using appro-priate messaging and gift requests.

4. USE ONLY THE “OCCASIONAL” ASK.

Whether it is work or friends or your child’s school, do you like feeling like you’re con-stantly being “hit up” for something? That, no matter how much you contribute or help, it’s not quite enough, and that more is required of you? Wouldn’t it sometimes be nice to be communicated with and feel like there are no strings attached?

Donors may not want to be asked for a do-nation 10 times in a four-month timeframe

– even though fundraising is likely the goal of the campaign. By integrating the chan-nel strategy, nonprofi ts are afforded the luxury of not requesting a donation in ev-ery supporter touch. Some communication mediums or opportunities can be used to educate the database about recent suc-

20

cesses, the impact of donor contributions, or a pressing need. An integrated strategy reaches donors via multiple vehicles, en-abling some methods to be used to educate, some to request feedback, and some to ap-peal for donations.

5. BE A NONCONFORMIST.

Traditional direct response channels, such as direct mail and phone, are commonly used in nonprofi t fundraising campaigns. Newer technologies, such as Web sites, e-newsletters, and e-mail, are being quickly adopted by the nonprofi t community as well. But just as a Web site for a nonprofi t organization was virtually unheard of 10 years ago, there are new technologies constantly arising. These need to be care-fully considered and incorporated into the channel integration strategy. For example, social networking sites like MySpace and Facebook play a critical component when reaching certain audiences. Organizations should constantly be looking out for new technologies and mediums, which could enhance and improve the way they reach donors.

6. CROSS-LINK CHANNELS.

Not linking between and cross-referencing mediums is a missed opportunity for non-profi ts. In fact, one of the unique and valu-able opportunities that multichannel cam-paigns offer is the ability to cross-reference between mediums.

An example of cross-linking channels is a phone solicitation that offers a specifi c (and memorable!) Web address or URL that donors must visit to learn more or re-ceive a special offer. Another example is a direct mail piece that directs supporters to call a specifi c, toll-free number. Link-ing between mediums enables nonprofi ts to glean valuable tracking information on

which medium or call-to-action led donors to take action on a specifi c appeal or cam-paign. In addition, constituents become further engaged with the organization be-cause they’re being reached or touched in multiple ways. Each cross-link provides a new and unique opportunity to communi-cate a message or educate supporters.

7. USE WHAT YOU HAVE.

Nonprofi ts have remarkable amounts of information about constituents at their fi ngertips, but often don’t even realize it. Organizations should understand that any feedback provided from a campaign chan-nel can provide valuable information about a donor and, as a result, should be captured and stored centrally in their donor man-agement system. A lot can be learned from this information, and it should be used to modify and shape future interactions with the donor. In addition, campaign result in-formation, such as the most successful calls to action, channels with best response met-rics, and total revenue raised, can prove invaluable in determining how to approach future channel integration strategies and campaigns.

8. CENTRALIZE IT!

When nonprofi ts maintain separate data-bases by medium, such as the e-mail mar-keting list, phone list, and direct mail data-base, they lose the benefi t of targeting one central – and complete – supporter base. In essence, this defeats the purpose of an in-tegrated multichannel campaign because separate, decentralized lists can’t ensure that the full audience is contacted multiple times in multiple ways.

By using one sophisticated CRM system to house all donor and constituent data, nonprofi ts benefi t from the assurance of know they’re reaching their full constitu-ency with each appropriate medium during

21

22

their integrated multichannel campaign. Working from separate databases, nonprofi ts can’t know how many of their constituents are actually being reached with the full impact of the campaign – which defeats its purpose.

For example, a donor may be the recipient of a random e-mail or direct mail piece, but not receive the necessary additional information, follow-up or multiple “touches” needed to compel the supporter to give. In addition to numerous other organizational benefi ts, a central CRM database offers nonprofi ts confi dence that the impact of their multichannel campaign will reach their audience.

9. UTILIZE CROSS-FUNCTIONAL TEAMS.

Many components of an integrated multichannel cam-paign involve several different departments within a nonprofi t organization, such as IT, communications, marketing, and development. In order to keep the word

“integrated” at the crux of the campaign, it’s impera-tive to involve stakeholders from each department early in the process to obtain help, support, and buy-in, ulti-mately ensuring successful, well-timed execution of the campaign.

Creating a cross-functional team should involve se-curing representation from each department involved

– as well as peripheral departments that may have a stake in, infl uence on, or potentially be affected by, the campaign’s impact. By sharing the vision and expected outcome of the campaign with the cross-functional team, you are enabling more ownership, and ultimately, suc-cess of the campaign.

A CHALLENGE, BUT WELL WORTH IT

Nobody said that integrating multiple communication channels was easy. But while challenging, the ultimate fundraising results achieved by a well-organized multi-channel campaign can be a signifi cant improvement over previous campaigns. In addition, the long-term result is developing a deeper affi nity to your organization within the constituent base, as they receive thoughtful, relevant, and well-timed communication from you.

As Kintera’s vice president of marketing, Darryl Gordon is re-sponsible for the continued strategic development and execution of Kintera’s marketing strategy. Visit www.kintera.com.

NEW. FREE. RESOURCE.

P A S S I T O N !

Receive Your Own Free Subscription!Sign up online atwww.fundraisingsuccessmag.com

• Comprehensive Fundraising Articles

• In-depth Case Articles

• Great Tips to Achieve Fundraising Goals

“one of the unique and

valuable opportunities

that multichannel

campaigns offer is

the ability to cross-

reference between

mediums.”

23

The term “social networking” seems to have become a part of everyday language. It is not diffi cult to fi nd it mentioned in the media, in conversation, or even at work. Whether it is the emergence of a new social networking Web site or the acquisition of an established social networking site by a media conglomerate for an exorbitant amount of money, these Web platforms remain front-and-center in the next genera-tion of Web applications. For nonprofi ts, it is important to identify whether these Internet avenues present a viable way to empower an organization’s membership, or further enable its goals. Popular sites like Friendster.com, Orkut.com, and Hi-5.com have demonstrated that social networking is not just a fad or trend, but a permanent part of the Web land-scape. According to the Internet encyclopedia Wikipedia.com, social networking Web sites use Internet applications directed toward helping connect friends, business partners, or other individuals using a variety of tools. As a result, it is not surprising that such sites are one of the fastest-growing Web destinations. The past few years have seen these sites demonstrate the ability of the industry to go beyond consider-ation as a trend to a valid destination point attracting a critical mass of users.

Social Networking Web Sites: An Opportunity for Nonprofi t Organizations? Nabil Meralli, Founder, Hublounge.com

?

24

THE MYSPACE PHENOMENON

The most popular of social networking Web sites, MySpace.com, drew more than 48 million unique visitors from the United States in April 2006 alone. The site experienced more than 400% growth year-over-year in its fi rst three years. MySpace.com was recently purchased by media conglomerate News Corp for over $500 million. These growth numbers are even more impressive when compared to the tradi-tional Web portals such as Yahoo! and MSN. For perspective, MySpace.com users generated an astounding 27 billion page views, compared with 37 billion page views on Yahoo!, and 21 billion page views on Microsoft’s MSN portal within the same month. In the current environment, social networking Web sites are rivaling the tra-ditional Web portals that provided the foundations for collecting Internet traffi c. As the segment is evolving, social networking sites are infl uencing e-mail and search engine features, and have the potential to become the new portals of the Internet. Such fi ndings beg the question as to how these Web destinations be-came so popular.

WHAT’S THE KEY TO THEIR POPULARITY?

The popularity and emergence of the social networking industry is essentially psychological, and can be derived from basic human needs. Two of the compo-nents of human psychological need -- the desire to stand out, and the desire to simultaneously belong -- are evident in such platforms. Social networking Web sites have a root in the behavior of users, and provide a medium to not only maintain popularity but also expand their reach and con-tacts. In this sense, a major aspect of social network sites is to allow users to con-nect with many of their friends – both existing and new. The impact of these ser-vices is signifi cant as it essentially expands an individual’s circle of friends. This is especially relevant for socially reserved or introverted people who fi nd it much easier to express themselves online than in person.

ONGOING IMPROVEMENTS MEET USER NEEDS

The Web sites themselves have evolved further to better fulfi ll these human needs. Functions of social networking Web sites have grown to aid greater ex-pression; features have been introduced that include creating a unique identity, communicating with friends, sharing content, and consuming this content. For example, Web sites like Flikr.com enable users to share photos. Interestingly, the characteristics of sharing content and content consumption have the potential to threaten the traditional Internet portals, because users are able to enjoy next-generation applications such as listening to songs or viewing videos that were quite static or altogether non-existent in traditional portals. Industry pundits predict a gradual integration of the two mediums over time

25

into one fully-integrated platform. This notion can explain the organic develop-ment of such platforms by traditional search engines such as Google and Yahoo!, as well as the acquisition of such Web sites by traditional media companies.

WHAT’S IN IT FOR NONPROFIT ORGANIZATIONS?

With all the attention these social networking Web sites are receiving, where do nonprofi t organizations fi t in? At this point in the industry, there seems to be a disassociation between professionalism and social networking Web sites. Con-sidered the domain of the teen and the young adult market, social networking sites are used mostly for social interaction. It seems that a legitimization of social networking technologies for professional means has not yet been achieved. The emergence of a professional application for social networking is logical and seems to be on the horizon. Linked-in.com, the most seasoned competitor in the emerging professional social networking space, attempts to connect individ-uals within one’s network to others, primarily to recruit. Members can connect to the network of their friends and business contacts to see if an individual meets the qualifi cations they are seeking. For example, if a member was interested in fi nding a lawyer specializing in tax law, she can access her network and see if any of her contacts have access to such a lawyer. She then must pay a nominal fee to have access to the contact information of the lawyer. The Web site builds on the power of association.

ROOM FOR NONPROFIT GROWTH

A gap in the market still remains as to an organizationally driven social net-working Web site. Most existing sites are directed toward individuals, and have currently left this area unexplored. This is surprising, since the benefi ts of social networking for organizations are numerous. Social networking has the ability to encourage collaboration among members, create more cohesion, and generate a sense of belonging. Further, users can feel better connected among other mem-bers and volunteers, and can easily be united for a common cause or purpose. A Web-based platform can also encourage discussion on relevant issues; through a chat, bulletin board, or messaging function, users can discuss and de-bate issues of importance to an organization. Finally, if a social networking Web site is seen as a destination point for other like-minded individuals, it can be an avenue to recruit future members, or even generate fi nancial support through do-

26

nors for an organization’s causes. With all the advantages such technologies present for organizations, it is easy to understand the rationale behind the newest entrant into the social networking arena, www.Hublounge.com. Hublounge.com aims to enable organizations to harness the power of social networking technology for free by creating a platform specifi cally designed for special interest and nonprofi t organizations. The Web site creates virtual lounges for organizations where members can in-teract as they would in real life. The Web-based technology that underpins the site mirrors real-life social interaction, so individuals can meet and talk in virtual cafes, parks, and restaurants. A picture is required for members in order to create an individual’s virtual presence in the lounges. (Users can upload another im-age if they feel uncomfortable posting their picture.) Moreover, it is a dedicated virtual space where an organization’s members, regardless of their location, can interact with each other. This is especially benefi cial to international organiza-tions that have members across the globe.

A COMPLEMENT TO AN ORGANIZATION’S OWN SITE

It is important to note that effective social networking Web sites are not meant to replace an organization’s Web site, but act as a complement to it. The virtual presence provided by Hublounge.com is owned and controlled by each individual organization. Furthermore, the site has an ability to make an organization’s vir-tual lounge open to only their members, or open to all of Hublounge.com’s com-munity to enter and interact. Organizations can provide a link to their virtual lounge of their own Web site. This community hopes to include volunteers, po-tential donors, and other special-interest and nonprofi t organizations and their members. Social networking technology brings multiple benefi ts to nonprofi t organiza-tions. However, it is when an organization uses these technologies properly to strengthen their membership and coordinate initiatives that the true power and potential of social networking is unleashed. In the current Internet environment, nonprofi t organizations face three alternatives:

1. Avoid social networking altogether and maintain their current initiatives. 2. Create the technological infrastructure to enable social networking them-

selves. 3. Look to an existing social networking Web site to create a presence for their

organization and members.

Regardless of your choice, one thing is for certain: social networking tech-nology should be taken seriously as a viable means to accelerate, coordinate, and manage the operations of your organization.

Nabil Meralli is a founder of the social networking startup www.hublounge.com, and co-founder and chair of Borderless World Volunteers, an organization that aims to em-power youth for leadership in global development. A graduate of the MBA program at the University of Oxford, Meralli focused his studies on the emerging area of social network-ing technologies. He can be reached at nmeralli@hublounge.com

27

DMA’s Ethics: The Evolution of Environmental Planning for Direct Marketers, Version 3.0Chet Dalzell, Public Relations Director, Harte-Hanks, Inc.

Waves come and go in the public’s consciousness, and pendulums always swing, but every time there is a peak or a valley, we mark time with progress and we usually show we’re all the better for it. Take the Internet. First, there was irrational exuberance toward anything that carried a prefi x of “e,” and all the discipline that marked fi scal bottom lines was thrown aside. Then we rediscovered that profi t really matters in e-business, and that e-business is really just business. So today, we have excitement over Web 2.0, but this time, Internet wave no. 2 has an obsession for met-rics that demonstrate return.

And then we have the ebb and fl ow of the environment as an issue for organizations to consider. Welcome to Earth Day 2007, our 37th commemoration of the planet.

1970: ENVIRONMENTAL PLANNING, VERSION 1.0

The fi rst environmental high tide was circa 1970. The Clean Air Act and Clean Water Act were aspirations offering a blueprint; the Cuyahoga River [in Cleveland, OH] was so polluted it caught on fi re; a teary-eyed Native American was part of an Ad Council campaign for Keep America Beautiful with the call to action “People Start Pollution. People can stop it”; and Apollo astronauts beamed our fi rst photos of the Earth back from the Moon. The environment was as nice a fi t as our faded jeans. “Be-ing green” resonated with an audience that spanned entire generations – from Boy Scouts on road-side clean-up detail, to beatniks with solar power in geodesic houses, to a nation of families, sportsmen, and peace seekers grateful for an expanded net-work of parks, seashores, forests, and other wildlife management and wilderness ar-eas. Organizations took notice. Recycled paper – which “looked like” recycled paper – entered the mainstream, so much so that a newly formed U.S. Environmental Protec-tion Agency created universal symbols to use when labeling such papers. Any charity could don its green credentials by using recycled paper, taking a stand against pollu-tion and for recycling, and planting trees. In the backdrop, government took a com-mand-and-control approach, too, with business regulations: catalytic converters and fuel effi ciency requirements, bans on certain pesticides, and curbs on smokestack

28

and effl uent emissions were hammerheads to move pollution prevention and resource conservation along. Many of these measures were pushed for by conservation and environ-mental groups.

1990: ENVIRONMENTAL PLANNING, VERSION 2.0

Fast forward. The second high tide was 1990. The excesses of the 80s gave us ozone holes, and our fi rst realization that global warming perhaps was an issue. Three-Mile Island, Valdez oil spills, Bhopal chemical leaks, Chernobyl – environmental disasters, all of them – pointed to the power of people and industry to destroy surroundings in alarming ways. Big Business was seen as one culprit. Direct marketers were not spared here. Ahead of the 20th commemoration of Earth Day, 50 Simple Things You Can Do to Save the Earth received heady publicity. Its fi rst recommendation: “Stop Junk Mail,” which persuaded Americans to sign up for the Di-rect Marketing Association’s Mail Preference Service (MPS -- a free name-removal service for consumers, which was fi rst launched in 1971 to help respect personal privacy). Con-sumers signed on. The MPS fi le size spiked considerably. Not so incidentally, a special edition of 50 Simple Things was released by the Natural Resources Defense Council, which revised the edition, with the permission of the pub-lisher. “Stop Junk Mail” became “Stop Un-wanted Mail” – and moved from No. 1 to No. 17, with an acknowledgement made that envi-ronmental groups depend mightily on direct mail for fundraising and social education. Fortuitously, direct marketers already had set a path on getting wise to green business practices, and nonprofi t groups were enfran-chised in these efforts. In 1989, the DMA formed a Board-level Task Force on Environ-mental Issues, led by Robert Teufel, then CEO of Rodale Press, to investigate direct market-ing’s impact on the environment, and ways

we can affect it positively. Craver, Mathews & Smith were among those in the fundraising community involved with the Task Force at the time. Shortly thereafter, the Task Force’s work led to the association’s fi rst publication of the DMA Environmental Resource for Direct Marketers (now in its third edition), which sought to identify each step of the direct mar-keting process – from strategic planning, to lists and data, to mail design, to paper, to packaging, to workplace operations, and to customer education. This was followed by the DMA Robert Rodale Environmental Achieve-ment Awards – and some of the early honorees, Seventh Generation, Williams-Sonoma, Na-tional Wildlife Federation, LL Bean, the U.S. Postal Service – provided both benchmarks for top performance and ground-breaking in-novations. For example, early efforts by com-panies such as Williams-Sonoma helped lead to a national recycling collection and reuse program for plastic packaging “peanuts.”

TODAY: ENVIRONMENTAL PLANNING, VERSION 3.0

In 2007, we now have environment wave number three. The nation spent the last de-cade learning and loving the Internet, and feeling and fi ghting terror. Yet today, the en-vironment is back in vogue thanks to Al Gore, pump prices for gas in some cities approach-ing $4 a gallon, and droughts, hurricanes, and a string of warm years for the record books. Perhaps, too, the environment is an issue around which a polemic world can rally, instead of tearing each other apart. Certain-ly the business community has taken notice. In late March, Fortune magazine announced that America’s three “Most Admired Compa-nies” – GE, Starbucks, and Toyota – all touted green business strategies. Environmental performance is a real motivator for employ-ees, and certainly improves consumer brand acceptance, even if the verdict is still out on how much more (if any) people of all incomes

29

and businesses will pay for “greener” prod-ucts and services. Direct marketing, too, is part of the mix. DMA really never let environmental educa-tion of commercial and nonprofi t market-ers go away. Throughout the 90s and early 2000s, the association kept involved, pub-lishing two subsequent editions of the DMA Environmental Resource, and staying in-volved in inter-association groups of paper manufacturers, print communicators, and paper users.

ENTER THE DMA ENVIRONMENTAL PLANNING TOOL ONLINE

In 2005, the DMA formed a standing Com-mittee on the Environment and Social Re-sponsibility, led by Jennifer Barrett of Acxiom Corporation, with at least one not-for-profi t organization, ConsumersUnion, among its membership. Its work, in part, has led to the development of a new tool for the direct mar-keter’s business planning toolbox, the “DMA Environmental Planning Tool and Optional Policy/Vision Statement Generator,” which I’ll call “the Planner” for short. Direct marketers – DMA members and non-members alike -- can access and book-mark the tool at: http://www.the-dma.org/envgen In essence, the interactive tool enables direct marketing professionals in all lines of business and the nonprofi t sector a means by which to take command of environmental performance in their own operations, and to execute internal planning. There are 115 practices listed in fi ve areas: list hygiene and data management (17 practices); design and printing (17 practices); paper procurement and usage (45 practices); packaging (11 prac-tices); and recycling and pollution reduction in our workplace and community (25 practic-es). By reviewing the list, checking off con-fi dentially what practices a business under-takes or plans to undertake, saving the list electronically, printing it, or sharing it inside

a company or marketing team, the Planner can be employed as an internal assessment and evaluation tool. None of these practices – except for those privacy-related list practices required of DMA membership for DMA consumer mar-keting members – are mandates. All of these practices are considerations that may deliver benefi ts in environmental performance, as identifi ed by the DMA and its Committee. By using the Planner, an organization can gauge its practices today, and enable planning, test-ing, and implementation for practices tomor-row. It can tackle these considerations en masse, in groups, or perhaps one practice at a time. For example, making a commitment to test and use sustainable forestry-certifi ed pa-per may be applicable at fi rst to only a small portion of an organization’s total paper buy. Maybe it makes sense for an individual group to begin the dialogue with its paper brokers, printers, manufacturers, or other paper sources to see what’s available and afford-able in the grades necessary. The initial dis-cussions may lead to an eventual purchase, which may lead to an eventual commitment – or it may lead in another direction if an or-ganization, for the moment, fi nds that sup-plies of such papers (which represent a small but growing share of the total paper market-place) are less than predictable, secure, and stable. Other practices may prove to be easier win/wins. Using lighter-weight papers uses less fi ber and saves on postage, as long as an organization determines, after testing, that such papers do not depress response. As in all matters direct marketing, we have the means and discipline to test such variables, and the Planner encourages such testing and fl exibil-ity. In short, the Planner does not ask busi-nesses and organizations to abandon sound fi nancial decisions in their pursuit of a green-er direct marketing process. It offers a path for a better environmental footprint, and increased effi ciency by suggesting ways to achieve these mutual objectives.

30

9 Centennial Drive, Peabody, MA 01960-7927 • www.amergent.com

• Strategic Direct Marketing

• Flexible Database Management

• Insightful Analytics

• Award-Winning Creative

If you are looking for new fundraising solutions, please call Jack Doyle at 1-800-370-7500.

Friends for LifeA Partnership That Creates Lasting Relationships

Our experts in direct response fundraising strategy anddatabase analysis help you turn prospects into donorsand turn donors into Friends for Life.

31

ENVIRONMENTAL PLANNING MADE EASIER

Obviously, not every organization has the environment as its cause, or is seeking to be among America’s “most admired,” but we now have the means for all types of nonprofi t groups to evaluate steps to help improve the practice of direct marketing and fundraising from a green perspec-tive. With the Planner, an organization’s commitment here, version 3.0, is as easy to investigate, update, and implement as sliding into faded jeans. Chet Dalzell is public relations director for Harte-Hanks, Inc. He also serves as a member of the DMA Committee on the Envi-ronment and Social Responsibility. You can contact him at 212.520.3232 or via e-mail at chet_dalzell@harte-hanks.com. Visit the Harte-Hanks Web site at http://www.harte-hanks.com or call 800.456.9748.

May Development Serviceshas the expertise and experience to help you build

a winning direct response fundraising program.

200 Pemberwick Road, Greenwich, CT 06830 • www.directmedia.com • 203.532.1000

• Strategic planning• List brokerage & management• Copywriting & package design• Print production & mailing• eMarketing• Telemarketing• Computer services• Donor & prospect modeling• Response analysis• Long-term value studies

Four Steps to Fundraising Success...

1. Start with the most experienced fundraising list brokers and managers in the industry.

2. Add outstanding creative and production.

3. Hone your campaign with strategic planning and response analysis that is second to none.

4. Then relax.

Contact Larry May203.532.2546lmay@directmedia.com

MDS07.indd 1 4/18/07 4:31:20 PM

Are You Taking Advantage of Your Member Benefi ts? [ 4] Weekly e-News Update [ 4] Journal of the DMA Nonprofi t Federation [ 4] Monthly State Policy Hot Sheet [ 4] Free Ads in Nonprofi t Careers e-bulletin [ 4] Members Only Listserv [ 4] The Integrator Blog [ 4] Nonprofi t Members Only website [ 4] Discounted Event Registrations [ 4] Recognition Programs [ 4] Member Alerts [ 4] Action Alerts on Nonprofi t Policy Issues [ 4] All the Resources of the DMA

Make sure you don’t miss out on any of these benefi ts!Contact Senior Manager, Member Services Jill Murphy for details. Tel: 202.861.2497 or jmurphy@the-dma.org

The Power of DirectRelevance. Responsibility. Results.

PRESRT STDU.S. POSTAGE

PAIDPERMIT NO. 47 WALDORF, MD

1615 L Street, NW, Suite 1100Washington, DC 20036

Printed on 50 lb. Equal Offset®donated by Abitibi Consolidated

Mark Your Calendar for these Upcoming EventsAugust 8-9, 20072007 New York Nonprofi t ConferenceWaldorf-Astoria, New York, NY

September 26, 2007Database Marketing for the Nonprofi t Professional SeminarVenable, LLP - Washington, DC

October 13-18, 2007DMA07 Conference & ExhibitionMcCormick Place West, Chicago, IL

Jan 24-25, 20082008 Washington Nonprofi t ConferenceJ.W. Marriott - Washington, DC