As every fundraiser in Canada knows, it’s getting harder and harder to bring in the bucks their organizations need to fulfill their missions and provide the programs Canadians need. The only way out of the conundrum is to develop long-term relationships with donors, i.e. promote their giving every month rather than once a year or as the spirit moves them (or you ask, again and again).

This message was brought to the Alberta Fundraising Conference by Harvey McKinnon, President of Harvey McKinnon Associates.

Bombarding his audience with “sevens”, McKinnon offers seven reasons to act, seven myths, seven essential components, and seven ways to recruit monthly donors.

Charities should focus on monthly giving, he says, because it increases their income, forms the foundation of better relationships, retains donors longer, provides predictable revenue streams, costs less, draws in increasing income, and is convenient.

Seven myths non-applicable

The “seven myths” which stop charities from exploring this vehicle, he says, are: “we tested it and it didn’t work; it won’t work with our donor base; it’s too much work; it’s a small amount of money; we don’t know how to do it; our donors are too old; our donors aren’t committed enough.”

The program won’t be successful, the speaker says, without the seven essential components:

1. A donor base which the charity understands in terms of donors’ giving patterns and motivations in giving to that particular charity.
2. An appealing mission, possibly involving children, animals, religion, emergency, or international, which the charity understands in terms of its own niche, its competition, and its ability to implement a program.
3. An ability to communicate the message.
4. An effective processing system.
5. An integrated marketing strategy.
6. A focus on thanking and answering donor concerns.
7. Donor research and analysis

The seven ways to recruit monthly donors, says McKinnon, are: direct mail, phone, person-to-person, events, space ads and newsletters, broadcast media, and the Internet.

Telemarketing pros and cons

Of these, he comments specifically that telemarketing’s advantages include instant feedback, instant analysis of effectiveness, cost control, the ability to negotiate a larger gift, higher response rates, the possibility a single gift may cover costs, and the opportunity to update errors in the organization’s files. However, he warns, it’s expensive and many people hate telemarketers.

Finally, McKinnon notes that monthly donors offer a fertile field for further fundraising through product sales, special gifts, or tickets to events. He also provides a chart showing the long-term value of acquiring 50 new monthly donors, noting that even as their numbers eventually decline, their average gift increases, the cost of servicing them declines proportionately, and the net profit increases exponentially.