Is telemarketing generally a useful fundraising strategy?

Summary:

Telemarketing can be a very useful strategy.

Answer:

Free Management Library addresses the basics, useful skills, some general resources for more information, and reviews what problems to avoid. See http://www.mapnp.org/library/mrktng/telemrkt/telemrkt.htm

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Question: Should an organization do telemarketing with volunteers or hire a fundraising group?

Ina Frank replied:
Telemarketing can be a very useful strategy. In my opinion, virtually all organizations can and should do phonathons themselves, using volunteers. I know that flies in the face of today's convention. And I have nothing against telemarketers trying to make a living @ $5 - $15 an hour.

The concern must be the cost:benefit to your organization both in terms of hard cash (collectible pledges) and in projected good will for your organization. You'll never know how many truly significant, potential donations you are losing by relying on paid telemarketers.

There's hardly ever a reason to provide up to 88 cents or more to a commercial outfit in order to raise 12 cents for your clients.

Exception: If you have a mail/phone list of over -- say -- 5000 names and want to update it. Then, that project becomes the primary goal, not raising money. There are services that do just that sort of list management.

If raising dollars to help your clients is truly your primary goal, the project need not be done by and probably should not be attempted by telemarketers.

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The Ina Frank correspondence is from the early days of the FAQ, probably 1996. The addition was made by CM on 1/20/00.