Tag: Major gifts

Direct response and major gift fundraising should follow the same rhythm

Sarah Lundberg  |  Repeat
Follow the rhythm.

Before my time at The Better Fundraising Co, I used to be a Director of Marketing and Communications for a nonprofit. But then the nonprofit I was working at needed me to create their fundraising materials from scratch, and I discovered a whole new world of expertise — it challenged the beliefs that my nonprofit and I had for how fundraising worked.

As I learned about direct response fundraising best practices, I also started to learn about major donor fundraising. And the similarities between successful direct response fundraising and successful major gift fundraising stood out to me.

I understood that all our organization’s fundraising helped our mission. But I never quite understood that both kinds of fundraising were about building relationships, just in different ways.

Our major gift fundraisers spent their days reaching out to donors. They had meetings to share a need and ask for a gift. They had meetings to report back on a donor’s gift or share an update about a project. And they wrote lots of thank you notes and made countless thank you calls. The major gift fundraisers at my organization were doing these things to build a one-to-one relationship with the donor.

With our direct response fundraising we were following a similar rhythm, but on a one-to-many scale.

We shared a need and asked donors to give through appeal letters and e-appeals. We sent out newsletters to report back to donors on what their giving made possible. And we sent out thank you letters and handwritten thank you notes when donors made a gift.

Understanding this similarity helped me view my role differently. I wasn’t just a person behind a desk, assisting with fundraising by writing copy and designing the mail and email. I was a Fundraiser myself, building relationships with people who wanted to do powerful things but weren’t in a personal/major donor relationship with us.

And that shift made all the difference.

Major Donor Fundraising For Small Nonprofits

Steven  |  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 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

Successful Major Donor Fundraising Takes Time

Jim Shapiro  |  Major Donor Fundraising
Major donor.

To help you with your major donor fundraising this year-end, we’re running a series of Jim Shapiro’s most helpful posts from the past.

We hope it provides you with some tips and tactics that skyrocket your major donor revenue during this important fundraising season.

Just about every single month, I receive an emergency phone call from an executive director who is short of their budgeted goal for a project or program.

The organizations that call us often have something in common: a leadership team that hasn’t had a disciplined approach to cultivating relationships with their major donors. So when it was time for those organizations to ask their major donors for financial help, their donors weren’t inclined to respond.

What does that mean for you?

It means that TODAY is the day you need to reach out to your top active donors and donor prospects. Right now, pick up the phone and give them a call. This very minute, pick up a pen and write them a thank you note. Or sometime this week, ask a donor to lunch.

Then make sure you have a disciplined system that keeps you in touch with them as often as they would like (which is usually more often than you think) – especially if you’re good about Thanking and Reporting back to them on the effects of their previous gifts.

But for now, take the time to connect with your top donors. By doing this, you’ll not only build great mission-driven friendships but you’ll also prepare your donors to respond when you come to them with a need.

Want to know more? Get Jim’s recorded year-end webinar about major donors, and start learning how you can raise more money and steward important donor relationships during this crucial time of the fundraising year.