In the fundraising profession, appeal letters that you mail to
existing donors are called renewal letters. They are designed to
solicit a gift, but, more important than that, they aim to
persuade your current donors to renew their support of your
organization. Donors renew their support with their cash, of
course, but they also renew it with their commitment--with their
hearts and minds. And that's why renewal letters are so vital.
They help you maintain your broad base of support year after
year, cost-effectively.
Renewal letters are part of a year-long program that is usually
called the Annual Giving Program. "Annual" does not mean that
you mail just one letter a year (you shouldn't). It simply means
that you look at your fundraising efforts as a year-by-year
activity, one where you must persuade your active donors to
renew their commitment each year.
Goal #1: Renew donor commitment The
primary goal of your annual appeal letters, then, is donor
renewal. Some donors give only once a year. Others give
regularly. And others send a few gifts during the year, but
sporadically. You cannot expect that any of these donors will
stay with your organization until death, theirs or yours. "Donor
renewal is not automatic," says James Greenfield, in his book,
Fund Raising: Evaluating and Managing the Fund Development
Process.
This means that each letter you mail should aim to re-motivate,
re-invigorate and rejuvenate your donors, encouraging them,
explicitly or implicitly, to renew their commitment to your
organization, or, more accurately, to the people that your
organization serves. This is often done with the first appeal
letter of the year, but donor renewal is really a year-long
activity that takes place with every contact you have with each
donor, whether it's a phone call, a personal visit or their
presence at a banquet or other event.
Goal #2: Renewed gift Naturally, your
goal with every renewal fundraising letter is also to raise
funds. So you must ask for a gift in each renewal letter you
mail. Wherever possible, make a mention of the last gift that
your donor sent, and thank them again for their support. And
remember, the most effective renewal letters are those that ask
for funds for a specific need, usually a project.
Goal #3: Upgraded gift This goal is
optional. In some of your letters during the year (usually at
year-end), you have the option of asking your donors to renew
their support at a higher level. This usually means asking
donors to increase the size of each gift. For example, as
Christmas approaches, you can mail your donors a letter that
says, "I am inviting you to renew your commitment by 10 percent
this year, to help us keep pace with inflation, and to meet our
ambitious goals for the coming 12 months."
Goal #4: Conversion to monthly giving
Does your non-profit organization have a monthly giving program?
If you do, then you know how gratifying it is to have donors who
send you a gift each month automatically from their bank account
or credit card. Annual renewal letters are a perfect way for you
to convert your annual givers to monthly givers. There are a few
ways to do this:
1. Send a letter whose primary goal is to persuade annual givers
to join your monthly giving program. Spell out the benefits that
the donor and your organization enjoy from monthly giving.
2. Use your postscript (your PS at the bottom of each letter) to
invite annual givers to join your monthly giving program.
3. Include a buckslip or liftnote in your letters, describing
your monthly giving program and inviting donors to sign up.
Asking recent donors to send you another gift is a lot easier
and less expensive than acquiring a new donor. That's why
renewal letters play such a vital role in helping your
non-profit raise funds affordably. Most donors who respond by
mail do not send with their first gift enough money to recover
your costs of acquisition. That's why their second gift and
subsequent gifts are so crucial. My hope is that your
fundraising letters will persuade your donors to stay with you
for a long, long time.
© 2005 Sharpe Copy Inc. You may reprint this
article online and in print provided the links remain live and
the content remains unaltered (including the "About the author"
message).
More Information:Alan Sharpe is a professional fundraising letter writer, instructor, coach, author and newsletter publisher who helps non-profit organizations to raise funds, build relationships and retain loyal donors using cost-effective, compelling, creative fundraising letters. Sign up for free weekly tips like this at
http://www.RaiserSharpe.com/ 
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