Your non-profit has had a stable list of funders and last year, you received a 3

Question

Your non-profit has had a stable list of funders and last year, you received a 30 percent return on your annual mailing. The average donation was $350 dollars with a standard deviation of $75 (and surprisingly contributions among those who responded were normally distributed.) If the average contribution fell to $250 (still with a standard deviation of 75) how many letters would you need to send out this year to break even (have the same funds raised as last year, assuming that the return rate on letters remains at 30 percent).

Explanation / Answer

returnonthe letter is 30%

when$350 was average donation,letnoofmailssent=x

then$350=30%ofx

x=1166.66or 1167mails

similarly when donation is $250no.of mails sent=833.33 or 834 mails

so tobreak even the donation we have to send 1167mails for this year quota plus the lack of the last year

i.e.

1167+(1167-834)

1167+333

1500 letters have to be send out this year.

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