The Annual Giving Exchange

Technology has always been both a catalyst and an obstacle for phonathon programs.

Automation software has allowed call centers be more efficient, but caller ID has made it more difficult to get donors to answer the phone – some reports indicate attempts per completed call increased nearly 50% over the past few years.  And while it seems that everyone has a mobile phone these days, federal regulations still prevent telemarketing to them in most cases.  On top of it all, running a call center gets more expensive every year because of their significant human resource requirements.

So, are phonathons still worth it?

There’s no right answer because every program is unique.  But here are a few things to consider:

• Phonathons can be a great way to grow a young annual fund, but beware of investing too much in mature programs that are at or near capacity.
• Avoid paying a premium to solicit someone by phone if they have historically responded to less expensive appeals like direct mail or email.
• Don’t call more people.  Focus on calling the right people.  Use wealth screening and predictive modeling to better segment your calling pools.
• Have your callers conduct donor surveys and thank-you calls during downtimes.
• Rent your call center to other charities when you’re not using it – a good way to offset your own costs.

Fundraising is a business of relationships, so programs that empower people to talk to other people will always be worth it.  The key to managing an effective phonathon is finding the right level of investment and balance of resources for your particular program.