Donor acquisition


Is the market over saturated?

We are not seeing signs that direct mail or telemarketing donor acquisition is in decline. It continues to grow and there is mounting evidence that younger generations will follow suit into similar giving mediums. So direct mail is alive and flourishing!

Direct mail is still a cost effective way to acquire donors. Telemarketing may work better for causes that are not as well known. And Face2Face can be great, but you will recruit younger donors who are not ideal bequest prospects.

RedEdge Fundraising Solutions has a long history and success in acquiring large numbers of new donors for many charities, including:

  • Fight Cancer Foundation – 30,000 new donors
  • National Stroke Foundation – 210,000 donors
  • Stroke Foundation of New Zealand – 65,000 donors
  • Plunket Society of NZ – 6,000 donors
  • Australian Red Cross – 8,800 donors

Donor acquisition is a tricky business and one that requires careful financial management and forecasting.


Do premiums really work?

YES. Sadly acquiring a new donor requires more than just relying on altruism.

Response rates are higher when a premium in included and the premium market is changing and expanding. RedEdge Fundraising Solutions offers a higher value premium pack versus a lower value premium direct mail pack.


Why the use of premiums (gifts) are recommended

Premiums are vital to many direct mail donor acquisition programs. And in recent times address labels alone are not serving to achieve the best response rates.

Premiums can take many forms, from traditional address labels and calendars to the more unusual seed packet or even a tea bag. What they all have in common is the ability to get mail opened, generate higher response rates (than non-premium efforts), and drive us all crazy with worries about their up-front cost and the value/renewability of the donors they acquire.

We love to hate them, but the fact is premiums form the majority of not for profit acquisition mail, and their usage is now standard. Why? For many charities today, there is increased competitive pressure to stand out in the mailbox. And while many have come to rely on the response rates that premium packages bring, the days of just mailing address labels are over. We need to become smarter about what and when we mail, and to whom.

Premium use within the not for profit space has grown steadily for the past years in Australia and New Zealand. However we are entering a new era in donor acquisition, one in which a complete ROI analysis must be done on every prospect group. Increased access to LTV information is shaping the argument over premium use.

There are no rights or wrongs on premium use, but it’s a matter of defining priorities: Premiums are a valuable tool for getting donors to raise their hands to a relationship with your organisation (i.e. raising response rates). Although we’d all love to have prospects beating down our doors to donate, for the future it’s likely that we will continue to need premiums as a foot in the door so that we can tell our organisation’s story. The key is doing it appropriately and cost effectively, being well informed about the acquisition landscape, and being fanatical about tracking the long-term value of donors acquired.


Benefits of using RedEdge Fundraising Solutions for donor acquisition

  1. 15 years of experience in donor acquisition appeals.
  2. Inside knowledge of current trends and issues.
  3. Fast turnaround – as little as 5 weeks.
  4. Acquisition mail packs tailored and personalised to your charity.
  5. Net name supply of prospects and management of the list rental.
  6. Great value in the print and mailing of your mail pack – we offer the best mail pack deals in Australia and New Zealand.
  7. Complete development of the appeal copy.
  8. Support in managing new donors and queries.
  9. Analysis of the performance of your acquisition appeal.
  10. Second gift strategies.