How do we build an individual donor base for our organization?

Step one

Last month’s article outlined the first steps that are necessary for your charity to build its individual donor base by starting with “the family”. The energy you invest to form and strengthen relationships with those closest to your organization is vital to your development program and mustn’t be overlooked.

Step two

Broadening your base of support from individuals (beyond the board, volunteers, clients, members, staff, and other stakeholders who are near and dear to the heart of the organization) is your next priority. In that image of the stone hitting the water — and the concentric circles that emanate from within — we’re now moving our way outward from the centre with a goal to intrigue new individuals.

Remember the difference between a “suspect” and a “prospect” is Linkage, Ability, and Interest. So, as you attempt to attract prospective donors to your organization, your objective is to engage those who are most likely to respond. Don’t waste your valuable time on people who aren’t inclined to care deeply for what you do. Can you see any predictable characteristics in your existing donors or volunteers that might help you target others? For instance, common values are often a strong indicator for support, therefore, you want to attract like-minded people who are moved by the mission of your work (interests). Ideally, they have the capacity to donate their time and/or money (ability) and one of the best ways to find them is through your existing family (linkage).

So, where can you start? The best places are the most obvious places, such as special events, direct mail, and your newsletter. In addition, and if you’re feeling a little bolder, social media and your website can also be effective tools for drawing in new people to your cause.

The role of special events

I’ve cautioned readers in other articles that special events can be very labour intensive. However, if you’re strategic about how you use them to engage new people then it can be time well spent. A number of years ago Ken Wyman (now coordinator of Humber College’s Fundraising and Volunteer Management program) wrote a Guide to Special Events for Canadian Heritage that’s still available electronically and, despite its age, is useful reading. Try taking the “Event-Ability Quiz” on page 141 to test your readiness (and mathematical prowess). Reviewing (and responding to) the questions and tallying your score will strengthen your chances of a successful friend (and fund) raiser.

One way to use your event to broaden your database of names is to encourage existing members to bring a friend who’d be interested in the cause. This is a simple strategy for a charity in the performing arts: open up a rehearsal and give a behind the scenes taste of your work. But how does an organization that serves abused women, or provides hospice care to terminally ill, identify an event that could broaden a participant’s awareness of its mission while respecting its clients? Be creative. Try providing something people are going to buy anyway. For example, a hot topic today is work/life balance; another is estate planning. These types of workshops are marketable, attract an educated audience that suggests some disposable income, and the subject matter can also be translated into either the above-mentioned causes.

Don’t lose the opportunity to gather names and addresses of ticket buyers. If that’s not built into the process, be sure to provide a way that people can register. Many charities have used the free draw – door prize that requires contact information to be eligible. There is no guarantee that these individuals will also make a donation over and above their introduction but without following up directly, you would have no way of knowing. Build on their experience. Report back to participants on what you achieved — number of tickets sold, funds raised, new subscribers to your newsletter, the difference that their support makes to the individuals you serve. You want to engage people in why their participation is important to your charity’s goals. Encourage ownership in your successes.

Direct mail

Aside from special events, another way to build your database of individuals is through direct mail. Mal Warwick is a US-based colleague who’s considered a guru on the topic and you can certainly learn more from him than me through his electronic newsletters. In this one he touches on the five strategic uses of direct mail, the first of which is “growth”.

With privacy legislation and the donor bill of rights, charities can no longer trade or sell their lists. However, names can still be acquired legitimately and my colleagues who specialize in this area of work are worth chatting with for their expertise. You need a compelling case in order to motivate a “dear friend” to give, but obviously enough people respond, to continue using this method to acquire new donors.

Newsletters

If you publish a printed or electronic newsletter, offer people the option to register for more information. CKUA Radio is Canada’s first educational broadcaster and listener-supported, community broadcaster. Using the 5-I’s of the Donor Cultivation Cycle (Identify, Inform, Interest, Involve, Invest) as the underlay, they demonstrate how e-newsletters help to strengthen donor relationships and keep them informed.

The new frontier: Social media

Online networking is an emerging strategy for attracting individuals to your cause. Steve Bridger stated in An Introduction to Social Media for Charities that this vehicle “provides an architecture for participation, not just a new channel for more of the same”. Twitter, Facebook and others create opportunities for conversations. This method of engagement is a two-way street that relies on responsive sharing.

The power of your website

Be sure your charity’s website is user-friendly and easy to navigate. Does your home page look inviting and explain your mission clearly and concisely? Are there any testimonials that demonstrate the effectiveness of your programs? Is there a call to action? Are readers able to make a donation in one simple click? For small charities with minimal resources, consider using Canada Helps. They are a registered charity with a goal to make online giving simple.

Don’t forget to train your staff and volunteers to pass along the contact information of people who enquire about your charity’s work. This can range from incoming calls answered by the receptionist to a casual conversation with a board member describing their volunteer work to a friend. The goal is to ensure that those who are curious are given the information they require. Educate people about your organization’s good deeds and explain that as a charity, the work is supported through donations…and then be sure to follow up.

What ever method you chose to engage people, provide a variety of access points and make giving as easy as possible for the potential donor.

Some final tips

Stewardship — good manners and great communications. Donor acquisition is the most expensive part of your fundraising efforts so be sure to have a good system in place to nurture the new relationships you establish. Acknowledge gifts promptly (ideally within 24 hours), particularly if you expect the donor to give again during their lifetime…and beyond! Kim Klein of the Grassroots Fundraising Journal calls it “thank before you bank”. You are far more likely to receive another gift when you ensure that people feel appreciated. I’ve always said that my first lesson in “stewardship” was at six years old when my mother said, “Cynthia, if you want a Christmas present from Granny then you better thank her for your birthday present.” This gesture seems so simple and yet the amount of times I hear such basic good manners being overlooked is staggering. No wonder the donor left! If they don’t feel their support is making a difference they’ll go where they feel welcomed.

Be thorough and respectful when collecting data. As mentioned, regardless of whether you have fundraising software or you have developed an alternative method of tracking the information, you must protect people’s privacy. The more information or knowledge you have on a specific donor, the greater your chance of appealing to their unique interests. In major gift fundraising the research is significant. And as a general rule, I would only track what I’m happy to share with the individual if they ever asked to read their file.

Building your individual donor base is a lifelong pursuit. Like so much of this profession, it requires tenacity, attention to detail, nurturing, patience, charm, and passion for your cause. In the course of all this, you will meet incredibly generous individuals who want to invest in your charities’ good works. It doesn’t get much better than that!

For more information, try Googling “Special Event Fundraising, Direct Mail, and Donor Stewardship, Fundraising Software”. Here’s an article on donor acquisition that might be helpful. Even though it’s directed to ministries the information is still pertinent.

The Grassroots Fundraising Journal has also done a comparison of fundraising software which is available at. Keep in mind that it will provide you with interesting contrasts but it doesn’t include some Canadian products.

Cynthia Armour is a freelance specialist in fundraising and governance. A Certified FundRaising Executive (CFRE) since 1995, she volunteers as a subject matter expert with CFRE International. She works with boards and senior staff to ensure that strong leadership will enhance organizational capacity to govern and fundraise effectively. Contact Cynthia directly at 705-799-0636, e-mail answers@elderstone.ca, or visit www.elderstone.ca for more information about her services.

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