Nonprofit Fundraising: The “Best” Way to Raise Donation Dollars
By Betsy Steward
How do you define the “best way” to raise nonprofit dollars?
For me, the “best way” means “the most cost-effective way” — the one with the lowest expenses that brings in the most money. Those would be major and estate gifts, and grants. I’ll leave the subject of grants to someone else since that’s not my specialty. My focus today is on major and estate gifts.
They are closer than you might think.
Some people think that the only way to achieve major gifts is by approaching philanthropists known for their generosity. I agree that if you happen to know Oprah or Bill Gates or MacKenzie Scott personally, then you should talk with them. But most of us don’t know them — or anyone else with their level capacity for giving.
While I don’t deny the value of researching recognized philanthropists to find connections to you or someone in your organization, I strongly believe that personal outreach to your current donors — donors who have already proven their dedication to your mission and work through repeated and reliable donations — is at least as important. Neglecting and underestimating them is a mistake that’s all too often made.
Look at your existing database. Are there people who have been supporting your organization regularly for years or even decades? THEY are the ones who could potentially be inspired to give a major or estate gift. And it’s much more likely that they will take your calls or answer your emails than Oprah, Bill or MacKenzie. Have you reached out to them lately?
Cultivation starts long before you can ask for a 5-, 6- or 7-figure gift. Just because someone makes an annual 3- 4-figure gift doesn’t mean they can’t give more, and that you can’t build the relationship to grow that gift. It’s the frequency rather than the size of gifts that’s the most significant indicator of commitment to your mission.
Here’s an idea: run a report listing your donors by donation date, and then sort it to find:
donors who have given the most often
donors who have given over the longest period of time
Those people should be part of your inner circle! There’s a lot you can do to make sure they feel like part of your inner circle. Can you get in the habit of reaching out to them regularly? Perhaps quarterly? You could:
thank them for their gifts and let them know what a difference their regular gifts make
find out what motivates/inspires them to support your org and how they first got connected
keep them updated on activities at your organization
ask for small increases, for example: if their annual gift is $250, could they raise it to $300, $500 or even $1K? If they regularly attend your events, could they invite someone next time as their guest?
ask if they could introduce you to people in their circle of friends who might share their passion
ask if they might consider including your nonprofit in their estate plans, since it’s obviously important to them
Personal outreach to donors who have proven they already believe in what you do is the most reliable way to reach major and estate gifts — what I call the “best” way to raise funds because it’s the least cost for the most return. But it only works if “personal outreach to donors” is a standard item on your weekly to-do list, and a confirmed block of time on your weekly calendar. I realize that you — like all nonprofit professionals — have a lot to do, but I urge you not to neglect this very important part of your job. The return on investment is huge.
Betsy Steward is an independent fundraising consultant. She advises clients on major donor solicitation, cultivation, and stewardship, as well as fundraising best practices, back-office organization, board presentations and writing to donors (appeal letters, emails, proposal letters, thank-you notes, etc.). She can be reached at BetsyVSteward@gmail.com.