Looking for major gifts for your cause?
The key lies in building relationships with your top 20 prospective donors.
Don’t have a top 20 list yet? Check out the previous posts in the Major Gifts Challenge to get yourself caught up.
The Art of Building Relationships
Fundraising is about relationships. The relationship-building stage of the fundraising process is known as cultivation.
I’m sure you’ve heard the expression, people give to people.
Well, it’s true.
Donors want to like and trust the individuals at the organizations they support. Cultivation is about building relationships before asking for money.
Cultivating Your Top 20
Its your job to build relationships with the top individuals on your list. It’s likely that you already know many of these people. They may be board members or other volunteers.
Regardless of whether you know them or not, you need to start thinking strategically about how to encourage them to consider supporting your organization in a bigger way… with a major gift.
Action Item of the Week — 2 hours or less
Create a cultivation plan for each of your top 20 prospective donors.
This may sound like a huge task, but it’s a lot less complicated than you think. All of your plans can be similar. Just tweak them slightly depending on your existing relationship with each person.
Each plan should only be one page. Put the prospective donor’s name and contact information at the top. Then list the months down the side: January through December. Make sure you have cultivation activities evenly spaced throughout the year.
Sample Cultivation Plan:
The 4 pillars below explain what each of your plans should include. For each individual, you’ll want to note the specifics, like where you’ll meet and how they can see your program in action.
Work on this for two hours this week and, if necessary, another two hours next week.
The 4 Pillars of Cultivating Major Gifts
Here are four simple steps to building major gifts relationships. You can do them in any order that makes sense.
1. Meeting face-to-face
This is a must. You cannot discuss a major gift in a group setting.
This meeting can come at the beginning of your cultivation or toward the end, but you cannot get around it.
More than one person can go on a face-to-face meeting — usually a board member and the executive director or development director.
The meeting can take place at the prospect’s home or office and can last anywhere from fifteen minutes to an hour.
2. Seeing your program in action
Invite all your prospects to take a tour, visit a program, or attend an event. This will help them feel closer to your organization and gain a better understanding of what you do.
3. Volunteering
Invite your prospective donors to volunteer for your cause. On a committee, in the office, in direct service, one-time or ongoing.
Volunteering brings people closer to your organization and makes them more inclined to give.
4. Providing updates
Updates about your programs and services can be delivered by phone, email, in-person, or via a hand written note.
Updates should be delivered twice annually to all prospects on your list.
One goal of cultivation is to get to know your prospects better. To do this, you will want to ask them several open-ended questions, like:
- How did they get involved with your organization originally?
- Why did they decide to start giving and why do they continue to give?
- Why do they feel your mission is important to support?
- What do they love about your organization and what would they like to see improved?
- If they could fix or improve one thing about your organization, community, or the world, what would it be?
These questions encourage them to think about your organization on a deeper level and about how they can get involved in making the world a better place.
Recap: Create Cultivation Plans for Your Prospective Donors
I’ve laid out your action item for the next two weeks, and I know you’ll do great!
Now it’s your turn to speak up… I want to understand your concerns about face-to-face meetings, cultivating the people on your list, or any of the other action items I mentioned above. What gives you butterflies in your stomach?
Tell me in the comments below. My professional feedback and encouragement are yours for the asking, no strings attached, so don’t be shy.
This post is part of Amy’s Major Gifts Challenge. Read the entire series to learn how to solicit major gifts by spending just a few hours each month.
Amy,
What do you suggest if your organization is overseas so most donors do not visit.
Also, I am based in NY but 14 of my 20 major gift prospects are in other states. I speak to them on phone but some I haven’t met. Furthermore, we don’t have any activity to invite them to here.
thanks,
Ezra
Hi Ezra,
Great question. Do you have the capacity to video chat with any of your donors? This is a great way to connect with them, without being in the same room.
Also, can you come up with a video/virtual tour? Use technology to bring your organization to your donors.
Remember to make sure that all of your donors know that if they are ever in the NY area, you would love to meet them. Even offer to travel to meet them if they are on the northeast coast.
Finally – how much would it be worth to travel to visit some of your donors in other states? A trip including air, hotel, and food, might cost $1,000. If you’re asking for $10,000, then I’d say it’s worth you taking a trip.
Hope that helps.
Amy
I think my biggest challenge is the newness of actively courting donors.
Hi Sharon –
Yes, it’s often hard to get started, especially if this type of activity is outside your comfort zone. Try to keep in mind that you’re looking for investors (not begging for money) for a cause that’s important to you and the donor – and the community. After you have one or two successes under your belt, it won’t seem nearly as hard. Start with someone you are already comfortable with and ask them if you can meet with them. Think of open ended questions that you will ask them in order to keep the conversation going. Think of it as a first date – you need to get to know them, and they you!
Hope that helps.
Amy,
Do you have any fundraising suggestions (besides friends & family) for a pending 501c3? Our problem seems to be people are weary about donating since we are not approved yet. Thanks!
Yes, the best place to start is with family and friends. Until your 501c3 comes through, my advice is to start friend-raising. That means starting to build your list (database) and try to get people interested in your organization. Recruit volunteers, and create a fundraising plan. When your paperwork comes through, you’ll be ready to go.
Our organization is headquartered in San Francisco, with campuses in Yosemite, Golden Gate National Recreation Area, Olympic National Park (WA), the Santa Monica Mountains, and Channel Islands. Our biggest challenge is getting people on the trail in the Santa Monica Mountains due to the distance and time commitment involved. Any ideas?
Gretchen –
That is a challenge, but one that can be overcome with technology. Have you made a video? Taken great photographs?
Make sure all your donors know that if they are ever in the area, or would like a tour, you’d be happy to provide one. They may not come on your schedule, and may not think to tell you when they’re there. Keep reminding them that if they are in the area, you’d love to see them.
One of my biggest challenges is that many of our donors are also residents – so they are always in the loop about what’s going on around campus – sometimes they even fill me in! I feel like I have nowhere to invite them and little to update them about on a regular basis.
My biggest anxiety is that working with older adults, many of them are part of the at-risk population for scams, so their family is very cautious about how money is used and often integrally involved in financial decisions. Knowing many of my donors are vulnerable makes me nervous to ask!
Hi Amanda,
As you know, it will be key to involve the families. Ask if you can meet with your resident and their children. They might be excited about a gratitude or legacy gift. Are you talking about planning giving (including bequests) with them?
We’ve been talking Charitable Gift Annuities recently. We’ve done estate planning, and estate plan check-ups here in the past with a local law firm specializing in Elder Law. We do have a Legacy Guild encouraging various forms of planned giving that seems to have fallen by the wayside.
I’ll look for ways to get to know our residents’ families better. Thanks!
Amy,
My challenge is creating an enormous culture shift within the organization. We are a medium sized school that has grown out of church families. There has been a significant focus on parental involvement and volunteerism but as the school has grown we now see “the usual suspects” pulling the weight.
The same is true with the annual fund. The board is also very small and there is no focus on fundraising. This is the first year that the board has been asked to give to the annual fund and 6 out of 7 donated at a variety of levels ranging from $25 to $10,000. In addition, the Head of School is primarily occupied with the operation of the school and managing teachers. The relationship with our church has also created a more or less hands-off approach to soliciting for gifts.
Under the guise of responsible stewardship and Christian humility, there are no formal goals, expectations, cultivation strategy, etc. for major giving. I am the first full-time Director of Development in the schools history and in the 16-months I have been in this role, there have been small gains as a result of my efforts. I have come to realize that the board and Head of School feel as though the job of fundraising rests solely upon my shoulders as opposed to harvesting the fruit of many laborers. Unfortunately a significant portion of my time is also spent on marketing and public relations.
So, my dilemma is like eating an elephant. What is my first bite?
Thanks,
Carolyn
Hi Carolyn,
I think you’re exactly right – eat an elephant, one bite at a time. It’s the only way. And, it takes time to change the culture of an organization. It’s not going to happen over night. If I were you, I would try to identify a key board member or two, who really get what you’re trying to do. Have them raise the issue of formalizing fundraising and working as a team. It will be much more effective to have a few board members on your side, rather than going it alone.
Hope that helps,
Amy
Amy,
Just an update on my slow progress in shifting the fundraising culture of the organization. I have begun to make head way with 2 board members (one of whom is the current board chair) and next week we are meeting to make a strategy to begin a major gift campaign. This is a huge coup for our school and it has taken several months to get this far but I am encouraged.
So, this week I am narrowing down my cultivation list and am going to flesh out a plan for each donor. They range from parents of students, grandparents of students, family of faculty and some supporters within the community. I am hoping that by the end of the calendar year we may have at least one new major gift on the books. I will call that a success after 16 years of winging it.
Thanks for being a resource!
Carolyn
July 31, Amy gave this piece of advice: “Remember to talk about your mission and vision. Good luck and keep us posted!”
Aug 27 and I’ve already talked with 7 of our major and loyal donors (another 2 this week) and more appointments to go.
They’ve all been very supportive, are surprised I’m not asking for money, and while happy to say what they like about the parish and what keeps them coming back, not very specific about what’s missing or could be done better or differently. Still they seem flattered to be asked for their impressions of the parish.
Results:
Jul 2013 over Jul 2012, an increase of 25%
Aug 2013 over Aug 2012, an increase of 13%
Given all the different things we’ve done over the past 7 weeks, it’s hard to attach this increase to that activity, but it all works together.
Keepin’ on keepin’ on.
Part of the mission is funding the ministry.
Thanks for your encouragement, Amy!
Amy,
We’re 3 weeks and a dozen visits into meeting with major and loyal donors.
The visits have all been pleasant enough, and certainly revealing about why they like IHM parish. They’re far less revealing about how to improve, what to do, what to stop. They’re long on encouragement and a bit short on advice.
I have this Catholic guilt thing that I must be doing it wrong.
On another topic, 2 of my top donors have just refused meetings and asked to be taken off the parish rolls.
Help? Advice?
Hi John,
Just keep at it – I’m sure you’re not doing anything wrong. Maybe there’s nothing to improve – although you can certainly talk about your vision and what you’re fundraising for – ask for their advice on that. I’d be surprised if they didn’t have an opinion. Encouragement is good, so don’t look a gift horse in the mouth. Take them at their word. Ask them if they’d like to get more involved and have a few examples and opportunities at the ready. Ask them if you could come back to speak with them in a few months about the possibility of them making a more significant gift – to ensure continued success.
As for the two that want to come off the rolls, I would write them handwritten notes. Let them know you are sorry to hear they want to come off, and ask if they would be so kind as to tell you why. And, ask if there’s anything that can be done to reconsider. Don’t grovel, but be thoughtful and considerate. Hopefully they will change their minds.
I hope that helps.
Amy
We already do much of this cultivation and I’m comfortable with each step. My concern is: what if the donor doesn’t want to meet with us when we call and ask for a meeting?
Julie –
Thanks for sharing.
One key to getting a meeting for the first time is asking the person if you can come ask them for advice. Have appropriate, open-ended questions in mind, such as: How do you think we are perceived in the community? What should we do to improve our image? Is there anything you would like to do to help in that area?
You can also tell them that you’d like to thank them in person for their past generosity. If it comes up, feel free to let them know that this visit/meeting is not about asking for money, although you’d like to have that conversation in the future (let them know that as well).
If a donor truly resists, then they probably aren’t a good prospect anyway. Continue to cultivate them by phone and email, and move on to the next person on your list.
HI Amy,
I would love to start cultivating our top major donors for annual fund but we just launched a Capital Campaign and they are being contacted for this purpose. How do I steward this? Should I just contact for this purpose, wait until the Steering Committee has contacted for Campaign, etc?
Sharre
Hi Sharre,
Great question. When asking for a major gift during a capital campaign, I suggest you do something called the “double ask”. Ask for the capital campaign and annual campaign simultaneously. For example, if you’re asking a donor who normally gives $1,000 per year for a campaign gift of $10,000 – you would ask them for $9,000 for the campaign and $1,000 towards the annual fund, for a total of $10,000 (assuming they were giving the gift in one year). If it’s a multi-year pledge, be sure to build in their regular annual gift for each year of the campaign. When you cultivate them, explain that you are asking all campaign donors to continue their annual giving, in addition to making a campaign gift.
Hope that helps.
I am in the process of setting up a major donor giving programme from scratch for a small to medium sized charity. The charity has some charity shops in affluent areas and keeps a database of those who have donated goods. The trustees are reluctant to open up networks and instead insist that I contact these donors instead. there is no existing database of financial donors. What would be the best way to go forward?
Yes – start where you’re at by contacting those who have donated goods. Also, I recommend educating your board members about how they can help and why it’s important. A nonprofit consultant can help with that. I facilitate board retreats on a regular basis and there are many others who help with board training as well.
Yes – start by creating a database of those who have donated goods. Maybe they’ve only donated goods, because that’s all that’s been asked of them. Instead of asking trustees to add their friend’s names to your database, ask them to bring their friend on a tour, or to an event. Then, ask the friend if you can mail to them in the future.