How to find your next big donor
In How to Successfully Brainstorm While Social Distancing, we discussed how charitable organizations must start the process of identifying, cultivating, and soliciting high net-worth donors for major and planned giving. We talked about how you can put together a remote brainstorming session even in these difficult times. Yet, as you’re following these steps and putting together a group of individuals, you may still be scratching your head and asking, “What exactly am I brainstorming about?”
Your brainstorming efforts all come back to your donors. It’s up to you to connect your charity’s mission, vision, and goals with a prospective donor’s values, interests, and priorities. This is what ultimately results in major and planned giving. In this blog, we’ll discuss the process of prospect research and identification.
Let’s get started.
1. Do research on past and current donors
If you’re not sure where to begin, the first step is simple. Take a look at your charity’s current annual donors and find all those that have a consistent track record of giving over the last five years or more. Take these names and put them on your “prospect list.” Then, do additional research to determine which of these donors may have a high net worth and be a potential “big donor.” Once you’re narrowed down your prospects list, consider setting a meeting with a few of these candidates. This can help spark interest in becoming involved in your charity – either financially or through leadership. You never know the power a simple conversation can have!
2. Build relationships with advisors in your community
Only 60% of adults have current wills and only 4% of those with a current will have bequests. Use this knowledge to your advantage and start working with the advisors who facilitate these arrangements in your community (lawyers, accountants, and financial advisors). They can help create a fruitful situation for all. During estate planning, legal and financial advisors can recommend organizations like yours to help their clients leave a lasting legacy. By building relationships with these advisors in your community, you automatically connect with prospective donors who can contribute major gifts through planned giving. Thinking about your own charitable bequests? Read Family Discussions – Don’t Wait Until It’s Too Late.
3. Screen all stakeholders for major gift potential
Stakeholders are individuals or groups that are affected by or can influence decisions or actions by your charitable organization. They include partners, governments, clients, members of the community, funders (corporations and foundations), suppliers, employees, employee families, volunteers, and volunteer families. If you’re looking for ways to bolster your prospect list, then evaluating your stakeholders, researching their net worth, and determining their gift-giving potential is a solid strategy. Just because someone hasn’t donated in the past doesn’t mean they won’t donate in the future. A stakeholder already has a relationship with your organization and sometimes all you need to do is facilitate the giving.
Final thoughts
Building up your list of prospective donors and knowing who to reach out to informs the next several steps of the 7 Step Power Donor Solution. This is a crucial step and getting it right will set you up for future success. For more information, visit FUNDING matters.
Happy Fundraising.