Q: How can we best raise money with our newsletter? I'm asking because I've heard of organizations that raise more money with their newsletter than with direct mail appeals.


A: By your question, it sounds as though you're already producing a newsletter. That's great! Publishing a newsletter at least four times a year is essential if your organization is serious about raising money through the mail. Even with web pages and on-line newsletters, almost all of those who send contributions to nonprofit groups prefer — desire — to receive a paper newsletter in the mail.

Your newsletter doesn't have to be fancy. In fact, your donors will appreciate a simple, easy-to-read publication. The advantage of a four-page newsletter (or eight-pages with lots of photos) is that your donors will read it right away. Anything more substantial and they'll set it aside to read later. And you know what happens then.

And you do want your donors to read your newsletter — so they can see that you're putting their contributions to good use. The newsletter is also a great way to thank outstanding donors — and to provide information about planned giving, monthly giving, and honor/memorial giving. Many groups include in every newsletter a sample paragraph with language for a charitable bequest. Some organizations use their newsletter to remind their donors to send in their annual membership gifts.

As you can see, your newsletter is a central "room" — if not the entire "foundation" — in your fundraising facility. But it can also, as you suggest, become an effective way to raise funds directly.

If you want to raise serious money with your newsletter, then you must include a return envelope. It can be stapled or bound in, affixed with a touch of glue, or inserted loose but with the entire newsletter tabbed. There are crucial mailing and postal requirements to follow. Depending on the quantity you mail and the bindery technology used by your printer, one method is likely to be cheaper than another. Take time to make sure your printer and post office are happy.

The design of this return envelope can have a big impact on the response rate. One technique is to have a rather plain return envelope with your organization's address, but to also have a coupon in the newsletter itself. Another option, especially in larger quantities, is to use a special "order blank envelope" (as in catalogues) or a "glue-and-fold envelope" — with a tear-off response form. Whether a coupon or tear-off, the form works best when it makes a specific request for a gift — including tick boxes for specific gift amounts:

Yes, I want to help offer hope and opportunity to our homeless and hungry neighbors. Here's my special gift of

[ ] $100 [ ] $50 [ ] $25 [ ] $_________


These coupons or tear-off reply forms are also an excellent vehicle to offer additional information — either about planned giving or about your organization's programs. In a real sense, your donors can use these newsletter response forms to "raise their hands" to let you know they want to become more involved.

Often, you can offset the cost of printing your newsletter with contributions you receive in the envelopes you place in those newsletters. Typically, one or two percent of your donors will respond to newsletters. In fact, you'll find that some of those who support never respond to your fundraising appeals, but they do contribute through the newsletter. Your appeals may be getting tossed summarily into the wastebasket while your newsletters receive serious attention.

But if you want even more of your donors to make gifts in response to newsletters, then you will need to take the next step: mail your newsletter inside of an envelope (a standard No. 10 or a 6 x 9 outer envelope) — along with a separate reply device and a return envelope. Ideally, the reply device will have the donor's name and address already imprinted, and it will show through a window in the outer envelope.

Of course, this will also work if your newsletter is four (or six) pages, so it can be folded to fit into a No. 10 or 6 x 9 outer envelope. Anything bigger will be too bulky. This does involve the additional cost of printing the outer envelope and the separate reply device. But it's also expensive to bind an envelope into a self-mailer, and some lettershops or business mailers charge extra to process self-mailing newsletters.

But even with the extra charges of an outer envelope and separate reply device, you will be pleased with the boost in the number of gifts you receive — as well as with the higher contribution levels. There's some evidence, too, that newsletters in envelopes get a higher readership. Perhaps the recipient feels the publication is more valuable or more personal. You may wish to heighten this sense by printing "Your Spring Newsletter Enclosed" on the outer envelope.

For clients of Mal Warwick & Associates, we've seen newsletters published in this fashion generate response rates of five, six, and seven percent. In these instances, contributions rival those received in response to many — but not all — of the appeals an organization sends out in the course of the year. It would be difficult for your organization to depend solely on newsletter gifts; you need to send out at least two or three traditional appeal letters (with response devices and return envelopes). But, in the course of a year, you will generate more revenue and you will get more gifts from more donors if you turn your newsletter into a two-way donor communication vehicle.

Let me post three large caution signs, though, before you drive off to your printer to order reply envelopes for your newsletter.

First, if you're mailing your newsletter first class, including a reply envelope — to say nothing about an outer envelope and separate reply device — you will really increase your postage costs. Weigh these additional costs against any benefits from additional contributions.

Two, if joint-cost allocation is an important issue for you, then you must consult with your auditor before making any changes in your newsletter. The suggestions I've offered could shift newsletter costs as they appear on your financial statements from "public education" to "fundraising." That's especially true if you're mailing your newsletter only to current donors. You can still incorporate some or all of my recommendations, but you must do so more carefully and with the formal consent of your auditor. If keeping fundraising costs below a certain percentage or ratio is a factor in your organization, treat your newsletter with kid gloves.

Finally, if the content of your newsletter is very policy or program-oriented, it may just be inappropriate or counter-productive to turn it into a fundraising medium. Your organization may also want to present the newsletter as a donor or member benefit. Sending information only — without a request for money — may be a powerful message of gratitude and respect for your wonderful donors.