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E-MAIL FUNDRAISING FOR NONPROFIT ORGANIZATIONS: A DIRECT
MARKETING POWERHOUSE
A WHITE PAPER BY
EUGENE SEFANOV
NOVEMBER 2006
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ii
CONTENTS
LIST OF ILLUSTRATIONS vi
LIST OF CASE STUDIES vii
PREFACE viii
Chapter Page
1. WHAT IS E-MAIL FUNDRAISING FOR NONPROFITS? 1
Economical
Instantaneous
Relevant and Intimate
Allows for Segmenting and Testing
Provides Quick Results
Results Are Easy to Analyze
2. DEVELOPING AN E-MAIL ADDRESS DATABASE 13
Obtaining E-mail Addresses Offline
Treat Every Opportunity Like Gold
Promoting the Benefits of E-mail Addresses
Obtaining E-mail Addresses Online
Promoting the Website
Online Registration
Viral Marketing Works Wonders
E-mail Address Appending
3. CLEANING AND MAINTAING E-MAIL ADDRESS LISTS 25
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Utilizing an E-Mail Delivery System to TrackBounces
Updating Donor Information Online
Updating Donor Information Offline
4. GATHERING DEMOGRAPHIC AND PSYCHOGRAPHIC 27INFORMATION
Gathering Via Online Surveys
Gathering Via Click-Through Data
Combining Online and Offline Data
5. THE IMPORTANCE OF PERMISSION-BASED E-MAIL 30MARKETING
Getting Permission
The Opt-In Technique
The Opt-Out Technique
Authenticating Permission
The Confirmed Opt-In Technique
The Double Opt-In Technique
Unsubscribing
Creating a Privacy Policy
6. BYPASSING THE SPAM BOX 38
Keeping the Message Relevant
Being Aware of Filters
Avoiding the Spam Label
Staying Fresh
Getting Exempt from Filters
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7. DEVELOPING E-MAIL CAMPAIGN GOALS 42
8. IMPLEMENTING SUCCESSFUL E-MAIL CAMPAIGNS 52
Integrating Direct Marketing Campaigns
E-mailing Frequency
Know When Enough is Enough
The Best Time and Day to E-mail
9. SEGMENTING E-MAIL LISTS AND TARGETING THE 57CONSTITUENT
10. DEVELOPING EFFECTIVE E-MAIL MESSAGES 62
Subject: The First Thing That Gets Read
E-mail Graphics and Layout
Above the Fold
E-mail Message Length
Encourage Recipients to the Website
Personalize the E-mail Message
Dear Sam
A Personal Touch
11. TESTING E-MAIL MESSAGES BEFORE DELIVERY 69
Testing Within the Organization
Different E-mail Clients
Testing Links
Testing Outside the Organization
Examining Initial Results
Checking the Handling Process
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12. TESTING AND ANALYZING RESULTS 73
13. THE FUTURE OF E-MAIL FUNDRAISING 81
14. CONCLUSION 88
Appendix
1. Collection of e-mail fundraising campaigns 94
2. Industry website addresses 115
REFERENCE LIST 117
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ILLUSTRATIONS
Figure Page
Figure 1. American Civil Liberties Union: Spy Campaign 8
Figure 2. Humane Society of the United States: Stop 10Slaughter of Horses
Figure 3. Humane Society of the United States: Petition 12for Poultry
Figure 4. American Jewish World Service: Tell-a-Friend 21
Figure 5. Texas Watchs Anniversary Card Campaign 23
Figure 6. The V Foundations Privacy Policy 37
Figure 7. U.S. Fund for UNICEF 45
Figure 8. United Methodist Committee On Relief (UMCOR) 47
Figure 9. Catholic Relief Services (CRS) 49
Figure 10. Doctors Without Borders Online Donation Form 51
Figure 11. ASPCA 2003 Holiday Campaign 60
Figure 12. Screenshot of Heifers "Moo-vie 83
Figure 13. Screenshot of the End Of the Moo-vie 83
Figure 14. Screenshot of Heifers Gift Catalog 84
Figure 15. BBBSAs Holiday Photo Card Campaign 87
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CASE STUDIES
Page
Case 1. U.S. Fund for UNICEF: Promise to Children 7Pledge Partners
Case 2. American Civil Liberties Union: Spy Campaign 7
Case 3. Humane Society of the United States: Stop 9Slaughter of Horses
Case 4. Humane Society of the United States: Petition 11for Poultry
Case 5. Texas Watchs Anniversary Card Campaign 22
Case 6. U.S. Fund for UNICEF 44
Case 7. United Methodist Committee On Relief (UMCOR) 45
Case 8. Catholic Relief Services (CRS) 48
Case 9. Doctors Without Borders Online Donation Form 50
Case 10. ASPCA 2003 Holiday Campaign 59
Case 11. Heifer International 82
Case 12. Big Brothers Big Sisters of America: An 85Ongoing Partnership
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viii
PREFACE
Direct marketers who work with nonprofits need to know and
understand the importance, features and benefits of e-mail
fundraising. E-mail is fast, economical and can be
implemented in record time. Individuals all over the globe,
particularly the United States, have started to embrace
this new technology, and realized it can generate
additional funds and at lower costs.
This paper will serve as a guide to individuals, both
professional and non-professional, who need the essential
tools and knowledge to develop e-mail fundraising campaigns
for nonprofit organizations in order to raise funds and
awareness. Although it should act as a reference guide for
basic e-mail fundraising strategies and techniques for
nonprofits, it should not be the only resource used.
Utilizing other material will only assist the reader in
making better choices in the future when it comes time to
raise funds through e-mail fundraising.
In this paper, e-mail fundraising will be discussed as a
supplemental channel to generate funds, and not one that
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replaces other fundraising methods. Some of the material
indeed comes from my opinions; however, I will support my
comments and statements with real-life examples and case
studies that certainly confirm my beliefs and ultimately
lead the reader to agree with my stated path. Magazines,
trade publications, newspapers, books and whitepapers will
all be used as support documentation.
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CHAPTER 1
WHAT IS E-MAIL FUNDRAISING FOR NONPROFITS?
Direct mail is no longer the only acceptable source of
fundraising for nonprofit organizations. Since the
inception of the Internet, e-mail fundraising has developed
into a powerful method of generating much-needed funds. It
has proven to be fast, affordable and immediate. 1 With
printing and mailing costs continuously on the rise, it is
important that there are ways for nonprofits to still
generate the money they need, even at a moment's notice.
From delivering medical supplies in natural disasters to
simply feeding hungry individuals, nonprofits can quickly
and inexpensively create effective e-mail fundraising
campaigns in order to make the world a better place.
1 Michael Stein, "Put Email to Work (Without Becoming a Spam Artist),"January 1, 2004.www.getactive.com/pdf/whitepapers/put_email_to_work.pdf. (accessed July8, 2006).
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ECONOMICAL
"Internet appeals and direct Web donations play an
important role in our fundraising efforts," said Mike
Kiernan, director of communications for Save the Children.
"Use of the Internet helps keep costs down while giving
donors the latest information about our response efforts on
our Web site." 2 Specifically, e-mail fundraising is one of
the most cost effective methods that can be used for
nonprofit fundraising. It can cost as little as fractions
of a penny per e-mail. 3 It is far more inexpensive when
compared to direct mail or telemarketing fundraising.
However, it is not recommended as a total replacement for
direct mail, telemarketing or any other fundraising method.
Instead, use them together. E-mail fundraising can
complement other fundraising channels very well, since each
has their strengths and weaknesses.
2 Dianna Dilworth, "Deliverability Aids Middle East Children," DM News,7 August 2006, 2.3 Gail Goodman, "E-mail Energizes Nonprofit Efforts," DM News, 21August 2006, 12.
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INSTANTANEOUS
Unlike direct mail campaigns, which can take several months
to develop and deliver, e-mail fundraising is as
instantaneous as one would like it to be. In just a few
steps, an e-mail fundraising appeal can be in a prospect's
inbox ready to be viewed. Not only that, but we also live
in a world that is susceptible to unforeseen events, such
as natural disasters and it is e-mail fundraising that
truly comes to the rescue. For example, if an earthquake
strikes or a tsunami hits, it is possible with e-mail
fundraising to very quickly generate funds so that
emergency assistance can be provided in those damaged areas
as soon as possible.
RELEVANT AND INTIMATE
It is well known that relevance is imperative when
implementing any direct marketing campaign. Individuals
tend to respond more to appeals when they find it relevant
to them in some fashion. Targeting e-mail fundraising
messages is very important and there are numerous ways to
target individuals especially if one has an established
donor database. Segmenting the database based on donor
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history fields for targeting is a must in e-mail
fundraising.
E-mail fundraising also allows one to personalize messages
based on the personal information provided, such as a name.
It is important to make recipients feel as if they are
truly important, and are not just a number. With today's
technology, it is crucial to personalize at every
opportunity. More about personalization will be discussed
in future chapters.
ALLOWS FOR SEGMENTING AND TESTING
Sending and testing different e-mail messages to multiple
segments of a mailing list can be done quickly and
inexpensively. Creating and testing multiple e-mail
messages that correspond and relate to the various target
audiences allows for the preliminary results to be analyzed
and the message to be modified as needed before sending to
an entire mailing list. Segmenting and testing will also be
discussed in later chapters.
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PROVIDES QUICK RESULTS
An enormous benefit of the Internet is its immediacy. The
Internet is an extremely rapid form of communication. As
soon as someone responds to an appeal via the
Internet, their results can be captured and analyzed.
Unlike direct mail, there is no longer a need to wait for
several weeks or months before finding out the results of a
campaign. And because of the Internet's immediacy, changes
can be made to a campaign as needed before losing too much
ground. With a fundraising channel like direct mail, it is
simply not possible to adjust a mailing without losing much
time and money.
RESULTS ARE EASY TO ANALYZE
E-mail fundraising allows numerous ways to analyze the
success of a campaign. As an example, tracking open and
click-through rates provides an effective method to
understand when certain content attracts certain
individuals. If specific links are being clicked on more
than others, it might make sense to generate more content
of that nature to increase those rates. Success is
about giving the reader what they want to see. If there is
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no interest among an e-mail campaigns recipients, little
success will be achieved with the campaign.
As one can see, e-mail fundraising for nonprofit
organizations can be a great tool for fundraising. However,
it should not act as a replacement for other fundraising
channels, but rather an additional form of raising money.
E-mail fundraising is a fairly new media when compared to
direct mail or telemarketing, so it is important to
understand and learn its new techniques. Always learn from
other nonprofit organizations, but remember that what works
for one organization might not work for another and vice
versa. This paper will enumerate the reasons why e-mail
fundraising for nonprofits is so beneficial and what it
takes to develop e-mail campaigns.
Here are several case studies that exhibit the overall
success an organization can achieve by utilizing e-mail
fundraising.
Donordigital is a firm that specializes in e-mail
fundraising for nonprofit organizations and has displayed a
tremendous amount of success with their clients. Below are
several campaigns they have implemented for them.
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U.S. Fund for UNICEF: Promise to Children Pledge
Partners
"Promise to Children Pledge Partners" is a growing
monthly giving program for the U.S. Fund for UNICEF.
As part of the effort to increase the number of online
sign-ups for this sustainer program, e-mails were
prepared inviting donors and other supporters to
become monthly givers. In response to the first
message, more than 270 people signed up, with an
average monthly gift of $27. Because sustainers often
continue on the monthly giving program for years - and
often increase their monthly gifts - their lifetime
value can be enormous.
American Civil Liberties Union: Spy Campaign
Calling for an end to the Bush Administration's abuse
of power, the ACLU has run a series of newspaper ads
and filed a first-of-its-kind lawsuit against the
National Security Agency, seeking to stop a secret
electronic surveillance program of warrantless
searches that has been in place since shortly after
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September 11, 2001. To raise money to fund the ACLU's
legal work, legislative advocacy and ongoing public
campaign, they prepared a set of fundraising e-mails
that garnered nearly 3,000 gifts and thousands of
additional gifts through its website.
Figure 1. American Civil Liberties Union: Spy Campaign
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Humane Society of the United States: Stop Slaughter of
Horses
In 2005, HSUS created a multi-channel campaign to save
wild horses in the Western United States, including a
campaign to contact legislators considering a ban on
horse slaughter, a fundraising drive to support the
Humane Society Legislative Fund, and organized house
parties in key Congressional districts. As legislation
to ban horse slaughter worked its way through
Congress, HSUS members sent 215,000 individual e-mail
messages to lawmakers and raised more than $150,000
for lobbying efforts. Although the house party drive
took place in the middle of the Hurricane Katrina
crisis (during which HSUS raised over $18 million to
rescue pets and other animals), more than 100 house
meetings were organized - and together they raised
$40,000.
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Figure 2. Humane Society of the United States: Stop
Slaughter of Horses
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Humane Society of the United States: Petition for
Poultry
When HSUS wanted to gather support for including
poultry in the federal humane slaughter laws,
Donordigital helped develop the Petition for Poultry
concept, web and landing page designs, and a series of
e-mail advocacy and fundraising appeals. Segments of
HSUS's list were asked to sign the petition, then
urged to ask their friends to sign. The results:
71,360 signatures from people already on the list, and
another 41,170 new names from tell-a-friend. This is a
multi-year campaign that continues to successfully
raise awareness and build HSUSs e-mail list.
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Figure 3. Humane Society of the United States: Petition for
Poultry
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CHAPTER 2
DEVELOPING AN E-MAIL ADDRESS DATABASE
Without someones home or work address, it is impossible to
send them direct mail. The same goes for e-mail. Without an
e-mail address, it is impossible to send an e-mail message.
That being said, obtaining valid e-mail address can be a
daunting task in itself that can ultimately make or break
your e-mail campaign. Most nonprofit organizations
have myriads of names and addresses, but lack a large
percentage of e-mail addresses. Building a solid file
of prospect and donor e-mail addresses is indeed difficult,
but there are techniques to help establish one.
Before describing the techniques, here is a perspective of
how many e-mail addresses one will need for a very
successful program. In order to receive 10 donations, a
minimum of 1,000 individuals need to receive an e-mail
message. Of those 1,000 individuals, 250 of them must open
the e-mail message and 50 of them actually need to click on
the link that takes them to the donation page. 4
4 Madeline Stanionis, The Mercifully Brief Real World Guide to RaisingThousands if Not Tens of Thousands) of Dollars with Email (Medfield,Massachusetts: Emerson & Church, 2006).
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Nonetheless, lower response rates are very acceptable since
sending e-mail messages is very inexpensive, whereas
traditional direct mail is not nearly as affordable.
OBTAINING E-MAIL ADDRESSES OFFLINE
The simplest way to gather e-mail addresses is by adding
material to other existing fundraising efforts. It should
not cost any extra money and could be the best source of
fresh e-mail addresses. It is crucial to ask for e-mail
addresses at all points of communication with prospects and
donors in order to maximize the file. 5
TREAT EVERY OPPORTUNITY LIKE GOLD
Utilizing the organization's current direct mail program
can prove to be the most effective method of generating e-
mail addresses. Every time an acquisition or renewal
mailing is sent, it is vital to ask for the recipient's e-
mail address. 6 Nonetheless, it should be voluntary so that
individuals are not turned off.
5 Groundspring.org, "Online Fundraising Handbook,"http://www.groundspring.org/learningcenter/handbook.cfm.(accessedAugust 2, 2006).6 Ibid
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When an organization is telemarketing, it is always a good
idea to ask for e-mail addresses from donors and prospects. 7
You already have them on the phone, so why not ask? The
more communication access points one has, the better the
chance of receiving an action.
If the organization holds events such as walks, those could
also be the perfect opportunity to gather e-mail
addresses. For example, a laptop could be set up to allow
attendees to enter their e-mail addresses while at the
event. 8
PROMOTING THE BENEFITS OF E-MAIL ADDRESSES
No matter how and where one is trying to gather e-mail
addresses, it is important to let individuals know why they
should provide their e-mail addresses. Let them know how
they will be used, and that they will save the organization
money when sending communication pieces. Recipients will
benefit by receiving relevant and important news flashes
and updates pertaining to the organization. They will also
7 Ibid8 Ibid
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appreciate that the organization is trying to save money.
Reinforce the fact that all parties benefit.
OBTAINING E-MAIL ADDRESSES ONLINE
Another smart way to gather e-mail addresses is through the
organization's own website. Individuals have already come
to the website to seek additional information about the
organization, so this provides an ideal opportunity to ask
for their e-mail addresses. Also, these Internet surfers
prove to be better responders. They generally seem to be
more comfortable with the Internet; therefore, they can
possibly be more receptive to receiving and responding to
e-mail messages.
PROMOTING THE WEBSITE
We all know that "free" is the best offer in direct
marketing. When an organization uses other channels to
promote itself, it makes sense to present its website
address on all communications. After all, an organization
can only benefit from receiving more awareness from a
website, as well as the possibility of generating
additional funds and new e-mail addresses. Also, if there
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is space on the communication piece, it could be beneficial
to let the public know what resources are available to them
on the website. Last but not least, it is important to make
sure the website is continuously updated there is a huge
opportunity loss if visitors to an organizations homepage
see the same displays each time they visit. Keep it fresh,
keep it live; this proves the organization is dynamic and
on the move.
ONLINE REGISTRATION
Encouraging individuals to sign-up or register online when
entering an organization's website is very important. 9 It is
an easy way to capture the most recent and correct
information and best of all, it has no direct cost. If a
prospect registers online, they can automatically be
considered a strong lead. When developing an online
registration form, it is critical to focus on the
information you are seeking. The more information you can
receive the better and the more targeted your message can
be. However, a registration form that takes a long time to
fill out can work against the organization. Individuals are
busy and might not have the time necessary to complete all
9 Ibid
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the fields. If a question can be answered in more than one
way, it would be ideal to provide an example of how you
would like the information to look. For example, if you are
looking for the date to be filled in a certain format,
explain how you would like it to look. It will eliminate
any confusion and it will help standardize the information
you receive. Drop-down boxes are often helpful for guiding
the applicant in the form-filling process, and ensure
standardized input. In addition, they sometimes speed the
information gathering process.
Always explain to the reader why they should register. Let
them know how their information will be utilized and how
the organization will benefit from it. Are there member
benefits, premiums or freebies?
Another tactic an organization can use is a quick
registration form. A quick registration form is a simple
form that requests only the most essential information, for
example, an e-mail address. It takes very little time to
fill out, but still provides the organization with an
opportunity to reach out to them. A quick registration form
can be displayed in a pop-up or somewhere static on the
homepage.
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The positioning of online registration forms is critical,
and is one of the most important features that an
organization's website will carry. Include links to the
registration page whenever possible. All in all, the more
names and e-mail addresses the organization can capture,
the more they can take advantage of the benefits of e-mail
marketing.
VIRAL MARKETING WORKS WONDERS
It is no surprise that viral marketing, also known as word-
of-mouth marketing, can have an enormous impact on an
organization. What we hear from our friends or associates
carries an immense amount of weight. We take what they say
into consideration because we tend to trust the people we
know. Viral marketing can play a very positive role in any
organization. The more individuals who talk positively
about the organization the better; therefore, e-mail
messages should encourage individuals to pass them along to
the people they know. For example, a "Tell-a-Friend"
link within the e-mail message is an excellent way to get
other individuals acquainted with the organization and it
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is possible to get them to join your e-mail mailing list. 10
E-mail messages that come from friends or people we know
are almost guaranteed to be opened.
10 Sheeraz Haji, and Emma Zolbrod, "Creating an Effective E-newsletter,"http://www.ephilanthropy.org/site/DocServer/QuickTips_2.pdf (accessedAugust 4, 2006).
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Below is an example of a successful approach to using viral
marketing with e-mail. It was implemented by the American
Jewish World Service. On the following two pages is a viral
marketing e-mail campaign that was created by Texas Watch,
a non-partisan advocacy organization working to improve
consumer and insurance protections for Texas families.
Figure 4. American Jewish World Service: Tell-a-Friend
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Texas Watchs Anniversary Card Campaign
The first program in Texas Watchs online plan
included a viral campaign to grow the organizations
file of email addresses. Built around the first
anniversary of Texas homeowners insurance reform, the
campaign began with an email to Texas Watchs existing
email file of just over 4,400. The email encouraged
recipients to click on a link and sign a card to
Texas Governor Rick Perry, Lt. Governor David Dewhurst
and House Speaker Tom Craddick that called for more
stringent insurance reform. The email also encouraged
recipients to forward the message to others the
viral component of the campaign.
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Figure 5. Texas Watchs Anniversary Card Campaign
The Texas Watch e-Mail Campaign Results
2,935 (67%) of recipients opened the initial email
767 (17%) clicked through to sign the anniversary card
745 (17%) signed the card
2.03 viral index (for every one constituent, 2.03additional individuals opened a forwarded message)
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E-MAIL ADDRESS APPENDING
It is not uncommon for organizations to have large donor
and prospect databases containing home mailing addresses
but very few e-mail addresses. However, there are services
available that offer e-mail appending, which ultimately
attaches a known e-mail address to a persons name and home
mailing address. Of course, many e-mail addresses might not
be known or even be legitimate, but an acceptable portion
can usually be developed. It is crucial to note that
having an e-mail address does not mean that person wants to
receive e-mail from you. The laws of permission marketing
should always apply, and these will be treated in Chapter
5.
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CHAPTER 3
CLEANING AND MAINTAINING E-MAIL LISTS
Once an organization has accumulated a sufficient quantity
of e-mail addresses, it is vital to focus on their
quality. An e-mail address is of little value if it
is invalid. Many individuals have multiple e-mail
addresses and they can change frequently as well.
Maintaining and cleaning an e-mail list database will help
significantly improve response rates.
UTILIZING AN E-MAIL DELIVERY SYSTEM TO TRACK BOUNCES
To maximize an e-mail campaign's efficiency, an e-mail
delivery system can be used to track the delivery of e-mail
messages and addresses. A system that flags hard and soft
bounces will let the sending organization know which e-mail
addresses should be taken off the list and which ones
the e-mail message should be re-sent to.
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UPDATING DONOR INFORMATION ONLINE
People move, change their phone numbers and more
importantly, change their e-mail addresses. Also, their
personal interests might change regarding what type of e-
mail messages they want to receive and at what
frequency. Allowing donors and prospects the opportunity to
update their personal information in a simple online format
can save an organization time and money. At the bottom of
every e-mail, it is a good idea to include a simple
reminder to go visit the website in order to keep their
personal information recent. The same message can be added
to other communication pieces across all direct
marketing channels.
UPDATING DONOR INFORMATION OFFLINE
It is not uncommon for donors to change their personal
information through the mail, phone and Internet. There
should be a method in place in order to make the essential
changes to ones profile in the database as soon as
possible. If someones e-mail message bounces, the
organization should contact them via phone or mail in order
to quickly obtain their correct e-mail address.
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GATHERING VIA ONLINE SURVEYS
The easiest way to gather personal information is through
online surveys. 11 Ask questions and they will answer. Once
all this information is received, it can be processed in
the database and then used for list segmentation and/or
back-end analysis.
GATHERING VIA CLICK-THROUGH DATA
Another way to obtain this type of information is by
placing trackable links within the content of e-mail
messages. This will provide the organization with valuable
information, such as what content was looked at more than
others.
COMBINING ONLINE AND OFFLINE DATA
If an organization has more than one database, it is a good
idea to combine their information. For example, one
database might contain certain information about a donor's
11 Madeline Stanionis, The Mercifully Brief Real World Guide to RaisingThousands if Not Tens of Thousands) of Dollars with Email (Medfield,Massachusetts: Emerson & Church, 2006), 22.
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interests that was sent online, while another database
might contain information about a donor's demographic
information that was sent through a direct mail piece.
Combining both databases will allow for e-mail messages
(and other communication channels) to be more targeted and
personalized. It will also allow the organization
to shorten the time it takes to develop e-mail campaigns,
which in turn saves the organization a tremendous amount of
money. Once the data is centralized, fewer individuals will
need to be involved in the entire creation of the e-mail
campaign.
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CHAPTER 5
THE IMPORTANCE OF PERMISSION-BASED E-MAIL MARKETING
The rapid growth of the Internet has inevitably impacted
the quality of e-mail messages sent to donors and
prospects. Individuals and organizations that abuse e-mail
marketing damage the credibility of even the most reputable
organizations. This has caused e-mail service providers to
fight back and protect their e-mail systems and users. 12
Nonprofit organizations that utilize e-mail fundraising
must now adopt these new strategies and techniques in order
to effectively implement e-mail fundraising campaigns. 13
Permission e-mail marketing allows organizations to
regain credibility and differentiate themselves from
abusers. It will also help boost response rates.
12 Bill Pease, "E-Mail Deliverability in the Age of Spam: Navigating NewPaths to the Inbox," December 2004, GetActive Software,www.getactive.com/pdf/white-papers/Email_Deliverability_020105.pdf(accessed July 12, 2006).13 Ibid
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GETTING PERMISSION
Many individuals who visit a nonprofit organization's
website do so to sign up to receive specific information on
an event, news story or to receive a specific offer.
However, signing up for one of these features does not mean
they automatically signed themselves up to receive all e-
mail messages from the organization.
It is important to spell out all the details on the e-mail
registration form, so that the responder knows how their e-
mail address will be used. 14 The following are various
methods of asking for permission to e-mail someone:
THE OPT-IN TECHNIQUE
Opt-in is a method of asking the donor or prospect if they
would like to receive e-mail messages from the
organization. It is the most basic form of permission
marketing and should be utilized at the very least. An opt-
in can be a simple box located on the registration form
that is required to be checked in order to receive e- 14 Michael Stein, "Put Email to Work (Without Becoming a Spam Artist),"January 1, 2004.www.getactive.com/pdf/whitepapers/put_email_to_work.pdf. (accessed July8, 2006).
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mail communications. If the approved organization wants to
share an e-mail address with another organization, a
different box should be placed on the form that asks for
this additional permission.
THE OPT-OUT TECHNIQUE
The opt-out technique is almost exactly the same as the
opt-in, except that the opt-out box is generally checked
beforehand to receive e-mail message from the organization.
One is required to uncheck the box for them not to receive
any messages. Unchecking the box simply means opting out.
Some organizations use the opt-out technique because there
is a higher chance of someone accidentally missing the box,
providing the organization with the opportunity to send
them e-mail messages.
AUTHENTICATING PERMISSION
To take it a step further than opt-in and opt-out,
validating permission makes sure that the opt-in box was
purposely checked.
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THE CONFIRMED OPT-IN TECHNIQUE
Once the recipient opted-in to receive e-mail messages from
an organization, another e-mail message to confirm their
registration is sent to them. The e-mail message would
simply include a link that allows the recipient to
unsubscribe if they did not mean to subscribe in the first
place. If everything goes as planned and they still want to
receive e-mail messages from the organization, they do not
need to take any action. Providing them with the
opportunity to opt-out again is just to make sure they
intentionally signed up. It is a kind gesture on behalf of
the organization and gives them additional assurance of the
organizations anti-spam policies.
THE DOUBLE OPT-IN TECHNIQUE
The best and most effective way to ensure delivery of e-
mail messages and achieve higher response rates is by
using the double opt-in technique. This method will make
sure that those who signed up still in fact want to
receive an organization's e-mail communications. Once a
user has signed up, an e-mail message is sent to them
confirming their registration; however, the recipient must
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click on the link within the e-mail in order to give
permission to the organization to send e-mail messages to
them. Using this particular method could steer users away
since it gives them more time to think about whether or not
they want to receive e-mail messages. Nonetheless, those
who sign up and click on that link will have a very high
interest in the organization and will probably be more
likely to donate in the future.
UNSUBSCRIBING
People change their minds often, so it is important to give
them an ongoing opportunity to unsubscribe from an
organization's e-mail list. 15 Any e-mail messages sent after
the individual unsubscribed can be viewed very negatively
and can ultimately hurt the organizations credibility.
A link to unsubscribe should be included in every e-mail
message. In truth, this technique might motivate some
subscribers to unsubscribe, but in the long run the
organization will have gained trustworthiness that is vital
15 Groundspring.org, "Online Fundraising Handbook,"http://www.groundspring.org/learningcenter/handbook.cfm. (accessedAugust 2, 2006).
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to their success. Plus, the response rates of those who
remain should be higher.
CREATING A PRIVACY POLICY
Privacy has been a long time concern of Internet users.
With all the greatness e-mail has brought to our society,
there are in fact some downsides such as irrelevant and
obtrusive e-mail messages called spam. A website privacy
policy should explain to donors and prospects that the
information they share with the organization will be
confidential unless otherwise noted. 16
There are several steps to creating an effective privacy
policy:
No one likes to read documents they do not understand, so
it is necessary to explain what the organization wants
their readers to know in layman's terms. In simple terms,
describe how their information will and will not be used.
If the organization has partners with whom they share their
lists, that should also be divulged. Clarity and simplicity
16 Michael Stein, "Put Email to Work (Without Becoming a Spam Artist),"January 1, 2004.www.getactive.com/pdf/whitepapers/put_email_to_work.pdf. (accessed July8, 2006).
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is very important when it comes to creating a privacy
policy.
Once an organization has a privacy policy, where should it
be placed on their website? A link to the privacy policy or
the actual policy itself should always be in a very visible
area, and on all pages that ask for personal information.
There should be no need to hide from donors and prospects
that faithfully pledge to your organization.
Donors and prospects might actually read the privacy
policy, but are not likely to read it more than once. The
privacy policy should contain information that will
ultimately stay untouched because the user will likely only
know what they read the first time.
On the next page is a privacy policy from The V Foundation.
It is clear and easy to understand. The organization is up
front about what information they obtain from the
applicant, as well as what they do with that information.
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Figure 6. The V Foundations Privacy Policy
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CHAPTER 6
BYPASSING THE SPAM BOX
Determining what is considered spam and what is not, is a
difficult task. It is impossible to guarantee 100 percent
e-mail message delivery; however, it is an organization's
responsibility and in their best interest to try and
achieve the highest delivery rates as possible.
KEEPING THE MESSAGE RELEVANT
Individuals consider irrelevant e-mail messages that they
receive to be spam. It is extremely important to manage the
e-mail messages an organization sends out and make sure
that each one sent out is one that is considered relevant
and to the point.
BEING AWARE OF FILTERS
When most people think of spam, they often relate it to
pornography or other offensive subjects. Filters generally
look at the e-mail message's content to determine what is
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Assuming the organizations e-mail does get through spam
filters, it is still necessary to prevent recipients from
tagging the e-mail as spam after the fact; otherwise, they
will get blocked in the future. To minimize this event,
make sure that the individuals who signed up to receive the
organization's e-mail messages are completely aware of how
their information will be used. In addition, always provide
them with the opportunity to unsubscribe or opt-out by
clicking a link or unchecking a box.
STAYING FRESH
If someone chooses to unsubscribe, there is no choice but
to accept his or her request. Sending e-mail messages to
individuals who do not want to receive carries significant
risk from both an organizational and legal perspective.
Moreover, Internet service providers view organizations and
individuals that have high bounce rates (caused by bad and
rejected addresses) as spammers. 17
17 Bill Pease, "E-Mail Deliverability in the Age of Spam: Navigating NewPaths to the Inbox," December 2004, GetActive Software,www.getactive.com/pdf/white-papers/Email_Deliverability_020105.pdf(accessed July 12, 2006).
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Therefore it is important to put serious efforts into
removing old, bad and opt-out e-mail addresses.
GETTING EXEMPT FROM FILTERS
Nonprofit organizations typically send e-mail messages to
an individuals personal or home e-mail address rather than
to their business or work e-mail address. Sending e-mail
messages to one's personal or work e-mail address is
perfectly acceptable as long as certain precautions are
taken place. Large Internet service providers such as
Hotmail or Gmail have very strict filters and they are all
used in good faith to prevent spam from reaching the
recipients inbox. In order to avoid getting an
organizations e-mail messages marked as spam, the
recipient sometimes needs to check that their e-mail
provider has a "white list of email marketing companies
that agree to abide by its policies, and it will allow them
to send graphic-laden emails. 18
18 Jim Hu, "AOL Shift E-mail Graphics Policy, November 14, 2004.http://news.com.com/2100-1024-5107785.html?tag=cd_top. (accessed June8, 2006).
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CHAPTER 7
DEVELOPING E-MAIL CAMPAIGN GOALS
In order to successfully implement an e-mail fundraising
campaign, its objectives need to be set before any work
begins. What is the objective of the e-mail message? Is it
trying to raise money or simply trying to inform donors and
prospects of some important news?
One very good example of an e-mail campaign that both
informs and solicits funds is an e-newsletter. This e-
publication, which could be done on a monthly or quarterly
basis, keeps donors aware of the current issues that
surround the organization in order to build a more solid
relationship with them. It also serves as an opportune
vehicle for letting supporters know how much they mean to
the organization, and even asking for an additional gift.
Other e-mail fundraising campaigns can be geared towards
current donors. Because these individuals are already
familiar with the organization, a series of e-mail messages
can be sent that discuss more specific and pressing
important issues; for example, a developing country that
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has recently asked for financial support from the
organization.
Although not common, natural disaster e-mail messages tend
to be very successful in generating lots of money. When a
disaster strikes, such as the recent Asian tsunami, an e-
mail message can be sent out to ask for urgent support.
These types of e-mail messages scream urgency and need, and
people definitely react positively to them. According to
Madeline Stanionis from Donordigital, Upwards of $350
million in relief funds poured in online within weeks of
the Asian tsunami. And hundreds of thousands of people
donated online for the first time. 19
The following success stories are from the software
provider Kintera, Incs website. They discuss the
tremendous support several organizations received at the
time of the tsunami in Southwest Asia in December 2004.
Much of the money raised after the tsunami struck was
attributed to the e-mail messages sent to the
organizations supporters.
19 Madeline Stanionis, The Mercifully Brief Real World Guide to RaisingThousands if Not Tens of Thousands) of Dollars with Email (Medfield,Massachusetts: Emerson & Church, 2006), 31.
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Figure 7. U.S. Fund for UNICEF
The U.S. Fund for UNICEF raised more than $18 million
online in the first week from an estimated 117,000 onlinedonors, greatly aided by the new website that UNICEF launched earlier in 2004 .
United Methodist Committee On Relief (UMCOR)
Within hours of receiving a signed contract from
UMCOR, Kintera went live on December 31 with the
nonprofits splash and donation pages to collect
donations for the victims in Asia. Besides rushing
relief to the area, UMCOR was also concerned about the
safety and security for their online donors.
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The organization processed 4,685 donations totaling
$711,000 within the first week.
As of February 10, 2005, UMCOR collected over $4
million, including more than 10,000 online donations
totaling over $1.8 million. The group also added over
2,500 individuals to their mailing list from the
Kintera-hosted site.
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Figure 8. United Methodist Committee On Relief (UMCOR)
Things have gone well in this, our first major experiencewith online giving," states Glenda Survance, director of
information services at the United Methodist Board of Global Ministries. "We know it is the wave of the future,and we are ready at UMCOR."
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Catholic Relief Services (CRS)
For Catholic Relief Services, Kintera created online
donation forms and other webpages featuring the CRS
look and feel, and redirected the web traffic to a new
Kintera Sphere empowered site.
Since the December 26, 2004 tsunami, CRS has raised
more than $75 million, receiving over $13 million
online.
In the first week after the disaster, the
organizations website collected over $7.5 million,
with an average online donation of $216.
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Figure 9. Catholic Relief Services (CRS)
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Doctors Without Borders
Not only did generous contributions help change the
lives of millions of victims of the tsunami, an
interesting trend emerged in the nonprofit community
with regard to accountability, transparency and
upfront honesty to supporters: organizations are
telling donors when they have raised enough.
By January 4, 2005, Doctors Without Borders had posted
a note saying it had collected enough funds to manage
its relief efforts there. The U.S. branch of the
organization has raised over $20 million for the
crisis, with over $16.8 million contributed via the
Internet.
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Figure 10. Doctors Without Borders Online Donation Form
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CHAPTER 8
IMPLEMENTING SUCCESSFUL E-MAIL CAMPAIGNS
Like with any direct marketing channel, an e-mail direct
marketing plan is almost always needed in order for a
nonprofits e-mail fundraising campaign to be successful.
An e-mail fundraising campaign can entail one single e-mail
message or it can be a series of e-mail messages. For
example, the organization might want to send it to a
specific group of individuals based on the number of past
donations, donation amounts or specific interests.
There are numerous steps to take when developing a powerful
e-mail fundraising campaign, which will be discussed within
this chapter.
INTEGRATING DIRECT MARKETING CAMPAIGNS
A seasoned nonprofit organization likely has several direct
marketing campaigns or programs going on at the same time.
It is important to promote intra-company coordination
between these activities. If another campaign is planned to
launch at the same time as an e-mail campaign, it might
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make sense to work together in order to create an
integrated marketing campaign. Often times e-mail
fundraising can complement other fundraising efforts very
well and can bring that much more success to the
organization. 20 For example, if a direct mail campaign is
being launched in a particular month, it might be a great
idea to create an e-mail fundraising campaign at the same
time. 21 This could include a follow up e-mail message to a
direct mail piece, or an e-mail thank-you follow up to all
responding donors of a direct mail campaign.
When launching an e-mail fundraising campaign, it is
necessary to make sure no one else in the organization will
be using those e-mail addresses at the same time. The last
thing an organization wants to do is send multiple e-mail
messages to a donor or prospect at one time - a negative
feeling can arise from such a mistake.
20 Bronto Software, "Ask and You Shall Receive: Nonprofits and EmailMarketing, http://bronto.com/solutions/resources/papers/nonprofits-and-email-marketing.21 Ibid
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KNOW WHEN ENOUGH IS ENOUGH
We have all received e-mails from different companies,
organizations and even our good friends. We often mentally
note when we receive too many messages. Some individuals
like to receive them more frequently than others, but most
of us can agree that there is definitely a limit. 22 That
limit needs to be established by the organization. It
might take several months, if not longer, to truly
understand how often a particular organization should e-
mail its donors and prospects. The best way to know
whether or not an organization is sending e-mail messages
too often or not enough is by listening to their promoted
audience. An organization's donors and prospects will let
the organization know when enough is enough, and it would
be very wise to hear them out and take action. Even if an
organization does not hear from their promoted base, they
would be wise to do some limited market research to ensure
that their e-mail promotion levels are not offensive. It is
also very important to find out if donors feel they are
22 Michael Stein, "Put Email to Work (Without Becoming a Spam Artist),"January 1, 2004.www.getactive.com/pdf/whitepapers/put_email_to_work.pdf. (accessed July8, 2006).
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being abused by direct mail or telemarketing campaigns, and
whether any negative feelings halo into e-mail campaigns.
THE BEST TIME AND DAY TO E-MAIL
Over the years, there have been many debates about the time
and day an e-mail message should be sent. It is generally
accepted that weekends are not good days to send e-mail
messages, and Mondays and Fridays are not the best either.
These days tend to be the busiest for most individuals;
therefore, the e-mail messages do not get the attention
they deserve, and tend to be deleted or forgotten. On the
flip side, during the mid-week and daytime hours tends to
be the best time to send e-mail messages, and they have
proven to generate better response rates.
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CHAPTER 9
SEGMENTING E-MAIL LISTS AND TARGETING THE CONSTITUENT
Nonprofit organizations often ask how they can increase
their response rates while decreasing costs. In general,
the key to making e-mail campaigns work is relevancy
through sending targeted messages that address a segmented
market. 23
Segmenting and targeting are among the most important
factors when sending out e-mail communications to an
organizations donors and prospects. It allows
organizations to send out relevant and targeted content
that is more likely to be read, rather than sending content
to individuals that have nothing to do with their interests
or concerns. 24 The more information an organization has on
its donors and prospects, the more relevant the e-mail
message can be and the more respect it will gain from
recipients.
23 Dianna Dilworth, "Show Starts With E-mail Marketing Day," DM News, 14August 2006, 25.24 Bronto Software. "Ask and You Shall Receive: Nonprofits and EmailMarketing," http://bronto.com/solutions/resources/papers/nonprofits-and-email-marketing.
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In order to be able to segment and target e-mail messages
most effectively, donor and prospect interests and concerns
need to be captured. To gather this information, an
organization needs to regularly ask its supporters to
provide information about themselves, such as their
preferences for specific causes or regions in the world,
which will then allow e-mail messages to be more
personalized. 25
Besides segmenting by interests and concerns, a powerful
way of segmenting the base is by RFM, which stands for
Recency (when their last gift was made), Frequency (how
often they give), and Monetary amount (how much they gave).
The ranges of recency, frequency and monetary amount vary
by organization, but it is almost universally found that
the better RFM segments perform better in future
campaigns.
According to the American Society for the Prevention of
Cruelty to Animals (ASPCA), segmented and personalized e-
mail messages generate far more revenue than untargeted
non-personalized e-mail messages.
25 Sheeraz Haji, "Meet, Beat Challenges to List Growth," DM News, 21August 2006, 12.
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Below is a summary of an e-mail campaign that the ASPCA
implemented in 2003 to find out the impact relevancy and
personalization has on individuals.
Case in Point: 2003 Holiday Campaign
Approach
Based on user profile information, the ASPCA campaign
segmented constituents into three groups: dog people,
cat people and non-specific constituents for whom no
profile information was available. Recipients were
asked to sponsor a pet and send in a donation to the
organization. Appeals were sent both to past donors
and to non-donor online prospects for whom the
organization had profiles.
Messaging
An overall Help us find safe homes for the holidays
message was altered slightly in the subject line to
personalize it for the dog people and the cat people,
and the order of appearance of dogs or cats on the
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message was different based on which category of
recipient was receiving the message.
Figure 11. ASPCA 2003 Holiday Campaign
The ASPCA campaign segmented constituents according totheir interests, then modified the predominantmessages accordingly.
Results
Based on the ASPCAs experience, it is possible to
measure the impact of targeting groups with profile
information and personalizing an email fundraising
appeal. To assess the impact of this particular
campaign, the organization measured response rates for
personalized appeals (dog or cat) vs. non-personalized
appeals (neutral recipients), both in general and in
the context of donors vs. non-donors.
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Response rates for personalized appeals were
significantly higher than those for recipients who had
not provided an advanced profile. Among donors, the
response rate was 230% higher on average for the
personalized message, and among non-donors, it was 86%
higher on average for the personalized message.
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CHAPTER 10
DEVELOPING EFFECTIVE E-MAIL MESSAGES
As in direct mail, the strategy and list are the most
crucial aspects to make a campaign successful. The next
most important element is the creative and actual e-mail
message content. It is extremely important to have a strong
message that will encourage recipients to read it and
hopefully take action.
SUBJECT: THE FIRST THING THAT GETS READ
The subject line is like the outer envelope of a direct
mail piece. What you write on the outer envelope forces the
recipient to make the decision whether or not to open or
throw away the piece. In order to get the recipient to
open the e-mail message, there are several techniques and
strategies that can be used. Never use more than 50
characters in the subject line or shouting symbols ($,!,
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CAPS,*). 26 Any subject line too long looks unprofessional
and furthermore, some e-mail messaging programs have length
limits. Shouting symbols can easily trigger spam filters so
it is best to avoid using them when possible. 27
The subject line should always tell the recipient who the
message is from and what it is regarding. It is a good idea
to clearly identify from whom the message is coming. 28 Is
there a specific person the e-mail message is from whose
name should be included in the subject line? The more
specific the subject line, as long as it is short
and sweet, the greater chance that the e-mail message will
be opened.
E-MAIL GRAPHICS AND LAYOUT
The way an organization designs its e-mail message will
inevitably have an impact on response rates. HyperText
Markup Language, or HTML, is the most commonly
used technique when designing e-mail messages. HTML
26Madeline Stanionis, The Mercifully Brief Real World Guide to Raising
Thousands if Not Tens of Thousands) of Dollars with Email (Medfield,Massachusetts: Emerson & Church, 2006), 55.27 Ibid 28 Michelle Keegan, "10 Tips on Getting and Keeping Permission,"http://www.constantcontact.com/email-marketing-resources/hints-tips/volume6-issue8.jsp. (accessed August 6, 2006).
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allows an organization to incorporate colorful images or
photographs as well as different styles of fonts and
colors. It is more intriguing and easier to read than plain
text, plus it gives the organization the opportunity to
display their brand by inserting their logo into the e-mail
message. 29
Nonetheless, not all e-mail service providers accept the
HTML format. Because of this, it is important to use e-mail
software that that detects whether or not a person can read
HTML e-mail messages. If someone cannot accept e-mails with
graphics, the software that supports multi-part e-mail
distribution will send a text e-mail message instead.
ABOVE THE FOLD
Many e-mail message programs now allow users to preview
their messages before even opening them. Some users only
like to preview the first few sentences, while others like
to see up to a quarter of the entire message. Whatever the
preview size may actually be, it is important to display
the most central aspect of the message, one that usually
29 Groundspring.org, "Online Fundraising Handbook,"http://www.groundspring.org/learningcenter/handbook.cfm.(accessedAugust 2, 2006).
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talks about the action that needs to be taken. This could
be displayed at the top of the e-mail message to maximize
efficiency.
E-MAIL MESSAGE LENGTH
In direct mail, it is widely understood that there is no
rule in regards to the length of the letter. The letter
needs to be as long as it takes to get the point across.
The same goes for e-mail messages, except there are some
aspects that need to be considered. Recipients are
generally reading their e-mail messages online, so
scrolling is necessary at times. To make it easy for the
recipient to read, the e-mail message should be limited to
less than two screen lengths in order to reduce the amount
of scrolling. Preferably, the message should be brief
and to the point. 30
ENCOURAGE RECIPIENTS TO VISIT THE WEBSITE
Since it is important to keep the e-mail message brief, if
the message needs to be longer, it is always possible to
30 Madeline Stanionis, The Mercifully Brief Real World Guide to RaisingThousands if Not Tens of Thousands) of Dollars with Email (Medfield,Massachusetts: Emerson & Church, 2006), 57.
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write just a few lines or paragraphs and include a link to
the organization's website (or a landing page) where the
full version of the message can be read. Sending
recipients to the website or a landing page has another
advantage in that it allows the organization to do
tracking. Has website traffic increased through e-mail
referrals? 31 The organization will also be able to see what
links have been clicked in the website and how often. These
indicators will let the organization know what the
recipients' highest interests are. With that said, it not
good to just get them to the organization's homepage you
should send them to a landing page where they can read the
rest of the story and immediately take action, such as to
donate money.
PERSONALIZE THE E-MAIL MESSAGE
E-mail messages have the ability to be personalized and
relevant to donor and prospect interests and other
variables. Based on these interests, beliefs, location and
other personal information, it is possible to deliver to
31 Michael Stein, "Put Email to Work (Without Becoming a Spam Artist),"January 1, 2004.www.getactive.com/pdf/whitepapers/put_email_to_work.pdf. (accessed July8, 2006).
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their inbox content that they see as worthy to be opened
and read. 32
DEAR SAM
Like direct mail, e-mail embraces the idea of personalizing
messages. The most basic personalization technique is
addressing the recipient by name it is simple and very
welcomed. Addressing the recipient by name can sometimes
make a world of a difference in terms of response rates.
Most e-mail fundraising software available today allows the
organization to input names and other variables within the
content, which adds a personal touch.
A PERSONAL TOUCH
Although addressing the recipient by name is important,
even more important is including relevant and tailored
content for the recipient. When developing e-mail messages,
it is critical to pay attention to any information that
recipients provided, such as interests and beliefs, and
should be recognized whenever developing e-mail messages.
The more pertinent information a nonprofit organization
32 Ibid
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utilizes, the higher the response rates will be. This is
why it is so important to ask questions and build profiles
for an organization's donors and prospects.
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CHAPTER 11
TESTING E-MAIL MESSAGES BEFORE DELIVERY
Now the organization has come up with the e-mail list and
the actual e-mail message, the next thing to do is test its
compatibility and overall effectiveness.
TESTING WITHIN THE ORGANIZATION
Sending the e-mail message to several individuals within
the organization will allow it to undergo scrutiny, all in
order to save the organization from any disaster once sent
off into the real world. Internal staff should check for
certain things to make sure everything is the way it should
be, in addition to making sure that it makes overall sense
and properly communicates.
DIFFERENT E-MAIL CLIENTS
Since different e-mail service providers display e-mail
messages in a different manner, it is important to set the
organization's testers up with e-mail accounts on various
e-mail platforms in order to make sure the message is
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targeted e-mail list(s). 33 If their response rate is
unexpectedly low, it indicates a need for program
adjustment.
EXAMINING INITIAL RESULTS
Sending the e-mail message to a small group of targeted
recipients also allows the organization to do some limited
testing. For example, an A/B split test can be performed in
order to see if one particular subject line or message
performs better than another. Creating a small split A/B
test before going out to the entire mailing list will allow
the organization to maximize results. 34
CHECKING THE HANDLING PROCESS
Besides checking how the e-mail message functions and
performs, testing to a small group of individuals on the e-
mail list also allows the organization to see how well they
can handle responses. The test will make sure the
organization has enough employees or volunteers to answer
33 Sheeraz Haji, and Emma Zolbrod, "Creating an Effective E-newsletter,"http://www.ephilanthropy.org/site/DocServer/QuickTips_2.pdf (accessedAugust 4, 2006).34 Madeline Stanionis, The Mercifully Brief Real World Guide to RaisingThousands if Not Tens of Thousands) of Dollars with Email (Medfield,Massachusetts: Emerson & Church, 2006).
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incoming e-mail messages and telephone calls. If the
organization sees that they are not equipped to handle the
initial response, they will have time to adjust so that
once the final e-mail message is out to the entire list
they will be ready to respond in an efficient manner. The
last thing an organization wants is to have an overflow of
response (good or bad) that they are not able to properly
take care of.
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CHAPTER 12
TESTING AND ANALYZING RESULTS
The beauty of direct marketing is that its efforts can be
measured with hard numbers. Therefore, e-mail
fundraising enables direct marketers to test and measure
the success of their campaigns. With each and every
campaign implemented and analyzed, it is possible to refine
future strategies that create even more successful
campaigns. 35
Most e-mail marketing solutions offer tracking and
measurement tools that allow the organization to measure
campaign effectiveness. 36 It is critical to keep track of
these results in order to compare campaigns against each
other. Just as with direct mail, a control is always needed
for comparison purposes. Once results come in, it is
important to evaluate them and see how the organization can
beat them the next time around. When analyzing results, it
35 Madeline Stanionis, The Mercifully Brief Real World Guide to RaisingThousands if Not Tens of Thousands) of Dollars with Email (Medfield,Massachusetts: Emerson & Church, 2006), 95.36 Gail Goodman, "E-mail Energizes Nonprofit Efforts," DM News, 21August 2006, 12.
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is recommended to look at the following variables and
metrics:
1. Appeal Name: the title of the e-mail message. The
title should be clear and easy to understand, so that
it is quickly recognized. As an example, Pediatric
Nutrition 2006 can be an appeal name.
2. Subject: the content placed into the subject line of
the e-mail message. It has a tremendous impact on
response, so it is important to make sure it is well
thought out.
3. Segment/Target Audience: the group of constituents who
are being targeted with the appeal. It can be current
donors, prospects or even a more specific group such
as past donors who have gone without donating for 12
or more months (i.e. lapsed 12+ months).
4. Date: the calendar date the e-mail message was sent to
an audience.
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5. Day of the Week: the day the e-mail message was sent.
As mentioned previously, the best single day to e-mail
is still a largely debated matter.
6. Time of Day: the exact time the e-mail message was
sent. Many people believe certain times of the day are
better to send e-mail messages than others because of
individuals habits. For example, many nonprofit
organizations feel that in the early morning, people
tend to overlook e-mail messages that do not relate to
work.
7. Number of E-mail Messages Sent: the total number of e-
mail messages that were attempted to send.
8. Number of E-mail Messages Received: the total number
of e-mail messages that were delivered. This number
includes those going through spam filters.
9. Bounce Rate: There are two types of bounces. A soft
bounce will occur if the recipients mailbox is full
or there is a problem with the server. These e-mail
messages will be attempted to deliver again. A hard
bounce occurs if there is no such e-mail address. Hard
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bounces should be kept on file and deleted from future
mailings. The bounce rate is the percentage of bounces
that occurred from the total number of sent e-mails.
10. First Online Gifts: the number of constituents who
made a donation online for the very first time.
11. Conversion to Giving: the number of constituents who
went to the donate page and actually donated, rather
than simply exiting the page.
12. Total Revenue: the total revenue that was generated
due to the e-mail message.
13. Average Gift: the average donation amount that was
received due to the e-mail message. It has been noted
that gifts donated via the Internet are generally
higher than those donated via offline channels.
14. Open Rate: the percentage of individuals who opened
the e-mail message by actually clicking on it as well
as those who saw it through a preview mode. The open
rate is not an indicator of those who truly read the
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e-mail message, but rather a good estimate of the
subject line's impact on recipient base.
15. Click-through Rate: the percentage of individuals who
click on any link that is within the content of the e-
mail message that takes them to a different page for
additional information or to place a donation. The way
to track click-through rates is by placing trackable
links in the e-mail message. This will allow the
organization to see the click-through rates for every
available link there is. In order to obtain a click-
through rate, divide the number of clicks by the
number of e-mail messages sent. This metric allows the
organization to see if a particular link had more
interest among recipients than others. If one
particular link had a significantly higher click-
through rate, it is important to understand why. Was
it the placement of the link? Was it a breaking news
story? Was the link embedded in a photo? Once it is
understood why, future e-mail messages can be adjusted
to maximize the click-through rate.
16. Response Rate: The most important metric is the
response rate. The response rate is the percentage of
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individuals who actually fulfilled the e-mail
message's objective or call to action. The objective
of an e-mail message could be to get recipients to
donate money, fill out a survey, sign a petition or
something else. The response rate is a true indicator
of the e-mail message's success.
17. Abandonment Rate: the percentage of recipients who
opened the e-mail message and did not click through
or those who have clicked through the e-mail, but
never took any action. This is an important metric
because it can tell an organization where they are
having problems. If recipients are opening the e-mail
message and clicking through, why are they not taking
any action? Is the message not clear? Is the call-to-
action not strong enough? Whatever the reason may be,
the problem should be fixed so that the response can
be maximized.
18. Unsubscribe Rate: the percentage of recipients who
receive the organization's e-mail messages, but decide
to no longer receive them for one reason or another
and ultimately unsubscribe. All e-mail messages should
include an unsubscribe link so that recipients can
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opt-out at any time. Organizations should pay
attention to the unsubscribe rate because it can
possibly mean that too many messages are being sent or
that the messages are no longer relevant. However, it
could also just mean that the recipient does not have
the time to read any more e-mail messages and would
rather not overfill his or her inbox. Nonetheless,
before coming to any conclusion and deciding how to
react to a larger than usual unsubscribe rate, it is a
good idea to go back and evaluate the relevancy of
your e-mail messages. Periodically ask your donors and
prospects what information they would like to receive
via e-mail and the frequency at which they would like
to receive them.
19. Forward Rate: the percentage of recipients who
forward their e-mail messages to other individuals.
This type of viral marketing is very important to
direct marketers because it is an easy method of
obtaining additional donors as well as building their
e-mail address list. Remember, when a recipient
forwards an e-mail message to family or friends, it is
more likely to be read than if it is directly from an
organization.
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20. Average Time on Landing Page: The average time spent
on a landing page can tell you how effective that page
really is. If the average time spent on one particular
page is far less than another, why is that? The longer
an individual stays on a website or landing page, the
higher the chance of them taking positive action is.
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CHAPTER 13
THE FUTURE OF E-MAIL FUNDRAISING
The exact future of e-mail fundraising for nonprofit
organizations is hard to predict, but we are seeing more
and more new and innovative ways for organizations to
generate funds with e-mail.
Some organizations have already implemented interactive and
multimedia e-mail fundraising campaigns that truly engage
the donor or prospect. With the number of e-mail messages
that pile up every day in our inbox, it is a battle for
which ones actually get opened.
Interactive and multimedia e-mail messages use advanced
technology that brings the e-mail message to life. They are
supposed to grab ones attention and hopefully get them to
take action. The idea is that they are supposed to be
interactive, different and unusual just hope not too many
organizations are doing the same type of thing because it
will just become stale. Interactive and multimedia e-mail
messages can be moving greeting cards, video messages,
movie clips, as well as other types of rich media.
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Several companies have been on top of the interactive and
multimedia e-mail fundraising trend more so than others,
such as Beaconfire. Below are several case studies from
Beaconfires website that discuss the successes different
nonprofit organizations have had with interactive and
multimedia e-mail fundraising.
Heifer International
Heifer International's Gift Catalog is likely its most well
recognized and successful program. The concept is simple
and catchy: donors support the organization and its mission
of providing livestock and training to communities in need
- by giving a gift in the name of a friend or loved one.
All over the world, users are logging in to send baskets of
chicks, goats, and yes - even Heifers - in recognition of
birthdays, anniversaries, and other special occasions.
Heifer sought a new way to excite its donors to give again
and make others aware of its giving program. The Heifer
"Moo-vie" was a humorous piece that highlighted the
difference between Heifer's meaningful gifts of hope and
the often bizarre gifts that people sometimes receive. The
piece blended humor with mission education to create a
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movie that compelled thousands of individuals to give
holiday gifts through Heifer.
Figure 12. Screenshot of Heifers "Moo-vie
Figure 13. Screenshot of the End of the Moo-vie
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Figure 14. Screenshot of Heifers Gift Catalog
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Big Brothers Big Sisters of America: An Ongoing Partnership
Beaconfire partners with a number of its clients, such as
Big Brothers Big Sisters of America, in an agency-style
relationship to conceive and execute their online marketing
programs. They assign a dedicated team that works week in
and week out across program needs ranging from email
communications, campaigns and media outreach, site
improvements, and special creative projects to integrated
efforts with other mediums. Beaconfire's retainer-based
services provide clients with predictability around costs
and a dependable, creative client team at their service.
The Challenge: It is well known that Big Brothers Big
Sisters of America (BBBSA), the oldest and largest youth
mentoring organization in the United States, needs
volunteers to carry out its mission. However, the
organization also has major fundraising needs to create and
support "Big" and "Little" matches. With no direct mail
program, BBBSA looked solely to the Web to reach out to new
volunteers and donors.
The Solution: Beaconfire began working with BBBSA in the
summer of 2004 to help promote its Centennial and was later
retained on a monthly basis to serve as the organization's
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online marketing and fundraising partner. Sample projects
include:
Holiday Photo Card Campaign: For the 2004 holiday campaign,
Beaconfire developed the messaging for an innovative
approach to reach out to BBBSA's constituents - they
invited them to "Be part of something BIG!"