| January 2009 |
| Featured in this issue: Segment Your Data -- Same Donors, Larger Donations Consultant David Martin lays out a plan for raising more dollars from your existing donors Also In This Issue: Mailings: USPS Requires Certification; GiftWorks Can Provide It GiftWorks Tips: Backup Keeps Records Secure Our Latest Endorsement: The New Hampshire Center for Nonprofits TechSoup Goes Global! Same Donors, Larger Gifts with Segmentation
Consultant David Martin, President of Davlin Resources LLC, illustrates how segmenting your donor file can help increase response and dollar amounts, even in these hard times.  David Martin Davlin Resources LLC There's no better time than now to segment your data; this takes some thought and planning. The payoff is efficiency in two ways. First, it increases response rates since you are making sure the right donors get your message. Second, it cuts your costs by not wasting time with solicitations that are not targeted. (It may also lower your "hassle" factor in the donor's eyes as they receive fewer mailings, but mailings of particular interest to them.) "Segmenting can increase response rates and cut costs." Before you begin, you'll want to clean and organize your data. Get rid of common problems like duplicates and incorrect or missing donations.Direct mail solicitations benefit the most from segmentation. For example, some people who attend your annual dinner come because someone they know is being honored, not because they support your cause. You've captured the name and contact info, but should that person get your annual appeal mailing? Probably not, although you may want to send them a prospecting piece first to test if they are mail-responsive. On the other hand, since they came to your event and are friends with a special donor, they might be a good prospect for other events--like your golf outing. By sending them the "right" mailing, you save money and get better response. While this is a simple example, segmentation in even finer detail may get even better results. To target your mailings further, a good starting point is dividing your gifts into ranges. First, produce a report that shows you natural breakdowns of your donor ranges. In an organization with a mail file of 100,000, most contributions would be small, and might look like this: >$10, 50,000 donors; $10-$25, 25,000; $25-$50, 12,000; $50-$100, 10,000; <$100, 3,000. You can now send less expensive mailings to the lower end of your file, saving your best pieces for $50 and up donors who justify the cost and might increase their contributions if they were sent a more compelling piece. You can take this one step further by segmenting by the number of mailings a donor responds to in a given year. If a donor in the $10-$25 range gives to every mailing you send, that donor should be treated differently than one who gives to one out of five mailings. You might want to target that donor for an upgrade to a higher level and mail fewer pieces to the non-responding donor to save on your costs. Rates of repeat gifts are one of the best predictors of response. "Rates of repeat gifts are one of the best predictors of response." To make segmentation work, you need to keep careful records of the response. Whether you do a mailing, a phone solicitation, or a face-to-face or special event appeal, assessing results makes you better at predicting what works. You can start today by segmenting your file in very simple ways, like average gift and frequency of gifts, then move on to more refined methods like wealth ratings, demographics or donor area of interest. When you break down these groups, you'll notice differences in response and giving patterns, which is your key to maximizing the returns on your file. In a file I recently cleaned and segmented for a client, the organization raised 19 percent more money the next year. Like the car mileage ratings, your results may vary, but they will surely be better than without this optimization. With the right discipline, you will not only survive a poor economy, but you will thrive! David Martin is the President of Davlin Resources LLC, a consulting firm that offers technology, management, development and communications assistance for nonprofits. Based in New York, Davlin also provides file analysis, optimizing and segmentation consultation. Visit www.DavlinResources.com for more information. Mailings: USPS Requires Certification; GiftWorks Can Provide It
 Did you know that 40 million Americans change their addresses every year?This adds cost and complications to mailings, not only for the mailer (you), but also for the US Postal Service. So now the USPS is requiring that mailing lists be certified for accuracy to qualify for the fully discounted postal rate. "Certified"? GiftWorks Importing and Consulting Services can provide you with this service for just $149 per GiftWorks database. GiftWorks Premium clients will be able to take full advantage of USPS Standard Mail Automation discounts by getting addresses CASS/NCOA certified and using bar codes on mailing labels. "Whatever postal rate you use, the goal is to have all your mail delivered to the intended recipient." These services include CASS and NCOA. Coding Accuracy Support System ensures the accuracy of zip codes and delivery point bar codes that appear on your mail pieces. CASS certification is valid for 180 days. National Change of Address compares your mailing list to more than 160 million address changes on file with the Postal Service. If a name on your list matches "old" address information on NCOA, your database will be updated with the new address. NCOA certification is valid for 90 days. Based on these requirements by the post office, you are going to need to certify your mailing list quarterly.Your mailing service may have been certifying your mailing lists recently for a similar charge, but this service does not update your GiftWorks database. By certifying through GiftWorks, you can be confident that your database has also been amended to include the most up-to-date, accurate information. How to get started? Visit the CASS/NCOA Certification area of the GiftWorks online store or ask your sales representative for details. You'll send a copy of your database; we'll check that your donor addresses are current and accurate; we'll update that information in your GiftWorks database; and return your updated database via a secure web link and provide you with the USPS certification forms. Then you're ready to do an accurate mailing! The whole process takes a few days. Follow this link to learn more, or to arrange address certification: GiftWorks CASS/NCOA Certification. Tips for Using GiftWorks Backup Keeps your Donor Records Secure! Since donor relationships are so critical to your organization, GiftWorks makes it easy to keep your donor records secure. Here's how to back up your GiftWorks database.
Our Latest Endorsement: The New Hampshire Center for Nonprofits
 The New Hampshire Center for Nonprofits entered into a referral partnership with GiftWorks this month. They join nine other state partner associations in selecting GiftWorks as the fundraising software of choice for their member organizations."GiftWorks fundraising software helps increase our memeber organizations' capacity to raise needed funds." Mary Ellen Jackson, Executive Director of The New Hampshire Center for Nonprofits (NHCN), with over 600 member organizations says, "We are dedicated to strengthening New Hampshire's nonprofit sector and this partnership is a good example of how to do that. GiftWorks fundraising software helps increase our member organizations' capacity to raise needed funds to allow them to fulfill their mission."In partnering with GiftWorks, NHCN will offer GiftWorks fundraising software at a discounted price as a benefit to their member organizations. To learn more about NHCN, visit www.nhnonprofits.org. "The Technology Place for Nonprofits" Expands
 In November, TechSoup, the Technology Place for Nonprofits, launched TechSoup Global to reflect their commitment to serve more non-governmental organizations worldwide, especially in developing countries.TechSoup Global announced its plans to increase the number of countries it serves from 21 to 75 by the year 2010, branching out to underserved areas of Africa, Asia, Europe and Latin America. TechSoup currently serves Australia, Belgium, Botswana, Chile, France, Germany, Hong Kong, Hungary, India, Ireland, Luxembourg, Mexico, Netherlands, New Zealand, Poland, South Africa, Spain, Taiwan, United Kingdom, Canada and the U.S. Through its TechSoup Global Network of partners, this nonprofit delivered more than $70 million (USD retail value) in donated technology products to more than 7,000 organizations in 17 countries outside of North America (USA and Canada). In addition to providing technology product donations and resources, TechSoup Global helps nonprofits worldwide use new Internet-based tools such as blogging and podcasting to extend their reach and impact through its NetSquared Initiative. Rebecca Masisak, Co-C.E.O. of TechSoup Global, comments: "As we extend our services to more countries around the globe, we look forward to opening new doors for otherwise marginalized groups all over the world with the help of powerful technology solutions, such as GiftWorks." Mission Research has been offering GiftWorks™ fundraising software at a discount to nonprofits with annual operating budgets of $50,000 or less through TechSoup since 1995. Ellen Mowrer, Director of Business Development at Mission Research says, "TechSoup has been a great way to get GiftWorks into the hands of small nonprofits, mostly in the U.S. Now we're excited about the possibility of expanding our reach outside the U.S., through TechSoup Global." Learn more about TechSoup Global. |
