Service Ahead of Profits

From social service organizations to industry associations and endowed centers for the arts, the nonprofit sector spans a wide array of interests. As different as these organizations are, however, they face many of the same challenges. In today's economic climate, when people are paying more for basic items like food and gasoline, the amount of disposable income going to nonprofits is declining. To overcome these economic factors, organizations are taking a cue from the for-profit world, implementing new technology and engaging their constituents in creative ways. The goal of increased ROI is the same for both non- and for-profit organizations, even if they differ on how to get there.

The ABC's of Donor Engagement

There are more than 5,000 children in the Austin, TX, area at risk of abuse or neglect who are helped by Any Baby Can (www.abacus.org), a service organization that's been in the area for more than 30 years. The agency's 11 programs assist newborns through 18-year-olds with chronic health conditions, development issues, and special health care needs. Fundraising keeps the programs going, and Allison Deskam, ABC's communications manager, says without managing donors, none of the work would be possible.

"We use CRM, but we call it constituency relationship management," Deskam says. "We carefully keep as much information as we can about donors, and we send them newsletters and email campaigns several times per year to increase retention."

ABC has used Sage Software for its donor programs since 2006. Thanks to the more frequent contact through email and a targeted direct mail campaign, ABC acquired more than 300 donors in the past year, and reduced its donor lapse rate from 80 percent to 45 percent. Deskam also says individual giving increased 20 percent in the past year, and grant funding is up 25 percent. She says, "We do everything we can to hang onto our loyal donors by engaging with them more."

A Little Help From Your Friends

Nonprofit charitable organizations help others with their services, but sometimes they require a little help themselves to get started on an expensive project. That was the case with Ronald McDonald House of Chapel Hill, which recently began an email and search engine marketing campaign thanks to some donated services. Michael Lowery, the House's development director, says the organization could never afford an online strategy on its own.

"This whole thing is new for us in the nonprofit world, and the cost is very high," he says. "We want to be able to target people for specific events we run, tell stories of the families we help, and use paid search to drive people to our award-winning website [www.chaphillrmh.net]," which was also donated.

Working with Bronto Software and Ion Interactive, the House created a plan for targeted emails that direct donors to landing pages. Once there, donors are asked to donate in different ways, depending on their profile. The House segments the profiles according to whether donors have given before, their income levels, and their geographic locations. Some are asked for volunteer hours, others are asked to help financially. A campaign to sell tickets for a "girls just want to have fun" event exceeded expectations, Lowery says. "We're able to track who comes in through each avenue and see if traffic increases, and we get a spike in volunteerism with these tools," he adds. "At the end of the day I have to ask, 'What gets me the most bang for my buck?'"