Create a Final Reminder Letter for Outstanding Payment for NPOs with Ease

Final reminder letter for outstanding payment for NPOs

year end could possibly be the most important time of the year to reach out to your donor base with funding opportunities too many non-profit leaders either neglect to ask or ask incorrectly well today I'm going to show you how to implement the perfect year-end appeal strategy and this might be the key to ending your year fully funded let's get started [Music] in 2021 I saw a dip in giving to the personal support account for my wife and I that funds our salary and benefits allowing us to work for our current non-profit by about September it was apparent that I needed to have a large infusion of funds into that account if we hope to cover the cost of the special expenses medical and increased insurance premiums Etc that had and were going to occur by year end I determined that the need could get as high as 50 000 but at a minimum I would need to raise thirty thousand I knew a match would be the best way to motivate people to accelerate giving so I sought to find three to five current Partners who gave five thousand each to be the lead gifts and who would match the giving from the rest of our mailing list within about 10 days I had five lead commitments of five thousand dollars or more and I sent out a letter addressing our efforts and needs for the coming year in addition I mentioned the matching gift opportunity I called all our critical few partners and even visited a few Partners in person I used December 31 as the deadline and use my wife's atypical medical needs as the Catalyst to get people to respond quickly in the end 62 couples responded the opportunity and saw our need met completely by the deadline over the years I've done end of the IRS that produce little especially in the early years but when I learned to do a campaign correctly it changed everything on average 50 percent of the total income to most non-profit organizations comes in the last three months of the year 31 in December and 12 in the the last three days those are amazing statistics that validate the critical nature at this time of the year that's why incorporating an effective urine strategy is so important whether you should employ a year-end strategy really is not the question it's not an option it's how you choose to do the strategy that really matters and today I'm going to share with you the four steps to the perfect year-end strategy step number one identify the who it's critical before venturing into any appeal campaign that you determine who should be asked your answer might be everyone on your donor file or it might be just a specific group of donors whichever it's important to have a plan for all groups for many organizations capabilities that staff and budget determine who is asked typically your donor 5 I was segmented into three categories Mass middle and major slash Mega donors this mix might also include non-toners but that adds another level of complexity as a mix let's assume you're just working with current owners or those who have given at a larger single gift in the last three years Mass donors include anyone who's given a large single gift of one dollar to 999 middle donors include anyone who's given the largest single gift of one thousand to 499 and major Mega donors are usually five thousand and above some large non-profits make that middle major break at ten thousand or twenty five thousand and separate Mega donors as above that line if you have a smaller organization don't have the capabilities to incorporate a three-segment approach just set aside your critical few that's the 20 percent of the donors who give eighty percent of the income and Target those individuals for year-end Appeals step number two implement the strategy if you are able to implement a three segment approach you'll be appealing to the donors in those segments in different ways with each way leading to increased levels of personalization the math segment will include a two-page letter front and back with a dear friend salutation in dollar categories that match the levels similar to their largest single gift most often that will be a gift range of 100 250 or even 500 the middle segment will include a two-page letter but that letter will be two separate pieces of paper not front and back it will include a personalized salutation such as Dear John and Mary or Dear Mr and Mrs Jones and dollar categories of one thousand twenty five hundred or even five thousand but that letter will be followed up with a phone call starting approximately 72 hours after letter sent the fact that you'll be calling the individual May or not be mentioned in the body of the letter depending on your workload and if you'll be able to call them please know that a call will increase your positive response rate from two to three percent with a letter alone to 25 to 30 percent the call will go something like this hello Mr Jones did you get the letter I sent recently regarding our XYZ project I wanted to find out how much you'd be able to give to this exciting opportunity have you decided on an amount the major segment will also include a two-page letter as two separate pieces and includes a personalized salutation at a minimum that person should receive a phone call and if possible you should try to meet with that person face to face whereas a phone call Will yield to 25 to 30 percent positive response to your appeal a personal appointment will increase the positive response to 50 percent or higher step number three incorporate a lead gift as I've stated countless times in these videos offering a matching gift opportunity in my appeals it's been a game changer since 2005. any matching gift effort begins with one or more lead gifts those individuals interested in matching the gifts given during your campaign it's best to start with an amount that you hope to raise overall with the campaign then set out to attain fifty percent of that in lead commitments for example if your total goal is a hundred thousand dollars and you hope to get 50 in lead commitments that would break down to five commitments of ten thousand or ten commitments of five thousand or a variety of gifts leading to fifty thousand dollars you'd want to craft a list of five to ten largest current donors and call or meet with each to get the commitments to match every gift of a set amount during the campaign if you've never done a matching gift campaign for watch this video to find out more in detail I would strongly encourage you to use a minimum amount to qualify for the match to motivate individuals to stretch themselves in their giving are very reasonable minimum amount to qualify for the match is a single gift of 1200 or 100 a month we're a highly competitive society and as such we strive to meet people's expectations and even to stretch to reach a bar that might normally be higher than expected step number four invest in the relationship it's important that you don't end your campaign when the partner gives a gift look for ways to invest in the relationship by immediately thanking them for their gift a computer generated or handwritten note or card should go out the door in 24 hours it's strongly recommended that you go old school and hand write a note versus simply sending an email or text people still appreciate handwritten communication with larger gifts over five thousand or to the critical few be sure to call to thank the person in addition to sending a thank you note in rare circumstances usually depending on the relationship or sides of the gift you might meet with a person to thank them for their gift other ways to invest in the relationship include a one-page report as to how their money was used include photos and quotes for one or more individuals whose life was changed due to their gift newsletters and Insider letters on monarch-sized sheets of paper are also good ways to report back on the outcomes of their gift or investment the perfect year-end appeal strategy can be effective part of your year-end fundraising plan if you follow the four-step process all outlined in this video identify the who implement the strategy incorporate a lead gift and invest in the relationship your end is probably the most fruitful time of the year for non-profit organizations and it can be for your organization as well I hope you found this video and the contents helpful if you did hit the like button and have add a comment below letting me and this community know your thoughts on these if you feel differently about what determines a good project or if I missed any element please share that with me in the comments section so that it can help our entire Community get better if you enjoyed what you heard please subscribe to this Channel and share this with your friends or colleagues there's no cost to you we're building a movement through a community of Life Changers and it's my desire that by subscribing you'll learn principles and practices that help you secure the resources necessary to accomplish your mission and change the world simply hit the Subscribe button and click the all Bell to be notified when the next video is released we're also adding valuable content to Our Life Changers Facebook group so go out there to become a member as well you can find the link in the description below if you want to find out what to do and say during a meeting with a donor watch this video and raise more money than ever before change some lives and better our world I wish you the best as you strive to increase your income and reach the goal of becoming fully funded thanks a lot see you next video please [Music]