Relief Efforts
Multichannel fundraising helps Oxfam boost coffers in a tough economy
An integrated strategy of direct mail, telemarketing, e-mail and Web initiatives is helping Oxfam America meet its fundraising goals.
Like most nonprofits, the Boston-based international relief and development organization has faced great challenges acquiring new donors lately, says Ken Mallette, director of Oxfam's annual fund.
“We're finding through research that donors aren't looking around for new causes to support,” he says. “It's disturbing but it makes sense. It's the economy — people just aren't making new commitments and creating new expenses for themselves.”
Regardless, Oxfam is in the mail constantly — targeting both new prospects and a 250,000-name donor base — but the current environment has caused it to modify its plans.
“We've been cutting back on prospect mailings a bit,” Mallette says. “But we still know we have to bring in new donors via mail, because that's where the biggest pool is.”
Oxfam donors typically are highly educated, he says. They closely follow foreign affairs and international news. The base is split fairly evenly between men and women and remains loyal over several years of giving; the average initial gift is about $35. Not surprisingly, donations peak toward the end of the year, and responses also surge in response to disasters, such as the 2004 tsunami in the Indian Ocean.
“That's when people notice our work — providing things like water and sanitation services and rebuilding to critical areas,” he notes.
The organization's sustainer program has about 16,000 members. “They're a very loyal and dedicated group, and obviously moving people into an automated monthly giving program is very effective,” Mallette says.
In the mail, Oxfam has used a very straightforward and direct approach, with no premiums. A recent mailing went out in a plain white envelope adorned only with the Oxfam America logo and a “10 Reasons to Renew Your Membership” headline in green. The group is testing the use of more photos on outer envelopes.
Mallette says cross communication has been critical for the organization. Oxfam's done well getting mail donors to give online and using telemarketing to encourage Internet contributors to become monthly sustainers. “If someone tells us they want to hear from us by only one channel we'll honor that. But there's so much crossover. We don't want to make the mistake of pigeonholing people into one channel.”
Online, Oxfam has about 350,000 community members — a mix of activists, donors and e-mail newsletter subscribers.
Mallette says integrated e-mail campaigns have been most effective. For example, an issue — such as the need for more humanitarian aid in Darfur — is introduced to members via a newsletter and followed up with a request to sign a petition. This shows members the need for financial support.
Another worldwide Web campaign was mounted to get Starbucks to honor its commitments to Ethiopian coffee farmers. E-mails asked constituents to sign petitions and call the coffee company. Members also were asked to post photos and videos of themselves on Flickr and YouTube, respectively, holding up signs of support for the farmers. A day of action was promoted via e-mail, when people were asked to go to Starbucks locations with the message. The chain ultimately agreed to sign a licensing agreement with the farmers, and a video appreciation from the farmers was posted on YouTube and OxfamAmerica.org.
At the moment, Mallette notes such social media initiatives are more about engagement than hard ROI: “It's all part of the mix to increase the relationship and get prospects.”
Today about 10% of Oxfam's direct marketing revenue is generated online, through e-mail appeals, the core Web site and ancillary programs such as OxfamAmericaUnwrapped.com. On this site, people can make a donation in a friend's name as a gift for them. For example, they could choose to purchase a can of worms ($18) in honor of an avid fisherman, seeds for a gardener ($50) or a camel for an animal lover ($175). The actual gift goes to someone who desperately needs the item, and a thank-you card explaining the gift goes to the donor's friend.
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