One activity that fundraising teams at schools, universities, and nonprofits continuously do is search for philanthropists. They have to since it’s crucial for growth. Of course, these generous donors bring more than just their wallets to the table. For instance, they might have networks, leading to new donors. They also know business, marketing, and maybe even fundraising. So, how can your organization find them—and what shouldn’t you do? Read on…
Philanthropists: Don’t Assume You Know Who Are They and What Motivates Them
Don’t make assumptions. Everyone and everything are different. So, you should understand people and programs if you’re looking for philanthropists, general donors, and even fundraising ideas. Specific to major and general donors, it’s essential to know why they’re interested in supporting particular causes. For example, perhaps a donor had cancer and is grateful to their oncology team. The only way to get this information is to get to know and speak to donors.
Motivations and reasons why people give to education, health, or other causes are critical to know and vary. So, one of the best questions any fundraiser can ask early in a relationship is, what causes do you care about and why? Knowing the answers to those questions allows you to prioritize prospects. Moreover, donors may give for other reasons. Those reasons include tax optimization, legacy, or influence in their circles. So, always seek to understand the why.
Finding New Philanthropists and Donor Leads
Continually looking for new donor prospects is essential. It’s not something you can let up on, but donor retention at nonprofits is only at 45%. That means the majority of people may give once and not again. The next question is to consider what your organization can do to continue prospecting and stay on top of it.
1. Don’t Look Outside; Start from Within When Researching Philanthropists
Don’t start with outside research. The best place to start finding new high-level donors is to look at your database first. Understanding donor behavior is essential, so CRM tools like Zoho, Virtuous, and HubSpot can help your organization spot patterns. Some of the information you want to know are donations to specific programs, frequencies, and demographics. Don’t forget that you can also use wealth screening tools to develop prospect lists.
2. Host Exclusive Major Donor Events
Yes, we know that events can be challenging, and many nonprofits don’t want to do them. However, private dinners and behind-the-scenes events are great magnets for philanthropists. For example, you could ask a current major donor to host a cocktail event at their home. Or you could ask a donor who might be connected to a museum or corporation to hold a private event in a board room or gallery. These types of events tend to attract major donor prospects.
3. Don’t Miss Donor Storytelling
Remember, donors give to a cause for different reasons. However, if a passion for a cause drives them, great nonprofit storytelling allows them to connect. So don’t miss doing it and learning how to do it right! There are many ways to share great stories. Mix things up on your social media, website, blogs, and communications. Share stories using video, create a podcast, write, etc. By doing so, you’ll appeal to people in ways that resonate with them.
4. Don’t Avoid Strategic Partnerships
Another great approach you don’t want to miss for finding donors is to create corporate partnerships. These don’t have to be with global corporations and household names. You can create strategic partnerships with local businesses, like specialty stores in your town, looking to be part of the circular economy and make an impact. Think of different ways to collaborate, including sponsorship, matching gifts, or volunteer days.
5. Create Giving Circles
Finally, you can consider creating giving circles. You can ask donors to join others in a giving circle and substantially contribute more substantially to a program if everyone donates $100 a month ($1,200 annually). These types of groups typically attract people who want to be more actively involved. They also attract individuals who want to make new friends. And who knows, it’s an excellent opportunity for donors to join the group and invite their peers!
Don’t Forget: Donor Leads Require Several Approaches
In sum, finding new philanthropists and major donors for your school or nonprofit requires a multifaceted approach. However, consistently doing the suggestions above will attract new donors. But remember, the basis of all fundraising relies on your ability to create meaningful relationships. So, whether online or offline, create experiences that resonate with leads and donors. By doing so, you’ll ensure you retain more donors and attract others.
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