Funders invest in nonprofit organizations able to make a well-conceived case for support that
includes clear goals and measurable outcomes.
Telling your story involves more than making the case in a funding proposal or during a funder
visit. Our third rule says that we must take advantage of every opportunity to enhance the
visibility of our organizations. And visibility is just another word for publicity. There's a saying:
"You can have publicity without fundraising, but you cant have fundraising without publicity."
Publicity includes press releases, newsletters, annual reports, annual appeals, a compelling website,
and printed collateral.
Other forms of publicity are also important. Having your board chair call a foundation to
introduce your nonprofit is a form of publicity; arranging to have exhibiting artists meet your
supporters at the local art event is a form of publicity; getting your supporters to tour the new
hospital wing is a form of publicity. Any activity that puts a face on a community need, illustrates
your mission in human terms, or otherwise communicates your organizations personality can be
considered publicity. Our next rule explains why the ability to personalize your organization
dramatically increases its chances of success.
Rule #4: People give to people.
Experienced fundraisers know that worthy causes alone "feed the hungry," "shelter the
homeless," "care for the sick" do not raise money. Presented as abstractions, they often raise
more questions than they answer. That's why we say that people give to people.
Humans are social animals; we care about and spend enormous amounts of time and energy
creating and maintaining social networks. If people give to people, then the role of the fundraiser
is to create relationships. Fundraisers who are liked, known and respected establish trust and
credibility with their prospects and donors. Once a relationship has been established, it's time for
the next step.
Rule #5: Someone must ask for the money.
Gifts are solicited; they do not come in by themselves. And yet this simple fact often is the
hardest one for people to accept. Indeed, we will do practically anything to avoid asking for the
money. Sitting at the table with a prospect, having worked hard to make a compelling case for
support, many a fundraiser will neglect to say, "Now, John, were talking about $50,000 a year for
the next five years. Can you do that?" Or a grantwriter will submit an elaborately detailed proposal
without including a statement that says "We are seeking an award of x dollars for y purposes,"
leaving the reviewer to scratch her head and wonder, "How much do they want and for what?"
It is worth repeating: The individual prospect or foundation will rarely offer of a gift
spontaneously. A fundraisers role is to seek the gift. And the key to success is to ask in a way that
respects both the donor and the gift, which brings us to our sixth rule.
Rule #6: An organization cannot thank a donor enough.
Expressions of gratitude are expressions of respect. Every appeal letter, every funding proposal,
every individual solicitation to a recurring donor should include a reference to his or her previous
contributions of time, money, and advice. Many organizations establish policies governing gift
acknowledgements. A good one is to send at least initial acknowledgement of a gift within forty2
eight hours of its receipt. Another good one is to require more than one thank you for gifts over a
certain amount. For larger gifts, the development officer should send the initial letter, followed by
a thank you from the CEO a few days later; for really significant gifts, the chair of the board
might send a third thank you a day or so after the CEO. Overkill? Perhaps, but ask yourself this:
"If this donor stops giving, can we replace the gift?" In cases where the answer to that question is
"no," then earnest and sincere gratitude is not overkill.
In the for-profit world, good customer-relations managers are famous for their maniacal devotion
to the words "thank you." They understand that their costumers usually have many options and
choices. The same holds true for funders. And that brings us to rule number seven.
Rule #7: Seek investments, not gifts.
Making a gift to a nonprofit organization is nearly always seen as an investment by the funder or
donor and almost never understood as such by the organization. When a group asks for a gift "Please give us a grant to accomplish such-and such an outcome" the organization, whether it
knows it or not, is seeking a one-sided exchange. In contrast, when an organization seeks an
investment - "Please invest in our organization so that together we can accomplish such-and-such
an outcome" - it invites the funder or donor to share responsibility for the desired outcome. By
changing the focus of the request, the organization alters both the perception of the ask and, as
our eighth rule tells us, the manner in which funders and donors are treated.
Rule #8: Donors are developed, not born.
All donors have several things in common: a connection to your organization, interest in its
success, the ability to give and an understanding of how their gift will make a difference. The
process of nurturing these characteristics is called "donor development." And the best way to
describe the process of moving an individual to the point of making a gift is using a model known
as the "Five Eyes of Donor Development."
To fully appreciate the power of the "Five Eyes" Identification, Information, Interest,
Involvement, and Investment you need to think about individuals as operating within Circles
of Influence. The closer to the center of the circle a person gets, the greater the influence that
person may have on an organization and, conversely, the greater the influence the organization
may have with that person. To illustrate, draw a small circle on a sheet of paper. Next, draw three
concentric circles around that circle. Now imagine a core group of people within the smallest
circle. Those are your stakeholders so called because they have a personal stake in the success
of your organization. The second circle is filled with donors people or institutions that have a
connection to your organization and contribute regularly to its mission. The third circle is
occupied by prospects individuals or institutions that have shown interest in supporting your
organization. And the last circle is populated by "suspects" so called because you suspect these
people can become prospects and donors.
Now, the world is full of suspects. To turn them into prospects, you must first identify their
connection to, interest in, and ability to give to your organization. Prospects, in turn, need
information about your organization as much as you need information about them. From
information comes interest that with which we become familiar. People tend to become
involved in that which interests them. And investment follows involvement as surely as night
follows day. Thus, the "Five Eyes" remind us to focus our efforts on moving each occupant of a
"circle" closer to the center. In this way, suspects become prospects who become donors.
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Here's the interesting thing: As donors move closer to the "inner circle," their gifts will grow. No
one invests all of his or her money in a single stock or company; and no donor makes his or her
largest investment in a nonprofit with his or her first gift. By establishing a strong connection with
donors, we develop their interest in our organizations success and enhance their desire to give.
And as we continue to match the needs of our organization with their needs, our donors will
continue to make larger gifts, until they make the ultimate gift. Then our attention turns to
stewardship and maintaining their satisfaction with and involvement in our organization. This
leads us to our ninth rule.
Rule#9: Fundraising out of desperation is futile.
Contrary to what many people believe, contributions are rarely given because an organization is
desperate. Desperate organizations are often seen as unstable, incapable of doing the work, and
just plain bad investments. The successful organization, in contrast, is able to tell a story
characterized by accomplishment, sound financial management, and visionary leadership.
Of course, all organizations raise money out of need. By itself, however, "We need money" is
rarely compelling enough to convince a prospect to offer support. Your grant proposals, appeal
letters, and kitchen conversations must say in no uncertain terms, "Were winners! We can do the
job! Back us!"
Our ninth rule is true not only for desperate organizations but for desperate causes. A case for
support that speaks only to the misery of your constituency will often backfire. People resent
being made to feel guilty. Make sure that your prospects do not become so numbed by the
magnitude of the problem that they miss the real improvements created by your efforts. Donors
will give year after year, in increasing amounts, if you can convince them that you have a plan and
the leadership and financial means to execute that plan.
Rule #10: In the best of circumstances, people will do what they please.
Fundraising as weve seen is the art of establishing and strengthening relationships between
prospective donors and your organization. But fundraising is hardly an exact science. These rules
are not infallible. In the words of fundraising pioneer Sy Seymour: "On your best day, when
you've spoken all the golden words you know, when you've matched the right gift to the right
prospect for the right cause and had the right person askpeople will do what they please." Our
only recourse is to keep on keeping on. Perseverance, not speed, will win this race.
In fundraising, rejections are inevitable but rarely personal. In fact, "no" is often a veiled request
for more information. If a prospect says "no," don't be afraid to ask "Why?" Knowing the reasons
behind that "no" will prove invaluable the next time you make your case to that donor.
I hope the above rules have given you some insights into the always fascinating dynamics of
fundraising. A solid understanding of those dynamics will help you to build a stronger fundraising
program and a brighter financial future for your organization.