That’s the question on every fundraiser’s mind right now. So what impact has the global recession had on direct mail fundraising in 2009? Recently, we undertook a study of our Client’s 1st quarter acquisition and retention activity to find out and there were some interesting results.
The first significant finding was that our Clients reduced their efforts to acquire new donors via direct mail during the 1st quarter of 2009. Total outbound solicitations dropped 42%, while responses and donation revenue dropped at an even greater rate of 73% and 60% correspondingly. One bright note however – those prospects who did respond donated more on average. While the reduction in new donor acquisition likely saved fundraisers money in 2009, it could have a significant impact on their ability to fundraise in 2010 and beyond.
Surprisingly, there were 13% fewer solicitations to house files in the 1st quarter of 2009 versus 2008. Those donors that responded contributed more than in previous years. The average gift climbed by almost 3%, resulting in an increase in the gross revenue per mail piece. However, as with prospects, existing donors responded less frequently than in previous years – although the decline in response was no where near as severe as with prospects.
So what can we take away from these results? There seems to be no question that fundraisers were cutting campaigns in early 2009 as a result of the recession. However, given the results from the mailings that did occur, it’s unclear whether that strategy was the right one. In the case of house mailings, response rates stayed relatively consistent with the previous year while average gift increased indicating that those fundraisers who cut back on their house programs left money on the table. In the case of prospect mailings, results were down. However, those fundraisers who did prospect will be in a much better position to take advantage when the recession ends as they’ve added to their house file. So while it appears that Canadians are giving less in 2009, those organizations who continue to fundraise will stand to benefit during a recovery when Canadians begin to open their wallets again.
Authored by Kamy Zarbafi, Vice President Publishing Services/Fundraising Services at
Cornerstone Fundraising
