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  • Actual for You - Direct Mail Fundraising Arithmetic: Avoid Blunders By Knowing Your Numbers

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    draiser was actually the organization’s least-effective fundraiser. In 1999, they spent 89? to raise one dollar. They didn’t realize that their “best fundraiser” was a financial flop, year after year. Why? Because the
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    Your direct mail fundraising results never lie. But they mislead you if you let them.

    I worked as Director of Development for a national charity that held a lavish fundraising banquet each year. The staff, from the executive director down to the receptionist, including the development staff, thought this banquet was the organization’s most successful fundraiser.

    Shortly after being hired, I conducted a comprehensive development audit that measured the profitability of the organization’s fundraising methods, including this annual banquet. I added up the cost of the venue, catering, table and chair rental, lighting, sound, speaker honorarium, invitation printing, postage and every other related cost and subtracted this number from the gross income.

    What a surprise we got!

    What looked like a successful fundraiser was actually the organization’s least-effective fundraiser. In 1999, they spent 89? to raise one dollar. They didn’t realize that their “best fundraiser” was a financial flop, year after year. Why? Because they

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    f, from the executive director down to the receptionist, including the development staff, thought this banquet was the organization’s most successful fundraiser.

    Shortly after being hired, I conducted a comprehensive development audit that measured the profitability of the organization’s fundraising methods, including this annual banquet. I added up the cost of the venue, catering, table and chair rental, lighting, sound, speaker honorarium, invitation printing, postage and every other related cost and subtracted this number from the gross income.

    What a surprise we got!

    What looked like a successful fundraiser was actually the organization’s least-effective fundraiser. In 1999, they spent 89? to raise one dollar. They didn’t realize that their “best fundraiser” was a financial flop, year after year. Why? Because the

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    comprehensive development audit that measured the profitability of the organization’s fundraising methods, including this annual banquet. I added up the cost of the venue, catering, table and chair rental, lighting, sound, speaker honorarium, invitation printing, postage and every other related cost and subtracted this number from the gross income.

    What a surprise we got!

    What looked like a successful fundraiser was actually the organization’s least-effective fundraiser. In 1999, they spent 89? to raise one dollar. They didn’t realize that their “best fundraiser” was a financial flop, year after year. Why? Because the

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    nd, speaker honorarium, invitation printing, postage and every other related cost and subtracted this number from the gross income.

    What a surprise we got!

    What looked like a successful fundraiser was actually the organization’s least-effective fundraiser. In 1999, they spent 89? to raise one dollar. They didn’t realize that their “best fundraiser” was a financial flop, year after year. Why? Because the

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    draiser was actually the organization’s least-effective fundraiser. In 1999, they spent 89? to raise one dollar. They didn’t realize that their “best fundraiser” was a financial flop, year after year. Why? Because they always published and celebrated the gross income generated by the event and never looked at the net income.

    Two is better than one
    You see, the problem with direct mail fundraising arithmetic is this—you need to understand and use more than just one measurement. You don’t buy a bunch of bananas based on price alone. You wouldn’t choose a lifelong mate based on looks alone (at least I hope you wouldn’t). And you shouldn’t measure your direct mail fundraising success by one ratio or formula alone.

    Consider, for example, the most well-known number in direct mail fundraising—the response rate. Everyone knows that generating a high response rate is a good thing and that generating a low response rate is a bad thing. That’s why one of the first questions that prospective clients ask my firm is usually this: “What kind of resp

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