As I was recently giving a course at the HEG in Geneva on raising awareness, soliciting and retaining major donors, I wanted to come back to the importance of developing your fundraising strategy with this target group. Each organisation must establish its strategy in line with its ambitions and objectives, so it's important to remember the benefits of developing it.
When it comes to philanthropic funding, major donors play a crucial role.
Their generosity can make a significant difference to not-for-profit organisations, enabling them to carry out ambitious projects and successfully pursue their mission. In this article, I'll explore the importance of developing your major donor fundraising and share some practical tips on how to do it effectively.
Why develop your collection of major donors?
1. Significant impact : Major donors often have the capacity to make large donations, which can have a transformative impact on your organisation and the causes you support. Their financial support can make it possible to achieve ambitious goals and carry out projects that would otherwise have been out of reach.
2. Financial stability: By diversifying your funding sources, you can reduce your dependence on state/cantonal grants or one-off fundraising campaigns. Major donors offer a more stable and predictable source of income, which can strengthen your organisation's long-term financial viability.
3. Commitment and partnerships: Cultivating relationships with major donors can lead to long-term partnerships. By investing in your cause, these donors can become 'champions' of your organisation, offering not only financial support, but also strategic advice, networking opportunities and access to new audiences.
How can you develop your collection of major donors?
1. Identify your target audience: Clearly define the type of major donor you want to attract, based on your organisational objectives and mission. Carry out research to understand their interests, values and financial capacity in order to tailor your fundraising approaches (see LAI Method). There are many tools available for this first stage: analysis of your own database (RFM study, long-standing donors, exceptional donations, your organisation's network, etc.), qualified databases such as Wealth X Kaviar or Global Data, rankings such as "Who's Who", Forbes, Bilan, and sometimes your competitors' annual reports).
2. Cultivate genuine relationships : Fundraising from major donors is not just about asking for donations. It's about building genuine relationships based on trust and mutual respect. Invest time in getting to know your potential donors, understanding their motivations and involving them in your work in a meaningful way.
3. Offer clear impact opportunities: Major donors want to know how their money will be used and what impact it will have on your cause. Present specific, tangible projects that clearly illustrate the effectiveness of their financial support. Provide regular updates on the progress and results achieved thanks to their donations. This "stewardship" is part of the "stewardship" elements developed in my course on cultivating major donors, and can take the form of impact reports, an update on the situation of an endowed fund (return, market value of the donation, amount used, allocation, etc.) or even conferences reviewing the progress of the project(s).
4. Acknowledge and appreciate : Don't forget to acknowledge the generosity of your major donors and thank them appropriately. Offer them exclusive opportunities to get involved, such as special events or field visits, to reinforce their sense of belonging to your organisation. These "recognition" initiatives are essential for building a relationship. Here are a few ideas: organising a private meeting, the donor's name on a building, plaque, rooms... a publication that mentions their name... etc.
Conclusion:
Developing your collection of major donors takes time, patience and strategy, but the rewards are well worth it. By investing in building strong relationships and offering clear impact opportunities, you can attract and retain generous donors who will help advance your mission and create positive change in the world.
Here are a few resources on the subject:
Amy Eisenstein YouTube channel: UCXV33E35WapSzMyr3-VVwmg
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