# Unlocking the donor database doors

- Link: https://fundraising.co.uk/2003/08/31/unlocking-donor-database-doors/
- Published: 2003-08-31T23:00:00+01:00
- Author: Howard Lake

Ian Cracknell, Marketing Director of UIA Insurance, looks at brand extension as 
a way to unlock the potential of charities’ donor databases.
The time when a charity’s
donor database was a list of sympathetic and supportive individuals has ended. It
has been replaced by a more commercial age where the database is the bedrock of 
revenue raising and the charity that does not mine it fully can lose out financially.

The donation environment is becoming more competitive. Key performance indicators
on marketing activities, such as cost per response, show that many charities have
to make their marketing budgets work harder and harder.

However, charities are rightly concerned about the potential issues that exploring
new revenue streams can expose. A new offering communicated to the charity’s donor
database can be a complicated and emotive issue so it needs careful consideration
and handling.

## Advertisement

Brand extension can be the key that really unlocks the database doors.

Charity brands are well trusted and it is this equity that has enabled many to stretch
their brand into new markets profitably. Choosing an experienced partner for any
move can help ease the process and address legitimate concerns.

Some of the more common are considered below.

_If donors buy products and services they will donate less_.

A natural assumption is that supporters won’t want to pay for both the product and
the donation. However, if the product or service being offered is an everyday purchase
and if it is competitive, then the buying decision will normally be based solely
on the offering. A sale can be cemented through the strength of the brand and the
fact that monies will end up with the charity.

_The database will be over-used if numerous offerings through numerous mailings 
are undertaken._

The most successful lists are those where people have demonstrable interest in receiving
information in the product/service category, or they have characteristics common
to interested parties.

Defining active buyers in a list and developing a mailing programme to tap their
disposition to purchase is a more significant issue than over-use. Data tagging 
and data modelling techniques can effect this quite simply.

_The donations department will lose control if data is handed over to the trading
business management team._

Trading is a major cultural change for many charities so the whole management team
have to work together on planning and execution. The whole organisation needs to
support the activity so that issues such as loss of control are removed.

_A donor receiving poor service will stop donating._

This is a business risk, but one that a charity could be running already. For example,
if a charity operates high street outlets then donors could be exposed to customer
service issues within these outlets. Charities need to ensure management buy-in 
at the outset of the venture.

It is time to re-examine the traditional revenue model and to utilise charity assets
in new lateral ways to maintain competitive advantage. The donor database is a great
asset and a professional marketing approach can ensure it is used with diligence
and success.

**Ian Cracknell is Marketing Director of UIA Insurance, the UK’s only ‘not for profit’
general insurer with over 100 years of experience in offering general insurance 
schemes for ‘not for profit’ business partners.**

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