Sunday, October 25, 2015

Non profits

   Non profit organizations collect as much as 40% of their donations around the end of the year. It's not just the spirit of giving, it's the tax deduction that attracts much of that. Recently I have seen that companies tend to send nickels out as part of their campaign to collect donations. How does sending out money help collect money? What if the charity kept the nickel and only sent out a letter, would they receive more donations including the nickel they saved? I know that it sounds ridiculous thinking that  a nickel could have an impact on a company, but if they send out 2,000 letters that is $100.00. Some charities such as Children's Hospital Los Angeles says that for every nickel it spends in the campaign, it makes a dime; but does that nickel really have to be sent to make the dime?
   After doing some research, I have learned that companies mail out money ($0.05) as an inexpensive premium. Most of the items that you receive in the mail, such as greeting cards, address labels, calendars,and notepads typically cost more than $0.05. So with the company sending money they actually save on the campaign.
  Direct mail is still more effective than the internet in terms of fundraising, but direct mail is not exactly environmentally friendly.To attract just one new donor, nonprofits need to send out about 200 pieces of mail.
   Just this week I have received several pieces of mail asking for donations. One of those from the Paralyzed Veterans of America. Written on the envelope,'This nickel can help provide life-saving assistance to paralyzed veterans.' Also included with the nickel were; 72 address labels, 10 holiday gift tags, 10 envelope seals, and a magnetic 2016 calendar. My first thought when opening up the envelope was why did they send so many things? I can understand if I had already sent them a donation previously, that they might step up the 'gifts' as thinking that I might send them another donation but they are risking valuable campaign dollars one just one letter sent out.  
   I know that everyone gets mail asking for donations, and that not everyone donates to the same causes but do you base your donations on the free items that they send you? Do people really donate just because of the company sent you a nickel? What are your thoughts?

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