If used selectively and strategically direct mail can become an important part of an overall fundraising diversification plan. Despite all of the resentment of using direct mail, it still remains one of the most cost effective ways to raise dollars. Generally, direct mail has three primary purposes:

• To raise dollars from first time donors
• To raise dollars from people who have already made an initial donation
• To trade-up gifts to a higher level from donors who have made past donations

1. The direct mail list is a key feature: If you have never ventured into the world of direct mail start small by developing a contact list that includes friends, staff and board members, family, and key stakeholders of the organization. You could also exchange lists with other nonprofit organizations and/or use a "list broker" (a company that sells lists of names and contact information). A typical new list has a return rate of about 1 percent; for an extremely targeted list, the return rate can be up to 2-3 percent; and for a list of previous donors you can expect a return of 10-30 percent.
2. The direct mail package usually includes three pieces: a personal letter, a reply card, and a return envelope. The size of the letter should be at least 2-3 pages -- some people think the longer the letter the better because if the potential donor is interested they will want to know about the details of the organization. Have a simple reply card that people can fill out either with a pledge, a check, or credit card info. The return envelope should NOT include a stamp. . .it is never worth the cost!
3. The letter needs to include these important parts: 1) salutation and opening paragraph; 2) postscript; 3) final paragraph. Take care to think through these three parts and try to make the letter "passionate" and interesting to read. Use of quotes and stories are usually effective. When writing the letter always concentrate on the benefits of supporting the organization rather than why your organization desperately needs money.
4. Timing of the appeal is important and should relate to your mission: The Thanksgiving and Christmas holidays are both excellent times for an appeal for any organization. If you are a women's homeless shelter, mother's day works well also; if you are an educational program, back to school time in the fall is a good time for an appeal. Stay far away from April and the tax season.
5. Number of appeals is important: People need to hear from you at least three to four times during the year. . .and remember that you should NOT appeal for money every time you send an appeal! But, even when you're NOT asking for money directly, include a return envelope with whatever else you send so that the person at least has the tool necessary to send a donation if they want to.
6. Personal notes are very effective: If the size of the mailing is reasonable, it is valuable to write personal notes on the first page of the letter. This will increase your response rate!
7. Thank the donors within 72 hours: After you have received a donation always thank the donors within two to three days of receiving the gift or pledge.
8. Evaluate the results of the appeal: Generally, 50+ percent of the responses will come in during the first two to three weeks after the appeal letter arrives in people's mail boxes. When evaluating the impact look for: total dollar amount and number of gifts; number of repeat gifts; average size of gifts; and the number of donors per category ($25-$50, $50-$100, $100- $250, $250+, etc.).
9. Add-ons: One of the most successful appeals I've ever experienced was when an organization included a seed packet in its holiday letter. The theme of the appeal was "seeding new life." Some organizations include pictures of kids, holiday cards created by kids or homeless moms, newspaper articles, etc. These add-ons work magic when they are strategic and relevant to the appeal.
10. Create a sense of urgency without crisis : With the competition for donors dramatically increasing every year, make sure you demonstrate a sense of urgency but DO NOT imply that if you don't receive a donation now you'll have to close your doors.