Reaching Baby Boomers: The Next Big Demographic in Nonprofit Online Fundraising

Direct Mail acquisition is one of the most expensive ways to raise money these days. When you factor in production, printing, and postage, a simple direct mail acquisition campaign runs about $20K to reach 50,000 people. Direct Mail typically generates a 0.5% to 1% response rate for acquisition, so that “payback” (the point at which you recover what you invested in the direct mail campaign) is taking longer and longer to achieve. According to Target Analytics, which analyzed over 70 nonprofits' direct mail programs, response rates have been declining over the past two years, and this decline is accelerating. To add more fuel to the fire, the Direct Marketing Association says that due to rising consumer hostility toward Direct Mail, laws have been proposed in 15+ states to create “Do Not Mail” registries.

One of the main drawbacks about Direct Mail is that the people who donate money, on average, are older and older. In public broadcasting, for example, where direct mail is the main vehicle for acquisition (other than on-air pledge drives), the people donating in response to Direct Mail campaigns are 65+. To sustain their fundraising efforts, public TV stations badly need to attract younger members such as Baby Boomers.

Given the cost, lack of response rates, and hostility towards direct mail, not to mention the negative impact on the environment, should nonprofits continue to pour money into direct mail programs to reach new Baby Boomers? In short, nonprofits need to develop an integrated strategy using email marketing, outreach and social media to brand their organizations and raise money. It’s critical that nonprofits use 2009 as an opportunity to go where their target audiences increasingly are—which is online. Early Boomers are pretty tech savvy, and have been using the Internet as a communications, ecommerce, and research tool for over 15 years. In the words of Vinay Bhagat, CEO of Convio: “Donors increasingly prefer online channels. While there’s a lot of discussion targeting youth in online fundraising through micro-payments etc, which is sexy, the 50+ category is really the next huge dollar opportunity for nonprofits.” Click here to read more.

© 2009 Rad Campaign, LLC