Category: Major Donor Fundraising

Top Heavy

Steven Screen  |  Major Donor Fundraising
Unbalanced.

The following graphic is from a fundraising analysis on a nonprofit we serve.  Look at how much of their revenue from individual donors comes from their major donors:

This kind of revenue distribution is normal; a large percentage of a nonprofit’s revenue from individual donors comes from a small group.

In fact, the revenue distribution for this organization is not particularly top heavy.  About 65% of their revenue is coming from their $5,000+ donors.  We regularly see organizations where 80% or 90% of revenue is coming in from $5,000+ donors.

This is why – even for small organizations – we put such emphasis on managing your major donors well. 

It’s why “having a proven major donor management system” is one of the “core four” strategies we teach in this free eBook.  It’s the reason Major Gifts Engine exists (and is on sale right now, btw). We can wish the funding were more equitably distributed. 

We can even work to make it so.  But right now, intentionally managing today’s major donors is the best way to meet tomorrow’s revenue needs.

The Old Adage That’s Proving True Again

Steven Screen  |  Major Donor Fundraising
Wisdom.

There’s an old adage about major donor fundraising.  And right now is one of the times where we see why this wisdom keeps getting passed down from Fundraiser to Fundraiser.

The adage goes like this:

When times are good, major donors give.
When times are bad, major donors give.
When times are uncertain, major donors hold.

Major giving has been slow this year – despite the strong economy and stock market.  This has been true for clients big and small, for organizations with mature major donor development systems and 1-person shops.

We believe the slowness was largely due to the uncertainty surrounding the presidential election. 

But here’s the good news; this week I’ve heard multiple reports of major giving rebounding post-election.  Their numbers from November are coming in and Fundraisers are pleasantly surprised.

Organizations are shifting from “I don’t think we’re going to hit our projections” to “I’m cautiously optimistic we’re going to hit our projections.”  This is good news.

So if major giving for your organization has been slow this year, reach out to your majors this month.  Ask them to give a gift to help your beneficiaries or cause.  Give them reasons to give a gift now – tell them what work your organization is going to be doing in January and February and ask your majors to help make that work possible. 

Be encouraged, and good luck!

2.4 Gifts Per Donor Per Year

Steven Screen  |  Major Donor Fundraising
Action creates momentum.

At the Big Fundraising Agency I used to work at, we noticed a trend:

The individual donors who gave two or more gifts per year were the donors who were most likely to give again the following year.

Think of it like physics: a donor’s relationship with your organization has momentum.  If a donor is giving often, they are more likely to keep giving.  If a donor is giving infrequently, they are more likely to stop giving.

The data analysts further identified that if an organization’s individual donors averaged 2.4 gifts per donor per year, that seemed to be a “sweet spot” for revenue and donor retention. 

I share this because many nonprofits have an unspoken belief that goes something like this: “most donors don’t want to give more than once a year.”

That belief then drives their fundraising strategy: they only send one or two appeals a year, they over-steward their donors, they constantly watch out for the mythical “donor fatigue,” they would never ask a Major to give more than once per year, etc.

Those strategies go against everything I’ve ever seen in data in 30+ years of fundraising.  (Are there individual donors who are outliers?  Of course.  And when a particular donor says that they prefer something, honor that preference.)

My advice to you: follow the data.  Create fundraising plans that actively give donors more chances to give. 

A donor at rest tends to stay at rest, and a donor in motion tends to stay in motion.

Major Donor Fundraising For Small Nonprofits

Steven Screen  |  Major Donor Fundraising
Two women consulting.

We recently surveyed a group of small- to medium-sized nonprofits.  We analyzed their fundraising programs and arrived at a startling conclusion:

7 out of 10 of the smaller nonprofits did not have a system to manage their most valuable donors. 

The donors who were driving most of their revenue were being treated just like everyone else.

This means these organizations were not maximizing the opportunity they had with those donors.  And organizationally their behavior was risky because there was so much revenue at stake.

Believe me, I get how this happens.  When you’re a small nonprofit or a 1-person fundraising/development shop, it’s impossible to get to everything.

So Jim and I decided to do something about it.  Yesterday we launched Major Gifts Engine, a 6-month program to help small organizations install a major donor management system, based on best-practices but customized for the organization. 

If you’re interested, you can read more about it here.  And it includes a link to get in touch.

But not every organization will be able to afford it because it costs real money to have an experienced major donor fundraiser help a nonprofit set up a repeatable major donor fundraising program, determine portfolio sizes, choose which donors go in the portfolios, and create giving goals for each donor. 

So if your organization needs this, but can’t join, I want to encourage you to intentionally invest time and whatever resources you have into your major donor fundraising.  (Investing in your organization’s major donor fundraising is one of the highest ROI activities a small organization can invest in.)

Here’s a simple exercise you can do in about 90-minutes’ time:

  • Identify your top 10 donors by cumulative giving over the last three years.
  • Hand-write and mail each donor a card that thanks them for their extraordinary generosity.
  • Come up with 5 additional reasons to contact each donor between February and October.  This could be things like forwarding them an exciting email with a note before the email goes to the rest of your donors, texting them a photo and short success story, hand-writing a note on their copy of your newsletter, you get it.
  • For those donors, write down (that’s important!) the amount you’d like them to give for this year.  As the year goes along, you’ll find yourself noticing things they could be funding, and your ask(s) to them will be stronger because of it.

You know that much of this blog is about copywriting and fundraising offers and all the things I love to talk about.  I started out as a copywriter so I tend to believe that a good idea and great copy will change the world.

And that’s true.  But it’s pretty obvious that a good idea and great copy don’t usually out-raise a major donor you have a good relationship with.  And they almost never out-raise a group of major donors that you’ve invested in, kept for years, and lifted to higher and higher levels of giving.

So as you start this year, invest in your major donor fundraising.  Whether that’s investing in a system like ours or an activity like the one above, you’ll raise more money and have a greater impact.

How to Get Matching Funds from a Major Donor

Steven Screen  |  Major Donor Fundraising
match

I wrote earlier this week that the signs are pointing to donations from individual donors being down this year. 

If that holds true for the rest of the year, it’s important to do everything you can to make your fall fundraising attractive.

And the slam-dunk way to do that is to have matching funds available at year-end – and all of your fall fundraising if possible.

If you’re interested, you should read How to Get Matching Funds from a Major Donor.

I think the main reason this approach works so well – and that this blog post is our second-most-popular post of all time – is the question that we recommend asking the major donor. 

Most organizations ask the major to solve the organization’s problem: “Will you give us matching funds so that we can use them in our fundraising?”  Instead, you’ll see how to get your major donor wanting to give you matching funds because it helps them get what they want.

Go read the post, and then go get some matching funds for this fall!

The Difference Between “Understanding” and “Feeling”

Steven Screen  |  Major Donor Fundraising
gratitude

A major donor can understand that their gift was appreciated.  That’s nice.  And pretty easy to make that happen.

Yet it’s also possible for a major donor to really feel that their gift was appreciated.

There’s a big difference. 

The blog post How to Thank a Major Donor So She’ll WANT to Give Again gives you a simple road map to making your major donors feel your organization’s appreciation.

I share that post today because the signs are pointing to donations from individual donors being down this year. 

If that holds true for the rest of the year, it’s more important than ever for your organization to make sure your major donors feel your gratitude.

Here’s what often happens in down years.  Major donors deploy a two-part strategy:

  • They reduce the number of organizations they support, and
  • They reduce the amount they give to each organization. 

But major donors usually have a couple of organizations – close to their hearts, where they feel their giving really matters – that they do not cut or reduce.

That’s the group you want to be in. 

But you must earn your way into that group.

So go read the post, then go make sure your majors feel your gratitude!

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