Telefunding – what you need to know
Have you considered a telefunding program? Here’s what you need to know.
A while back, a reader asked me to write about telefunding. As development director, I oversaw telephone fundraising departments, but I’ve never been a caller myself. So I turned to an old friend and nonprofit telephone expert.
Joe Frederick started out as “Caller Joe” with the Hartford Symphony, The Bushnell, and Hartford Stage, where he moved into management. Under his management, the theater’s year-round call center routinely delivered better than a 200% return on investment.
After 16 years with Hartford Stage, Joe retired as Director of Sales. Over the years, he has also acted as a consultant to many nonprofits across Connecticut.
As a development director, I depended on Joe and his staff for a sizeable percentage of our contributed income. But what delighted me most was the feedback from our donors – many of whom would not respond to other appeals because they were waiting for their annual call. They didn’t want to miss their conversation with their favorite caller each year!
Joe agreed to share why he’s so keen on the phone to cement relationships. And why he thinks the phone can help you raise a lot more money! Read on for his wisdom.
Why use telefunding?
- To say “Hello” and “Thank you” to that portion of your supporters who never hear from you.
- To collect incidental information during the course of these conversations that helps solidify the bond between your donors and your organization. When you talk to your donors, you stay informed about their lives.
- For the revenue stream that will occur once you start asking for it, personally.
Hello and thank you
How many times has your organization tried to contact each of your supporters personally? Of course, emails went out to everyone, letters were sent, and updates, texts, and tweets were all posted, but was it personal?
In this digital age, we have myriad communication options. It can overwhelm us all – including your donors. In the face of so many demands, how can your nonprofit’s message be effective with limited staff and budgeting?
The answer is simple, although it’s not often easy to execute. Call them up and say “Hello.” Ask them, one to one, what they think. Tell them you appreciate their support and THANK THEM FOR IT!
An interesting side effect of the social media revolution is the resurgence of the phone call as a means for “the more important communications” in our lives. The sound of another person grabs our attention better than email or social media.
A conversation means more to the average person. That’s especially true if the people involved make a personal connection. And even better if it’s the first time someone has spoken with them. It’s a powerful tool that’s often overlooked because we don’t know how to implement such a strategy.
Personal connections grow strong bonds
Person-to-person information solidifies the bonds between people. When you know them and they know you, trust evolves.
You know you need a system to collect information about your donors. When you do that well, you build stronger connections each time you communicate with them. That’s because you took the time to listen and remember what they said.
When you ask someone something specifically personal to their lives they’ll know you’re focused on them and they’re not just being given a line.
Raise more money with telefunding
Telefunding can be quite lucrative if it is done in a professional manner that speaks well of you and your supporters. “Ask and you shall receive” is not just a sermon, it’s practical advice on getting what you need.
An additional revenue stream is something most nonprofits would find beneficial.
First, be sure you’re doing a good job with communication and information gathering. With that in place, telefunding can produce significant yields along many lines.
But it’s not just about the money
A word of caution here: If all you’re after is the money, and telefunding is not part of an overall development strategy, you are doomed to failure. You might get some returns, but the human expense to your reputation will suffer. And you run the risk of alienating the people you will need down the road.
Summing up
Telefunding can be a powerful addition to a solid fundraising program. Using the phone can help you gather important information about your donors and prospective donors. Used correctly, you will build stronger relationships with the people who are called. And you’ll raise more money.
But remember telefunding will not be successful unless it’s part of an overall strategy that focuses on your donors. As with all fundraising, put relationships first and the money will follow.
About Joe
Joe Frederick owns and operates Ringers LLC, offering consulting and full-service telephone solicitation services to area non-profits. Thinking about adding or improving a telephone fundraising program? You can write him at JFrederick@RingersLLC.com. Or call him at 860-966-4050!
Photo thanks to Ryan McGuire
Mary, you’re quite right. Telefunding (or phone fundraising, or phonathons, or dialing for dollars — a rose by any other name…) can be an extremely effective way of raising money, gathering information, and stewarding supporters. However, as you’ve stated, it must be done correctly.
Stephen F. Schatz and I were phone fundraising pioneers and developed many of the methods that are now considered best practice. Not long ago, Steve wrote the definitive book on the subject: “Effective Telephone Fundraising” (John Wiley & Sons — http://astore.amazon.com/mlinn-20/detail/0470560592). The book will help anyone enhance the results of any phone program for any organization.
Steve also wrote a blog article for my site that might interest your readers: “5 Things You Should Never Do in Your Phone Fundraising Calls” (https://michaelrosensays.wordpress.com/2011/10/28/5-things-you-should-never-do-in-your-phone-fundraising-calls/).
Ever since I entered the development profession in 1980, folks have been declaring that phone fundraising would no longer be a viable approach in the near future. Well, while it is not without its challenges, phone fundraising remains a powerful development tool today and, likely, for the foreseeable future.
Well, people are always trying to announce the death of one or another mode of communication, aren’t they? Thanks for the links, Michael. I remember reading your post and enjoyed it.
It’s funny – for me, telefunding is a great example of why you shouldn’t use yourself as the model. I hate getting calls. But just because it’s not my preferred mode of communication as a donor doesn’t mean it isn’t still very effective – or that some donors prefer it!
Mary, you’re right, once again. It’s a matter of what works, not what we think we like or don’t. You reminded me of a story from when I owned The Development Center, a leading phone fundraising and marketing firm.
I was meeting with a prospective client, the Director of Development of a museum. In the middle of our discussion, the President of the institution came in, plopped down in a chair, and announced he hated any form of telemarketing. The DOD turned red and remained silent. I began packing my things, and asked, “Why?”
The President said, “I hate calls. They always come at a bad time.”
I asked, “Oh, you must get a lot of calls. What organizations have called you recently?”
The President then listed a handful of organizations that had called him. One, in particular, caught my attention. I asked, “What happened when they called you?”
The President sheepishly looked down at his shoes and quietly replied, “My wife and I decided to buy a pair of season performance subscriptions.”
I said, “Great! That was my program, and my client!”
Without saying another word, the President rose from his seat and left the room. The DOD signed my contract. The campaign we implemented was a tremendous success.
The moral of the story is: If you call people for an organization they care about, and if you conduct the calls properly, you can achieve success for your organization AND have happy donors.
Yes. As I mentioned, way back when Joe and I worked at the theater together, our donors had favorite callers and would eagerly wait for the conversation each year. They weren’t paid callers – they were staff members who built real relationships with our donors. That’s the ideal.
Mary,
How timely! I just cut an article out of the Sunday newspaper here with a Kiplinger byline that got me pretty engraged and ready to write about it. The article, entitled “Donation Dilemma” included this startling bit of advice to donors:
“… you should decline any requests to give over the phone, says Leonie Giles, a senior program analyst for Charity Navigator.”
Really? Her advice is based on the notion that telefundraisers take too big a percentage of the charitable dollars raised by phone. Don’t get me started on that… I thought Charity Navigator was moving to a more sophisticated understanding of overhead. And not even one disclaimer to this advice by the way — e.g. a volunteer calling, or a staff member, or an organization you regularly give — just a blanket don’t do it.
Arrrgggg.
Gayle
So frustrating!
Yes, if the police or firefighters claim to be calling, you can pretty well bet it’s a snakey paid solicitor making 90 cents on every dollar donated. Hang up, for sure.
But to paint the whole sector with the misdeeds of a few? That’s so lazy! And yes, I really thought Charity Navigator had seen the light and was moving toward a less lazy, more nuanced view of charity ratings. Guess it hasn’t percolated through the organization?
Thanks, Gayle.