You mean I have to talk to them?!

This question came up in a discussion about cultivating donors and prospects. Last month, our inaugural Fundraising Q & A focused on advice for tough times. We explored a variety of options and I provided you with my perspective as well as some helpful links. One of the most important points was to use this turbulent time to build your relationships with donors and prospects.

“Donor cultivation is an organization-wide strategy and process to learn more about each donor’s interests, desired professional and social contacts, lifestyle, and philanthropic desires so that we can better initiate and respond to contacts with a donor in order to develop a stronger relationship,” says Tony Poderis.

During my workshop, “them” definitely meant donors and prospects! This particular participant’s reaction is a common one that perpetuates the “us” versus “them” mentality. If we intend to ask donors to support our organization, it behooves us to be donors too. We can’t completely understand what motivates people to invest without asking them why directly, or reflecting on our own motivators. Ideally, we should do both.

The point is, donors are human (even corporate and foundation giving are influenced by individual interests and priorities). Philanthropy means love of humankind (Oxford Cdn. Dictionary). Considering the voluntary gifts made to charities, many philanthropists are quite “extra-ordinary” people. Isn’t that all the more reason to know them better?

Engaging your donors or prospects is a way to build their commitment and respect for your work. One of my favourite questions to ask a major donor is, “What were your deciding factors in making this donation?” Be sure to listen to their response. In fact, listening should be the sharpest of your fundraising tools – something many of us need to constantly hone. Your objective is to understand donors’ and prospects’ interests and preferences so that you can capitalize on investment opportunities that you know they’ll appreciate.

Identifying prospects versus suspects

“L-A-I” Anyone who has heard me speak knows that I’m constantly reminding new and seasoned fundraisers about the importance of Linkage (are there any personal contacts between your organization and the prospect?), Ability (is there a track record of support to yours or other charities and at what level?), and Interest (what will motivate their support?) when doing prospect research. As the late Hank Rosso (founder of The Fund Raising School, Indiana University) said, these three components together define the difference between a “suspect” and a “prospect.”

If we don’t ask our prospects and donors questions, how do we really know their preferences? Why should we expect them to give? Have we provided them with a strong investment prospectus (or case for support) that answers their concerns? (Not ours!) Do we even know what their concerns are? Does “no” mean not now or not ever? Does “yes” mean just this once or yes, forever?

Preparing board members for success

One method to encourage board involvement in your fundraising is to help members be comfortable with the roles you need them to play. I’ve heard many board members say they hate fundraising and yet, when asked if those same individuals would consider phoning to thank a donor, they’ve all said yes. Our job as staff, with expertise in fundraising, is to ensure our volunteers are well prepared. If you are lacking the necessary skills within your organization, look into training or invite a hospital or university fundraiser to give you a hand.

It’s important to help staff and volunteers understand where they can contribute their strengths and skills…within their comfort zones. Divide up all the tasks of fundraising and delegate according to preferences. Those who enjoy research can be part of the “scavenger hunt.” Prospect research can be quite an addictive game for the sleuths. Find out who is comfortable or willing to learn how to make face-to-face asks to donors who can afford a significant gift. Provide canvassers with role-playing opportunities, background information, and “call report” forms to complete and return to the development office.

And remember, prospect and donor cultivation do not end with the contribution. Good stewardship is our duty. We need to thank donors promptly for their gift and ensure they are kept informed of the positive outcomes the charity can accomplish with their support. In last month’s column, I said that thanking donors was just good manners, and I got a number of chuckles comparing this kind of communication with what my mother taught me in order to ensure ongoing birthday and Christmas presents from my grandmother. The reason I’m raising it again is to help people understand that our job as fundraisers is to ensure that donors feel respected and appreciated. Don’t take anyone for granted; there’s too much competition out there and donors are not beholden to us.

Respect privacy

In our efforts to find out as much as we can about who our prospects and donors are, we cannot overlook the importance of protecting their privacy. At the risk of oversimplifying, and without going into PIPEDA (see below), a general rule for data gathering is that you should feel comfortable sharing the information in a donor file with the subject of that research.

Build accountability and promote donor rights

Your board should be driving what policies are necessary for fundraising (possibly with some guidance from staff). Imagine Canada created the Ethical Fundraising and Financial Accountability Code in 1998 and it has since been updated. There is a biannual fee based on revenues raised through fundraising, but the costs are not prohibitive, particularly at the grassroots level. If you haven’t investigated these guidelines yet, this is a perfect place to start your dialogue together. Review the materials and discuss the pros and cons of officially adopting the code (and paying the fee), or just using this public document as a standard to broaden awareness. Cultivation is a nurturing venture. It takes time and effort and if everyone understands that they can all play a role, the responsibility doesn’t fall entirely to one fundraiser.

Finally, I’d like to reiterate that the goal of this column is to stimulate dialogue within your leadership team, the board and senior staff person in particular, but if you have a head of fundraising, please ensure they are included. All three perspectives are vital. Successful fund development is a team effort! By discussing these articles, you can come up with tailor-made solutions to your unique challenges, based on tips provided here. Your board plays an integral part in the organization’s fundraising ability and this monthly column is intended to build everyone’s understanding and comfort level.

For more information…

Follow Cynthia Armour on Twitter, and for more information on January and February’s topics see:

 

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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