Five Good Ideas to Increase Your Nonprofit Fundraising Revenue

Blogs / By Mike Crum

Let’s keep it simple – five easy ways to increase your Nonprofit’s fundraising revenue.

Treat Major Donors Differently

Leverage Your Board

Increase Foundation Proposals

Create a Monthly Donor Program

Grow Your List of Prospects

Treat Major Donors Differently

  • What amount is a major gift for your organization?
    • How do you treat major donors differently? Think about this one! Do you assign a board member to build a relationship with the donor? Do you remove them from the mailing list (answer NO!)?
  • 10% of donors will provide 90% of your organization’s funds
    • Listen to your major donors
    • Uncover motivational triggers
    • Message and involve them
    • Increase stewardship
    • Try to meet face-to-face

Leverage Your Board

  • Is your Board 100% giving?
    • Does everyone make a PERSONALLY SIGNIFICANT annual financial contribution? This is key! Not their company – as an individual
    • This is not a hobby, they need to have ownership
  • Have Board Members solicit each other
  • Members serve on at least one committee
  • Audition non-Board Members
  • Take Board recruitment very seriously
  • Orientation is essential
  • Is the Board large enough?
  • Put term limits in your bylaws
  • Orient Board around fundraising tasks
    • Promote (everyone can do this)
    • Thank (everyone can do this)
    • Ask (not everyone will do this and some will only ask folks they know, others may only ask folks they don’t know – find out their preferences)
All Board Members can sign thank you letters and make calls to thank donors
  • Conduct a prospecting session with Board Member to identify prospective donors and map out ways to cultivate and approach these prospects
  • Assign donors and prospects to Board Members and fundraising volunteers
  • Watch out for compassion fatigue (spread the work around, don’t make a high performing Board Member a ‘victim of their success’

Increase Foundation Proposals

Are you applying to the Same Old Suspects (that everyone else is too)? Find new foundation prospects
  • Research on Candid
  • Use this site to research the tax returns of foundations
  • Find out WHO a foundation has funded
  • WHERE the grantees are located
  • HOW MUCH they give

Create a Monthly Donor Program

  • Easier to give $41.67/mth than $500
  • Convert a $50 donor to a $120 donor
  • Monthly donors give 2 to 3 times longer than single gift donors
  • Inertia on YOUR side!
  • Reduce fundraising costs
  • Produce predictable income streams
  • Focus on service delivery not fundraising
  • Appeal to younger and older donors
  • Build stronger relationship with donors
  • Can still solicit one-time gifts
  • Add credit card and EFT to your website
  • Encourage donors to give via EFT
  • EFT donors have a 92% to 98% annual renewal rate
  • Credit cards expire!
  • Create an exclusive giving club
Who will give monthly?
  • Multiple donors
  • New donors
  • Lapsed donors
  • Young donors and older donors on fixed income
Upgrade your monthly donors
  • An upgrade of only $0.17 a day = $60/yr
  • Monthly donors = OUTSTANDING planned giving opportunities

Grow Your List of Prospects

  • 7x more likely to receive a donation from a current donor
    • That said……..
    • You must grow our donors
  • Collect names through online research and recommendations from donors and Board Members
  • Major / donors to sister organizations
  • Foundation trustees
  • List brokers (www.namesinthenews.com)
  • Share / Buy / Rent lists with other organizations
  • Borrow lists of political donors
  • Collect names at events
  • Hold an event
  • Hold a joint event
  • Ask current donors for contacts
Keep in mind…
  • If you do not think the prospect will find your organization relevant – then the “prospect” is not a “prospect”!

Author

Mike Crum

Subject Matter Expert

Mike is a recognized expert, thought leader, advisor and speaker in the Nonprofit world. Over the past four decades, Mike served as an Executive Director, COO, see more

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