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June AFR at All Time Low!
Assessing your Philanthropy Program
Feature Article! "Dear Friend"...

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Karen and Mike Davenport will be presenting at the 2012 Southern Regional Conference for Learning in Retirement on July 27 at the Osher Lifelong Learning institute (OLLI), University of North Florida in Jacksonville.  

 

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June 2012 AFR Announced

 

The IRS Applicable Federal Rate (AFR) for June 2012 is 1.2%, representing a new all-time low. Also known as the Discount Rate, 1.2% means that charitable deductions on new gift annuities and charitable remainder trusts will be at a historic low.

 

While this low rate translates into minimum charitable deductions, it also will mean that the amount of tax free income to gift annuity annuitants will be maximized, having the effect of increasing their overall effective rate of return.

 

For more information,

contact Davenport & Barr

 
(603) 356-3311

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Meet the Team! 

Karen  Davenport
Karen Davenport
President
Davenport & Barr
Mike Davenport
Mike Davenport
Founder
Davenport & Barr

 

Anastacia Barr

Director of Client Communications

Davenport & Barr

Mike Spencer
Mike Spencer
President
Spencer Group 
 
Mike Gaito, Spencer Group 
Mike Gaito
Director of Information & Analytic Services 
Spencer Group

 Beyond Philanthropy Vol.1, Issue 9

                              June, 2012

 

Mother's Day/Father's Day Appeals are Worth It

By Anastacia Barr

  

Who wouldn't agree that planning a direct mail appeal can be a drag . . . developing approaches that donors can relate to-pulling at their heartstrings so that they open their purse strings -- is an on-going challenge for most non-profits. A large majority of charities conduct a year-end appeal. Other organizations also mail at different times during the year when donors are more likely to give to their cause. For example, many non-profits, from private schools to nursing homes, benefit from using Mother's Day and Father's Day to create a strong emotional connection to the appeal. Below are answers to typical questions asked when planning an appeal that is focused on these celebrations:  

 

Q - Why is acknowledging Mother's Day and/or Father's Day an effective appeal?
Mother's Day and Fathers Day are special to most of us because both celebrations provide an extra opportunity to show appreciation to our parents! Whether our parents are living or not doesn't affect the desire to remember them. A Mother's Day/Father's Day Appeal allows non-profits to use these occasions to connect with donors on a deep emotional level.

Q - How do you make that emotional connection?
For example, if your organization serves older people, share stories about them. People relate to stories. 
We hope that some readers will see their own parents or grandparents in the story being told. Conversely, if your organization serves children, share an inspirational story about a mom or dad and the positive difference they are making. In either case, it is important to ensure that the narrative is compelling so that the reader is motivated to make a generous gift.

Q - How does this appeal compare to other appeals conducted throughout the year.
We advise non-profits to conduct at least two unique appeals each year - as well as a follow up "ask" after each appeal to current donors who don't respond the first time. Often the end-year mailing is actually more profitable, but by reaching out to supporters with distinctive appeals at least every six months, your organization will stay in their minds and hearts and therefore keep donor retention rates high.

Q - What type of organization should consider this type of appeal?
If you can make a connection to your mission, go for it -- and probably most organizations can! People give in order to get something in return, primarily the good feelings that come from helping others, but sometimes it is also because of some elusive benefit they receive.
The benefit in this case is the opportunity to tie the donation to positive feelings that we have about the importance of parents in our lives, as well as the value of being a good parent. 
 

 

 

 

Please Don't Say the "A" Word

By Karen Davenport

 

Conducting a philanthropy program "assessment" is about as appealing to most of us as stepping on the scales -- while we might be curious, we may not want to know the reality of how we are doing . . .

 

In both cases, without an understanding of the current situation, it's impossible to develop any plans for the future! If you've recently asked yourself one of the following questions, it might be worthwhile to take a deep breath and take a look at your program's big picture:

      

1) Where are we now?   

 2)  Where do we want to be?        

 3) How will we get there?

 

 The primary goal of an assessment is to identify areas for improvement and make recommendations that will strengthen the overall philanthropy program. But assessments can be an overwhelming process, and with a tight budgets, who can afford to spend the $25,000 - $50,000 often required by outside professionals to tell you how you are doing?

 

 At Davenport & Barr, we believe that it doesn't have to be that complicated. With more than twenty-five years of experience, we know that it comes down to a few key questions in determining whether or not a non-profit is maximizing its potential in philanthropy. Once we are brave enough to probe, it becomes much easier to develop a plan and set measurable goals.

 

Be one of the first to take our Philanthropy Survey! Click Here. Share your results and we'll provide a free, one-hour consultation!

 

 

 

 

"Dear Friend": You can do better!

By Mike Gaito


As I look through the mail each day, I inevitably come across a few solicitation letters from organizations both known and new to me. Being in the business of direct mail and fundraising, I always take a few moments to assess each package - the envelope, the letter, the reply device and any other inserts. This daily ritual has revealed a trend that really bugs me:


An organization that I support addresses me as 'Friend' or 'Supporter' while asking me to renew my donation. I know they have my name - it's on the outer envelope. It's also on the check I sent them last year. Yet, to them, I'm just another nameless 'Friend'. I don't hold it against them for long. I know the complexities that go along with personalizing a direct mail piece and I know the pressure development offices are under to raise much more with much less. But do you really want to give your donors any reason not to write that check?

Personalizing and inserting variable data in a letter will increase response and strengthen your relationship with donors. This incremental increase in time and complexity will increase your overall return on investment and more importantly it will make your donors feel good...and known.

There is an almost limitless amount of personalized information that can be inserted into a letter or used to drive segmentation. If you have good, clean data, this approach can be incredibly powerful. I have seen variable merge fields used to personalize everything from class years to children's name to branches of the service to almost anything else you can think of. I've seen incredibly complicated segmentation. And it all increases response little by little, cumulatively. Of course, not all organizations have the capacity or justification to do this, but all of them do know their donors' names and addressing a donor by name can make the difference between someone writing a check or tossing your organization in the recycling bin.

So, if you're writing to your 'friends'- stop -you can do better. Start writing to your donors. And show them they have a real 'friend' in your organization.