Fundraiser Confidential

In every successful nonprofit organization, there is a small percentage of donors that will support it no matter what. Usually, these donors (who are called many things, but mostly “major”) can account for approximately 75 percent to 85 percent of the charity’s total revenue.

The remaining vast number of donors make up for the rest of the organization’s income. It’s amazing that so many nonprofits don’t govern themselves better on how frequently they communicate with these individuals, but that’s a different discussion. Today, we’re talking about the deepest and sometimes darkest secrets fundraisers have in their arsenal for pinpointing major-donor potential from outside of their established donor ranks. Perhaps you’ll see some of these cloak-and-dagger ideas as desperate, but keep in mind that desperate times call for even the best fundraiser to find an edge.

Every nonprofit would love more major donors. Typically a major donor started out as a $50 or $75 donor and somehow you touched her heart and grew her giving into a major relationship — good for you.

But wouldn’t it be nice to circumvent a large part of that process/time to acquire new major donors? Many smart fundraisers are doing just that, and I have their secrets. The following is a Baker’s dozen of proven ideas on how to find new major donors. Let me encourage you to attempt some of these and watch your revenue soar.

Many nonprofits have naming opportunities for their donors; they actually list their top donors on a wall or brick floors or a plaque of some kind in public view. Now this idea is as close to nonprofit espionage as you can get, but it works. Some fundraisers I’ve known aren’t above going to their local hospitals, museums, universities, theaters, science centers, parks, opera houses, animal shelters, etc. and secretly photographing these donor names. Then, they go and find these donors’ addresses online.

Major donors are forming foundations to focus their giving and maximize their tax benefits. There is a proliferation of family foundations throughout the United States — a trend that will only continue. Many of these foundations are clear about not accepting unsolicited grant proposals.

What keeps me chewing my nails is that we will lose track of these people because major-donor and foundation solicitation are two different disciplines within an organization.

Typically, if a grant writer discovers that a foundation isn’t requesting proposals, he moves on to the next one without thought. You need to come alongside your organization’s grant writer to identify those foundations that are not accepting unsolicited proposals and directly market to the individuals and board members of those foundations, especially those donors who have a record of giving to like-minded causes.

Obtain a list of estate attorneys, CPAs, stock brokers and financial planners and send a nice cover letter along with your best brochure that explains your core purpose. Touch base with these professionals at least four times a
year. These people are dealing daily with wealthy individuals who are looking to give back to their community and to society as a whole.

This might sound morbid, but begin sending media kits with reply envelopes to funeral homes. Death often comes unexpectedly, and families find themselves looking for a nonprofit organization to receive their sympathy donations. Therefore, make sure your nonprofit is top of mind when the funeral directors are asked for a good organization.

Many large and successful companies list their top executives and board members on their Web sites. Also Forbes, Fortune and Money magazines
produce lists of wealthy individuals. Local business journals list recipients of recent promotions, so you can congratulate and begin to cultivate individuals with newly enlarged incomes. If you have trouble finding their addresses online, mail them at their businesses.

If you’re a locally based charity, join your Chamber of Com-merce and become an active speaker with the service clubs in your community, such as the Lions, Shriners, Masons, etc. If you’re a nationally based charity, pick your three top markets based on amount of income raised in relation to potential for growth. (So if your third-rated market is Baker, Calif., population 100, and your fourth-rated market is Chicago … go with Chicago.) There is one small music school I know of that raises hundreds of thousands of dollars a year this way.

Analyze your donor file back to six years and determine which postal-carrier routes are producing the greatest value as a whole. You’ll see which ZIP code areas are producing your very best donors. Then go out and
purchase all of those households’ addresses that currently are not on your file and send them an acquisition package that lets them know that their neighbors believe in your cause and they should too.

Create a direct-mail package for the major donors who have been on your file for at least four years that includes 10 pre-written letters and self-addressed envelopes. Remind these donors of the significant investment they’ve made to your organization and ask them to consider sending letters to others who might be interested in helping to advance your cause.

Many nonprofits list their major donors in their annual reports, so that’s a great place to find new people. Make sure you’re on as many mailing lists as you can afford from organizations that have similar missions and/or that you know your donors also contribute to.

Send your current major-donor list to Equifax, which will create a psychographic/ demographic profile of your major donors so that you can have a better understanding of how to communicate with them. Also, since Equifax has nearly 30 million household records, it’ll be able to provide you with a very large list of people who are not on your list but match your major-donor profile to a T.

There’s a direct correlation to a donor’s first gift amount and her long-term value. So, increase the dollar levels in your donor-acquisition kits. You’ll acquire more major donors, and the lower givers will self-select out, saving
you money in cultivation.

Redefine what a successful event means for your charity. Too many organizations let wealthy people walk away after an event without capturing their contact information or without a strategy to inspire the donor to stay connected. During the event, redirect a person’s affinity from the event to the core mission of your organization. Therefore, a successful event now is one where 60 percent of the event participants acknowledge their ongoing commitment to stay connected.

It’s important that the plan to convert event donors happens well before the event.

Political parties and action committees must make their lists of donors known. Find groups that are in alignment with your organization’s values, and you’ll find a new base of supporters.

A caveat: Make sure you’re spending at least 80 percent of your time on the donors who’ve shown a financially strong affinity for your cause. Then work on implementing these ideas to attract new ones.

Todd Baker is vice president of marketing and brand development at Masterworks. Contact: todd@masterworks.com.