Thursday, May 9, 2013

Case Study: Tax Shortfall Campaign December 2012

I believe 'tax shortfall' campaigns, conducted by telephone, can be the most cost-effective form of fundraising in Ireland. It surprises me how few Irish charities are doing these and so I wanted to share the results of one the small campaigns we ran in December 2012.

Looking at Charity X's database we found that they had 19 donors who were committed to giving €20 per month by Direct Debit and had been doing so for some time.

Approaching the end of 2012 it was clear that these donors were on track to have given €240 each in the calendar year - €10 short of hitting the tax-effective threshold of €250. We telephoned each of these donors in an attempt to secure a further €10 credit card donation over the phone and to also achieve an upgrade of their monthly donation to at least €21 per month.

We successfully contacted 10 people. 9 donors could not be contacted.

Of the 10 we saw 6 of them agree to process a one-off donation on the phone averaging €18. This ensure they all reached the €250 threshold in 2012. This is back before the consolidated tax-relief amount and so each of these donors would now be worth an additional €62.50 - €173.73 in tax-relief.

Of the 10 we also 7 people upgrade their monthly donation to an average €22 per month. Not only is this extra revenue in donations, but also eligible for tax relief in future years.

Of the 10 we saw 2 people say they would arrange it themselves and only 1 person said no.

The campaign also allowed us to update the donors on the charity's work and update contact details.

Campaign Summary:
Income (assuming donors go on to donate for 3 more years)
€110 in one-off donations
€396 extra in monthly donations after upgrades
€375-ish extra in tax relief for 2012
€2118-ish extra in tax relief for 2013-2015
Total: €2,999.00

€91.14 agency fee
€30-ish in fulfilment
Total: €121.14

ROI: 2475%

If you want to talk about how we can help you achieve this in 2013 then please contact me.

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