Telephone Fundraising

Inbound calls usually arise as a response to a solicitation made through television or print advertising, though they are sometimes prompted by a direct-mail piece. Probably the most familiar type of inbound fundraising is in response to the television commercials or infomercials placed by child sponsorship organizations such as Children International, Childreach, and the Christian Children's Fund. Another type of inbound fundraising is the telethon often conducted by public broadcasters or by hospitals and other health-related charities. Other organizations have used inbound fundraising successfully, but it's important to consider the general appeal of the organization in determining whether an inbound fundraising program is likely to succeed. Organizations that don't have a broadly popular mission, such as helping impoverished children, may not find it effective to mount such an expensive campaign. Inbound calling centers are usually operated by the organization directly and staffed by employees or volunteers whom it has trained. Sometimes, particularly during times of the year when call volume may be particularly high, the work may be partly outsourced to a private contractor.

Most telephone fundraising is outbound fundraising, in which callers work from a list of existing or prospective donors, calling them and speaking about the work of the organization in hopes of persuading them to make a donation. Outbound calling is frequently done as a follow-up to a direct mail campaign, in which only those recipients of the mailing who have not responded are called, with the goal of making a more persuasive request. As many donors will receive direct mail from a number of organizations and from commercial advertisers, they may throw away a direct-mail solicitation after a cursory look or without reading or even opening the mail piece at all. It is more difficult to ignore a phone call than a letter, so calling may help reach potential donors who would otherwise not respond.

Much outbound calling is done by outside contractors who have large staffs trained in telephone solicitation and may have years of experience calling for a wide variety of organizations. The contractor may employ staff who will generate a calling script for the callers to read from, or the script may be provided by the organization. In calls that follow a mailing, the language used is usually quite similar to the text of the mailing. A few very large organizations may be able to maintain their own calling staffs or hire temporary workers to do the calling, but it is very expensive in both equipment and wages to maintain an internal call center.

Callers may collect credit or debit card numbers over the phone or may only secure a pledge that the donor will fulfill upon receipt of a follow-up mailing. Even those who choose to give immediately through a card should receive a letter to acknowledge their gift. It is, of course, desirable to process as many pledges as possible electronically, as those who say they will return a check may or may not follow through once they receive the mailing.

Telephone fundraising is governed by laws which may vary considerably from state to state. Most states require disclosure of whether the call is coming from the organization itself or from an outside contractor and an estimate of the portion of funds raised that will be kept by the organization and how much will be paid to the fundraising contractor. Telephone fundraising organizations will generally charge a flat fee either per donor contacted or per donation collected, regardless of the amount of the donation. It is generally considered unethical for the firm to keep a set percentage of the funds raised.

Hiring an outside firm to conduct a telephone campaign is much more expensive than using direct mail, but it has a much higher rate of return. Working from a calling list composed of recent donors with a history of commitment to the organization, a calling campaign may be able to secure pledges from as many as 50 to 75 percent of those called. A list composed of donors who have given less recently, or less often, or in only small amounts, will be less likely to be successful. A list composed of prospective donors (made up of participants in an event sponsored by the organization, possibly, or perhaps bought or borrowed from another organization that does similar work) will be much less responsive, perhaps in the 25 percent range or lower, but fundraising firms will generally charge significantly less for this type of calling.

Telephone fundraising may be particularly useful in taking a steadily supportive donor and upgrading his average gift (suggesting a $75 gift rather than a $50 one, which may bump the donor up to a higher membership level in a membership organization) or persuading him to join a sustainer program (giving, say, $10 a month by an automatic withdrawal rather than one gift of $100 each year, providing the organization with a more dependable flow of donations).