Lapsed Donors
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1) In respect to the financial crisis facing all of us - and especially non-profits - what is an expected (good) ROI for direct mail being sent to a base of current or lapsed donors? Do the old percentages still apply?
2) How many years back to you suggest going into your data base for the lapsed donor?
ANSWER
Old percentages may not apply today. Response rates are lower, but I have discovered that my current and recently lapsed donors are actually upping their gifts! The average gift has increased for them - they understand we need them more than ever, and I didn't even have to point that out to them.
For lapsed donors, I have had success going as far back as 10 years. Your lapsed donors will nearly always outperform your acquisition list - so that's another way to save some money if things are getting tight. I know I always say this, but try testing some of those long lapsed donors (beyond 5 years) to see how they respond before rolling out your appeal to them.
We have a lot of people in our data base who have never been mailed, but must have had some contact with us in the past. Would you suggest sending them an acquisition package? Or sending a postcard asking them if they'd like to receive our newsletter and then mailing a solicitation to them after receiving the newsletter?
ANSWER
Great question! I wish lots more nonprofits were asking this one.
On a routine basis, I advise clients to stop mailing appeals to those who haven't responded in 37 months or more and, instead, to include those folks in new-donor acquisition mailings. That's proven to be fruitful almost always.
In such a case as yours, however, I'd advise sending a DOUBLE postcard to all those non-respondents on your list asking whether they wish to continue receiving information from you. Those who respond affirmatively -- a modest percentage, surely -- are worth continuing to solicit. Even if they don't ever send a cash gift, they might be prospects for legacy gifts. Those who do not respond may be included in an acquisition mailing or, if they've been on the list more than five years, simply archived.
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