The value of raising funds by direct marketing

A modest acquisition mailing can exponentially generate income many times the original investment as a core group of new donors contributes one or more additional gifts in year one and beyond. Organizations can depend on continuous income as it’s donor database grows. The two theoretical five-year projections below demonstrate the economics of investing in new donors. Example #1 explains the impact that one acquisition mailing – in year one – has on the next five years, whereas example #2 shows the impact that continuously sending acquisition mail each year has on the total revenue and new donors generated over the same five year period.

Your donors also act as leads for planned giving and major gifts, greatly increasing the potential return on your investment. Reinvest a portion of your income each year for new donor acquisition and you will continue to make individual giving an important source of income for your organization.

Example #1

The value of continuously acquiring donors

For every organization, some level of donor attrition is inevitable. In any given year, 10-40% of your donor base may disappear. If you stop acquiring donors now, in as little as 5 years you can end up with next to none.

A sophisticated direct response program will reinvest in acquisition every year, resulting in higher revenue and a larger, more diverse donor base in the long-term.

Example #2

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