Last week, George Crankovic posted here an exploration of the 100% to program offer.
It's a controversial issue in our industry (though not among donors), and I want to look at it in a different way.
The 100% to program model does not mean (and should not claim) that there's no overhead. It merely states that someone else has covered that part of the cost of the charity, so you don't have to.
That's music to some donors' ears. You may think their opinion on the matter is ill-informed (it is, in fact), but you aren't going to change their belief via a direct mail piece.
In fact, the 100% model is a more transparent message about overhead than most fundraising: It admits that overhead exists! Check out Charity:water's description of their 100% model. They give their overhead-funding partners public recognition. The whole topic is out in the open...
Unlike standard fundraising, which has an unstated approach to overhead: When you respond to this offer, your money will go to the activity described here and to overhead expenses. Like it or lump it! Fortunately, many donors "like" it and give.
But studies show that versions of the 100% model can significantly increase response. That should get your attention. Unless your organization's mission is to educate people about the importance of nonprofit overhead, or you have a problem with too much revenue.
I think it behooves any responsible fundraiser to at least consider the 100% model.
And while you're at it, how about the 0% model?
If you're going to let some donors off the overhead hook, why not entice other donors with the chance to fund overhead only?
If you think about it, overhead is a much better deal. It may not be the direct action, but it makes the direct action possible. Better yet, overhead has an innate return on investment -- a little but spent on overhead has a large impact on the cause (assuming a well-run organization).
Sounds like a decent fundraising offer, does it not?
Of course, if you've spent more than a couple of weeks in fundraising you're probably saying That would never fly!
You're probably right. It's way too complex to do well in direct mail, email, or any other one-to-many fundraising medium.
But it might work with major and near-major donors. People you have actual human relationships with and can talk about stuff over coffee.
Make the pitch: How would you like to fund the single most important part of our budget, the part that makes literally everything else we do possible?
It's not for every donor. In fact, it's not for very many donors at all. But it's magic to someone. Just as the no-overhead offer is to others.
