Most nonprofit organizations send out what is known as the “end of year letter” to solicit donations. The idea has its roots in the fiscal year, deductions from contributions, and end-of-calendar-year factors that affect donor decisions. The idea is to send the letter to the donor just before the end of the year tax deduction deadline.

I recently heard about a non-profit that got too busy towards the end of the year and didn’t send out their end-of-year letter. The more I thought about it, the more I actually liked it. The organization still plans to send out a request letter, but they will do so in January. What a good idea! There are several reasons why I like this approach:

• Especially in 2012, donors may have been concerned about financial problems, as Congress got stuck in a so-called ‘fiscal cliff’ beyond the end of the calendar year.
• Donor anxiety over continued poor economic conditions likely resulted in lower end-of-year contributions, even from long-standing charities.
• The end-of-year letter is a tried-and-true approach for many nonprofits, but it’s an old-fashioned approach for nonprofits trying to capture the attention of new donors.
• It’s not hard to imagine a donor sitting down with a dozen (or more) solicitation letters and trying to decide who to support and how much to give.
• The end-of-year letter arrives at the donor anytime between Thanksgiving, Christmas, and even New Years, when things tend to be hectic and donors are justly concerned about family vacations.

So what is the solution?

I would suggest a “beginning of the year letter” because it would tend to stand out as being different. And speaking of different, too many organizations list their successes of the year and go on and on, for a couple of pages, talking about what a great job they did. This approach may actually turn donors off; if everything is going so well, why would a donor have to make a contribution? To be truly different, the entire tone of the letter must be changed. I suggest the following:

• Recognize that the letter is intentionally sent at the beginning of the year and not at the end of the year; that is, it was not an oversight.
• Talk very briefly about the fact that last year was successful and mention some key elements that were really significant.
• Spend most of the letter describing what will be done next year: the projects that will finance the requested contributions.

I have listened to the opinions of both nonprofit leaders and donors over the years about what should be included in the application package. There are differences of opinion on whether to have color logo letterheads, contribution cards, and postage-paid return envelopes. Apparently the argument against premium letterhead and all the attachments, especially the stamp, is that it makes the organization look like it doesn’t need money because it spends it recklessly on things like pledge cards. This defies donor logic and behavior: a donor wants to contribute to something that is successful and looks professional (hence the focus on the organization’s future activities rather than the past). Also, most donors will probably appreciate not having to address a return envelope or find a stamp.

Without being fancy or going too far, a nonprofit should behave the way it wants to be perceived. A good image, as well as a good message, requires good judgment, but it is the best way to sell funding to your organization rather than a competing nonprofit organization. Try to be different and see what happens!