Guest: Roger Craver, Craver, Mathews, and Smith
Host: James B. Hyatt, Web editor/writer for the Philanthropy Journal

We regret we can't provide answers to all of the questions received, but hope the following information covers a broad enough spectrum to educate nonprofit groups of all sizes about solicitation efforts.

If you have specific questions or need more advanced help in setting up, maintaining or refining your communications plans, Craver can be reached at Craver, Mathews and Smith, (703) 237-0600.

From Pat Harris, Columbia (S.C.) YMCA:

Question: "Since we are a local NPO and depend on support directly from our service area, how can we expand our direct mail appeal beyond those in the database?

"I don't know what to look for in buying mailing house lists to fit those that might be inclined to support our organization, and how to know the mailing list supplier is trustworthy.

"Where can I get additional information on direct mail? I am not a beginner, but need to move to the next level."

Craver: Mailing lists are perhaps the single most important component of a successful direct mail campaign. There is no substitute for a discussion with one or more direct mail list brokers, who have experience with non-profit organizations.

I suggest you contact a nonprofit organization in your community that uses direct mail successfully, and ask them to give you the name of one or more mailing list brokers.

On the issue of "trustworthiness," virtually all list brokers are trustworthy. That's because most brokers are paid on the volume of names they rent or exchange on your behalf. Their best self-interest is served by choosing test lists that work well for you, so that you will come back to them for additional quantities on these lists.

On the issue of mailing lists, it is important to understand that the mailing lists that will work the best for you are likely to be the donor lists of other organizations with affinity interests to you. "Birds of a feather flock together" is a good maxim to remember on the issue of mailing lists.

That's because people who have given to a cause similar to yours are also far more likely to give to your cause. And remember, the most important trait in any direct mail list used for fundraising is the fact that the people on it have demonstrated their "mail responsiveness" to direct mail offers in general, and fundraising offers in particular.

The Direct Marketing Association in New York has a Fundraising Council, and members of that include a number of qualified direct mail list brokers.

From Michael Reid, Executive Director, World Children's Transplant Fund:

Question: "The initial investment for a Direct Mail program can be rather costly for a small non-profit. It is also a commitment that can take up to five years to demonstrate financial gain. Does Mr. Craver have any leads for potential sources of funds or helpful advice to help eager (but cash poor) organizations actually get started?"

Craver: This is an excellent question that points out Mr. Reid's understanding of the investment/return dynamic of direct mail. Indeed, it often takes three to five years to build a successful direct mail fundraising program. That's why I caution that direct mail is not for everyone.

Two potential sources of funds to launch and build a direct mail fund are possible in my experience. The first may come from an existing major donor to your organization. Many donors understand the importance of diversifying the support base of an organization.

Although few major gift donors are intimately familiar with direct mail, most do understand investment and return. You might consider putting a proposal in front of one of your best donors to see whether or not they would be willing to make a direct mail grant or a low-interest loan to help you fund the program.

A second source of funds to launch and build direct mail programs is foundations. Many foundations make program-related investments or program-related loans. In addition, many foundations also want to help their grantee organizations develop alternative sources of support.

Therefore, if you have foundations that have supported you for a long time, you should have a candid conversation with them about the desirability of applying for a program-related grant or loan.

Of course, you will need to do a proper pro forma budget and investment model, but these are easily enough constructed by any competent direct mail consultant or a fellow development officer in another organization.

Good luck!

From Tim Siegel, GrowPro:

Question: "Some polling has suggested that Americans will become increasingly demanding and guarded about how businesses release and market information volunteered by customers or donors on Web sites. What trends to you see ahead regarding laws, industry practices, or popular opinion on how charities will need to disclose, protect or limit their use of donor data for direct mail and other marketing uses?"

Craver: The issue of privacy and the misuse of personal data have been long-standing concerns in the direct marketing industry in general, and in the charitable sector specifically.

The best practice is one of full disclosure. Let your donors know what use you intend to make of their name and address. If, for example, you intend to exchange their name with other charities, then clearly indicate this and give them an option to not have their name exchanged.

When it comes to the Internet, check out the "privacy statements" on many Web sites. Those organizations which are in the public communications business for the long haul fully disclose how they use information and give the readers/users of their Web sites the option of having the information shared with others.

I want to add that there is nothing inherently wrong or unethical with sharing or exchanging information. What is wrong or unethical is if the person providing the information is not made aware of its ultimate use.

So far in the U.S. privacy concerns about the direct marketing industry have largely been handled on a voluntary compliance basis. From time to time Congress and state legislatures get up in arms about privacy, hold hearings and rattling sabers. But historically the industry has responded with aggressive, cooperative solutions to the problem.

As in most situations where charities are concerned, full disclosure and openness are the recipe for avoiding most problems.

Question: "I guess I have three questions for Mr. Craver. First, are there any results to point to, to determine just how great the impact has been of adding Internet fundraising techniques to traditional direct mail techniques? Mr. Craver talks about 'the power of this technology to attract good numbers,' and points to the American Civil Liberties Union as an example. Can he use that group's numbers to demonstrate how, specifically, it has helped them excel financially?

"Finally, the organization for which I work is constantly bombarded with opportunities to add secured on-line giving options, to rent e-mail lists, to purchase advertisements on the Web, to provide a listing or link for a Web directory of charities. Considering the common limits that non-profits have to spend, both in hours and finances, which of these options are highly recommended and which are wasted efforts?"

Craver: The ACLU has been successful in attracting activists and donors through the use of its Web site. Because I treat client information confidentially, I cannot disclose any specific results. I would urge you to carefully study the ACLU Web site and others to see what you can learn from them. Perhaps if you call or email the Membership Director or Development Department of the ACLU they will be willing to share information with you.

In terms of the rental of e-mail lists, the purchasing of ad banners on the Web and links from charitable directories, there is a mixed history of success. Generally, I would suggest caution in this area. What is most important is that your own site be first prepared to capture the interest and information about those visiting your site, and that you then put in place a method for responding quickly and effectively to them.

The use of banners and links are two techniques designed to build traffic to a Web site. If you have a burning issue, a controversial issue, or a popular issue that you work on, you may well consider the use of ad banners and links to bring traffic to your site. However, bear in mind that a bucket with a hole in it will not hold water for very long. So first, before investing a lot of money in links and advertising, make certain that those who visit your site are enthralled and engaged - and you'll do just fine.

From Betty Wade Coyle, Executive Director, Hampton Roads Committee to Prevent Child Abuse:

Question: "I have seen the ACLU site and I'm very interested in making it easy for people who have legislative concerns to make their opinions known to both state and federal legislators. How effective have sites like the ACLU's been? How might setting up such a site effect an organization's 501(c)(3) status?"

Craver: The Web is tailor-made for prompt and effective citizen action. Increasingly, legislators and their staffs are dealing with e-mail the way they came to deal with high volumes of letters and faxes a decade ago.

Sites that provide users with easy access to legislative e-mail addresses, drafts of suggested text for messages, and a summary of the issue on which they are lobbying, work best.

The prohibitions against lobbying by a non-profit organization go to specific legislation before Congress. If your site is dealing only on the pros or cons of a particular issue - not a particular bill - there is no prohibition.

If you are requesting people to support or oppose a specific piece of legislation, however, you could very quickly get into the prohibitions against grassroots lobbying, which must not represent a "substantial" part of your activity, according to the Internal Revenue Code. Generally, the test for "substantial" goes to the amount of money an organization spends on lobbying, in terms of its overall budget. This can be a tricky area, so consult a tax authority on nonprofit organizations.