Jonathan Poisner Strategic Consulting

Another consultant recently reminded me of a concept that’s been implicit in fundraising materials I’ve generated for clients, but that I’ve never written about.

The concept: the needs you present donors don’t have to match the budget you use for fiscal management.  Indeed, if you’re only presenting your actual budget to funders, you’re setting yourself up for reduced impact.

This can be confusing because foundation funders nearly always ask for your adopted budget, so that becomes the default that many nonprofit leaders think individuals will want to see with fundraising.

To understand why that hamstrings you, let’s review what goes into a nonprofit budget.

The budget should be adopted annually by your board and should identify the revenue you’re seeking to achieve in the upcoming fiscal year, along with expenses.  Both revenue and expenses should be broken down by categories to allow for a reasonable understanding of the major sources of revenue you’ll receive, along with the various ways you spend money. 

Here’s the important part: the budget is a tool for the board to exercise its fiduciary duty and ensure that the organization is being prudent with how it spends money.  If it spends more than it receives on an ongoing basis, this could lead to a cash flow crunch, inability to meet payroll, and other significant challenges. 

Note: I deliberately inserted the words “ongoing basis” into the above paragraph.  In any given year, you may very well adopt a budget that spends more than you raise if you’re entering the fiscal year with a more than adequate reserve.  And in other years, you may well adopt a budget to raise more than you spend, particularly if you’re hoping to build up a reserve fund or save for some really big future expense.

So why shouldn’t you present to donors the revenue targets in your budget and call that your need?

Two reasons.

Reason one is the simplest and least important: timing.  Your budget is for a fiscal year, but you’ll be talking to many donors late in a fiscal year, before the next budget is adopted.  You need to be able to articulate needs for the subsequent fiscal year.

Reason two is the crux of the matter:  if you want to inspire big, investment level gifts, you need to be able to articulate the actual needs you have to grow your capacity to significantly advance your mission.  Big audacious goals are more likely to generate big audacious gifts. Yet, budgeting for big and audacious isn’t prudent.

How does this play out in practice? 

With one of my clients, we created and regularly updated a “Funding Needs” document that was two pages long.  The initial two-thirds of a page provided context (the organization’s mission, leadership, and core strategy).  The remainder laid out major areas of expenses that need to be incurred to achieve greater impact.  Big, round numbers were used that covered the needed expenses over a 3 year period.  These covered both major, new projects/activities and ongoing needs, including general operating expenses.

We shared this document broadly with potential/current funders, individual major donors, and stakeholders. Occasionally this led to some restricted gifts, particularly from foundations (and in one case an individual) interested in one specific need articulated. But overall, those shared this document in many instances made large, new, unrestricted gifts. This was true both for foundations and individuals.

Of course, some Executive Directors are nervous about projecting out activities/expenses before the board has authorized them in the form of budgets.  Indeed, a Funding Needs document shouldn’t identify any major new area of expense that hasn’t been discussed with the board.  But that discussion can come in the form of strategic planning or some other discussion about long-term needs.

The 2-pager approach described above is just one way of accomplishing this outcome.  You could create something longer and fancier.  Or use this approach on a more ad hoc basis.

But bottom line:  to inspire big gifts, focus on the dollars needed to significantly advance (or achieve) your mission, over a 2-4 year period.  Don’t just ask donors to help you hit your budget targets.

I devote an entire chapter of the Essential Major Donor Toolkit to the ask meeting.  How do you structure the meeting?  What stories do you tell and in what order?  And how to make the ask itself, along with what comes after the ask.

Here’s a quick primer on what comes after the ask:

Immediately after the ask:  Stop talking.  You asked a question.  Let them answer it.  If you start talking again to cover up your own nerves, you can get sidetracked or actually decrease the odds of a donation of the amount requested.

If the donors says maybe:  If the donor says, “I’m not sure” or “I have to think about it” or any of a dozen maybe variants:

“Thanks so much for considering a donation.”

Then ask an open-ended question.  Get them talking so you can understand what they’re thinking.  Possible questions:

• What do you think of our plans?
• What do you like best about our work?
• What more do you think we should be doing?

On more than one occasion when I did this the donor became a yes in answering the question and I walked away with a check.  They needed time to think, but the time could be just a minute or two and they could emotionally and mentally process while they were talking about the organization.

Of course, that usually doesn’t happen.  So you should then say something appropriate riffing off their answer and bringing it back to your own case/story that speaks to their priorities/interests. 

And then if it seems promising based on their answer to your open-ended question: re-ask for your original dollar request (or perhaps a smaller request if that seems more appropriate). 

Example: “I’m so glad to hear you’re excited about our PROGRAM/ACTIVITY. Our ability to plan and implement that work over the next few months goes up as we get more donations and pledges.  Is a DONATION AMOUNT gift something you can do this year?

Of course, if they say that they need more time at this point, don’t ask a third time during the meeting.

“I really appreciate your taking some time to think about making a significant donation this year. Can I circle back in a week to see what you’ve decided?”

Giving a firm timeline to circle back is important so that you’re not left with the awkwardness of not knowing how quickly to get back to them.

If the donor says yes:  Thank them and then work out the timeline for their gift.

Example: “Thanks so much!  I really appreciate your stepping up so we can have a bigger impact.  Would you like to make the donation via check today or would you prefer to mail a check or give in some other way?”

If they’re going to send it later/go online: “Can we count on your donation by the end of the month?” (Or “end of next week” if the ask is taking place near the end of the month).

If the donor says no: “Thanks so much for taking the time to meet with me.  I appreciate you have other priorities right now.”

Then try to figure out if this is a firm no or a “not now.”

“Would you like me to follow up in 6 months to see if your priorities line up at that point with our needs?”

Or: “Would you be open to discussing a gift in the future?  If so, when would be a good time to circle back to you?”

For everyone:

Regardless of whether you’ve had a maybe, yes, or no, ask:

“Do you have any friends or colleagues who you think would be interested in investing in our work?  And, if so, would you be willing to send an introductory email or text for me?”

Closing out the meeting

Thank them for their time if a “no.”

Thank them for their “consideration” if a maybe.

“Thanks again for your donation” if a yes.

I originally created 12 Tips back in 2013.  Here’s an expanded and updated set of 16 Tips. 

One of the biggest keys to successful fundraising is asking people in a meeting for money.

Events, letter, phone calls, and emails all belong as part of a robust, comprehensive fundraising system.  But thriving organizations almost always find that one-on-one solicitations are where they secure most of their unrestricted funds.

Many fundraisers I train believe that making the ask at the meeting is the easy part – where they profess to get held up is in getting the meeting in the first place.

Here’s sixteen tips for how to get the meeting

1. Make sure you’re working connections and not cold prospects.  If they’re not current donors, you should focus on people you know, or having someone who knows the donor connect you (either by making the meeting request directly or at least letting you use their name).  If you’re counting on your board to supply connections and they’re not being helpful, find others who will be (from existing donors, allies, don’t be shy in asking for help).  

2. Make the request via phone.  It’s too easy to duck an email and in an email you can’t engage people, motivate them, and respond to any misapprehensions they might have about the meeting.  If you don’t have their phone number, there are still ways to look up people’s number just as in the old days of the white pages.  (Don’t have phone numbers, check out tip 16).     

3. Be persistent without being a pest.  You will often have to try to call a donor a dozen times before getting a meeting request in, especially with people are increasingly not answering their phone.  So script out a really compelling short voicemail message that ends with the bottom line: I’ll to reach you again next week. This increases the odds they’ll pick up the phone when you call again.   Just keep trying at different times and dates.

4. Start the process far in advance of when you really need the meeting to happen.  If you need the ask to take place in November, start requesting the meeting in October.  The further out you set a proposed date, the less likelihood that conflicts will get in the way.  Or, if you ask for a time 10 days out and they say they are already booked, it gives you an easy (and hard to refuse) follow-up ask for a later time when they’re not booked.

5. If they say it’s a bad time to talk, ask if you can call back “in an hour” or “tomorrow.”

6. Start by thanking them if at possible.  For past donations.  For past volunteer work.   For some other community work they’ve done even if not for your organization.

7. Be passionate and upbeat.  Passion is contagious and people are more likely to want to spend time with someone if they perceive you as upbeat.  You are selling yourself as much as the organization in trying to set up the meeting.

8. If it’s geographically appropriate, tell them you’re going to be in their area.  Some donors are reluctant to have you make a special visit just for them.  But if they think you’re already in the area, they’re more willing to meet. 

9. Make clear you’re looking both for their input and to see how they can help.  Propose some topic where you’re seeking input (your upcoming or new strategic plan, your communications, ideas, some specific organizational issue, etc.).

10. Create some time-urgency.   Mention something you hope to do in 2-4 months and the impact it will have and that you’re talking to supporters so that you’re in a position to move forward at full capacity. 

11. Propose a specific date and time.  Don’t ask: “Can we meet?”  Ask: “Are you free to meet on Tuesday the 22^nd at 3 p.m.?”   Assume they want to meet.  Wouldn’t anybody want to meet you?  Get them focused on the where/when.  

12. Focus on their convenience, not yours.  Always offer first to meet them at their home, office, or a nearby coffee shop or restaurant.  Let them choose.  Be willing to meet early in the morning, just after work, or during the evening.  If they say they’d like to meet via zoom, that’s not a bad option compared to no meeting, but make at least one attempt to gently push them into an in-person option.  

13. Be prepared to pivot back to a second ask for a meeting if they initially say no.  In my experience, nearly half of the eventual meetings I got involved a donor prospect initially saying something like: “I’m too busy” or “Don’t waste your time with me, I’ll donate regardless.” 

14. Use peer pressure.  If you know they’re friends/colleagues/rivals of someone else who you’ve met with or are meeting with, figure out how to drop that into the conversation.

15. If they say something that divulges something personal (e.g. I’m going to my son’s wedding”), don’t be afraid to follow up with a question designed to make the relationship more personal (e.g. “Congratulations!  Where is he getting married?”  You should be genuinely interested in them as a person, not just a checkbook.

16. Lastly, if you don’t have phone numbers for a donor, consider ways to obtain it.  The free way: If you know of a board member or person close to the organization who likely has it, don’t be shy to ask.  The paid ways: If your organization subscribes to a Wealth Screening service via your donor database, those often come with a data append function that will provide phone numbers.  Alternatively, WhitePages.Com is a relatively affordable (on a monthly basis) way to put in a name and physical address and get information about the person, including phone number.  You may be able to subscribe for just a couple months to fill in phone numbers for your top donor prospects and then let your subscription lapse. 

Have your own tip with something that’s worked for you?  Please share your ideas!

November 27, 2024

Given we’re on the cups of December, I felt it would be timely to share some thoughts on year-end fundraising.  Of course, in the ideal world, you would have finished planning for your year-end giving campaign earlier.  But it’s not too late to gin up a year-end campaign that builds upon your past successes.

So here are six key suggestions for you to consider when it comes to year-end fundraising:

1. Don’t just make one effort and call it done

People are incredibly generous in December.  I’ve read various statistics, but roughly one-third of all nonprofit donations come in during the month.  And as much as 10% comes in during the final couple of days of the year.

If your organization has the capacity, you should send out a letter to past donors (and prospective) asking for a gift.

Again, if capacity allows, you should individually follow up via phone or text with those you can (starting with those with the highest level of past giving assuming you have limited capacity).

Of course, for your very top donors, you should be trying to meet with them in-person if they’re interested as that’s the most effective way to build relationships.

Your email campaign should also not just be a one-off.  Ideally, you’d kick off the month with an email about your year-end campaign (perhaps focused on Giving Tuesday), follow-up mid-month with a progress/update, and finish it off on the 29^th or 30^th to spur those final end-of-year donations.

Layer in social media with an overlapping message.  And again, not just one.  Time at least some social media to go out the same day as your emails. Sometimes the first message piques their interest and the second spurs them to action.

For each separate social media channel where you are active, think 2-3 posts early in December launching your year-end giving, 3-4 mid-month, and a final burst of 4-6 between Christmas and New Years.

2. Make it an integrated campaign

You’re not coming up with a dozen different fundraising appeals for all the mail/email above.  You have one over-arching campaign, with a goal/theme, and you should repeat that across every appeal/channel.

Obviously, you’re not repeating word for word. Email will be shorter and use simpler language than mail, for example.

But your early December messaging should announce the year-end campaign, your mid-December message should report some early progress, and your end-of-month messaging should get people excited about the campaign’s success.

What that central goal/theme looks like will vary wildly by organization. While you’re thinking of this as a campaign, I don’t recommend pitching the dollars for a specific organizational activity, as end-of-year giving is a prime opportunity to generate general operating revenue that provides you the maximum flexibility.

3. Make your donor the hero of the story

Think you not we.

You want your donors (and prospective donors) to feel celebrated and important, to understand the appeal/importance of your mission, and to feel part of the team.  You want them to feel “super” like they have a “super power.”

For example, don’t talk about what “we” have accomplished. Talk about what “you” have accomplished.

Bonus points if you can make the story unfinished, so the donor’s continued generosity is key.  Or have a clear sequel story that you gin up as part of the ask for the “next story.”

4. Prime your best folks to further spread the word

You have your lists and social media reach and they get you so far.

But messages from you will have more power when reinforced by individuals who the donor knows.

Reach out to your board members and any key volunteers letting them know to expect the year-end fundraising email(s) and ask them to forward/share them (preferably more than one of them).

Consider directly messaging them on social media (if they’re on your channel) making the same request as you make posts.

This takes time, of course, but can both increase the odds donors respond and allow you to reach new donors from the networks of your board/volunteers.

5. Offer a match (if you can)

Especially for email, evidence shows a match can be motivating to some donors and increase the number of responses and the average gift. 

Of course, you can overemphasize a match. It needs to be part of the appeal — the shiny icing on the cake — not the cake itself.  

But to the extent you have a single donor (or an array of donors together) who can offer a match that’s large enough to seem motivating, you should do so. After all, cake icing is yummy.

I would not necessarily feature the match in every message.  I’d do so more at the beginning of the campaign and again at the end if you haven’t already secured the match.

6. Segment

Don’t treat all your donors the same.

To the extent you can, you should remove those you’re targeting with large individual asks from your mass emails and general mailings.  Perhaps include them in the final year-end emails if they haven’t given.

With mail, if you can produce two letters – one for those who haven’t given recently and one for those whose support you want to renew, that’s preferable to one message covering both.  The letter is mostly the same, but at a few key points your ask language would differ. You can, of course, take this further and segment past donors into different tiers who get letters that mention slightly varied asked for donation amounts.

Likewise, with email, if your email list is synced to your fundraising database in a way that allows you to distinguish past donors from prospective, I would again recommend a slightly different message to the two lists.

Bonus: Don’t let the perfect be the enemy of the good

Don’t read the tips above and get overwhelmed if you’re starting from scratch. Better to do a few of these than none. Pick those doable within your time and technology.

Then start planning earlier next year and see what more is feasible.