Income revenue from cash appeals has seen a drop since COVID times, so what are the new realities we're facing? 

As much as cash appeals seemingly stay the same to those outside of individual giving, there have been a number of significant impacts on this much-loved method of raising vital funds for UK charities to fulfil their mission. 

In this blog, we will explore six key areas, looking at the latest developments, practical advice, and how response handling services like those from Woods Valldata can make a difference and help to improve your overall fundraising strategy.  

6 key considerations for individual giving fundraising cash appeals

1. Direct mail is still relevant

Maybe not a new reality, but an affirmation of an old one. Despite the rise of digital channels, direct mail remains a cornerstone of cash appeals.

As discussed by industry experts in the Woods Valldata webinar ‘The Changing Face of Cash Appeals’, there is a remarkable continuity in the effectiveness of direct mail, even with newer generations.  

Younger donors often find physical mail to be a novel and engaging medium leading them to explore new brands online. 

Royal Mail Market Reach have coined this ‘phygital’ where physical mail influences digital activity, highlighting the enduring power of tangible, well-crafted mail pieces in an increasingly digital world. 

2. The role of digital in cash appeals

With the point that direct mail is still hugely relevant made in point one, let's take a look at how digital channels are enhancing cash appeals for charities too. 

Expanding reach through digital channels 

Digital channels are invaluable for expanding the reach of cash appeals. They offer a platform to quickly test and iterate different messages and creatives.  

 Social media, email marketing, and digital advertising allow for targeted outreach, making it possible to engage with a broader audience at a lower cost.  

However, as Karen Suter from the Alzheimer's Society points out in the Changing Face of Cash Appeals 2024 webinar, the challenge remains in converting these digital interactions into sustained support. 

Enhancing stewardship through digital tools 

Digital tools also play a crucial role in enhancing stewardship. Automated thank-you emails, personalised follow-ups, and engaging digital content can help nurture relationships with donors at a lower cost.  

Ensuring that online donors feel appreciated and connected to the cause is vital for encouraging repeat donations. 

But charities should be mindful of omni-channel approaches and test how different channel communications influence second gifts and ongoing loyalty. Digital might be cheaper, but can it engender the same connection over time as a physical letter?

3. Challenges in cash appeals

We can’t talk about how to adapt to the new realities of individual giving fundraising appeals without also discussing the challenges faced by charities implementing cash appeals including data privacy regulations and current economic pressures. 

Navigating data privacy regulations 

Data privacy regulations, particularly UK-GDPR, have made it essential for charities to handle donor data with greater care. This has led to a more cautious approach to mailing supporters based on opt-in only consent.  

This added level of requirement has provided an opportunity to build trust and transparency with donors. But at the same time, there might be donors who are very connected to the cause, who suddenly stopped hearing from their charity because they had forgotten to tick a box on their last response. 

This, coupled with acquisition through cold mail coming almost to a standstill, has resulted in significantly smaller, and declining, mailing volumes - both for direct mail and digital channels.  

For cash appeals to survive in their current guide, charities must find ways to grow and retain their cash appeals databases.   

Adapting to economic pressures 

The economic pressures resulting from rising living costs have affected donation patterns. Donors may be fewer, but those who continue to give often contribute more generously.  

Understanding these dynamics and tailoring appeals to acknowledge the economic realities can enhance donor engagement and support. 

It’s important to remember, as well, that supporters may not be financially able to support now, but that they still want a relationship with the charity.  

Charities that continue to nurture supporters as part of their fundraising strategy - even though they’re not currently giving, - will see dividends in the longer term. 

4. Strategies for success in cash appeals

So, how can charities succeed with individual giving fundraising appeals? Three of the key approaches are around personalisation, integration and stewardship.  

Personalisation and segmentation 

Personalisation is key to successful cash appeals. Understanding your audience and utilising data to segment appropriately allows for more targeted and relevant communications.  

Plus, making use of platforms like Woods Valldata’s SmartThank, available to Woods Valldata’s response handing charity partners, enable highly personalised thank-you messages, improving the supporter experience and ensuring that each donor feels recognised and valued. 

Integrating multi-channel campaigns 

Combining direct mail with digital channels can create a robust multi-channel campaign. This approach not only broadens your reach but also reinforces your message across different touchpoints.  

For example, a donor who receives a direct mail appeal might also see a related social media post or email, reinforcing their connection to the cause. They might also be stimulated by a direct mail communication to support the charity online. 

Fostering long-term relationships 

Building long-term relationships with donors is crucial for sustained fundraising success. Regular updates, impact stories, and personalised communication can help maintain and deepen donor engagement.  

As such, your fundraising strategy should focus on creating a narrative that keeps donors informed and emotionally connected to your mission. 

5. The future of cash appeals

We’ve explored some of the challenges and opportunities surrounding cash appeals, so what does the future hold? We believe that there is still a long and fruitful future in cash appeals provided charity fundraisers are willing to embrace technological advancements and can quickly adapt to changing donor needs and expectations. 

Embracing technological advancements 

The future of cash appeals will likely see greater integration of advanced technologies. From AI-driven donor insights to automated communication tools, technology can enhance efficiency and personalisation.  

Charities that embrace these advancements will be better positioned to engage their supporters and maximise their fundraising potential. 

Adapting to changing donor expectations 

Donor expectations are evolving, with a greater emphasis on transparency, impact, and accountability. Charities must adapt by providing clear, honest communication about how donations are used and the tangible impact they achieve. This builds trust and encourages ongoing support. 

6. Keep appeals fresh

Cash appeals in individual giving fundraising are evolving in response to changing donor behaviours, technological advancements, and regulatory landscapes. By staying attuned to these shifts and implementing innovative strategies, charities can continue to thrive. 

How Woods Valldata can help with your fundraising cash appeals 

At Woods Valldata, we specialise in response handling for large-scale cash appeals, processing over 400 million data entries annually.  

Our SmartThank platform ensures personalised, cost-effective thank-you communications, enhancing donor experience and retention. 

If you’d like to find out more about how Woods Valldata can help with your cash appeals and fundraising strategy, contact us or visit our website to learn more about how we can support your fundraising efforts.