Activating New Major Donor Relationships for Philanthropic Organizations
In philanthropy, inspired major donors are essential. Their generous contributions not only provide vital financial support but also serve as a testament to their belief in the mission and vision of the organization.
But beware of the transaction trap: Cultivating and activating new major donor relationships is not merely about securing funds; it's about building meaningful connections based on shared values, trust, and mutual respect.
In this blog post, we’re sharing ABW Partners’ tried & true strategies and best practices for effectively activating those often elusive new major donor relationships, many of which we’ve gleaned from the best and brightest relationship gurus, and iterated on!
First, though, it's crucial to understand who major donors are and what motivates them to give.
Understanding Major Donors
Major donors are individuals or entities who have the capacity and willingness to make substantial financial contributions to nonprofit organizations. Unlike others, major donors typically have the means to make significant gifts that can have a transformative impact on the organization's mission and programs.
It’s important to keep in mind that major donors are not solely motivated by financial incentives. While tax deductions and recognition may play a role, what often drives major donors to give is a deep-seated passion for the cause, a desire to create positive change, and a belief in the organization's ability to make a difference.
This means that activating new major donor relationships involves more than just soliciting donations; it requires building authentic connections and fostering meaningful engagement.
Where Do You Start?
Prepare
If only activating relationships that lead to major philanthropic investment was synonymous with the biblical reference of “manna ‘heavenly grain’ raining down from the sky.” Unfortunately, there is no easy button. But there is reason for hope! Achieving greater success requires prioritization, intentionality, and proficiency in essential areas. Here is how you can prepare for greater success:
Define: Determine a target audience & track. Begin with setting goals & measurable outcomes and an allocation of your time per week. Support efforts with regular use of a CRM platform. It’s critical to track information like name, contact (email or phone number), connection to the organization, prospective gift range, shared values, resonant touch points, and personal information like passions, concerns, profession, and interests.
Research: Perform qualitative research to get familiar. There are many ways to engage in prospective major donor discovery including references from trusted advisors, wealth screen, 990s, social platforms, etc. It’s time to tap into your investigatory skills. We recommend beginning with LinkedIn.
Recruit & Map: Leverage your network to build a team & do relationship mapping. The dream team for successful donor relationship activation efforts is by natural collaboration across internal and external stakeholders and should be customized to what’s possible in your organization. We call this group of stakeholders the Donor Activation Dream Team.
Start by tapping your immediate team, colleagues with connections, friends & family networks, and strategic partners. Relationship mapping is an efficient way to link prospective major donors to someone on your Donor Activation Dream Team and determine if a relationship exists. If so, you now have an access point to this prospective major donor, and you can map out a plan for an introduction.
You’ve Prepared. Now what?
Strategize
There are three main touchpoint types when activating new major donor relationships. Here are our tips for how to approach each one.
Direct Outreach: outreach not facilitated by a shared contact
Acknowledge the mutual connection you have and/or the shared passion you have for the organization.
Engage in authentic flattery (“I’ve heard great things about your work in x, y, z & I finally have a reason to reach out”).
Follow up if you hear about something your prospect(s) accomplished.
Make an offer attuned to their needs/wants and a clear request.
If on a Zoom event, send a direct message.
First-Time Encounters: serendipitous first-time meetings
Attend community events where the prospect is affiliated.
Connect on appropriate social networks, professional & personal (reading clubs, associations, other affinity groups).
Attend conferences or events where the prospect will be attending, speaking, and/or honored.
Volunteer with the prospect, especially on causes connected to your organization.
Give a small donation in their honor.
Send swag or resources that convey your organization’s values.
Facilitated Introductions: conversations facilitated by a shared contact.
Discover important information to inform relationship strategy, including the prospect’s needs, wants, interests, and spheres of influence.
Make pithy introductions.
Host micro gatherings.
Bring the prospect to an event your organization is hosting.
Build a portfolio for your connector to manage.
Invite the prospect to a golf game, club, sports event, hobby, or other.
Dine at a place frequented by your connector and your prospect.
Overcoming Barriers
Throughout this process, there are bound to be barriers, but they’re easier if you are prepared for them. Here are three situations to expect and how to handle them:
Fear of Rejection: Tap into your belief in your organization so that, if/when a request is turned down, you don’t receive that as a wholesale rejection. Keep trying!
No Response: Be persistent and try a different channel, connector, or time of day.
Not Convenient or Too Busy: Make sure there is mutual interest. If so, let the donor know you are willing to be flexible and can adjust to any time that works for them.
Activating new major donor relationships is a strategic imperative for philanthropic organizations seeking to sustainably grow philanthropy leading to greater impact. By adopting these strategies, making and nurturing major donor relationships will be easier for you and your colleagues.
By treating these relationships with care, transparency, and authenticity, nonprofit organizations can ensure the ongoing support and partnership of their most generous benefactors in advancing their mission and making a lasting difference in the world.
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