How to Write a Good Fundraising Appeal Letter

Spring is the season when we feel optimistic about raising new money. And many organizations link their spring appeal letters to themes such as Mother’s Day or tax day.

This year, with the economy in a downturn, you need to be extra strategic and focused when writing and developing your fundraising appeal letter. Now, more than ever, it’s important that the letter speaks to the organization’s passion and impact as well as the desires and motivations of the donors.

With that in mind, let’s take a look at how you can create an extra special and very successful fundraising appeal letter this year.

1. Understand the audience that you are writing for and make a distinction between existing donors and ones that you are prospecting. With existing donors you’ll want to emphasize their past support and how critical their future support is. With new donors spend more time introducing the organization and how they can make an impact.
2. Explain the benefits to the donor, don’t just appeal for money. Most donors will contribute because it makes them feel good to help others, but sometimes they expect to receive a gift as part of their gift (such as a free book or a hand-made card).
3. Make the letter exciting and passionate. Tell stories and/or include quotes from the people you’re helping to elicit the donor’s emotions. Make the letter interesting by underlining or highlighting key words.
4. Look at the whole package and not just the appeal letter. Make sure the envelope looks enticing so the donor will WANT to open it. And, if possible, handwrite the envelopes and include a REAL stamp. Include a return envelope and reply form.
5. Don’t worry about the length of the letter. If the donor is interested, she will read it no matter how long it is. Write the letter as long as you think it takes to really tell your story.
6. Always portray a sense of urgency without crisis when asking for money. The competition is too stiff not to tell the reader the critical needs you have and the impact their money will make NOW.
7. Proofread, Proofread, and Proofread. Always have an editor or two review your letter. Remember to avoid the use of abbreviations and acronyms.
8. Personalize the letter. Do not address the letter “Dear Sir.” Make sure you address the letter to a specific person and write a little note on top of the first page of the letter that says something like “Thanks for your previous support”, “or “Have a great spring.”
9. Follow up the direct mail appeal letter with a phone call from your board members and/or volunteers. This will greatly increase the success rate of the mailing and if the donor or prospect knows the person making the call then your success rate will increase even more.

Make sure you follow up within 48 hours of a gift with a thank-you note or phone call to show your appreciation.

How to Engage Board Members to Raise Money

People do not join non-profit boards of directors to raise funds. They join to “change the world” and make a difference in something in their community.

But one of the most important functions of the board of directors is to raise money for the non-profit organization. And since most boards abdicate this responsibility and delegate it to the executive director, the next most important aspect of their position is to make sure that the executive director is motivated and skilled in the process of raising money. However, the executive director cannot do this alone and needs to work in partnership with the board to effectively increase the visibility and outreach of the organization and to bring in money and resources to develop services.

This week, let’s look at some strategies and approaches to engaging board members to raise funds.

1. Ground the board solidly in the vision and mission of the organization as a prerequisite to raising money. Make sure the board members fully understand, appreciate and can present the “30 second elevator speech” of the organization.
2. Role playing with the board will reduce the level of anxiety and fear that people have in asking others for money. Practice in teams of two and go out the first few times in these teams to ask for money.
3. Have the most well-respected member of the board give the board members a pep talk. The board needs to know that by raising money for the organization they create opportunities to change the world.
4. It’s NOT ABOUT THE MONEY. This is really important for people to realize. Obviously it is about the money but you are not just raising money you are giving people an opportunity to participate in a critical program that will make a difference in people’s lives.
5. Have each board member provide three names of people that they will be cultivating throughout the year. When it comes time to do the “ask” have the executive director ask for the money with the board member at the meeting. This is an entirely effective strategy.
6. Don’t forget to ask your vendors, suppliers, and contractors to make business or personal contributions to your organization. These are people that benefit from your organization and they should give a percentage back to your organization. Don’t forget to ask your bank, your insurance agency, office supply store, travel agent, etc.
7. Provide a tool kit for each board member that includes a business card with their name on it, marketing materials, a fact sheet about the organization, “talking points,” and a list of how their donation will be used broken down by a specific dollar amount.
8. The board chair and officers need to set a good example by making the initial contributions.
9. Don’t encourage tough sells that may turn donors off. Try to convince donors that the organization is a tremendous investment that will return significant dividends to the community.

Make every board member a donor and encourage every donor to become a fundraiser for the organization. Once the person becomes a donor try to help them understand the importance of opening up doors for you to meet their associates and friends who might become future donors.

WSJ: Global Economic Downturn Affects Mongolia

After Rich spent two weeks in Mongolia, his understanding of the country’s culture and economy became clearer. To help you understand how the world’s economy is affecting even the most remote of countries, he wanted to share a couple of links from Wall Street Journal.

The Global Downturn Lands With a Zud on Mongolia’s Nomads

WSJ also has a lovely slideshow to accompany the article.

Thoughts From Mongolia V

On Sunday I spent the afternoon with my translator’s brother seeing some of the
cultural activities of the city. We started off visiting the Gandan Khid, the biggest Buddhist monastery in the country. This place is a series of temples, schools, and walkways. Then we walked to Museum of Natural History and the National Museum of Mongolian History. Both of these places were well displayed and I was very impressed with how this country has a value for its history and culture.

I got lulled into looking out the window of my apartment and seeing how people were dressed to determine how cold it was. I was really surprised to find how very cold (at least for me) it was outside on Sunday and we did a lot of walking around the downtown area, through many large squares where they have had rallies and demonstrations over the years. People seem to enjoy the cold weather and get upset when they talk about the hot summer days in the city.