Fundraising vs. contributor prospecting tradeoffs in direct mail response rate management: A linear programming analysis

Abstract

A linear programming model is developed and used to determine the monetary tradeoffs between fund raising and new contributor prospecting in direct mail charitable solicitation. This model considers both short- and long-term decision-making objectives, and incorporates operating constraints such as limitations on mailing expenses and variations in mailing list response rates. The contribution of the model is improved understanding of the tradeoffs between fund raising and contributor prospecting, in specific dollar terms, for every possible set of operating alternatives. The results of the calculations of the tradeoffs are presented in tabular form, and in a graph for easier evaluation and communication.