Author: Jim Shapiro

Jim Shapiro is the fundraising coach you’ve always wanted, the proven Sherpa who can help you get to the top of the mountain. Jim has 30 years’ experience raising money, including serving as the VP of Development for a global $100m nonprofit. He co-founded The Better Fundraising Co. to help small-to-medium nonprofits raise more money.

Fundraising in the 2024 Election Year – The Year-End Rally

Jim Shapiro  |  Ask
Year-end 2024.

We’ve talked about what to do The Noisy Spring, The Summer Slump, and The Election Storm.

Today we’ll show you how to have a strong year-end AFTER the election dust settles (mid-November – December).

The Year-End Rally

A few days after the election, donors will be ready to refocus their attention and their philanthropic priorities.

There will be a rally.

But you need to be ready to hit the ground running.  The election will have taken almost the entire fall.  And Thanksgiving is late this year, which means there’s a week less of the prime giving season between Thanksgiving and New Year’s. So the Saturday or Sunday after Election Day is GO TIME.

Here’s your “after election” game plan to have a successful year-end campaign:

  1. Launch targeted year-end campaigns that tap into your donors’ desire to make the world a better place with their year-end giving.
  2. Your campaign will work best if you use themes and emotions that are likely to resonate with donors post-election (unity, hope, the importance of your mission) AND make it clear that there’s work to be done and the donor’s help is needed.
  3. For major donors, talk about the transformational impact of their gift. They’ve spent the last few months hearing a lot of negative political discourse – counter that by asking them to make big, positive change in the lives of your beneficiaries or in the communities you work with.
  4. Consider adding a gift catalog to your year-end fundraising campaign. Donors love gift catalogs because they don’t feel like fundraising. If you do international or mission work, a gift catalog is as close to a slam dunk as there is in fundraising. Because they’re somewhat time-intensive to create, use the quieter summer months to create one.

The 2024 election year poses real challenges for nonprofit fundraising.

But with every challenge comes an opportunity. And the nonprofits that have a strong fundraising year will be the ones that are nimble, who adapt their plans to the four phases of the election cycle.

Resist the urge to communicate less with your donors this year. In a year of increased competition for your donors’ attention, you need to keep communicating, keep telling great stories, and keep focusing on the change your donor’s generosity will make.

The fundraisers and organizations that get creative, adapt, and stay committed to their donors (and the cause) during the election year will be in a great spot. Be one of those fundraisers — and you’ll be able to reach your fundraising goals and keep making a real difference in your community.

Click here to download the FREE whitepaper, Fundraising in the 2024 Election Year. You can also watch a video of Jim Shapiro presenting – and answering questions about – this helpful information.

Read this series of blog posts:

Fundraising in the 2024 Election Year – The Summer Slump

Jim Shapiro  |  Ask
Summer.

Our previous post was about what to do to raise money during the Noisy Spring of a presidential election year. 

Today let’s talk about how you can make it through The Summer Slump (July – August).

And remember – if you make this year’s fundraising plan based on what’s worked best in previous presidential election years, this COULD be one of your best fundraising years since the pandemic.

The Summer Slump

So… you already know that fundraising tends to slow a bit during the summer months.

But that slowdown will in all likelihood be larger this year because of the intensity of election coverage.

Donors of will see-saw back and forth between being captivated by the news… and tuning it all out.

The most important thing you can do during these summer months is stay in touch with your donors. Resist the temptation to “go dark” and not communicate with them.

Here’s your action plan for mitigating The Summer Slump:

  1. Maintain regular communications with your donors through the summer. Be top of mind for them. Unless your organization has a history of successful fundraising in July, we recommend sharing good news (success stories!) with your donors during this month – newsletters, e-stories, impact reports. For major donors, deliver these stories in face-to-face meetings.
  2. Share memorable and fun experiences with your donors. Your donors are doing the same things you are during the summer – having BBQs, enjoying the outdoors, spending time with people they care about. So leverage the season and host fun gatherings for donors. Host a community BBQ to say thanks to your donors or volunteers. Play golf with your top donor or go to a baseball game with them.
  3. Plan a fundraising campaign for the end of August. If your organization does anything in or around schools, send a back-to-school appeal or e-appeal. There will be a brief window toward the end of summer where your donor’s attention is not on politics but on getting back into the swing of things for the fall. This is a great opportunity to be in front of them to raise money for the work of your organization this fall.
  4. Use the quieter summer months to plan and prepare your year-end fundraising campaign. Secure your matching funds now. Write your year-end appeals now. Don’t forget: the political campaigns will take up YOUR attention as well. So use this time to plan and create: plan your approach for each major donor and schedule your end-of-year meetings with them for right after the election, and create the fundraising materials you’ll need for the end-of-the-year dash.

Summer is a great time to share some fun and positive moments with your donors.  Don’t forget to take a breath yourself and do some preparation for the next phase… The Election Storm.

Read this series of blog posts:

What to Do When You Have a Mid-Year Budget Shortfall

Jim Shapiro  |  Ask
fill the gap

I’ve heard something like this at least a half-dozen times this week…

“We used to receive grant funding but that is way down.” Or “We received PPP money and that’s running out.” Or “During and after the pandemic our donors really stepped up, but they aren’t giving like they used to.”

Here’s what’s going on in most cases: most nonprofits set their budget based on giving the previous year.

But we just lived through a three-year period that was anything but normal. So if you based your 2023 budget on 2022 giving, you may find yourself with a funding shortfall the second half of the year begins.

This means you need to do all you can to raise as much money as possible the second half of this year.

Even though you’re faced with this problem, this is actually GOOD news for your fundraising. Why? Your shortfall is a problem donors can solve!

Figure out where your funding gaps are, and ask your donors for help filling them. Major donor development, mass donor appeals and even a special event are all successful tools nonprofits use to erase their shortfalls.

The fundraising shortfall you’re facing is a fundraising opportunity for your donors to step up to help in a big way.

Do not fear! Make the most of this time to be bold and confident in your fundraising outreach. You can do it!

Donors love to feel needed. And I suspect you’ll be surprised and encouraged with the results!

How to Ask for a Major Gift

Jim Shapiro  |  Major Donor Fundraising
ask

A Beginner’s Guide to Major Donor Fundraising Success: Step #3, How to Ask for a Major Gift

When it’s time to ask for a major gift from a donor, it helps to have a simple game plan.

First, set up a time to meet in person. This can be the hardest part! Donors are busy.

Start by giving them a call on the phone. Tell them why you’d like to meet (don’t leave them guessing!) and suggest a time and a place that’s convenient for them.

It may take a few phone calls, texts, emails, (carrier pigeons). That’s normal. Keep at it! If you can secure a meeting, you’re halfway there.

Once you have your meeting set, here’s your meeting game plan:

  1. Social time (5 minutes). Order coffee, ask about their family, be warm, friendly, and LISTEN.

  2. Deliver the fundraising offer (3 – 5 minutes). Share the problem, the solution, and how you’d like them to help. Ask if they’d be willing to give a specific amount. Aim for a higher amount than you think you can get.

  3. Sit quietly and wait for their response (as long as it takes!). Don’t talk. Wait for THEM to talk. Let the donor sit with the request and consider it. If it feels awkward, that’s okay. Take a sip of coffee.

  4. Listen to what they say and respond appropriately (5-ish minutes). Answer any questions they have. Address concerns. Listen for what’s important to them.

    If the answer is yes, thank them warmly and share any details needed for them to make their gift.

    If the answer is maybe, let them know when and how you will follow up with them.

    If the answer is “not right now,” see if you can find out more. Is it a timing thing? Have their interests shifted? You could try asking for their opinion on something related to your campaign or mission. This is a good way to keep the communication open and let the donor know you value them, even if they can’t give financially this time.

  5. End the meeting on time. Thank them, shake hands, then go to your car or back to your office and jot down any helpful notes from your meeting.

  6. Follow up as agreed. Be sure to thank and report back if they gave.

Once you get a few of these meetings under your belt it will start to feel natural — then you won’t have to think about the structure much. But as you get started… having a game plan can help you feel more comfortable and confident asking for a major gift.

Give it a try and let me know how it goes!

Read the series:

  1. A Beginner’s Guide to Major Donor Fundraising Success: Step #1, Build Your Portfolio
  2. A Beginner’s Guide to Major Donor Fundraising Success: Step #2, The Plan to Build Meaningful Relationships
  3. A Beginner’s Guide to Major Donor Fundraising Success: BONUS Simple Strategy to Build Relationships Immediately
  4. A Beginner’s Guide to Major Donor Fundraising Success: Step #3, How to Ask for a Major Gift (This post)

BONUS: A Simple Strategy to Build Major Donor Relationships Immediately

Jim Shapiro  |  Major Donor Fundraising
relationships

A Beginner’s Guide to Major Donor Fundraising Success: BONUS Simple Strategy to Build Relationships Immediately

I’ve been sharing some of my tips and tricks for getting started with major donor fundraising.

Today, I’m going to share a strategy a client and fundraising friend of mine came up with that is so simple (and easy to remember!) that I can’t keep it to myself.

It’s called 3 – 4 – 5.

3 days a week, call 4 major donors to say thank you or report back, at 5pm.

That’s it. That’s the strategy.

Even if you can’t start a full-blown major donor program, see if you can try THIS.

Make this part of your week (every week!) and you will start building stronger relationships with your major donors immediately!

It’s as simple as 3 – 4 – 5!

Next time: how to ask for a major gift from the donors in your portfolio.

Read the series:

  1. A Beginner’s Guide to Major Donor Fundraising Success: Step #1, Build Your Portfolio
  2. A Beginner’s Guide to Major Donor Fundraising Success: Step #2, The Plan to Build Meaningful Relationships
  3. A Beginner’s Guide to Major Donor Fundraising Success: BONUS Simple Strategy to Build Relationships Immediately (This post)
  4. A Beginner’s Guide to Major Donor Fundraising Success: Step #3, How to Ask for a Major Gift

Plan to Build Meaningful Relationships with Major Donors

Jim Shapiro  |  Major Donor Fundraising
plan

A Beginner’s Guide to Major Donor Fundraising Success: Step #2, The Plan to Build Meaningful Relationships

Last time we worked through the steps of figuring out how many major donors you can successfully manage, and which major donors you should manage.

Now that you have your portfolio set, it’s time to start building relationships with these donors.

An exceptional donor experience is at the heart of an effective major donor fundraising program. This means attempting to build a genuine and authentic relationship with each donor.

First, work through your list and come up with a plan for each donor. Focus on your current major donors first, then your lapsed major donors, then your prospective major donors.

During this phase, you will develop fundraising offers (what would the donor be excited about funding?), communication calendars (when are you going to approach them?), and the best fundraising approach for each person (how are you going to approach them?)

Here’s what this involves:

  • Identify the best possible fundraising offer for each donor by matching up their interests with your organization’s needs. (Free eBook available here.)
  • Determine the next step for each donor in the Ask, Thank, Report, Repeat communication rhythm.
  • Create a systematic but relational plan to connect the donor’s personal mission/heart with the mission/outcomes of your organization.

Plan to have three to four interactions (meetings or phone calls ) with each donor per year. Then add in some additional email or text check-ins. When your portfolio is the right size, this is very possible!

One or two of the meetings should be asking the donor to make a gift. The other interactions should be thanking and reporting back on what their giving made possible.

For a full-time gift officer, this will mean 7 – 10 major donor phone calls or meetings each week.

Next time… a bonus simple strategy to start building major donor relationships IMMEDIATELY!

Read the series:

  1. A Beginner’s Guide to Major Donor Fundraising Success: Step #1, Build Your Portfolio
  2. A Beginner’s Guide to Major Donor Fundraising Success: Step #2, The Plan to Build Meaningful Relationships (This post)
  3. A Beginner’s Guide to Major Donor Fundraising Success: BONUS Simple Strategy to Build Relationships Immediately
  4. A Beginner’s Guide to Major Donor Fundraising Success: Step #3, How to Ask for a Major Gift

A Beginner’s Guide to Major Donor Fundraising Success: Step #1, Build Your Portfolio

Jim Shapiro  |  Major Donor Fundraising
major donors

Does your organization have a major donor program?

If not… or if you’d like to grow your existing program, it might seem like a big, daunting thing.

But it can be easier than you think. If you follow a few simple steps.

Today, I’ll walk you through figuring out how many major donors you can manage, and building your portfolio. In future posts I’ll show you how to build a relationship with these donors and even walk you through the steps of asking for a major gift.

Step #1 – Figure Out How Many Major Donors You Can Manage

Here’s a simple formula you can use to figure out how many major donor relationships you can manage in the time you have.

A full-time Major Gift Officer, who spends 40 hours a week on major donor fundraising, can manage 120 donors in their portfolio

How many hours a week can YOU spend on major donor work?

Write down that number, then multiply it by 3. That’s how many donors you can reasonably manage.

Let’s say you have 20 hours a week to spend on major donors. This means you can manage 60 donors in your portfolio. You get the picture.

Step #2 – Run a List of Your Donors and Assign Your Portfolio

Now, run a query or report to show all your donors with their cumulative giving in each of the last five years. You may want to export this list to Excel so you can work with it.

Sort the list using the most recent year’s giving column, from highest amount to lowest amount.

You are ready to make some decisions based on your list.

Decide who are your top donors based on the amount given in most recent year, the pattern of giving over the last five years (giving more, giving less, about the same, or all over the place…) and less-tangible factors like how closely aligned they are to the organization and how well you know them.

Leave a little room in your portfolio for lapsed major donors and prospective major donors. A rough percentage should be:

  • 80% existing active major donors
  • 10% lapsed major donors that could be re-engaged with some work
  • 10% prospective donors who have high potential of becoming major donors

This is your portfolio.

This may take a little time, but once you have your portfolio list built, you are off to a strong start.

If there are more names than you can handle, that’s okay. Let your direct mail program do the work of engaging them for now.

In my next post, I’ll share what to DO with the donors in your portfolio.

Read the series:

  1. A Beginner’s Guide to Major Donor Fundraising Success: Step #1, Build Your Portfolio (This post)
  2. A Beginner’s Guide to Major Donor Fundraising Success: Step #2, The Plan to Build Meaningful Relationships
  3. A Beginner’s Guide to Major Donor Fundraising Success: BONUS Simple Strategy to Build Relationships Immediately
  4. A Beginner’s Guide to Major Donor Fundraising Success: Step #3, How to Ask for a Major Gift

Major Donor Focus: Getting the Gift before Dec. 31

Jim Shapiro  |  Major Donor Fundraising
Phone call.

I know you’ve worked feverishly to get to this point. It’s almost the end of the calendar year.

Thankfully, there’s still time to raise a significant amount of money from your Major Donors.

Here are two simple things that you can do today to give yourself the best chance to secure significant year-end gifts from major donors.

  1. Identify your Major Donors who haven’t given in the last 90 days. Their last gift may have been in May, June, July, or even August. These are the people who are most likely to send you another gift as the year comes to a close. But only if you give each Major Donor a compelling reason to do so.
  2. Present a compelling offer. When you ask each Major Donor for their year-end gift, your offer must be compelling. In your ask, stress the urgency and the relevancy to the donor. It might be a funding need or financial shortfall. Perhaps the pandemic has added some unexpected expenses to your budget. Or a large grant has fallen through. You might even have an initiative for 2021 that needs seed money to grow. Whatever your offer is, present each Major Donor with a compelling reason to give before December 31.

Once you’ve identified the Majors that didn’t made a gift in the last 90 days, and you have a compelling offer to present, it’s your time to shine.

Pick up the phone, send some emails, schedule a Zoom meeting – leverage all methods of communication. But do it with urgency, because there’s still time – and your Majors haven’t run out of money!

Fundraising, Football, Conflict and Keeping Score

Jim Shapiro  |  Repeat
Scorecard

As Steven mentioned in yesterday’s email, I’ve been a football coach for a very long time. And for the record, my helmet when I played was not leather. 🙂

I’ve noticed some fun similarities between football and fundraising: 

  • There’s a season for both football and fundraising.  (But the best performers in both arenas practice all year long.)
  • Regardless of whatever the “hot new tactic” is, the fundamentals matter a LOT.  In football it’s blocking and tackling; in fundraising it’s things like your offer and donor segmentation.
  • Both have skills you can learn.
  • Both have teams that include people with different skills and responsibilities.
  • Both use data to measure success.

Fundraising, Football, Conflict & Keeping Score

Finally – but worth spending a moment on – there’s conflict in fundraising and in football.

On the surface, the conflict in football is more physical.  But there’s also conflict over who gets to play and who doesn’t.  There’s conflict between coaches over what plays to run.  (The game is often more draining mentally than physically.)

The same is true in fundraising.  There’s conflict between staff over the content and frequency of fundraising.  In smaller organizations there are often disagreements between Board and staff over fundraising methods.

The reason I bring this up is because football has one clear advantage over fundraising in this arena: keeping score is a lot easier.  When you try something one week, the scoreboard tells you right away whether it worked or not.

“Keeping score” and knowing whether your fundraising worked or not is more difficult – but it’s more important!  The coach in me is constantly encouraging organizations to measure their performance more closely. 

A question I ask all the time is, “What is your retention rate for your major donors?”  Too many organizations don’t know.  They haven’t “kept score” to see whether their fundraising efforts are effective at keeping their major donors around!  (And their Majors are often giving more than 80% of the total revenue an organization receives from individuals!) 

My encouragement to nonprofits goes back to one of the similarities between football and fundraising that I mentioned at the top: keeping score (measuring the performance of your fundraising) is a skill your organization can learn. 

Here are a few of the main metrics we advise nonprofits to track on an ongoing basis:

  • Overall donor retention rate
  • Major donor retention rate
  • # New Donors each year (broken out into New Donors and Reactivated Donors), and the total acquisition costs.  Use those numbers to calculate the Cost Per New Donor.
  • For each piece of direct mail: # Sent, # Gifts, Production & Mailing Cost, Gross Revenue.  Use that info to calculate % Response, Net Revenue and Return on Investment (ROI).  Of those, Net Revenue is the most important (not ROI).
  • For each email: # Sent, # Open, # Clicks, # Gifts, Gross Revenue.  Use that info to calculate % Open, % Clicks, % Conversion and Net Revenue.
  • In addition to tracking the metrics for each impact (email, letter, etc.), we also “roll up” the results for each campaign so we can track campaign efficacy.

That’s just a start, but it’s a good start.  If you learn the skill of tracking your performance and then “basing future decisions off of past performance,” your organization gets better faster at fundraising.  As a result, you’ll have a larger impact!