More from Make More Money from Members article

The September 2008 Main Street News, the monthly newsletter of the National Trust Main Street Center will publish "Make More Money from Members" an article I wrote this past summer. Here are is an excerpt from that article.

7 easy ways to make more money from members

1. Accept all credit cards

Many Main Street organizations seem reluctant to accept all credit cards because of the fees to the credit card processor. But if your goal is to make it easy to support your organization, you must make it convenient for the member, by offering every credit card option (Visa/Master Card/Discover/American Express). Most organizations find that they get more and larger gifts if members may use any credit card to join as noted in Marla Noble’s article listed in the bibliography. Work with your organization’s bank or financial institution to obtain these merchant services and allow use for events, vendor fees and other payments throughout the year.

The Ellensburg (WA) Downtown Association accepts all credit cards for membership donations online through a special link to the National Trust for Historic Preservation’s web site. “The National Trust can host contribution pages on [their] secure website and you can link to their secure online contribution pages through your web page free of charge. With [the Trust’s] secure online contribution pages, donors can contribute to your organization from the comfort of their home or office.” “Members of the National Main Street Network can offer National Trust memberships to their constituents for free! You can sell the memberships valued at $20 and keep the revenue or you can offer the memberships as introductory premiums for your own membership program.” See http://www.mainstreet.org/content.aspx?page=188&section=14, contact Margaret Gattis at margaret_gattis@nthp.org or call (202) 588-6118. To see Ellensburg’s donation form on the NTHP web site check www.preservationnation.org/ellensburg.

2. Offer multiple options to renew

Offer members many ways to join or renew. Put membership forms on your web site, even if it is simple form to download, print, sign and send, as Federal Hill Main Street does (see sidebar) Offer the member the option to pay by credit card, check, to pledge or call you with their credit card number. MainStreet Libertyville (IL) allows members to join on their web site and directs them to PayPal (a third party vendor) to process the credit card transaction. Executive Director Randy Nelson notes “We got 50 members that way last year and the donations always seem to come at midnight.” Other organizations with more sophisticated web sites, like the University City District in Philadelphia, take donations on their web site. See their web site at http://www.ucityphila.org/about/contribute/contribute_online. There are many options available for accepting donations on line. Laura S. Quinn’s article “Donate Now: Selecting an Online Donation Tool” is an excellent starting place for reviews of many third party vendors, such as Network for Good, PayPal, eTapestry and others.

3. Review your rate structure; create new membership levels

If you have never increased your membership dues levels, now is the time to consider it. Review your gift categories, and select one or two giving levels that you will increase slightly (between 5-15%) for the coming year. Generally speaking, a modest increase in dues will not be objectionable to members, provided that the organization is keeping in regular contact, demonstrating its accomplishments. See the article “The Lowdown on Raising Dues” listed in the bibliography. Review your list every year and select other categories to revise. Make sure you list your donation values from top to bottom (highest number first), to encourage a higher gift.

Another alternative would be to add several new categories, just a bit above a particularly fruitful gift category. In our example of Anytown Main Street, a new giving category at $110 might be appropriate since there are 78 $100 members. This new member category can be highlighted in your letters and phone calls to these members asking them to increase their giving level and avail themselves of any new perks offered at this giving level.

4. Ask about employer matching gifts

This is easiest (and free) money you will ever get. All you have to do is add one line on your membership form. Many corporations will match gifts made by their employees on a one to one basis, some have higher matches. All the local Main Street program has to do is to have the employee identify their employer and send the appropriate paperwork to the right office at work. Often the corporation will want to see proof of the donation (a copy of your member’s check or contribution form), your 501 c 3 letter of determination from the IRS, and perhaps other materials. The company sends a check at their next processing cycle. Make sure you thank and acknowledge both the company and their employee in letters and on your list of contributors that you publish in your newsletter, web site and annual report. MainStreet Libertyville (IL) received $3,000 this year from employer matching gifts.

5. Ask members to upgrade at renewal time

If you do not directly ask your members to give more, they probably won’t. Tell them specifically how increasing their gift to the next highest level in your gift chart will help the organization. Many Main Street organizations use a soft sell approach, by merely suggesting an increase to the next level up. Instead, make a compelling case. What would ten additional dollars from your member mean to your organization today? Could you offer more entertainers at your street festival? Provide more banners? Beautify another flower bed this year? Tell them what their increased gift actually buys so it has meaning and opens members’ wallets.

6. Start a monthly (or quarterly) donor program

Offer everyone the option to pay their membership or renewal over time by pledging by credit card or by check on a monthly or quarterly basis. This is a wonderful convenience for your member, and will permit them to pay on their schedule rather than writing one large check. Smaller gifts will come regularly and can add up to be more than you would get if you received one check. Recurring gifts might be appealing to larger donors, those on fixed incomes, or those just starting out in their career. A monthly giving club or recurring gift continues until it is cancelled by the donor. They may call your office to cancel or change their gift at any time and you should acknowledge the member’s request immediately. The University City District permits donors to make monthly or quarterly gifts on line. See their form at https://secure.groundspring.org/dn/index.php?aid=15434. According to Ann Mintz, the UCD Development Director, “On-line donations are a small but growing component of our annual appeal. We are particularly pleased with the number of people who have chosen to make regular monthly donations on-line. On-line giving also provides a convenient way to purchase tickets to fundraising events and make larger gifts such as event sponsorships.”

There is much written about this form of giving on the Internet, mostly called “monthly giving clubs.” There is extra work for the Main Street office or treasurer/bookkeeper for a recurring gift, as there must be a usable and predictable reminder system in place to actually process the gift on the same day each month or quarter. You will lose all credibility with your donor if they have to call you to make sure their gift is processed as you promised.

7. Ask for donations more than once a year

Main Street organizations may be reluctant to ask their members for contributions over and above their annual dues, and that is unfortunate. To fully exploit your now very valuable membership list, take some tips from the cultural organizations around you. Ask your members to contribute more often. Many large cultural institutions ask six to ten times annually for support (check your mail from your local museum or zoo, if you don’t believe me). While this is an effective fundraising method according to various studies, asking that often, it is probably excessive for grass roots organizations like Main Street. At the very least, Main Street organizations should seriously consider starting an annual donation program in early November. Tell your members how much their donation means, what you have done with their money and why ending the calendar year in the black is critical to your continued success. These donations are not annual dues, but could be for a capital improvements or cultural events, special programs, or general operating support. Appeals for donations at the end of your fiscal year might also make sense if you are undertaking specific projects that excite members.

Upgrade your renewal program today

So what will happen if you implement some or all of these recommendations? You will likely make more money from the people that love you the most, your members. Keep track of what works for you and what does not. Renewals, like voters, are fickle, and subject to the whims of the check writer. But offering more convenience, options and alternatives for collecting hard earned membership renewals will surely help your organization grow and thrive.

If you would like a complete copy of this article, please contact me. I will post a copy of the complete article when it is published on my web site http://www.heritageconsultinginc.com/.