Thursday, October 11, 2007

A strategy for adding a vital revenue stream

The Ronald McDonald House of New York, Inc. has a monthly giving program, the Get Well Club. The operation of the Get Well Club was outlined during a recent direct response fundraising conference.

The plan has eight basic elements:

  • Strategy: Upgrade donors who give less than $100 and offer monthly contributions.
  • Goal: Demonstrate that gifts are vital to the organization's mission.
  • Package Format: A closed face 6 x 9 package; a personalized letter; a reply envelope; a personalized 8.5 x 11 form; a photo card of the family.
  • The Offer: Connect with the cost to house a family for one night. The ask is to facilitate them in joining. The typical monthly giving offer starts in the $10-$15 range.
  • Thank-you Gift: A successful technique is to offer a gift to new monthly donors. Recommended gifts include a Club pin and a personalized certificate of membership.
  • Pledge Payment Options: Offer electronic funds transfer or credit card. Do not offer a choice of having their debit take place on the first or 15th of the month. McDonald House contracts with an outside firm to set up a monthly electronic transaction.
  • Donor Segmentation: Divide the effort by new donors who have given a contribution of less than $100 and multi-giver donors who have given two or more gifts less than $100 during the past 18 months.
  • Additional Communications: Quarterly communications, newsletters, a small premium product, and a yearly tax statement in January or February.

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