by Daniel Kittell | Accounting News, Business Growth, Industry - Nonprofit, News, NonProfit
With inflation rising, it might be tempting to cut fundraising budgets and programs, but that’s the last move you should be making. Instead, it’s time to put proven fundraising strategies to work. As long as you keep in mind that in order for a fundraising campaign to be fruitful, both time and effort need to be invested, the strategies discussed below will help you raise money more effectively.
Don’t Try to Fix What Isn’t Broken
First, don’t panic. If your development staff has been successful at implementing effective activities, don’t cut your budget (or lay off staff). Continue to follow the plan. An economic slowdown is not the time to cut back on development work.
Create a Plan for Strategy and Revenue
People give money to causes that resonate with them. They give even more money to organizations that are strategic about their mission and how they execute their goals to accomplish that mission. Therefore, if you don’t have a strategic plan and a revenue plan already established, now is the time to create them. An effective strategic plan allows you to build investment, and an effective revenue plan provides a blueprint to generate funds. Think about how you can sharpen your nonprofit’s messaging and position your mission, values, and programs to boost your effectiveness for the recipients of your services.
Connect with Supporters
In times of economic uncertainty, nonprofits need to double down on efforts to stay connected with their supporters. This includes thanking donors, offering updates about your budget and pressing needs, and conveying stories about your work through testimonials, photos, videos, social media conversations, etc. Allow space for your supporters’ voices to be heard in telling their own stories in how they connect to your organization and community.
Utilize Social Media
If you want people to become more invested in your work, focus on creating an online community through social media where people can get to know your organization — your mission, goals, and plans to achieve them. Showcase upcoming events and be clear on opportunities for people to become involved. Additional modes of digital outreach include email newsletters, campaigns, and event invites.
Pay Attention to Return on Investment
In regards to raising money, nonprofit organizations generally have limited resources in the form of staff, technology, and funds. Be sure you are accurately calculating the costs of every revenue-generating endeavor to be able to gauge the actual net income that resulted from each endeavor. If the return on investment of time, effort, and money is lacking, you might find that there are less expensive and more effective ways to raise money.
Find New Donors by Analyzing Existing Donors
When your well of support is running low, look into your database of existing donors and determine commonalities among the most generous donors. Demographics, donation amounts, and length of time they’ve been regularly donating are all key aspects you should pay attention to. Once you’ve narrowed it down to your best donors, ask them (formally or informally) what drives them to give to your specific organization. The goal is to figure out what resonates with them so that you can find other donors like them.
by Daniel Kittell | Business Growth, Industry - Nonprofit, News, NonProfit
As we begin to see the light at the end of the tunnel in regards to Covid-19, it’s helpful to review the basic strategies of working with individual donors to raise major gifts. Below is an overview of how to strategize raising major gifts in a post-pandemic world.
What Is a Major Gift?
Simply put, a major gift is one of the largest—if not the largest—donation an organization receives. The amount that defines “major gift” can vary by organization. These donations are typically used to fund specific projects, meet fundraising goals, or supplement general programs that help an organization succeed in its mission.
The Major Gift Fundraising Touchstones
The four touchstones of major gift fundraising are identification, cultivation, solicitation, and stewardship. Let’s break these down step-by-step.
Donor Identification
Step number one is to identify potential donors. You can do this by checking your database of supporters, which should include donor history. As you review your database, you want to identify your largest donors as well as your most loyal donors. Your loyal donors may only give a small gift each year, but consistent donations likely mean they are invested in the mission of your organization, so they will be your best giving prospects. Create a list of the top 20 donors who meet these criteria (largest donor or loyal donor), and concentrate on fostering relationships with them.
Cultivation
This next step entails building relationships on trust and commonality before launching into a pitch for donations. Some of the individuals on your list you may already know. They might be board members, volunteers, or involved with your organization in other ways. Be careful not to take these relationships for granted. When it comes to any prospective donor, you need to consider the best approach to get them to think about supporting your organization with a major gift. This requires a plan for each person on your list. While these plans certainly can have similar frameworks, you’ll want to adjust them according to your particular relationship with each individual. You can build strong relationships by:
- Organize a face-to-face meeting. You want to keep it intimate, but a board member and the executive director and/or development director can join. You’ll want to ask them a series of open-ended questions to get to know them—and their connection to your organization—better, as well as to encourage them to think deeper about their involvement in the mission of your organization. What do they love about your organization? How did they originally become involved? Why is your organization’s mission important to them? Do they have any suggestions for improvements?
- Invite them to take a tour, visit a program, or attend an event. Given what you know of individual prospects, try to choose something that may move them, or have a powerful impact on them.
- Encourage them to volunteer. Inform them of all the ways your organization utilizes the help of volunteers. There may be a role they’d be interested in that they were never aware of before. Volunteering draws people closer to your organization and its mission because they become involved in a more personal way.
- Provide updates twice per year. Whether by phone, email, hand written note or thank-you card, or at an in-person meeting, sending regular updates pertaining to your organization’s programs and services keep prospective donors in the loop.
Solicitation
It’s time to start actively requesting major gifts. Make a list of your top few prospective donors and schedule meetings with them. Once those meetings are in the books, schedule meetings with the next few prospective donors on your list, and so on.
To be clear, your prospects should not feel surprised or misled by your request for a donation. Depending on the trust you’ve built thus far, they might even ask beforehand if this meeting is in regards to money. Be honest and say that you’d like to discuss how they might contribute to your organization in a more impactful way.
Be sure to discuss who will be in attendance at the meeting. This should be a small and select group—typically the development director, executive director, and a board member—and be sure that your donor has met everyone more than once. After all, your organization should be cultivating relationships, not merely conducting business transactions.
Ideally, a board member will be the one to ask for a donation. This is called peer-to-peer fundraising. As a volunteer, the board member is simply pointing to the time and money they’ve already contributed and asking your donor to consider doing the same. As for the actual asking, approach the topic with a specific amount in mind for a specific project, program, or service.
Stewardship
As the final step in fundraising, stewardship is the “thank you” in response to a donation. You want your donor to know the impact they’ve had on your organization. Think about how many different ways you can express your gratitude: a handwritten note; a phone call; a mention in your newsletter, annual report, and website; an update on how their gift is being implemented; and a follow-up meeting. Any combination of these can be done, and by multiple people, but be sure you have a plan in place so the stewardship is strategic, appreciative, and informative but not overwhelming for your donor.
Maintain Your Major Gift Fundraising Program
Devote time each week to holding meetings with your development team where you discuss your organization’s list of prospective donors. Is there someone on your list with whom your organization can cultivate a more meaningful relationship? Who on your list do you feel might be ready to donate in a bigger way? Who is going to schedule that meeting, and what is your target amount to ask for? Finally, regarding any recent outreach efforts to other potential donors, do any follow-up inquiries need to be made?
