| A premium is a small gift used to encourage donations. | | | | several reasons:o Premiums will cost money. You will |
| You might think of it as a bribe to get someone to | | | | have to come up with funding to cover the cost of the |
| make a donation now. Some nonprofits think that a | | | | premium.o Some donors are offended if they think |
| premium encourages donations. Unfortunately, | | | | their gift is used to purchase premiums. They'd rather |
| premiums can have the opposite effect. | | | | have their gift go toward programs that change |
| People who give to get a premium aren't really donors. | | | | people's lives.o Donors who give to regular direct mail |
| They want the premium, not the warm fuzzy from | | | | letters typically give more (on average) than those |
| making a gift. | | | | who give in response to a direct mail package with a |
| Front-end premiums are gifts that are sent along with | | | | premium. |
| the appeal for money. Mailing labels are a good | | | | Good fundraising is based on relationships. Do you |
| example of a front-end premium. When you receive | | | | want to build a relationship with someone who expects |
| the direct mail package in the mail, the labels are | | | | to get something in return whenever they make a |
| included. | | | | donation? Or would you rather have donors who give |
| Back-end premiums are gifts that you receive after | | | | because they want to and because they believe in |
| you make a gift. Public television stations frequently | | | | your mission? |
| use mugs and t-shirts as back-end premiums for | | | | While there may be a time that a premium might work, |
| donors. | | | | small nonprofits should not use premiums for |
| I encourage small nonprofits not to use premiums for | | | | fundraising. |