Direct mail has long been a tried and true method of fundraising, and a mainstay for many nonprofit organizations in Canada and around the world. Although it is not always cost-effective, there are a variety of reasons why groups continue to use this type of appeal. Aside from generating funds, these appeals help to raise awareness about a cause, they often communicate information to established donors, and for some organizations direct mail campaigns are a recognizable and long-standing tradition.

Taking a closer look at the numbers

According to the 2000 National Survey of Giving, Volunteering and Participating (NSGVP), of all solicitation methods employed by charitable groups, mail requests are the number one way people choose to donate money. They account for 15% of total donations, sharing the top spot in a three-way tie with door-to-door canvassing and sponsoring someone in an event. Bearing this in mind, it would seem that charities that use direct mail are destined for fundraising success.

However, when looking at the total value of donations, mail requests account for less than 15% of the approximately $5 billion given to charities and nonprofits in 2000. They take a very distant second place to donations through place of worship, which account for 44% of the total value of all donations. Nonetheless, with approximately $700 million given to charity through mail appeals in 2000, it is understandable why many organizations, both large and small, use this method to raise funds.

Making sure donors know how money will be spent

Each year the Salvation Army of Canada does eleven mail-outs, generating approximately $30-33 million per year. “This year we sent out almost 8 million appeals,” says Jeff Robertson, territorial annual giving director, “and the response rates generally range from 13%-15% and down, depending on the time of year.” Not surprisingly, the Christmas appeal is their biggest and best, and hopefully that will be true again this year. As of October 31, the charity’s direct mail campaign was down 9%. However, they’re not attributing the decline to the terrorist attacks. “We were down prior to that,” Robertson says, adding that so far the figures for November are looking pretty good.

The Salvation Army’s approach to their direct mail campaigns is simple and straightforward. “We try to be honest and let people know where their money is going,” says Robertson. “We don’t want to make them feel guilty.” They also forgo the premium extras, such as address labels or stickers, which are often included in mail appeals. “The Salvation Army is looked upon as being frugal and we try to keep with that.”

For the small, Vancouver-based charity, A Loving Spoonful, being frugal is not a choice it’s a necessity. “On a yearly basis mail appeals raise approximately $100,000 and our goal this year is $150,000, but I don’t think we will make that,” states Sue Moen, acting executive director. She also reports that their mail appeals have been down 25% throughout the whole fiscal year.

Twice a year an appeal letter is sent to the group’s donor base of less than 3,000 people and four newsletters are also published to let people know how money is being spent and how they can donate. Adding premiums to their mail-outs is not a viable option. “We are a very, very small organization so we have never had the resources to do a larger appeal,” says Moen. “The up-front costs are quite high and returns take a long time to come back.” Instead, special event make up a large portion of the funds raised by the organization.

The added cost of premium mail-outs can pay off

While some organizations skip the premiums, others, like the Lung Association, have become a household name partially because their premiums are so well known. “People recognize Christmas Seals,” says Wendy Kwok, development assistant in direct mail for the BC Lung Foundation, referring to their annual Christmas mail campaign. Operating for more than half a century, Christmas Seals is one of the most recognizable direct mail campaigns in Canada, which is definitely a good thing for the Lung Association. “Mail-outs are our bread and butter,” Kwok says, “events alone can’t fund the research we do.” And although figures are down compared with last year, she says they are still doing okay, particularly in light of recent world events.

Each year the BC Lung Foundation conducts four major campaigns, generating approximately $3 million annually, half of which comes from their Christmas campaign. Kwok attributes the success of the association’s mail appeals in part to their large donor base, which is now at 180,000. They also send a general appeal to an additional 1.2 million households in the province. While their campaigns are successful, she says its hard to determine exactly what makes donors say “yes” to an appeal, whether it’s the time of year, the premiums they offer, or something else.

Covenant House in Toronto finds that a successful direct mail campaign has to do with a combination of things; the time of year, the cause being supported, and the premiums being offered. “We have a really good response to premiums,” reports Rose Cino, media relations manager. The organization needs to raise approximately $10 million a year and it depends heavily on direct mail to achieve this goal. “Obviously this period is our biggest and most crucial,” says Cino of their winter holiday appeal, which includes Christmas cards and tags. The packages are sent to 140,000 donors Canada-wide as well as 1 million prospects, in the hopes of building their donor base. Responses are just starting to come back and so far the results look good.

Although there are lots of ways to run a campaign and many ways for donors to give to charity, direct mail seems to be a tried and true method that continues to bring success to many organizations. As long as they keep sending the appeals, and people continue to respond to the cause, it will continue to prevail.