February 23, 2011

When it comes to ZIP codes, it's hard to beat 90210, just ask Tori Spelling or Anna Lynne McCord . But just because it's famous doesn't mean it brings home the bacon when it comes to direct mail.

Nonprofits might want become a little more acquainted with the 27410, the 43054 area, or the 20001 if an examination of direct mail fundraising during the past 10 years is any indication.

The NonProfit Times asked direct response firm Merkle, Inc., to dig through fundraising databases to uncover the best places to look for charitable donations outside of California and New York. The Columbia, Md.-based company compiled data from 10 national nonprofit clients during the past 10 years (2001-2010), with which it helps raise $376 million annually in direct mail.

Outside California and New York, the top contributing ZIP codes during the past decade, based on a minimum 100 gifts, were:

20001 - Washington, D.C., with an annual average of $4,426,964
27410 - Greensboro, N.C., $1,183,381
21202 - Baltimore, Md., $658,173
43054 - New Albany, Ohio, $220,891
19422 - Blue Bell, Pa., $153,467

During the past decade, Washington, D.C.'s 20001 ZIP code has generated the most charitable donations of any ZIP in the nation, averaging $4.4 million annually. Generating the most revenue were the years 2002 and 2009, with $10.2 million and $7.2 million, respectively.

The top-performing ZIP codes change slightly, but are not altogether different, when a minimum of 500 donors are factored in:

27410 - Greensboro, N.C., $1,183,381
20817 – Bethesda, Md., $257,492
21204 – Towson, Md., 165,777
19422 – Blue Bell, Pa., $153,467
60062 – Northbrook, Ill., $228,426

“That a lot of these are metro ZIP codes doesn't surprise me that a higher level of giving is coming out of those areas,” around Washington, D.C., and Atlanta, said Angie Moore, senior vice president and general manager of Merkle's Nonprofit Group. “They are in a major metro or a high-value suburb of a major metro,” she said.

That not one of the cities regularly generates $10 million in a year shows the diversity of giving and where it's coming from, she added.

Several ZIP codes repeatedly appear within the top five, year over year, since 2001. Within that group, four ZIPs demonstrated the highest giving consistency by appearing within the top five ZIP codes at least four or more times since 2001: Greensboro, N.C. (27410), Winnetka, Ill. (60093), West Springfield, Mass. (01089) and Creve Coeur, Mo. (63141).

Where do you look for potential donors? According to Gail Perry of Gail Perry Asociates in Raleigh, N.C., here are some shortcuts to help you identify the right donor prospects who can take your cause to the next level.

1. If you need funding, go to your current donors first. They have already invested in you. They are "pre-sold" on your organization and on your cause so to speak. They've already voted with their money that they believe in you. Work for deeper relationships with these existing donors, and you'll be more successful.

2. Start with your most committed donors and move them into larger gifts. Find out what they are giving and what their vision is for your organization. How much do they really care? Are they giving what they can? What's their potential? What are their hot buttons?

3. Look for people who have both wealth and affinity for your cause. Focus your time on the wonderful people with deep pockets who have a reason to be interested in your cause. “Affinity” means that there is some sort of relationship between you and the prospective donor -- or at least you know that the donor is interested in your general cause.

Don't spend your valuable time on people who have not indicated any type of interest, no matter how wealthy they are. The odds are not great that you'll be successful, and cultivation time will be lengthy.

4. Don't expect cold calls to yield anything. N ever make cold calls. The changes of success are so very low. Make it easier by having someone open the door to help you meet the prospect.

5. Focus on your top-level donors. Roughly 95 percent of the money comes from 2 percent or 3 percent of your donors. Always narrow down your focus to a few prospects with deep pockets at the top of the donor pyramid and work hard on relationships with them.

Don't spread yourself too thin. You'll never be successful by chasing every possible donor who comes along, because you can't manage the follow-up.

7. Use your informal networks to identify prospects. B elieve in word of month prospect identification. In many communities, families with wealth are well-known. It's not difficult to identify the individuals who have the capability to make major gifts. Their friends will often tell you all about them - and how to get the door open to them. Are you ever surprised at what people will tell you about "other people's money?"

8. Pay attention to the ladies. Recent statistic show 63 percent of our nation's capital is held by women. Women might hold the wealth in any family. Women often drive the gift. Listen to them and find out what they believe in and what they want to accomplish.

The question in the nonprofit sector no longer is whether to use social media as a means of telling more people about the mission and fundraising. The questions now are about using social media effectively and, most recently, measuring success using social media.

Speaking at the DMA Nonprofit Federation's New York Nonprofit Conference, Sandra Sims of causeblogger.com , Jay Scott of Alexs Lemonade Stand Foundation and Brenna Holmes of Adams Hussey & Associates, offered information on the experience the California State Parks Foundation had with social media, talked about measuring and tracking social media, in a session moderated by Jann Schultz of Operation Smile.

First, they stressed the importance of the fact that using social media is a form of sharing, and that sharing is caring. Then, they outlined ways to measure social media:

* Facebook friends/members/"likes"/actions
* Twitter followers/retweets
* YouTube subscribers/views
* Blog subscribers/views
* Web site traffic created
* Social media units
* Money raised.

In addition, they offered five tips on using and measuring the effect of social media.

* Make communication on social media a two-way conversation.
* Chances are, if you like it your followers will like it.
* Keep things current and relevant.
* Be a giver, not just a getter.
* Measure things, but remember that measuring is not everything.

Having an online presence is only part of the story. Getting people to use it is the key. In the journal “Associations Now” Paul Schneider, co-founder of Socious, Inc., in Gilbert, Ariz., writes that unique content is what draws and keeps them.

Further, he offers 10 ideas to keep them coming back for more:

• Expert blogs. Give members who are expert on something a weekly or monthly blog.

• Ask a hot question. Everyone has an opinion, so ask questions to get people talking.

• Surveys. Launch a survey members would want to know the answers to. Make the results available only to participants.

• Post pictures. Have members upload theirs from the latest conference. Hold contests.

• What's new? Send reminder emails to alert users to new content or posts containing words or phrases that interest them.

• Members of the Week. Members and volunteers are what make the organization special. Each week feature a short article on a member's contribution to the organization or the sector.

• File drives. Have a contest for members to post files to the resource center or library. The most postings or the most useful gets a prize.

• Staff blogs. Your staff lives and breathes the industry.

• Monthly addresses. Have your president or executive director film a monthly video address.

• Webinars. Members want to learn. Provide weekly or monthly practical webinars on sector issues.