The Secrets of Raising More Money

Ask 100 nonprofits what they need most, and 90 will tell you quite simply, M-O-N-E-Y. The other 10 may be lying.

The obvious follow-up question that monopolizes the waking and sleeping hours of nonprofit development directors is  “How can we raise more of it?” Turning that question around may offer some new perspective and some surprising new answers.

Nonprofit money comes from individuals, philanthropies and foundations, government and business.  As the competition for dollars intensifies,  donors must choose which organizations and causes to support. Many limit their philanthropy to causes that are most meaningful to them personally, or to organizations with whom they have the deepest connections.

When seeing the situation through the donors’ eyes, the question  “How can we raise more money?”  might be framed more productively as this:  “How can we be more important to our donors?”  The question from this angle has some very clear answers, based on best practice models that are quite effective:

1)      Better Communication. Not necessarily more communication, but thoughtful communication that always has a clear purpose, such as one or more of the following:

  • Communicate the underlying issue. When you’re passionate and fully invested in your cause, you may assume everyone feels the same, or at least, understands instinctively why the cause is so important.  Sadly, that is almost never true. Moreover, even those who know benefit from being reminded.  Communicate your passion: Remind donors why affordable housing or affordable health care or a liberal education is critical. Remind them why your cause merits their passionate support as well.
  • Communicate the value of the solution. How is your organization making an impact on the issue? What difference have you made in the lives of real individuals and families? What would the community be like if your organization were not there? Compelling client stories and testimonials often say it best.
  • Communicate the value of the donor. How are donors making a difference for real people, for progress on your issue, or for the community as a whole? What practical effect does a donor’s gift have? Whether it’s better nutrition for 200 pregnant women or 10 new books for the community library, donors need to know that their commitment counts – and is appreciated.

At least one of these purposes should drive every communication to donors.

2) Involvement. Increasingly, donors want to be more than your ATM. They want to roll up their sleeves and join the work – figuratively if not literally.  Involvement might take the form of volunteering for events, fund-raising, advocacy or service delivery. It may also appear as a desire to be an “insider” with more intimate knowledge of your internal issues and challenges than you would normally share with the public.  Donors expect nonprofits to be more transparent – to them, at least.

Meeting donor expectations for involvement may mean making some changes in how your  organization operates. But good donor communications is also crucial in giving donors a sense that their involvement is welcomed, that they are valued, and that they are part of a larger community of like-minded people who share a commitment to the work you do.  A few nonprofits are experimenting with new communications vehicles such as blogs, which can put a more personal face on the organization while providing a direct channel for donors and supporters to engage in dialogue with the staff (or board).

To paraphrase a famous dictum from an Inauguration long ago, nonprofits should ask not what donors can give to them;  but ask, instead, what they can do for their donors.  The money will follow.

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