We’ve all been there at one time or another… when economic changes, an uncertain political climate, or other external forces have led to lower response rates and decreased revenue. Typically, when revenues decline, the first thing you are asked to do is cut expenses. But where you cut can have big implications for the health of your file and impact potential revenue for years to come.

Here’s what NOT to do:

• DON’T cut your acquisition program. As one of the few non-revenue-generating programs (unless you are very lucky), it’s a tempting place to cut. You won’t notice the impact in revenue right away, but cutting even one to two acquisition campaigns in a fiscal year can have major impacts on your file size for years to come. By 3-5 years out, the lack of investment will be evident in a reduced number of donors and lower revenue. And the loss will continue to play out, with fewer donors to move up the pipeline to major or planned giving, having long-lasting ramifications.
• DON’T cut planned giving marketing. We’ve all heard the stories about a $50 donor who has been on the file for 15 years, who leaves a $1 million gift no one knew about. Those stories don’t just happen – it takes consistent planned giving marketing over many years to educate donors about legacy giving. Many donors simply don’t know the many options available, the potential tax savings, or how easy it can be to leave a bequest or a gift via beneficiary designation. As with cuts to acquisition, the effects will not be immediate, but in 7-10 years, the loss in potential planned giving revenue will be impossible to reverse.

 What can you do instead:

• DO target your message to the appropriate donors. By being more strategic on who you are mailing and what message they are receiving through data analysis and modeling, you can ensure the best donors receive the best message at the best time.
• DO show impact. When times are tough, donors want to know that they are choosing wisely. By communicating the impact of their giving, you remind the donor that their support is making a difference.

In fundraising, we are often so focused on the immediate returns or this year’s budget, but direct response fundraising is a long game. By looking ahead to what is best for the program for 3, 5, 10 years down the road, we can ensure the decisions we make today lead to a healthier file in the future.