|
|
|||||
|
|||||
| Path: Main Street : Resources & Library : Research Articles : Feature Article |
Preauthorized payments gaining popularityMay 29, 1995; Canadian FundRaiser
Bob Brown, president Artsmarketing Services Inc., and Jane Lind, director of development, Conservation International Canada, are seasoned professionals who know how to turn cash into commitment. Speaking at NSFRE Fund Raising Day '95, the pair reinforces the need to obtain and maintain donor/member commitment in order to gain future financial success. Brown stated that donor loyalty starts with the first contact at an organization, and continues through a reliable stewardship program.
When a donor shows some interest in a program, try to bolster that specific interest. Because donors are becoming increasingly sophisticated, they don't want to receive an avalanche of requests for a multitude of programs, and annual renewals just aren't enough. "Donors want the truth, said Lind, " and they want to make a difference in the world. Help them to."
Of particular interest, and gaining in popularity is the Pre authorized Contribution (PAC) program --- a system of payments in which voided cheques and/or forms authorize the debit of a pre-arranged donation amount from the donor's bank account or credit card. This system can help change cash into commitment. The charity benefits because PAC programs translate into more stable donation bases, and they offer a continuous monthly supply of money at a much reduced cost.
Donation levels also increase, and attrition rates decrease, on average from 30 per cent to well below 10 per cent. Not only are a few more trees saved --- donors have a hassle-free giving alternative that saves them money (no stamps required), time (no cheque writing or posting needed), and worry (no lost or delayed cheques). And any opportunity to save administrative expenses has a lot of appeal.
However, there are some drawbacks. "Stewardship is more difficult because there is no renewal letter to plead your case, and that means that in order to gain additional gifts from yearly donors, creative thought processes must come into play. Highly specific, vital and special project appeals are a great alternative," says Lind.
PAC tax receipts are sent at the end of the year, a particularly busy time in the business cycle, and bank charges and initial set-up can sometimes be problematic. Nonetheless, PAC programs seem to be able to significantly increase the lifetime value of a charity's donors.
|
|||
