Mastery of the Fundraising Portfolio

A fundraising portfolio allows nonprofits to pursue and enhance relationships with major gift donors and prospects. The deeper the relationship, the greater the likelihood of a gift. Building and maintaining a portfolio over time leads to mastery of this art. You need to make sure you have the right prospects and donors, establish a system to maintain the portfolio through individual strategies, and utilize best practices to adjust the portfolio over time. 

I have found fundraising portfolio success is based upon effective relationship-building and acquiring expanded knowledge of portfolio members over time. Within my portfolio, I have been working with a couple with whom I have had a relationship for several years. At first, this exchange was transactional. I asked for a major gift and showed the impact of the gift. I cultivated them, but it was not easy getting to know the pair. 

Then I realized that the wife was the decision-maker. Still, the home visits seemed dysfunctional due to the couple’s lack of focus. As I got to know them better, they opened up, and I really began to learn about their passion and interest in my organization. That knowledge allowed me to ask for a current gift, endowment gift and bequest to increase the endowment. This ask genuinely excited them, so was a win-win for everyone involved. This success proved a deeper relationship evolved my ability to employ additional fundraising solicitation opportunities.    

Keys to Portfolio Success

Ensure you maintain an organized approach to major gift fundraising, moves management and donor stewardship to ensure peak portfolio results. 

It will take several years to grow your fundraising portfolio to higher revenue streams. You need to identify new prospects through prospect research and focus on donor retention. Employ a moves management strategy to convert prospects into viable donors. This process involves stewardship and knowledge of potential donors and those ready to make their next gift while determining which donors are at risk of lapsing.     

Mastery of a portfolio relies on creating strategic plans and goals for every prospect and donor in the portfolio. Tier your major gift portfolio based upon a variety of factors into groups, limiting your caseload to no more than 150 major donors at a time. 

Your portfolio size needs to match your nonprofit’s budget and revenue goals. Typically, 80% of a nonprofit’s revenue comes from 20% of its donors from the top of a donor pyramid. Your portfolio prospects need to be a good fit for your institution. Determine which individuals have not shown movement over time and should be removed from your portfolio. 

Consider these six tips for long-term successful portfolio management:

1. Appropriate portfolio size. This number is dependent on capacity and organizational priorities.
2. Clearly defined policies. Follow these rules and guidelines for consistency.
3. Ongoing research. Use wealth-screening tools and prospect research to improve your strategy.
4. Up-to-date metrics. Gather and update useful data continually.
5. Consistent donor qualification. This process keeps high validity of your total portfolio.
6. Partnerships and communication. Maintain effective use of technology to drive results.

Questions to Ask

Once you have identified them, ask yourself these questions:

• Are they in the queue for cultivation, solicitation or stewardship? 
• Do you really know most of your portfolio members? If not, are you taking steps to build a face-to-face relationship with them? 
• Do you have a game plan to engage these individuals? 
• What percentage of your portfolio are top-tier prospects? 
• Do you constantly evaluate the overall status of your portfolio? 
• Do you have a time limit in mind to take these prospects through identification, cultivation, solicitation and stewardship? 

To master your portfolio, use best-of-class examples, employ a wide array of data tools, and utilize personal experience to develop strategic planning for prospects and donors. Constantly evaluate the health of your portfolio. Focus on retaining donors while identifying new prospects that could be mission oriented for your nonprofit. 

Understand the linkage, ability and inclination (LAI) possibility for each member of your portfolio. Review and update your portfolio, and strive to personally engage with each portfolio member over time. Prioritize your portfolio based upon potential impact and engagement. Realize that it will take time to develop your portfolio and mastery of this portfolio will encompass ebbs and flows.   

As you seek to master your portfolio, review how much time you are allowing yourself to be out of the office. Determine your overall time spent on non-portfolio activities. Evaluate your caseload and determine the status of your relationship with these prospects and donors. Determine the location of each element of your portfolio in the fundraising cycle and strategies for positive continuous movement toward a significant revenue request. 

As development officers, we should all strive for mastery of the portfolio concept, knowing that only through time, experience and knowledge, your portfolio can increase in ultimate value. Be prepared to work, understand data, employ an array of solicitation, and hope for luck and timing. Take advantage of opportunities that make your fundraising portfolio development a top priority.   

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.