Developing Donor Relationships

From Prospect To Donor To Investor:  How To Identify And Nurture Rewarding Relationships For Your Organization

December 13, 2005

Speakers: Elizabeth Stacey, Chief Consultant and Founder of Philanthropic Solutions

                Phyllis Nussmeier, founder, VXN Research

Introduction:

When it comes to fundraising, every organization thinks that its problems could be solved if it had more donors, or certain kinds of donors, or if its own donors would behave the way that that donors to other organizations do.  In other words, we tend to think that there is this ideal group of donors out there somewhere.  While there’s some truth to this, more often the solution lies within your own organization and your own community as you will discover today as we explore proven ways that you can use to find viable prospects, to qualify sustainable donors, and to identify those special investors who have the ability to make a significant financial impact upon your organization.

Problem:                                                 Every organizations needs:

Small donor base, attrition                          Constant influx of new donors

Financial instability                                    Donors that give regularly

Rise in expenses vs. revenue                      Donors that increase their giving

Every organization wants                         Problem

Donors that fund a major project solutions     Solutions stymied, needs unmet

Donors that provide leadership gifts               Sights not set high enough, campaign fails

Donors who investment in the future              Mission unfulfilled, no leap forward

 
I.  Viable newcomers:

Start with what you have:

        ·         Individuals

        ·         Corporations

        ·         Foundations

    1. Examine your mission and purpose and decide what kinds of groups in your 
        community would find resonance.  No matter how noble the cause or urgent the 
        need, not everyone will rally to your side.

        ·         Start with what you have – founders, volunteers, past supporters, vendors

        ·         Your natural constituency – armed services, veterans groups, companies 
      involved in housing, foundations: health care, job training, military equipment 
      suppliers

        ·         Ideas from community leaders, solicit and brainstorm with community leaders 
      to build a list of possible donore

    2. Look at organization’s message and hone it to communicate succinctly 
        your goals, objectives, accomplishments so that people are responding with   
        precision.

    3. Consider your geographical reach.  Are you citywide, regional, national?  In 
        general, support will come from donors who are in your community or have strong 
        ties to your community.  Note Katrina exception. 

Ways to Involve Newcomers

        ·         Direct mail: purchase or exchange lists w/ orgs or magazines

        ·         Communications: media coverage, web site, newsletter

        ·         Marketing: cause-related, advertising, education, volunteerism e.g. Mattel

        ·         Community involvement: service clubs, chamber, public speaking

        ·         Entry Point events: From open house, to free/low cost activities, to FR special 
            events

        ·         Network building: use your board, current donors, volunteers, beneficiaries, 
            vendors

Gather and record information into a database – call them to action and provide a response mechanism – follow up once you send it out!

II.   Turning Qualified Prospects into Donors

        ·         Individuals

        ·         Corporations

        ·         Foundations

Philanthropic inclination

Ability to give relates to the belief to the mission/cause

        ·         Flash does not equal cash, individuals may not be inclined to give but does 
            have the money

        ·         Millionaire next door-this person may not seem to have wealth but are very 
      willing to give to your cause

        ·         Initial gift and repeat gifts come from a relationship you build with the donor

        ·         Other charitable commitments can give to your organization as well as other

        ·         Consistency, type and level of involvement can increase as you build the 
            relationship

Engage in Sustainable Giving

Moving prospects and donors through stages

        ·         Offer giving options: size, timing, designated, restrictions: corps and 
      foundations

        ·         Report results to show you are making progress

        ·         Recognition and stewardship should come with every gift

        ·         Create some level of personal contact (two-way)

        ·         Refresh knowledge and relationship periodically-it is a two way relationship

III.  Identified Investors

        ·         Individuals

        ·         Corporations

        ·         Foundations

Remember

        ·         Known donor base versus wish list-most donors will come from those you 
      already know

        ·         Gift size and frequency and longevity of the donors will increase are you involve 
      the individual

        ·         Philanthropic intent and personal story-need some connection to your cause

        ·         Gift motivation and purpose of gift-have a reason for giving

Financial capacity-what is someone able to give

        ·         Business, stock holdings

        ·         Real estate

        ·         Inherited wealth

        ·         Other assets

Opportunity and Vision to Your Cause