Tag: majors

How to Get Matching Funds from a Major Donor

Steven  |  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  |  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!

Your Major Donors Are More Important Than You Think They Are

Steven  |  Major Donor Fundraising
Your Major Donors Are More Important Than You Think They Are

We’re doing a series of short posts called Mastermind Lessons.

The Fundraising Mastermind is transformational consulting for nonprofits that we do with Chris Davenport of Movie Mondays and The Nonprofit Storytelling Conference.

Today’s post is the second top-level lesson we’ve found that every organization in the Mastermind needs to learn…

Your Major Donors are Remarkably Important and You aren’t Spending Enough Time or Money on Them

An organization usually knows that a small percentage of donors (your “major donors”) provide a significant percentage of your total revenue.

But an organization is usually shocked when they discover how small that number of donors is, and how large the percentage of income is.

In our experience, it’s usually around 85% of an organization’s revenue from individuals that comes from 10% of their donors.

And because the organization hasn’t sat with the numbers and really faced what they mean, the organization does not spend enough time and money on their major donors.

Here’s the example I use that helps organizations see:

Say you have a business that has 100 customers. And 10 of those customers are responsible for 90% of your revenue. You would give those customers the “white glove” treatment. They would be greeted by name at the door. They would have a special, shorter line to wait in. They would get a phone call the next day to see if their purchase worked out.

That’s common sense. But too many nonprofits don’t apply it to fundraising.

Your major donors should get the “white glove” treatment:

  • Hand-written thank you cards
  • Appeal letters written specifically to them, about what they care about
  • Newsletters sent in large envelopes, with a hand-signed cover letter
  • A call from the Executive Director after every gift

There are lots of possible treatments. You can and should be doing them.

That said…

To Keep Your Major Donors, and to Lift Them to Higher Giving, You Need a SYSTEM

Special treatment is great. Start doing it now.

But what you really need is a major donor fundraising system.

In a nutshell, here’s what your system should do:

  1. Identify your major donors
  2. Rank them so you know who to focus on first
  3. Build relationships with them (with the ones who are open to this)
  4. Make a revenue goal for each major donor
  5. Make an annual plan to lead each major donor to reach the goa

It’s the organizations that have major donor systems in place, and then are disciplined about running the system, that see major revenue growth. They keep more of their major donors, and lift their major donors to higher and higher levels of giving.

Does Your Organization Need This?

The good thing about this is that almost every organization I’ve spoken with recently says they know they need to spend more time and money on their major donors.

The tough thing is that very few of them know what to do next.

My suggestion: take a class like this one from Jim Shapiro, the co-founder of Better Fundraising. (And if you can’t make those dates, apply anyway because there will be another class later this spring.) And follow the Veritus Group blog.

It will take time to get great at major donor fundraising. But it’s worth your time and investment!