10 Fundraising Strategies to Adapt to Philanthropic Giving Trends

You’ve been hearing about discouraging trends in philanthropy. You can’t control them, but you can control the way you respond to them. With fewer donors and dollars out there, you’ll need to employ strategies to make your best case for support with the folks who are philanthropic.

Now is the time to reevaluate your primary fundraising strategies and ensure you have plans in place to meet the present moment. Status quo fundraising won’t set you up for success in the year — and decade — to come.

Here are 10 strategies to help you boost your fundraising as the philanthropic environment evolves.

1. Invest In Donor Retention

The donors who already give to you are your best prospects. According to the Fundraising Effectiveness Project, 70.6% of donors only make one gift. Since donor acquisition is so expensive (roughly $1.25 to acquire $1), you’re going to go bankrupt if you don’t focus on increasing the lifetime value of new supporters.

To do so, you should have a distinct strategy to secure a second gift from first-timers. Once your donors become sustainers, make sure you have a mid-level donor plan in place to encourage donors to give more.

2. Ask for a Larger Gift

Some of your supporters might be receptive to an increased ask, so stop thinking of asking as an imposition! Asking for a larger gift opens the door for donors to enact their highest values. Signals that your supporters might be willing to donate more include:

• Above-average first gift.
• Multiple gifts in a year.
• Consistent giving over a period of years.
• Giving a significantly larger gift in the recent past.
• Notifying you that they’ve included you in their estate planning.

When making the ask, make sure you tell folks you specifically need their help, as well as how much you’re hoping they’ll give. Also, describe the impact that their gift would have so they feel needed.

3. Ask for a Monthly Gift

Since retention of monthly supporters sits around 90%, upgrading your donors to a monthly giving schedule should be a no-brainer. It’s trending across all sectors as a singular ray of light.

To add this strategy to your fundraising plan, make sure you define specific goals and measurable objectives and tactics to keep yourself accountable. Of course, you’ll also want to promote the monthly giving program so donors know about it, and make giving easy so they’ll be more inclined to give. Keep them giving by continuously engaging and reminding them of their gifts’ impact.

4. Ask for Gifts From Donor-Advised Funds

More donors than you might imagine have donor-advised funds (DAFs). Money is flowing in by the billions to these philanthropic vehicles.

The good news is DAFs are not just for huge nonprofits with wealthy donors, so don’t think this fast-growing donation method is out of reach for your organization.

5. Promote Peer-to-Peer Fundraising

You should ask current donors to leverage the dynamic of peer influence and social proof on your behalf. Doing so can boost your fundraising success, since the response to peer-to-peer (P2P) fundraising is about 25%, while direct-to-donor response rates are around 1% to 2%.

My favorite P2P strategy is DIY campaigns such as “birthday campaigns.” For example, if Micky gives you $100, and then asks nine friends to also donate $100, their combined gifts are equivalent to a $1,000 donor. As a bonus, you’ve added nine new donors to your list, who you can continue to cultivate and build relationships with.

6. Ask for Matching Gifts

I think of matching gifts as the “buy one, get one” deals of philanthropy. Many companies will match employee gifts, but only if the employee submits the paperwork. Often, donors simply aren’t aware of this benefit. Others need to be prodded to take this extra step — they need you to shine a light on the fact their donation can be amplified, making it as easy as possible for them to follow through.

7. Suggest Gifts of Stock

This is a terrific upgrade strategy because gifts of stock can cost a donor less than cash. Most donors don’t think of this; they need you to suggest this as a giving option. It’s worth it: One study showed organizations who actively accepted gifts of securities achieved 66% growth in total fundraising (opens as a pdf).

Adding a page to your website describing the benefits of giving stocks, as well as instructions to make it super easy for donors, will help your organization unlock a wealth of philanthropic opportunities.

8. Ask for Legacy Gifts

A bequest will be the largest gift most donors will ever give you, so it makes sense to make a direct case for legacy support. Even though what you do today won’t result in a gift tomorrow, over time this can become a significant and reliable source of funding for your nonprofit.

9. Test, Test, Test!

There is almost always a better way to do what you’re already doing. Maybe it’s a different outer envelope or subject line that gets more of your appeals opened. Maybe it’s a change in the color, wording or placement of your “Donate” button that persuades more folks to click on it. Maybe it’s a change in your landing page ask string, or … the list goes on. The only way to find out is to test your ideas.

10. Treat Donors Respectfully

The notion of fundraisers as “philanthropy facilitators” enables everyone in your organization to come from a place of love. Alas, the concept of donor-centered fundraising has recently received a bad rap in some circles. This is unfortunate.

Whether a person is rich or poor, they’re likely on a quest to find greater meaning and joy in their life, and part of that greater meaning might just be supporting your cause.

While there are certainly inequities within the social benefit sector and beyond, these problems will not be resolved by treating donors — who you may see on the surface as white and privileged with a savior complex — as if they are the problem. This risks throwing the baby out with the bathwater (i.e., it risks raising a lot less money that could be going to help your mission). So, make sure you treat your donors with kindness, compassion and respect.

As philanthropy continues to evolve, adding these strategies to what you’re already doing or planning will take your fundraising to the next level.

And don’t forget: Each of these strategies deserves its own written plan with buy-in from all stakeholders. Otherwise, they won’t happen.

These strategies work. If you invest in them, you’ll be amazed to see the money come rolling in.

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.