Success Story: Mercy Corps Receives Record Contributions in Wake of Tsunami
$26 million and 87,000 new donors…and all in eight weeks. This is certainly a success story for WealthEngine client Mercy Corps.
Matthew De Galan, Chief Development Officer (CDO) for Mercy Corps, shares more about the nonprofit’s recent spectacular
fundraising effort, plus the challenges involved as well as the next steps. Online Managing Editor Roger Burks and Web
Marketing Specialist Tanya Zumach also provided input for this article.
DE GALAN: The tsunami is beyond anything we’ve ever experienced before. There is no precedent; no comparison whatsoever.
This was the biggest natural disaster in modern times. We received many, many, many times the number of donations than we
usually receive in a disaster situation.
WealthEngine (WE): Why such an increase in the number of donors and donation amounts?
DE GALAN: This was something that the whole world wanted to do something about. The media filmed it, and then the films were
played over and over around the world.
WE: When did you first hear about the disaster? What did you do, and what was your timeline?
DE GALAN: I was at my mother’s house in Chicago. It was fairly early in the morning. I was still in bed, but I could
hear that my mother had the TV on. Then, suddenly I began to make out what the newscaster was saying. I got up and started
calling everyone to wake them up back at our headquarters in Portland and to get them working. We have a phone tree system,
and within an hour everyone knew.
It was 5:30 a.m. when I called our webmaster. I needed him to change the cover article, add a picture from the tsunami, and
insert a mechanism for online giving designated for the tsunami. He could do that from home, and he had the information up on
the site by 6:30 a.m. Pacific time. We received our first donation before 7 a.m.
Next, I notified the program staff and country offices so they would know what was going on. In disaster fundraising, the key
is to move as fast as you can as soon as you can.
I got back to Portland the next day, and we began working on a direct mail appeal, a telemarketing campaign, and ads for print,
radio, T.V. and Internet media.
BURKS/ZUMACH: To get optimal exposure, we used Google and Overture keywords and also did a substantial amount of cross-promoting
on tsunami-related websites and through like-minded organizations.
WE: How did you spend your time after you got the basic plans in place and everyone working?
DE GALAN: I spent most of my time on human-resource issues. We needed more people to handle this massive outpouring of relief.
I had to find the right people, hire them and get them started. I needed media officers to go overseas to work with the media
on-site; we placed 4 or 5 of these. Our gift processing staff went from 6 individuals to 33.
WE: Were most of the donations made online or via mail or telephone? When were most of the donations received?
DE GALAN: The donations came in through various means, and it was all based on how fast we could get the appeals out.
About one-third, or $8.5 million of $26 million, came over the Internet. The Internet donations were the first wave, and
this was followed by the telemarketing responses and the direct mail responses. About 70% of the donations came from
individuals, and the rest was from corporations.
The first day, we received $40,000. Day 2, we saw $200,000 in donations. The amount rose to $500,000 on Day 3.
Then the next three days, we received over $1 million each day.
BURKS/ZUMACH: The response to the tsunami relief effort was far and above our regular fundraising response, even by holiday,
year-end standards. We were running at about 1,000 times our normal capacity online. We were making over $1,800 per minute
at one point. The average tsunami gift size ended up being about $200, compared to under $100 regularly.
WE: What strategies have you used -- and are you planning to use -- to retain as many of these 87,000 new donors as possible?
DE GALAN: Following the Kosovo disaster, 30% of our first-time donors made a second gift. Our goal now is 39%. We know that, if a
donor is going to make a second gift, 90% of the time the donor will make it within 3 months of the first donation.
First, we tried to make sure our gift processing systems were operational, getting receipts and acknowledgements out to donors
as quickly as possible. The single best thing that you can do to get someone to make a repeat gift is to get his or her
acknowledgement out on time. This $26 million in 8 weeks was a stretch for us. Normally, we have a 48-hour turnaround policy
for all donation acknowledgements, but we got behind with this disaster by about three weeks. However, we were caught up as of
March 3.
Second, we kept the donors informed. We told them what their gifts had achieved and what our next steps were. For example, we
sent out a series of emails providing updates on the relief effort. We also sent out a mailing to all members. We sent them a
map of the whole region impacted by the tsunami and included stories, sidebars, photos, and statistics. We ran a PSA in the
Pacific Northwest which was an emotional ad thanking donors for their support.
Now, we need to start prospect research and screenings right away. The number of major donors to the tsunami is astonishing.
Screening will help prioritize our work, and give direction to our five major gifts officers as they consider which of our
87,000 new donors are the best prospects.
BURKS/ZUMACH: We have really concentrated on website content that aims to keep the donor informed of what we’re doing with
their donations. We are encouraging continuing support through regular, informative updates on both the website and through
email. We really want donors to feel like they’re remaining a part of the Mercy Corps mission through actively informing them
of our ongoing work. We are also marketing our online monthly giving program.
WE: What other challenges do you see ahead in the wake of the tsunami?
DE GALAN: You run on adrenalin for the first few weeks, but then it gets boring. Now, we need to realize that $1 million-donation
days are not reality. We have to re-calibrate what a good day means.
WealthEngine thanks Matthew De Galan, CDO at Mercy Corps, for this interview opportunity as well as Roger Burks and Tanya Zumach
for their input into the article. |