New pool
Sixty-eight percent of today’s direct mail donors are over 60 and their average age is 68 years – nearly mirroring the donor population we found in 1995. In addition, in recent years, a whole new cadre of online donors has emerged, adding a new pool of potential contributors to candidates and causes.

Our 2007 survey also found that direct mail and online donors live in very distinct fundraising worlds. Thirty-three percent of online donors also give through the mail, but 67% do not. Similarly, 22% of direct mail donors give online, but 78% will not contribute through this channel. The conclusion is obvious to anyone except those who myopically seek to wish away one or the other type of fundraising communication:

You will not get both kinds of donors and you will, therefore, not maximise your fundraising potential unless you do both online and direct mail marketing.

Fact: The growth of online fundraising is happening but it’s happening much more slowly than many predicted.

Evidence: According to The Chronicle of Philanthropy’s survey, online fundraising accounts for about 2% of the $306 billion raised by non-profit organisations. While there are not equivalent numbers available for funds raised via direct mail, all agree that the direct mail channel accounts for at least 15 times – and perhaps as much as 25 times – as much as the online channel.

Slower growth
According to The Chronicle, online gifts grew by a median of 28% from 2007 to 2008 – a slower growth rate than the previous two years. Not all organisations are growing at the same pace. For 101 groups in the survey, online giving accounted for less than 1% of donations.

In short, the evidence shows that we are still a long way from online fundraising supplanting other forms of fundraising for nonprofit organisations. Progress is being made and growth will continue – but remember that a 20% or 30% increase on a base total of 2% still means that there is much work to be done. Fortunately, there are significant opportunities out there for smart fundraisers to exploit in the years ahead.

Fact: There are enormous multi-channel marketing opportunities out there for smart people with open minds.

Evidence: There has been much discussion in recent years on the promise of multi-channel marketing. In A.B. Data’s work with the Obama for America campaign, we saw firsthand that promise become reality. Beyond the slow but steady growth in online fundraising, there are two reasons why it’s critical for non-profit organisations to develop a new emphasis on multi-channel marketing.

First, multi-channel contributors have dramatically higher long-term value than singlechannel donors. Our analysis has shown that:

• Multi-channel donors contribute over 2.5 times as much as their singlechannel counterparts;
• Multi-channel donors give almost 2.75 times more gifts than single-channel contributors;
• Multi-channel donors, who first give through direct mail, end up giving almost 3.15 times more than single-channel, direct mail-only donors. Second, recent studies have underscored

the value of using multiple channels – and especially direct mail – to increase donor retention.

Lower retention
The 2008 donorCentrics Internet Giving Benchmark Analysis found that online-generated donors have lower retention rates and value over time. However, more and more organisations were finding success moving segments of the online donors offline and making them multi-channel donors.

A median of 33% of the donors acquired online in 2007 renewed their support offline in 2008. In addition, 37% of donors acquired online in 2006 gave again in both 2007 and 2008, but never gave online again. Jennifer Tierney, from Doctors Without Borders, was asked to comment on the donorCentrics study and said:

‘People are asking us all the time why we don’t reduce mailing costs and save paper with online fundraising but the simple fact is that people come online to give once and don’t repeat.’

We’ve found that building successful multi-channel marketing programmes to move online donors offline and expand direct mailgenerated donors to online contributors requires a different creative and strategic approach.

The Internet is changing the direct mail experience. And marketing success in the future will recognise the changing sources of news and information and, if the goal is to convert an online donor to a multi-channel direct mail donor, you cannot rely on tired or traditional direct mail techniques.

However, the effort to discourage the use of direct mail fundraising could lead to a refusal to take advantage of the extraordinary multi-channel marketing opportunities that can occur if online and direct mail fundraisers work together to craft integrated, synergistic multi-channel programmes.

Success story
In our 21-month-long work with now President Barack Obama’s campaign, we saw and participated in an unparalleled success story of the appeal of multi-channel marketing. There are more success stories out there to create, but it will require a clear-headed, honest appreciation of the strengths and limitations of both online and direct mail fundraising.

Let me conclude by returning to Frogloop and the Borrell Associates’ study with which I began this article. My industry colleague, Mal Warwick, was asked by The Chronicle of Philanthropy to comment on the ‘direct mail is headed for the exit’ conclusion. Mal’s response: ‘Hogwash’. Now there is an opinion supported by the facts. I couldn’t agree more.