Benchmarking Charity Performance: Returns from Direct Marketing in Fundraising

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Abstract
Despite rising public interest and concern only a handful of extant studies have addressed the performance of fundraising techniques and outlined the returns that might be expected. To date no one has examined the returns accruing from direct marketing activities in fund-raising. In this paper we present the results of a study of 150 UK charities currently employing a range of direct marketing tools/techniques and indicate the ROI that can be achieved through each. Cold and warm direct mailings are considered, as are reciprocal mailings, unaddressed mail, DRPA, DRTV and face-to-face (i.e., on street) recruitment. The results indicate that most charities lose money on donor recruitment activities and that the overall returns accruing to all forms of direct marketing activity are comparatively low. The implications for both professional practice and further research are explored.

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