Want to Guarantee Fundraising Success? Dive These 5 Fundamentals
3. Master one-to-one major-gift fundraising.
This is the most traditional, tried-and-true strategy, and it works like gangbusters! Eighty percent of the money in the U.S., according to Giving USA, comes from individuals. And of these folks, roughly 10 to 20 percent will provide 80 to 90 percent of an average nonprofit’s annual fundraising. So embracing major-gift fundraising shouldn’t be controversial. Yet many nonprofits still think major-gift fundraising isn’t for them.
A survey by Bloomerang, a donor software provider, showed that less than 20 percent of charities have even one person specifically designated to pursue and cultivate major donors. Instead, they stuff their calendars with special events. They focus their fundraising primarily on grants. They’re losing money and/or building shaky foundations with these strategies.
Commit this year to getting your piece of the pie! Did you know that of all U.S. donors, 12 percent account for the lion’s share of the money raised—88 percent! It simply makes sense to follow the money.
4. Master donor retention.
Donor retention has been terrible for years. But nonprofits have largely been ignoring the data. It’s as if the sector is ignoring the reality of climate change, choosing to charge forward looking for more sources of non-renewable energy. This is the year to say "no" to this senseless devastation!
Too many nonprofits are wasting their limited resources running on a treadmill. With so much competition for donors today, and so much competition just for attention, it’s never been more important to make authentic connections with your supporters that will cement your relationships with them. This is perhaps the topic about which I’m most passionate.
We’re all about the work ethic in this country; we need to shift to a "work smart" ethic. And it’s not smart to be doing a lot of expensive donor acquisition; then losing eight out of 10 new donors. It’s more cost-effective to retain a donor than to acquire one. So nonprofits must know their retention rates; establish specific goals for improvement; and invest in personal, authentic, gratitude-filled cultivation and stewardship.
5. Shift to an organization-wide culture of philanthropy.
You need to become a philanthropy team! Fundraising must stop being seen as a "necessary evil." It must be seen as a good thing—for everyone. Because it makes donors feel good, and it makes good things happen.
Shift your thinking—and the culture of your organization—in the direction of gratitude, rather than greediness, toward your donors. "Culture of philanthropy" is the meme du jour, but I find it helpful to think of it as a "customer service" or a “gratitude culture” because it makes it a bit more actionable.
"Philanthropy" means "love of humankind," and that’s how you should act toward your current and potential supporters. Your organizational culture should fairly burst with gratitude, philanthropy and service.
Ready to "dive the five" this year? Fundraising success in 2016 means getting your entire organization and constituency on board to help you–that’s on the diving board! Bring folks together around your shared values using these five fundamentals. Come on in; the water’s fine.