The Complete Guide to Writing Successful Fundraising Letters for Your Nonprofit Organization With Companion CD-ROM

By Charlotte Rains Dixon

With more than 1.4 million nonprofit organizations in operation in the United States and an estimated 100 million fundraising letters mailed out each year, you may find yourself wondering how you can separate yourself from the hordes of nonprofits clamoring for donations. If you employ the techniques provided in The Complete Guide to Writing Successful Fundraising Letters for Nonprofit Organizations, you will ensure that your letter stands out and achieves its goal.

• Language: English
• Publisher: Atlantic Publishing Group, Inc.
• Release date: Nov 12, 2008
• ISBN: 9781601384867

Book preview

The CompleTe Guide To

WriTinG

SuCCeSSful

fundraiSinG

leTTerS

for Your nonprofiT

orGanizaTion

ú

By Charlotte Rains Dixon

The CompleTe Guide To WriTinG SuCCeSSful

fundraiSinG leTTerS for Your nonprofiT

orGanizaTion

Copyright © 2008 by Atlantic Publishing Group, Inc.

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ISBN-13: 978-1-60138-247-4

ISBN-10: 1-60138-247-2

Library of Congress Cataloging-in-Publication Data Dixon, Charlotte Rains, 1954-The complete guide to writing successful fundraising letters for your nonprofit organization : with companion cd-rom / by Charlotte Rains Dixon.

p. cm.

Includes bibliographical references and index.

ISBN-13: 978-1-60138-247-4 (alk. paper)

ISBN-10: 1-60138-247-2 (alk. paper)

1. Fund raising. 2. Nonprofit organizations--Finance. 3. Fund raising--Case studies. I. Title.

HG177.D59 2008

808’.066658--dc22

2008028303

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202-452-1100

www.hsus.org



 Dedication 

To all the passionate, dedicated people who work tirelessly in the world of philanthropy and the non-profit.



 Table of Contents 

IntroductIon ................................................. 17

do You need to read This Book? ............................ 17

Why should you read this book? ............................. 17

Who can benefit from reading this book? ................ 18

how can you best use this book? ............................. 19

Where can this book be put to use? ......................... 19

When should you read this book? ........................... 20

What does this book cover? ..................................... 20

cHapter 1: Your organIzatIon

and Its goals ................................................. 27

A Definition of Nonprofits ......................................... 28

Why do We exist? ................................................... 30

The Strategic Fundraising Plan ................................ 32

Components of the Strategic Fundraising Plan ......... 35

Perform an External Analysis ................................... 36

Review Information ................................................. 37

Set a Fundraising Goal ............................................ 39

evaluate Your assets and Weaknesses ..................... 39

Develop Your Strategy .............................................. 40

Create Your final plan ............................................. 41

Jettison the Charity mentality .................................. 43

cHapter 2: Your donors .............................. 45

Your Target Donor ................................................... 48

What Your donor Gains ........................................... 50

What makes Your donor pick up his or her pen? .... 51

midsize and major donors ....................................... 51

Cultivating Relationships, or Keeping

Your Donors Donating ............................................. 55

cHapter 3: tHe dreaded M Word —

MarketIng and tHe MarketIng concept .. 57

Inbound Marketing .................................................. 59

Outbound Marketing ............................................... 60

Marketing Research ................................................. 60

Branding ................................................................. 60

Competitive Analysis ................................................ 63

Positioning ............................................................... 64

Advertising and Publicity ......................................... 66

Customer Service and Customer Satisfaction ........... 66

The Marketing ....................................................... 67

cHapter 4: gettIng started — WHat You need

to do Before WrItIng ................................... 73

Where to look for ideas .......................................... 74

Why Are You Writing This Letter and Why Now? ...... 75

Who Are You Writing To? ......................................... 76

Why Are You Appealing To Them Now? .................... 79

What Benefits Will Donors Get? ............................... 79

Who Is Going to Sign the Appeal Letter? ................... 80

cHapter 5: keY eleMents of tHe

successful fundraIsIng package .............. 83

Vogele’s Direct Mail Response Research ................... 83

Characteristics of a Successful Letter ...................... 88

Think opera When You Get Stuck ........................... 88

Qualities of Successful Letters ................................. 90

The envelope ........................................................... 93

The letter ................................................................ 96

The reply device...................................................... 97

reply envelope ........................................................ 97

optional extras ....................................................... 97

Buckslip .................................................................. 98

Freebies or Front-End Premiums ............................. 98

Premiums or Back-End Premiums ........................... 100

Lift Letter, or Liftnote .............................................. 102

Brochure ................................................................. 103

Survey or Questionnaire .......................................... 103

cHapter 6: content of

fundraIsIng letters ..................................... 107

Guidelines for Effective Letter Writing ...................... 107

Write Your Letter, Step by Step ................................ 117

Step-by-Step: The outer envelope .......................... 119

reply device and reply envelope ............................. 122

The Letter, Step by Step ........................................... 123

The Text .................................................................. 136

how to Write ............................................................ 142

How to Format ......................................................... 153

The Reply Device, Step by Step ................................ 156

optional enclosures ................................................ 161

cHapter 7: tYpes of fundraIsIng letters . 173

Straight Contribution or Solicitation Letter .............. 173

Things to Include in the Welcome Letter ................... 185

Possible Enclosures for the Welcome Packet ............ 185

Special event letter ................................................. 188

Special appeals letter .............................................. 193

major donor appeal letter ....................................... 196

renewal letters ....................................................... 199

lapsed donor ......................................................... 206

prevent lapsed donors ............................................ 210

When to Give up on a donor .................................... 212

Survey letter ........................................................ 213

Front-End Premium ............................................. 216

Back-end Premium Letter ........................................ 218

newsletters .............................................................. 221

Using E-mail ............................................................ 222

Dealing With the Mailing List ................................ 228

cHater 8: WrItIng tIps .................................. 233

Creativity Nudgers ................................................... 233

The Writing Process ................................................. 235

Brainstorming ......................................................... 236

First Draft................................................................ 237

Composting ............................................................. 237

Second Draft ............................................................ 238

Third Draft .............................................................. 238

Send out for edits .................................................... 239

Send out for proofing ............................................... 240

Blockbusters ........................................................... 241

Helpful Hints from the World of Copywriting ............ 243

Hints from the World of Literature ......................... 246

Voice ....................................................................... 249

Writing Exercises ..................................................... 252

Other Writing Exercises ........................................... 257

Other Writing Tips and Tools ................................... 260

conclusIon .................................................... 267

BIBlIograpHY ................................................. 269

glossarY ......................................................... 275

Index ............................................................... 285



 Foreword 

By Karen Ashmore

Fundraising from individuals is more competitive than ever and the myriad of available media contributes to the growth and the need for specialization of skills. At the same time, it also means that people are being bombarded with more and more messages so it is important that your message stands out.

Charitable giving in the U.S. was $306 billion in 2007, exceeding $300 billion for the first time in history. Individual giving, the stronghold of fundraising, reached $229 billion, or 74% of total giving in 2007.

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The CompleTe Guide To WriTinG SuCCeSSful fundraiSinG leTTerS

The Complete Guide to Writing Successful Fundraising Letters for Nonprofits shares great insights into the many different aspects of raising funds from individuals in a straightforward and proven approach that includes case studies of real-life situations.

As the Executive Director of a growing international foundation that works in one of the poorest countries in the world, I know that fundraising letters are the bread and butter of revenue generation. One of the unique aspects of this book is that it takes a holistic approach and prepares the reader for all the steps for a successful letter writing campaign. That means covering all the preparatory steps before you even write the letter – setting a fundraising strategy and goals, knowing your donor, branding, defining fundable themes, and understanding the value of each component in a fundraising package.

With these important preliminary steps, you are then ready to write the letter. This book does a thorough job of presenting techniques and sample letters for many types of fundraising needs. Using a practical approach with actual examples and case studies, you see what has worked for other non-profits. One of the most important rules to remember is to keep it personal and use story telling to reach your goal – which is to motivate the reader to send a donation.

Whether you are using direct mail, e-mail, or other media, this book covers all the angles for a successful letter writing fundraising campaign. I cannot guarantee how much money you will raise, but I can guarantee that you will raise money if you follow the steps in this book.

ChapTer 1: BuSineSS propoSalS 101

15

Good Luck on your fundraising endeavors!

Karen Ashmore

executive director

Lambi Fund of Haiti

Supporting economic justice, democracy

and sustainable development in Haiti

Washington DC

www.lambifund.org

Karen Ashmore is the Executive Director of the Lambi Fund of Haiti, whose mission is to assist the popular, democratic movement in Haiti by supporting grassroots organizations that work for economic justice, democracy and alternative sustainable development. She has over 20 years experience in social change philanthropy and has won awards for her activism in human rights, racial justice and women’s issues.

She and her husband are the parents of five children, including two sisters adopted from Haiti. She also serves as the Board President of Grantmakers without Borders.

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The CompleTe Guide To WriTinG SuCCeSSful fundraiSinG leTTerS



 Introduction 

do You need to read tHIs Book?

if you work for a nonprofit organization or deal with one in any capacity, the answer is yes. Let us borrow a writing technique you will learn later in this book to expand on the answer to this question: the famous five Ws and one h.

• Why should you read this book?

• Who can benefit from reading this book?

• How can you best use this book?

• Where can this book best be put to use?

• When should you read this book?

• What does this book cover?

WHY sHould You read tHIs Book?

You should read this book because recent surveys estimate there are over 1.4 million nonprofits in the United States today, all of them doing good in the world and deserving

18

The CompleTe Guide To WriTinG SuCCeSSful fundraiSinG leTTerS

of support. And let us not forget that every one of those 1.4 million nonprofits needs the same thing — money. To that end, these nonprofits send an estimated 100 million fundraising letters every year. With this kind of competition, you must learn how to set your nonprofit apart. You must be able to explain why the donor should choose you over other nonprofits.

There was a time when nonprofits could rely on quaint grassroots efforts to get the word out about their services and to find the money to provide those services. No more.

Fundraising is big business, and like all businesses there are techniques you can learn and guidelines you can follow to create the most success.

in The Complete Guide to Writing Successful Fundraising Letters for Nonprofits, we will not only teach you strategies to share your message effectively, but we will also present underlying theories of marketing on which to base your letters. And do not worry — we know the words business

and marketing may make you cringe. That is probably why you work in a nonprofit, because you have a passion to serve. You will now learn how to turn that passion into a marketing concept that will make the community just as passionate about your services as you are.

WHo can BenefIt froM readIng tHIs Book?

Anybody who needs to learn to write fundraising letters, or knows a little about the subject but would like fresh tips and techniques, can benefit from reading this book. Because developing fundraising packages and writing fundraising

inTroduCTion

19

letters needs to be an integral part of every nonprofit’s mission, every person involved with a nonprofit can also benefit from the information in this book. This includes:

• The executive director

• The development director and his or her staff

• The marketing director and marketing staff

• Public relations and advertising staff

• The board of directors and advisory council, if one exists

• All staff in support positions

• Volunteers

• Consultants to nonprofit organizations

HoW can You Best use tHIs Book?

The best way to use this book is to read it carefully to absorb all the information, do the writing exercises, study the sample letters, and follow the step-by-step directions for drafting a fundraising letter. To learn a new skill, you need to use it. This book will make learning the craft of writing successful fundraising letters as delightful and pleasurable as possible.

WHere can tHIs Book Be put to use?

This book can be used in any nonprofit organization or

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The CompleTe Guide To WriTinG SuCCeSSful fundraiSinG leTTerS

nongovernmental organization (NGO), as well as in the offices of anyone who deals with fundraising in any way

—consultants, volunteers groups, and advertising agencies that create campaigns for nonprofits.

WHen sHould You read tHIs Book?

Now is the time to read this book. Never before have so many people been so interested in giving. Suddenly, it is hip to give. Former president Clinton has written a best-selling book about it. Bono has teamed with the organization One to encourage people to give of their time and money. Celebrities need to give back to gain the approval of their fans. This is because individuals are beginning to understand that they need to show gratitude for what they have by giving back.

With the ascendancy of the Internet, everyone is connected globally, and people are beginning to understand that what affects one affects all. President Clinton, in his book, Giving, How Each of Us Can Change the World, points out several reasons for the advent of this atmosphere of giving, including more people living under elected governments, more millionaires and billionaires, and more people in general donating to nonprofits and charities..

It is an exciting time to be involved in the world of nonprofits, and organizations can capitalize on this by learning solid techniques of creating fundraising packages.

WHat does tHIs Book cover?

While you will get the most benefit from this book by reading it all the way through, completing the writing

inTroduCTion

21

exercises, and studying the sample letters, it is a fact that many people who work for nonprofits are overworked and unpaid. Thus, you might be eager to get to a specific part of the book without reading the whole thing. If you need to write a fundraising letter now, for instance, you might want to find the chapter that provides step-by-step directions for completing a letter. This will work best if you go back and read the rest of the material when you have time. Here is a chapter-by-chapter summary.

Chapter 2 will offer pertinent information for your organization and its goals. This chapter will offer a definition of nonprofits and reveal how they relate to the community, pointing out that nonprofits exist to fill a need outside the organization itself. It is vitally important for the nonprofit to answer the question, Why do we exist? To sell itself and its story through fundraising letters, a nonprofit must know itself and its mission thoroughly. After doing a thorough evaluation of the nonprofit’s services, the next step is to define its current needs and forecast its needs for the future. The most successful fundraisers are those who completely understand the mission of their nonprofit and are clear about its goals for the present and the future. To this end, a good starting point for a fundraising campaign is to write a strategic fundraising plan, or review it, if it already exists. This chapter will present a list of questions and considerations nonprofits need to have pondered about their overall fundraising plan. This will cover such areas as setting fundraising goals, creating a budget for development, developing income projections, and identifying assets and weaknesses.

After a deep inquiry into the goals of the organization, it is

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The CompleTe Guide To WriTinG SuCCeSSful fundraiSinG leTTerS

important to understand the donors. Chapter 3, will address this in detail. Fundraisers must grasp the psychology of giving. What drives people to get involved or give money?

and how can the fundraiser utilize this understanding to write successful fundraising letters? This chapter will address the emotional aspect of people giving money, and you will learn how to tap into that emotion. Find out about what motivates people to remain unmoved by an appeal for money or help and look at the mental-sorting process that people go through when reading a fundraising letter.

Chapter 3 will present a template for better understanding the donor, through questions such as, what is he passionate about? What is her association with the nonprofit? After reading this chapter and completing the exercises, the nonprofit should have an excellent idea of the profile of its target donor.

Chapter 4 seems a bit distasteful for fundraisers. You as a fundraiser need to look at marketing, because fundraising is, at its heart, marketing the services of what a nonprofit does. Nonprofits may resist marketing, but to create a successful fundraising campaign and accomplish the organization’s goals, fundraisers need to understand the basics of marketing. The good news is that marketing can actually be authentic and joyful. This is especially true of nonprofits, since they exist to create change, help others, or solve social problems. It is important to learn how to tell the story of what the nonprofit is doing and get others to support it. That is the essence of marketing. Once comfortable with the concept of marketing, you will work on the marketing concept of the fundraising campaign.

In this chapter, you will learn about the importance of giving each campaign a unique theme look. It will address

inTroduCTion

23

how to find ideas for the marketing concept by looking to the problems and challenges of the organization and by quizzing the frontline staff.

Before beginning work on the fundraising letter, you will need to do some prep work, which is the focus on Chapter 5. Using the work that has already been accomplished

—the thorough look at the organization, the donors, and the marketing — this chapter will focus on preparations specific to the fundraising letter package. Fundraising expert Alan Sharpe says, The most important part of any direct fundraising appeal is what you do before you write a word of the package. This chapter will focus