In Defense of Telemarketing
	Posted by Allison Porter at Nov 14, 2012 07:02 AM CST

This article originally appeared in the Avalon FYI blog.

From the recent Bloomberg article, to the feature on the Today Show to the cover of the Washington Post Business section, it’s clear that telemarketing is under attack -- more specifically, the ethics of telemarketing fees -- and this issue is not going away.

I want to draw this issue to your attention so you can be prepared to answer the tough questions being asked by your leadership, boards, and donors in reaction to the extensive media coverage. It’s critical that those of us who use telemarketing as a key tool in our effective multi-channel direct marketing programs, can clearly articulate our response to these attacks, and communicate that we have the controls in place to ensure best practices and ethical behavior in all of our fundraising.

At its root, the issue is really about transparency. The case study cited in the Bloomberg article is specific to the American Diabetes Association and highlights a certain type of telemarketing campaign that is atypical in nonprofit fundraising. 

The overarching issue, and the media scrutiny, is all about the ethics of the telemarketing fees themselves. The firms that Avalon works with do not charge nonprofits a percentage of the total amount raised in a campaign. They charge a flat per-contact fee -- which is standard in the telemarketing industry. 

There is nothing unethical about the way our telemarketing partners do their business, and these companies are fully accountable to their client organizations and donors. Of course, it is also critical to manage telemarketing campaigns very carefully and to have quality-control checks in place to help ensure an effective program.

We know that a telemarketing point of contact, when done well, improves overall donor value, even if the person contacted chooses not to give over the phone. That personal touch point is beneficial to each donor’s long-term value and, in most cases, telemarketing is still an incredibly effective channel for fundraising – more successfully reinstating lapsed members, recruiting  monthly sustainers, and renewing first-year members than any other channel. But it’s critical to ensure you’re using a strong firm with well-trained callers, and that you strictly adhere to your donors’ requests about being contacted by phone.

The media frenzy around this issue would be significantly helped by a better informed media -- journalists who understand the cost of fundraising metrics, and who will take the time to learn about the true costs of fundraising and the need to spend money to raise money. 

It’s our responsibility in the nonprofit sector to take on the difficult questions and speak accurately and effectively about how fundraising works. And it’s our responsibility to communicate the integrity and seriousness of those involved in fundraising.

What do you think? Let us know using the comments link below.