Whether you have members (people who renew their support every year by paying dues), or just a list of folks who are interested in your cause, one of the most effective ways to raise money for your nonprofit is by directly asking for contributions for specific projects through the mail, in person, by telephone, or even using the internet. In addition to raising money for your organization, special appeals can do other things for you:

• disseminate important information;
• increase loyalty by giving people a sense of what the organization is doing;
• provide important data on which activities people are most interested in;
• involve people in the work of the organization (by asking them to write letters, distribute information, etc.);
• provide people with greater choice in what they can give for, as well as when they can give.

When and How to use Special Appeals

Special appeals are particularly effective at raising money for specific purposes, such as stopping a dam, purchasing a piece of property, or even hiring a new staff person. They are useful for raising money quickly, as long as the need is compelling. Methods you should employ in making a special appeal can vary from computer-produced letters, to phone calls and in-person requests, or a combination of several of these. One organization I work with used personal phone calls from board members to raise $10,000 in one month to buy an island in the Potomac River. Even the Internet has proved to be an effective way of making an appeal, as evidenced by the success of the Red Cross in soliciting donations for tsunami victims in Asia. Usually, though, special appeals are made using a letter which has been made to look as personal as possible and this is the methodology we will focus on in this chapter

Staff and boards often worry that members will be alienated by being asked too often for money. When people voice these concerns, I often cite religious organizations, which ask their members to give week after week, without causing the least bit of consternation. If you are communicating regularly with your supporters and if the number of requests, including renewal notices, is kept within reason (for most groups, this is probably somewhere between three and five annually), most members will not be offended. There will always be a few people who complain every time they are asked to give, and one way of handing these folks is with a special flag on your database of “ask only once a year”, or something similar. But as long as requests are well-written and informative, and the organization interacts with its members in other ways, most people do not seem to mind being asked to give three to five times a year.

A note of caution: while special appeals are a good way to raise money quickly, an appeal to get an organization out of debt, or solve a financial crisis, is usually not a good idea. People want to give to make things happen, not to rescue an organization that is in financial distress. So think twice about using a special appeal in these circumstances, unless you can honestly portray the need in a positive and proactive light.

Renewals vs. Special Appeals

Mailings are time- and resource consuming. Should small organizations send out requests asking their members to renew, or special appeals asking people to give to a specific project? In my experience, most organizations should do both. Many of the fundraising strategies that allow an organization to diversify and stabilize its funding base depend upon building a cadre of loyal members who pay dues every year and care deeply about the organization’s fate. (For more on this topice, see Chapter on Membership & Renewals.) Combining requests for dues with an appeals program allows you to increase an individual’s giving beyond their annual dues, and gives them an opportunity to target their donations to a project or activity they especially care about. I can remember being delighted when the Rivers Council of Washington (to which I had recently paid my membership dues) sent me an appeal about removing the Conduit Dam on the White Salmon River. I had kayaked the White Salmon, and was entranced with the idea that my special gift might help open up a new section of this gorgeous snow-melt river for kayakers like me!

Some instances when using special appeals by themselves may be more appropriate as a strategy than combining them with a membership recruiting and renewal program are:

• when an organization is set up for a particular short-term purpose(fighting a dam, changing a law) and intends to disband once the fight is over. (building a membership is a long-term strategy; and is probably not worth the time and effort if the organization will not be around for the long haul);
• when an organization simply does not have the resources (staff, computers, software) to track members, provide them with minimal benefits, and ask them to renew each year.(Building a membership base is an investment and requires a considerable outlay in time and resources. New organizations, or organizations without staff, may not have the resources to make this investment.)
• *when an organization, for specific internal reasons, does not wish to have members

Most experts agree, however, that the financial returns from a combined renewal and appeal strategy will be greater, over the long haul, than either of these strategies used alone.

The Letter

Try to make your appeal letters as personal as possible. Anticipate the readers’ questions (Why are they writing to me? What do they want me to do? Why should I do it?) and try to answer them. Use words, images, and details that make the letter sound conversational. Include the reader by using “you” and “your” phrases as much as possible. Describe the problem or need simply and compellingly. Try to create a sense of urgency. Put personal, handwritten notes on letters to people you know. Here are a few more tips:

• make it clear in the first or second paragraph why you are writing
• include the names of your board of directors on the first page letterhead of the letter to lend credibility
• be sure to thank people at the beginning of the letter for their past support
• make the letter easy to read by using black ink, indenting paragraphs, leaving lots of white space and providing good, simple graphics
• use a type size that is large enough for people to read easily
• do not vary the size of the type, use different fonts, or use all caps
• use underlining and bolding (sparingly) to emphasize important parts of the letter
• avoid long paragraphs and don’t be afraid to use paragraphs of one sentence
• use bullets to set off items in a list
• do not use right-hand justification; a ragged right-hand margin makes the letter more personal and easier to read;
• provide specifics about what donations will buy-- people like to know how you are going to use their gifts
• repeat the “ask” several times (in different ways) and talk at length about the need for the money
• in the last paragraph, ask for a specific gift amount.
• have the Executive Director sign the letter
• use the P.S. to reiterate your request and/or suggest action

There is much debate about how long an appeal letter should be, with some arguing for 4-6 page letters and others swearing by one-pagers. There is no magic formula here-- the letter should be as long as it needs to be to effectively make the case for a gift. Check out the samples section to see successful special appeals which illustrate many of the ideas discussed here.

When you are putting your mailing together, fold the letter so that the writing is on the outside (“head out” in direct mail lingo), rather than on the inside as you would with a normal letter. This way, a person pulling the letter out of the envelope will be able to begin reading it without having to unfold it, and your opening paragraph will have a better chance of catching his/her eye.

One final note on the letter. In thinking about all the above advice, do not lose sight of the most important element—a real, credible need, the more urgent, the better. While the need can be your next year’s program, it can also be something specific like new office equipment, or a new program person. If your organization becomes skillful at telling your members about your true needs, you will be amazed at the help they will provide!

The carrier envelope, return envelope, and response form

Every special appeal has at least three other components.

1. The outside, or “carrier” envelope. The purpose of the “carrier” envelope is to get the recipient to open it and look inside. One surefire way to make it look like a personal letter is by hand-writing the name and address and using a bulk-mail or even a first-class stamp. While handwriting envelopes can be an overwhelming job for one person, it is a great way to get volunteers involved. Hold a “mailing party” and make it fun by including some snacks and beer, and maybe a little lively music!

   If you cannot hand-write the names, type them or use clear labels that make the name and address look typed. Avoid using window envelopes, as this is a dead giveaway that the letter is a direct mail piece. As you open your own mail, analyze why you open some envelopes and throw others away unopened. This will help sharpen your skills in making your own mailings more effective.

2. The self-addressed return envelope. All direct mail authorities recommend sending a return envelope with your letter. Obviously, it is much easier to write a check, stick it in the envelope provided, and mail it, than to root around the house for a blank envelope, and then have to address it! It is not necessary, however, to put return postage on the return envelope or use a prepaid Business Reply Envelope. Most studies indicate that the presence of a stamp on the return envelope does not affect returns significantly enough to warrant putting stamps on all reply envelopes.
3. The response form. Along with the letter, you need to include a form that your members can fill in and return with their contribution. This form can be a separate piece, or it can be part of the letter, set off by a dotted line to indicate that it should be cut or torn off and returned. It can also be included on the back of the reply envelope. The important thing is to provide the supporter with a form that can stand on its own, is attractive, easy to fill out, provides a number of giving options, and specifies exactly what to do to insure that the gift will be properly processed.

   Most experts recommend that the Response Form start off with an “affirmation statement” such as “Yes, I want to make a donation to help ABC Organization remove Conduit Dam!” or something similar. It is also important to provide check off boxes with dollar amounts that correspond to the amount(s) mentioned in the letter. Be sure that the response form includes such information as how to make out your check and where to mail it, even when your address is on the reply envelope. You should also provide information about tax deductibility: Remember, the response form is the recipient’s only way to take action on the appeal.

Other tips:

• If possible, personalize the form by either printing the name and address of the supporter or affixing a label.
• If you need to include information about your financial statements (required by law in many states) you can put this information in small print on the back of the response form.
• If you are asking the donor to fill in his/her name and address, make sure that the lines are long enough to accommodate large writing or long names.
• As with the letter, make the response form easy to read by employing graphics, color, type, and white space judiciously.
• If you use a separate piece of heavier paper for the response form, be sure that it fits easily into the reply envelope without folding. Some experts suggest using a different color fort the reply form and reply envelope.
• Include the words “thank you” on your form. It will make your donors feel appreciated!

Inserts

Often, people want to include other things in a special appeal—newsletters, photographs, brochures, reports. In most cases, I recommend against including these additional materials. Why? Because in testing, brochures have been known to actually decrease response, perhaps because they distract the reader from the desired action of writing a check. Another down side to inserts is that they increase costs, sometimes significantly. On the other hand,
credibility-builders like press clippings (that underscore the points being made in your letter and mention your organization prominently) or “buck slips”, small, testimonial notes from well-known persons (especially when mailing to a “cold” list of landowners, petition-signers, or canoe club members) can be very effective.

Premiums

There are definite pros and cons to offering premiums as part of a special appeal. Premiums can increase the cost and hassle involved in an appeal, and if you offer them every time, people can become addicted and only respond when you provide them with a nifty trinket. On the other hand, an attractive premium, such as a calendar, hat, or poster, used appropriately, can significantly increase the response and/or average donation to an appeal, while at the same time helping to build donor loyalty and good will. In deciding whether or not to use a premium for a specific appeal, consider:

• Is there a good reason to use a premium in this appeal? Will it increase overall response or average gift?
• Do you have an item on hand (map, poster, book) that you can use as a premium, or is there an item (water bottle, backpack, hat.) that someone will donate in quantity?
• Is the item easy to package and mail, or better yet, will someone else mail it out for you free or at a very low cost?
• Does the item bear the name or logo of your organization (helps build donor loyalty and increase visibility)?
• Does the item complement the content of the appeal or your organizational mission?
• Is the total cost of the item (plus shipping and handling) less than 10% of the amount of the donation?

Some items I have seen used very effectively as premiums include:

• maps (sometimes these can be obtained free or at low cost from a government agency)
• books (most books can be bought in volume for 40% of their retail price; remaindered books can be even cheaper)
• notecards
• calendars
• chances in a raffle
• posters/photos
• hats
• address labels

Another factor which should enter into your decision on whether and how to use premiums is tax deductibility. Normally, a donor’s deduction is limited to the value of what the donor gives the charity, less the value of the premium that the charity gives the donor in exchange. When applicable, charities are required to inform donors of this rule and give them a reasonable estimate of the fair market value (not cost) of the premium they’ve received.

There are situations, however, in which this rule can be disregarded.

1. if the fair market value of a premium (not cost, but actual retail value) is not more than 2% of the contribution or $80 (in 2003) whichever is less.
   Example: A donor contributes $500, and receives a book worth $10, (which is less than $80 and not more than 2% of the contribution). The premium can be disregarded, and the organization does not need to notify the donor of the regulation and the fair market value ($10) of the premium
2. the premium is a low-cost, logo premium, which means that:
   • the contribution made is at least $40 (in 2003)
   • the premium(s) is a token item-bookmark, calendar, poster, T-shirt- bearing the organization’s name or logo, and
   • the organization’s total cost per premium (not the fair market value) is not more than $8 (in 2003)

   Example:
   A donor contributes $50 and receives a hat bearing the name of the organization. The hat costs the organization $5. The hat can be disregarded because the transactions meets all three of the above criteria.

The regulations on deductibility change frequently so it is best to consult a tax advisor if you are in doubt. For more details, visit www.afpnet.org (look through the Frequently Asked Questions for “Donor Gifts”.), check out http://www.irs.gov/pub/irs-pdf/p1771.pdf, or call Exempt Organization Customer Service, IRS, at 877 829-5500, www.irs.gov/eo.

As you can see, premiums substantially increase the work involved in an appeal, so it is important to think the whole process through in advance. I advise against using items which involve multiple sizes or colors, since you almost always run out of a particular size or color and have to make substitutions, potentially making your donors unhappy. Avoid tax hassles by using logo premiums costing under $8(or whatever the current regulations specify) whenever possible. When deciding whether to offer a premium, remember that it can be costly and time consuming to box up and mail items out. Find out in advance how much the tubes for the posters cost so you will not be unpleasantly surprised and be sure to have them on hand when responses start coming in. Try to find items that come pre-boxed (I once used a book on Wild and Scenic Rivers published by the National Geographic Society that came preboxed and ready to mail) or ones someone else can mail out for you.

The worst thing you can do is offer a premium and fail to provide it in an efficient and timely fashion. This is true any time, but especially around the end of the year, when people may be anticipating using the premium as a holiday gift. People will remember your mistakes in this area for years and interpret them as indications that your organization is poorly run!

Member Involvement

One question to consider with special appeals is whether to ask people for more than money. If you truly need their support in other ways, and the project in question presents a legitimate opportunity for people to get involved by answering questions, writing letters, making phone calls, providing technical expertise, etc., by all means include a way they can do so. People who are involved in an organization in a meaningful way tend to be more loyal and generous supporters. Just be forewarned that including several options for action may reduce the overall amount of money donated on this particular appeal.

Two words of caution: first, do not distract members from sending in a gift by asking them to look at, or do, too many other things. Don’t ask them to do something that you could also ask them to do in your thank-you letter, such as sending in names of interested friends; and second, be sure that you want and need their help, because people volunteering to help or perform specific activities, or give their opinions will be very frustrated if they feel their offer to help, or their opinions, are not taken seriously.

Matches as incentives

Using matching gifts as an incentive for people to give to a special appeal can be very effective. With one organization I am involved with, I asked the board if they would be willing to match the contributions from a special appeal, and 8 out of 10 said yes. This allowed us to add a P.S. to the appeal which said that the Board of ABC Watershed Organization would match every dollar contributed by supporters, effectively doubling their gifts. The appeal brought in $4,000, and each of the 8 board member contributed $500 to make the match. The arrangement motivated both ABC’s supporters, and its board members.

Timing

What is the best time of year for special appeals? While this varies greatly depending upon organizational needs, characteristics of the supporter base, and so on, there are a few rules that usually hold true:

1. The very best time to ask for special gifts from supporters is at the end of the calendar year. This is the time people look over their finances, think about tax deductions, and are usually feeling generous because of the holidays. Most fundraisers advise sending end-of-the-year appeals out in October and November, but I've had good success sending them out in December as well, although the later they go out, the more likely that the money generated will arrive in January (and may not help this year’s budget if you are on a calendar fiscal year).
2. Summer and April are generally not good times for special appeals. People are often away in the summer and tend not to give money around tax time (April 15).

With these caveats in mind, it is best to plan your special appeals around your financial needs and other program and fundraising events. For example, it is a good idea to have a special appeal coincide with a press conference or other program activity which increases your visibility in people’s eyes and minds.

If you have a membership program, one thing you do not want to do is decrease your members’ response to your renewal mailings, since traditionally, more people respond to renewal requests than they do to special appeals, probably because renewing invokes the idea of belonging to something, as opposed to simply sending in a gift. Average response rates to first renewal letters are usually well over 30%, and cumulative response to a series of three renewal notices is generally around 60-65%. Response to a special appeal (sent out to a list of people who have responded before) is usually around 10-20%, although this number can vary considerably depending upon a number of factors. So, it is important to schedule special appeals at a time when they will have the least impact on your renewals.

Who to mail to

Usually, special appeals are aimed at your “in-house” mailing list, people who receive your publications, attend your events, call you for information, and/or have sent gifts in the past. Special appeals can also be sent to outside lists such as the membership list of a local environmental organization, or a local canoe club, but response rates will usually be much lower for these “cold” prospect lists, somewhere between .05% and 1.5%, and probably not justified. The exception is a list of very targeted individuals, such as a list of people who own land or homes along a particular river, or a list of people who have signed a petition relating to your river or watershed. Such a very targeted list may warrant the expense of mailing out a special appeal, but be sure to separate this list from your “in-house” list so that you can track the responses and analyze the results. This is the only way you will be able to tell if the response rate justified the expense of the mailing.

As for your “in-house” list, do you mail your special appeals to everyone? If your database permits, I feel it is best to exclude people who have given a gift in the last month, and, if you are doing renewals, people who either have just been asked to renew (within the last month), or who are about to receive their next renewal notice. If you have a major donor program, I would advise either preparing a very personalized version of the appeal designed especially for them, or if they have been solicited recently, excluding them entirely from the mailing. For more information on major donor strategies, see the appropriate chapter.

First Class vs. Bulk Mail Postage

There are no hard and fast rules on whether to use first class postage or bulk mail with special appeals. To use bulk mail there must, of course, be at least 200 pieces of mail to begin with, and the organization must have a bulk mail permit. First class stamps guarantee speedy delivery and make the envelope look more personal. Bulk mail is considerably cheaper, but takes longer to reach its destination and has a greater chance of being lost. Each organization needs to experiment with using the different kinds of postage and find out what works best for them.

Response

Response to a particular special appeal will vary depending upon time of year, urgency of the request, and so on. One of the largest factors influencing response is the number of times per year you ask your supporters for money. For example, if your group sends out several notices requesting payment of dues and only one special appeal per year, response to the appeal will probably be in the 10-15% range (or even higher if you do not send out renewal requests). However, if you send out three special appeals a year in addition to renewal notices, the response to each appeal will probably drop down to between 5% and 10% per appeal. Your average gift will also vary depending upon
the subject of the appeal, the amount requested, and whether or not a premium is offered. The accompanying table shows the potential increase in overall revenue when several special appeals are combined with a renewal program in a well-coordinated fundraising plan.

Thank Yous

Follow-up in the form of a prompt and meaningful thank-you note is essential to any appeal program. When people make a special gift for a specific purpose, they want to hear back from you! If you targeted a certain amount with the appeal—“We need to raise $10,000 in the next two months in order to hire our new field person”—tell them how it’s going. “To date, we have raised over 50% of the amount needed toward our new staffer.” If there is a premium involved, it should be sent immediately, with the thank-you note, or a reference should be made to it in the thank-you: “Your t-shirt will be sent to you within two weeks under separate cover.”

Sometimes, a well-crafted thank-you will stimulate another, unasked-for gift. When you reach your goal, and hire the new person, send out a special bulletin to your members announcing the hire and thanking them for their part in it. Too many times, special appeals go out, gifts are sent, and members never hear another word about the project to which they contributed. Be sure that you mention how well the appeal did in your next publication, and what you were able to do with the money. This will give your members a sense of accomplishment and raise your credibility in their eyes as an organization that does what it says it will do!

Tracking Your Appeal

Like other kinds of fundraising, it is essential that you keep good records on your special appeals. This is the only way you can fine-tune your fundraising and make educated guesses about how to increase giving and be more cost-effective with your program. The basic information you need to “track” includes

• Mail Date
• Number of pieces mailed
• Lists mailed to (including exclusions)
• Cost (printing, postage, premiums, fulfillment costs, other)
• Income
• Response (how many people sent gifts divided by how many people were sent requests)
• Average gift (the amount brought in divided by the number of people responding).
• If a premium was used, at what level was it offered, and how many gifts at or above this level were received?
• How many large gifts? (2@ $250, 1@ $500, etc.)

If you have a good donor/member software program, the simplest method for keeping track of most of this information is to assign each appeal a unique code, enter this code on each gift as you log them into the system, and then design a report which will provide the needed information. However, if gifts are not immediately entered on the computer, or if your software program does not permit you to generate all the needed information, it may be expedient to have the person who opens the mail code each response on a tally sheet. Develop a simple form that gives the number of pieces mailed, date mailed, and then provides space to enter responses such as the special appeals tracking form shown below.

Special appeal tracking form
Name of Appeal:__________________ Date Mailed:_________ Number of Pieces:______________

In addition, I recommend opening a file folder (or starting a three-ring binder) for each mail appeal you send out, and keeping a copy of the complete package, including the letter, response form, carrier envelope, reply envelope, and any enclosures. Once the appeal has run its course, you should prepare a report like the one shown below and file it with the letter in the folder or binder. It is a good idea to include with the report an itemized breakdown of expenses so you can look back on these when you do subsequent appeals.

If you keep these records faithfully, you will soon be able to compare successful appeals with less successful ones and draw some conclusions. Did the premium you offered last year appear to increase the average gift? Did the news clipping increase response? Did doing one additional appeal this year significantly increase the overall amount brought in? Without good records and analysis, fundraising is pure guesswork. Careful evaluation will help you improve your results from one year to the next.

Special Considerations

If you do have both a renewal and an appeals program, it is important to say in your appeal letters that you are asking for a contribution over and above regular member dues. This way, members understand that you are asking them to pay their dues and contribute to special appeals. Used in this way, special appeals will increase the total amount of money contributed by your members, and will also increase your overall renewal rate by bringing in gifts from a few members who have failed to respond to the earlier renewal notices.

One question that inevitably arises here is how to code members who fail to renew but DO respond to a special appeal. My preferred strategy is to give members every opportunity to renew during the calendar year, but once the year is over, to program the computer to count them as renewed, even though they only respond to a special appeal. After all, they have made a contribution during the past year, so why quibble over whether they sent it in as dues or as a contribution to an appeal? If your computer won’t allow you to do this, you may have to print out a report of all the people in this situation and recode them manually, or devise some other system. The important thing here is that during the year, you try in every way possible to get them to give to both renewal notices and special appeals, but that once the year is over, you don’t allow them to fall into the “lapsed/inactive member” category, simply because they responded to an appeal rather than to a renewal mailing.

A series of “special appeals”, integrated skillfully with your renewal mailings and your programmatic activities such as press conferences and watershed events can increase your income substantially and at the same time build donor loyalty and awareness.