Beginning Donor Cultivation for the Nonprofit Organization
Planning Comes First! Before anyone asks for a single penny, your organization needs to have a plan. In the big leagues, this might be referred to as a “Development Plan” but it is really just a well-researched plan of your revenue needs, where the revenue is currently coming from and where you are most likely to go in order to fundraise more money. A balanced plan will take into account what your organization is already doing (and how well it’s working) and what other activities you’d like to do in order to improve fundraising.
For instance, do you already collect membership dues, or receive money from an established funding stream? Do you have board members who give a set amount each year? Figure these into your plan and then look for areas where you can target growth or make efforts to increase revenue. An important part of your plan should be direct requests from donors.
Researching & Targeting Donors: Try to avoid the grand pitfall of the novice organization – a group of well-intended board members sitting in a room and making a list of all of the individuals and businesses in Anytown, USA who are rumored to have money. By all means, make a cultivation list ( a list of individuals to cultivate and target for a donation) – but start with those individuals closest to your cause! If you haven’t been keeping accurate records of donors and participants, start. Develop a database where you can keep all contact information, donation and involvement history, and notes about the individual. Start your fundraising with those closest and “warmest” individuals. Spend some time getting to know your donors and supporters. Find out who knows whom and what the connections are to your organization (and others in your community,) Try to find out who’s giving to which organization and how much. Try to get a feel for the “capacity” of the individuals on your cultivation list.
Plan for Contact: Look for ways to connect with your supporters and chat with them. This seems very elementary, but it is really an integral and ongoing piece of donor cultivation. Ask individuals what they like and don’t like about what you do, how they came to support your organization, and if they have any ideas for how you can improve programs or services. This will create an even closer tie between these individuals and your organization and often will pay off increased donations.
Making The Ask: By starting with your warmest supporters, you are increasing the likelihood that you will have early success and boost “asking” confidence. This is very important for those volunteers who are convinced they “cannot ask anyone for money.” Make sure you are prepared. This doesn’t mean an armload of materials and visual aids, it means that you have done your homework and know the history an individual has with your organization, when and how much they have donated in the past, and, definitely, get the pronunciation and spelling of their name(s) correct! Put a little thought into who might be the right person or people to make the contact. Whenever possible, an “ask” should be what’s known in the businesses as “peer to peer” – this means making a match in terms of social status, employment field, age, etc. When in doubt, a board president and/or executive director should at least be part of the team. In performing arts, it is very common for the artistic director to participate in important donor calls (the artistic side is so much sexier than the business side of an organization.) Volunteers make the best “askers” if they are well-trained because they often have so much passion for an organization’s mission and are usually donors themselves.
How Much Do We Ask For? As part of your homework, you will have an idea of how much you are trying to raise and what the suspected capacity of an individual is by the time you meet with him or her. There are several ways to make an ask. You can ask for a specific amount in one lump sum: “We are hoping you can help by contributing $1000 this year to support our education program.” Stop. Let the donor respond. Or, you can make an ask in a “range”: “We would like you to contribute with a gift in the $1000-$2000 range.” You can also suggest a pledge or multi-year payment. This can be especially helpful if you are asking for a larger sum: “I would like to suggest a gift from you in the amount of $2000 for each of the next three years would be instrumental in helping us purchase new equipment.” However you make the ask, stop and let the donor respond. Instead of rambling or anticipating questions or making apologies, it is important to show that you feel confident and comfortable with your request and it is up to the donor to decide whether the answer is yes or no. Most likely they will counter with some questions, or say they need to think about it. That’s fine, let the donor know you will be following up with a phone call in a few days to see if they have any more questions.
Sounds easy enough, doesn’t it? Asking for money is not difficult, but it can be intimidating. Keep in mind that if you believe in your organization’s mission and work, and you are confident things are being well-managed, making sure operations are funded should be a priority. Once you get over the anxiety of making the ask, you will be able to build stronger connections with your supporters as well as establish a healthier bottom line.
