Show Me the Money: How to Move From Friendraising to Fundraising
In my regular column I write for the Guidestar newsletter, a smart reader sent me the $64,000 question:
“All your talk about “friendraising” is great, but show me the money! My organization needs funding right now!”
You’re exactly right to focus on getting the funds that you need.
Here’s my perspective on asking:
I absolutely don’t believe in cold calls. I believe in making friends first.
I don’t know about you, but I don’t like to be solicited without some introduction to the organization asking me. I like to be “warmed up” a bit.
It’s sorta like asking someone out on a date; you can’t just ask out of the blue.
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I like to “warm up” my prospective donors before I ask them—and there are lots of ways to do this, to introduce them to the cause and see if they want to participate.
And studies show that the more contacts you have with a prospective donor before the solicitation, the higher the gift from that donor.
The ultimate key to successful fundraising is this:
Getting your donors as passionate about the cause as you are. If you can do that, then fundraising is a piece of cake.
So here’s an appropriate ask:
Step one: You warm up the donor as much as practical, or as much as time allows.
Step two: You get to know him or her, and you find out why he or she is interested in your cause.
Step three: You listen to learn the donor’s story, and you find out what he or she is most interested in at your organization. You also get an idea of what kind of gift the donor might consider.
Step four: When you feel that the donor wants to help and is ready to be asked, you set up an “ask” meeting.
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Step five: In the meeting, you present the opportunity and you invite the donor to participate.
For example, when you ask, you might say:
(I’m oversimplifying here):
- “We have an opportunity to keep more people from rotating in and out of their homelessness situation.
- “Our agency wants to add counseling and case workers to help.
- “If we can do this, we think we can reduce homelessness in our community by x%.
- “The new counselors and case workers will require an investment of $xx.
- “I know you are interested in this program because we’ve discussed it a lot.
- “Would you consider a gift of $xx to help homeless people in our community achieve stability and a home?
This is how you move from “friendraising,” which opens the door, to deeper involvement with the donor, and finally to a solicitation for something the donor cares about.
This process is what creates sustainable fundraising—friends who will stick with your cause for the long haul.
Thanks again for all the comments on my articles and posts this year. I’m glad I have been able to provoke and inspire you with some new energy and ideas!
Also check out my May 2010 article: “Six Steps To The Perfect Ask.”
Leave me a comment and tell me what you think!
Please add me to your newsletter and blog list. Great insights and suggestions. Thanks.
Your last seminar was great and right on target. We got a number of helpful tips which we were able to put into practice right away. We were even able to use some of them in our most recent newsletter!
I also appreciate that even in your email updates, you include important strategies which can really help our bottom line. As a non-profit mission to Haiti, every dollar counts and makes a bid difference. Thanks so much and keep up the good work!
Gail, it takes time to turn a “friend” into a “funder” and I wholeheartedly agree with the process that you suggest here. And that’s what it is – a process. As a grant writing consultant, I caution potential clients that what I do is not going to get them quick money. There’s just not a quick fix to sustainable funding. If more fund raisers followed your strategy here I think there would be a lot less scrambling at the end of every year to meet financial goals. I love reading your posts – keep up the good work!
I feel the pain of your letter writer who wrote he/she needed “money right now.”
One of the hardest concepts I find to get across to hungry nonprofits is that developing donors takes time. There really isn’t any quick fix. There are no magic words to make a nondonor you just met instantly turn into a giver. Well, maybe unless you are doing door-to-door or on-the-street canvassing or selling raffle tickets… but think how much time and effort is needed to find the people who might give now and how many of those small donors you’ll need to reach to raise the money you are looking for.
For the nonprofit, cultivation feels like such a chicken/egg situation, doesn’t it: we need the money to take the time to build the relationships and infrastructure to raise money, but we can’t raise the money until we take the time to build the infrastructure and relationships. How do we survive?
One way is by starting right now, today, to start the hard (but incredibly joyful) work of getting out talking to current and potential donors, or people who could lead you to other people. As you state so well, take the time to ask your prospects about their dreams and their vision as well as trying to pitch your own.
There is no substitute for taking the time to cultivate the long term relationship. You ideally want to ask when the donor is asking you “how can I help?”
I’d like to share an article we wrote about the power of listening to donors. You can find it at http://www.ceffect.com/tools-for-change/articles/listening/
And Happy Thanksgiving, Gail, to you and to all of your readers.
Gail,
Great illustration with your step 5 example. That conversation makes it clear that a cold call won’t work, donors have to get to know your organization.
I would add that getting to know your organization can happen in a number of ways in addition to contact from staff. Counting on board members to help create friends as well as using special events to introduce people to your cause can generate $ when it comes time for the ask.
As always, you’re right on target. It takes time to build friendships, but they are critical for long-term success and sustainability.
Sandy Rees
Fundraising Coach
Gail,
One of the things I tell the organizations I work with is: good fundraisers get a yes often, exceptional fundraisers don’t have to ask.
That said, it IS important to invite support and in-person asks of someone who is ready to say yes is the best, as you indicated. However, an organization and its staff must also convey the powerful impact of their work AND what they could do more of if they had additional resources ALL YEAR LONG. I believe it is critical for staff and the board to share compelling reasons for support with stories of clients and facts about what the money is needed for, often.
I have many stories – real life examples – of CEO’s and development staff who have gotten very good at conveying what I call “the gap” in a compelling way, only to be rewarded with large financial gifts ($25k to $125k and more) that were virtually unsolicited.
Teaching how & when to ask is important, but if nonprofit staff and board leadership knew that they actually don’t always have to ask — they can generate financial support with their passion, some startling facts about what can’t be done right now because of limited resources and then reminding their community about the amazing, often life-changing impact of the organization — there might be less pain and suffering in development sector.
Great post! Fundraising really takes a lot of hard work. And keeping your donors for the long haul is even more hard work. But when you are passionate about your cause and you share your passion with your donors, I’m very sure you will be able to let them stay as they know they are making a difference.
Sustainable Fundraising