Afraid of Automation?

“We don’t automate, it isn’t personalised enough.” 

Sound familiar? This is a common sentiment among fundraisers, and it often divides opinion. 

But what if automation didn’t mean sacrificing personalisation? Let’s explore how combining automation with traditional methods can reduce costs and enhance the donor experience. 

The Hidden Costs of a Thank-You Letter 

Sending a thank-you letter may seem straightforward, but when we break it down, the costs can be surprising, especially for smaller donations. 

Take the average donation amount: £8.30. Here’s how that donation gets chipped away: 

Transaction Processing Fees 

• Online donations usually incur a fee. For example, 1.2% + 20p reduces your £8.30 to £8.01. 

CRM Entry 

• If automated: No additional cost, congratulations, you’re ahead in your sector! 

• If manual (e.g., via CSV imports, let’s not mention manual data entry): Factor in staff time. Let’s estimate 15 minutes at £1.05. Now we’re down to £6.96. 

Printing & Postage 

• A second-class letter averages £1.20 for print and postage. Add another £1.15 for packing and staff time, and that’s £2.35, leaving just £4.61. 

• We’ve not included time to write a different letter for each donor as we would suggest you take a look at your thank you letters. Are you writing each one separately, or are these templated? You might already be doing what email automation can do for you. 

In this example, nearly 44% of the donation is consumed by operational costs. 

Ask yourself: If you were giving £8.30, would you expect that 44% would be taken up with a letter to thank you? 

If your charity receives an average of 150 donations a month and 80% of those online donations are for low-value gifts, this could equate to a loss of £553.20 per month or £6,638.40 per year. 

*Our figures are based on a £25,000 salary, 0.35p printing in colour ink, £85p second class postage and 10p envelope. 

Enter Automation: The Cost-Effective Ally 

Automation can simplify and personalise donor communications for donations below a certain threshold without breaking the bank. Here’s how: 

Automated, Personalised Emails 

• Include the donor’s name (of course). 

• Send different emails based on their giving motivation. Include their motivation in the message or even include details like the name of the person they honoured. 

• Share the impact of their donation. E.g., “Your £8.06 will help feed two children for a day.” 

• This approach saves on postage and printing costs while making donors feel valued. 

Enhanced Personal Touches 

• Use email automation to include an image, a staff member’s digital signature, or a heartfelt thank-you message. 

• Send these follow-ups a day after the donation to make the acknowledgement feel thoughtful and less transactional. 

Flag High-Value Donations 

• Automation can alert your team for donations above a specific amount (e.g., £100). A personal call or handwritten letter can then be sent, ensuring major donors receive the attention they deserve. 

Why Combine Automation and Traditional Methods? 

Automation isn’t about replacing paper entirely; it’s about using resources strategically. For smaller donations, automation helps reduce operational costs, ensuring more of each donor’s pound directly supports your cause. 

When it comes to larger gifts, we fully agree that a more personalised touch is essential. Personal outreach, whether a handwritten letter, a phone call, or even a face-to-face meeting, builds deeper relationships with these donors. Since larger donations are less impacted by processing fees and other costs, they leave more room to invest in meaningful, high-touch thank-you methods without significantly affecting the donation’s impact. 

The key is identifying the tipping point where sending paper letters or similar outreach for smaller donations starts consuming too much of the gift. By blending automation for smaller donations with personal connections for larger ones, you can strike the perfect balance between cost-efficiency and donor care. 

The Bottom Line 

Operational efficiency is critical in today’s economic climate, where staff costs are at an all-time high. By embracing automation as a tool, not a replacement, you can achieve the best of both worlds: a cost-effective system that still prioritises the donor experience. 

As your Christmas campaigns are in full force, why don’t you look to the new year and set a New Year’s resolution to try automation? Start small, monitor the results, and watch as automation becomes your fundraising secret