Fundraising from the Inside Out
Time is always a limited resource in the nonprofit world. There is always so much to do with very limited amounts of time and other resources. So, what is the most effective and efficient way to use your time in regard to nonprofit fundraising? Specifically, who do you ask first, second, third, and on and on. Taking time to do a bit of analysis of your donors and giving trends will pay off in the long run.
First, the group that absolutely must be asked for a donation, if they have not been already, is your Board of Directors. Many foundations now require you answer this on their grant applications (and some require that you must have 100% participation rate). Not only is it a good nonprofit practice, how can your board go out and fundraise for your organization if they have not given? Potential donors want to see their investment in the organization, and that needs to be a significant financial gift, not just their gift of time. I would advise against asking for a specific amount from your board members; instead, ask them to make a “personally significant donation that they are proud of.” In general, board members should make your organization one of their top three largest donations annually.
Second, identify who your current donors are. Get a list of everyone that has donated in the last year and look it over. These are people that are very invested in the work you are doing right now! Continue to give them information about how their donation is making an impact at your organization. Thank them again and again. The cost of retaining donors is far less than the cost of acquiring new donors, so the more you can do to engage this group, the better.
Next, find out who your lapsed donors are. These are people that have given in the past (usually in the last 2-5 years) but are not a current donor. This group WAS invested in your organization at one time, so they are aware the work you do. The key is to get them re-engaged. What programs are they most interested in at your organization? How do they want to be communicated with? Reach out to them- maybe they didn’t feel appreciated last time they gave a gift and therefore stopped giving. Lapsed donors may consider giving again if they feel re-connected with the organization.
Your volunteers are another great potential donor, although many times we don’t even ask them! Volunteers are already giving to your organization with their gift of time, but this doesn’t mean you can’t also ask them to make a financial donation. Many volunteers will also be donors; just make sure to recognize them for their volunteer efforts and their donation of time before you ask them to make a financial commitment.
Community partners include organizations familiar and supportive of your agency but may have never donated previously. As you educate community partners about the work of your organization in the community, you can definitely also discuss the impact and importance of donations.
Finally, we reach the general public. This group isn’t aware of your organization or if they are, have little to no association to the work you are doing. While there isn’t anything saying you cannot solicit donations, support from this group is least likely. People need to first understand the work you are doing in the community and then how their financial support can make a positive impact in your work. Education is a key component here; the more people are aware of your organization and your programs, the more likely they will be to give.
Overall, taking the time to create a roadmap of who you are asking for donations will pay off in the long run. Be thoughtful about who you are asking and what you are asking for and you should see your revenue increase over time!
