SMS Marketing Misc.

Unleash the Untapped Potential of Texting in Nonprofit Fundraising

At Tatango, we’ve been working with nonprofits since 2007 and we’ve heard time and again that budget constrictions are frustrating and overwhelming and often, necessary.  When every penny counts, nonprofit budgeting is often a tightrope walk. 

Nonprofit organizations, who must be cautious about their spending, cap their budget for various channels,  tools, and strategies, to maximize their budget across the organization. It’s time to rethink this mindset, especially regarding texting. When executed effectively, text message marketing not only pays for itself but can significantly amplify your fundraising efforts. And if your organization is budgeting for a marketing or fundraising strategy, chances are you’ve already got the funds you need for this innovative and effective communication channel

The Misconception of Limiting Texting Budgets

If your organization already uses texting you are aware that many nonprofits set rigid budgets for their texting campaigns because they are wary of overspending. While this is an appropriate response to traditional marketing channels, the ROI for texting allows for increased spend because it pays for itself. Unlike other marketing strategies that might require substantial upfront investment with uncertain returns, texting offers high ROI with little effort, budget, and resources.

The question is: Why limit your budget to a tool that consistently proves its worth and covers its own cost?

Texting: High ROI for Nonprofit Fundraising

The beauty of text message marketing lies in its direct ROI. For every dollar spent on a well-crafted texting campaign, nonprofits often see returns multiple times over – Tatango clients see as high as 5x the initial investment. This return most often comes in increased donations, but can also include more event attendees, and heightened engagement with your cause.

This means the cost of your sends is routinely offset by the donations and support they garner. In essence, your texting campaign can become a self-funding entity within your broader fundraising strategy.

Focusing on Outcomes, Not Expenditure

For nonprofits, focusing on the outcome rather than the expenditure is key to opening the budget for texting. A shift in perspective is needed. By limiting your budget, you might be inadvertently capping your potential returns. If a texting campaign is performing well and bringing in substantial donations, why pull the brakes? For example, a conservation-focused campaign could have a budget of $1,000 for a single campaign. Once they hit $1,000 in spend they may choose to stop running the campaign. That choice, however, could limit their incoming donations. If they chose to keep running the campaign even past the $1,000 budget they could see better outcomes.

Tatango clients enjoy amazing ROI on their text campaigns. We analyzed over 100 text messages and found The return on investment figures were eye-catching, ranging from 331% to an outstanding 7,746%. 

Every text message you don’t send is a potential donation you don’t receive. When your costs are covered by the returns, it’s wise to push the boundaries and explore the full potential of your texting campaigns.

The Strategy for Maximizing Impact

Having helped nonprofits raise over $400 million in donations, we know what works and what doesn’t when it comes to text campaign strategies. Here are a few best practices: 

  • Test and Scale: Start with a pilot campaign to gauge effectiveness. Once you see positive ROI, gradually increase your investment, tracking the returns as you go. Learn more about the anatomy of a perfect text message and campaign here.
  • Segment and Personalize: Tailor your messages to different segments of your audience. Personalized texts resonate more, leading to higher engagement and donations. Tatango data shows that messages that were segmented raised 36% higher per recipient. Additionally, segmentation led to a 3x decrease in the unsubscribe rate. 
  • Analyze and Adapt: Continuously analyze the performance of your campaigns. Use data-driven insights to refine your approach, focusing on strategies that yield the best results.
  • Integrate and Amplify: Make texting a part of your integrated marketing strategy. Combine it with social media, email, and other channels for a holistic approach.

When it comes to nonprofit texting, step out of the budgetary safe zone and explore the potential of this powerful tool. By focusing on outcomes rather than expenditure, and understanding the anatomy of successful texting campaigns, nonprofits can unlock new opportunities for growth and impact. Every text sent could be the key to a new supporter, a fresh donation, or a deeper connection with your community. Don’t limit your potential; embrace the possibilities that texting offers.


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