A sector in flux has forced many nonprofits back to the drawing board when it comes to fundraising strategies. As many previously reliable resources have dried up, the pressure is increasing for organizations to cultivate repeat donors and find new sources of potential. In a changing landscape, being smart and strategic about where to put your fundraising energy is more important than ever.
To help jumpstart new ideas and actionable tactics, Taproot hosted the panel discussion From Reactionary to Resilient: Developing Sustainable Fundraising Infrastructure earlier this year. The lively conversation featured nonprofit consultant Jill Salter, freelance grant writer Nicole Druckman, and Taproot Nonprofit Success Coach Josh Groll.
The event proved so insightful that we decided to dig deeper into some of the themes touched by during the panel. Read on for tips on how to attract new donors, keep current ones engaged, and increase your effectiveness as a fundraiser.
Fundraising is a Marathon, not a Sprint
Unfortunately, no single strategy that will solve all your fundraising challenges. Development teams must be nimble and responsive, ready to deploy unique tactics in different situations. But that doesn’t mean that there aren’t simple actions you can take right now to set the stage for success. Doing your research, putting strong systems into place, and identifying resources you’ll need all takes time, but can quite literally pay off later.
Having the proper infrastructure before you jump into fundraising is key. “Your systems need to be in place before you can begin to attract donors,” advised nonprofit consultant Jill Salter, adding that otherwise, “your organization will collapse like a house of cards.”
Nobody likes a hard sell, so avoid cold calls and get to know potential funders and donors before making a pitch. Jill suggested investing in prospect research to find out who would make good candidates to give before you ever contact them. Freelance grant writer Nicole Druckman also recommended jumpstarting your prospects shortlist by researching who’s giving to peer organizations.
Your systems need to be in place before you can begin to attract donors. Otherwise, your organization will collapse like a house of cards.
Whether you’re pitching corporate donors or running a crowdfunding campaign, make sure you know what resources you currently have and where you need to put in work. This could mean creating a new annual report, updating your website content, or revamping your social media strategy (each of these are also perfect Taproot Plus projects for a skilled volunteer!). And if you’ve done the prospect research ahead of time, knowing who you plan to reach out to will help clarify what resources you need to attract them to your mission.
Persistence Pays Off, Eventually
Nonprofit leaders often get discouraged after investing time and effort into a fundraising strategy, only to hear nothing in return. While it’s disheartening to work hard on a proposal that doesn’t pay off, persistence is key. Many donors and funders want to get to know an organization before they’re ready to give, so think of the initial outreach as simply the first step in building a long-term relationship.
Nicole encouraged nonprofits to look for “ways in.” Do your board members know donors or foundations that they’d be willing to connect you to? She also advised organizations to think locally—applying for grants and pitching corporations is often more successful “when they’re located in your own community.”
If you’re communicating in writing with a funder or potential donor, brevity is key. “Keep it short and pithy,” Nicole said. You’ll want to ensure that letters of intent and grant proposals are tailored to foundations’ interests, but Jill also recommended double check the basics, as well, including re-reading submission requirements and making sure you’re addressing the correct person. “The LOI is your place to make a good impression. Don’t squander the opportunity,” she advised.
Building relationships with funders can feel like a grind, but the more you engage, the better your chance of getting a foot in the door. Not every submission will pay off, but they’re all an opportunity to learn what works and what doesn’t. Reframing a “no” as a data-gathering opportunity will help keep spirits high.
Board members must step up to the plate
An engaged board is critical to a nonprofit’s fundraising success. Ensuring a strong base of support is an extension of the board’s duty to provide financial oversight. Board membership usually includes a give/get where members donate and/or make introductions to other potential supporters. Jill suggested that this understanding “should be written into any agreement to serve.”
Not all board members have the financial means to make large donations, but they can use their networks to secure in-kind donations—including pro bono service—with a comparable dollar value. Accepting in-kind donations as part of a board member’s give/get is a great way to ensure that your board is economically diverse and reflective of the communities you serve.
A board that is actively fundraising can also increase your organization’s credibility in the eyes of prospective funders. Many foundations and savvy donors view engaged boards as a sign of organizational health. In her book Effective Fundraising for Nonprofits, Ilona Bray writes, “Properly orchestrated fundraising gets people out from behind the meeting table and into the community, where they can share what excites them about your organization.
Keep Your Supporters Warm
Once you’ve developed a relationship with a supporter, it’s vital to maintain it. To prevent your organization from becoming “stale” in the eyes of supporters, invest in keeping your storytelling fresh.
“Every person you help, every gift you raise, every event you hold, every new person who joins your effort, is a story waiting to be told,” Jill shared. She suggested using questionnaires to build a story bank of the reasons different stakeholder groups support your cause. These quotes and stories can be used for social media, blogs and newsletters, on your website, and shared at donor meetings and events. These testimonials are excellent social proof to encourage others to give. And, as Jill shared, “The more dynamic your stories, the less stale your organization will be.”
Reach out to funders throughout the year, not just at reporting time.
Nicole also encouraged nonprofits to update their language over time, including making sure stats are up to date and you aren’t using the same impact stories again and again. She also suggested that organizations reach out to funders throughout the year, not just at reporting time. “You don’t want to overcommunicate, but you can provide updates every now and then, send an interesting and pertinent article about the work they fund.”
Continuing to Build
The landscape for nonprofits may be shifting, but being strategic and thoughtful in your donor cultivation can still pay dividends. Every donation is a potential new relationship, but only if it’s cultivated and nurtured. Setting your organization up for success in fundraising means viewing supporters as partners and keeping the conversation going.
