Donor Participation Project

Heather Thompson has built fundraising programs from the ground up at multiple nonprofits. As the Chief Development Officer at Norwest Community Action Partnership, she shared her lessons learned for launching a successful development shop.

The key, Thompson says, is setting realistic expectations.

When she started at Norwest CAP, she created an ambitious five-year plan. Her CEO wisely advised her to scale it back to a one-year plan. Fundraising takes time to build, and grand plans can set you up for failure and disappointment. Focus on laying groundwork and incremental growth.

In that critical first year, Thompson focused on internal goals within her control, not just an arbitrary fundraising target. Her goals included retaining current donors, adding new donors, producing grant proposals, and building infrastructure like a CRM to track donors. Reporting on progress towards these goals built credibility and trust in her leadership.

Fundraisers often want to do everything, but you have to start somewhere. Thompson began with institutional fundraising since Norwest CAP had strong program outcomes and metrics to leverage. Small wins from initial grants gave her funding to build on. Each year, Thompson evaluates what’s working to build on successes and make changes where needed. An event in its second year grew after she dropped ticket prices in response to feedback.

Thompson also advocates for resources to support long-term success like a CRM, website, and communication. While the return on investment isn’t immediately clear, these tools build trust and awareness to enable future fundraising. Her tip: find board allies who understand fundraising to help make your case.

Overall, launching a successful development shop starts with a solid foundation, not flashy short-term gains. Set incremental goals, evaluate and adjust based on outcomes, and invest in infrastructure to enable sustainable long-term growth. With realistic expectations and by building strong relationships, Thompson created a flourishing development program to further Norwest CAP’s impact.

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Nonprofit organizations depend on the generosity of donors to fund their important work. While one-time donors are appreciated, regular givers provide a stable base of support. According to recent research, only 33% of Americans donate to the same charity on an ongoing basis. How can nonprofits encourage more occasional donors to become regular contributors?

Focus on participation, not just dollars.

Make donor retention and frequency a top priority metric, not just total funds raised. Regular givers are more valuable over the long run. Set specific goals around converting one-time donors to repeat donors.

Understand donors’ motivations.

Donors give for two main reasons: to support the organization’s mission (the “collective good” motive) or for internal reasons like reducing guilt or gaining social approval (the “input” motives). Tailor your appeals to match donors’ key motivations. For example, emphasize the impact of donors’ gifts for the collective good motive or highlight social approval for input motives.

Listen and build relationships.

Conducting in-depth interviews with donors, like the successful program at Georgetown University, can reveal their passions and values. Listen to understand their motivations better and to make them feel valued. Then, craft more targeted fundraising appeals that resonate with their interests. Over time, these relationships can turn occasional givers into regular supporters.

Test different strategies.

Try various techniques like matching funds, seed funding, and social pressure to see which are most effective with your donors. But evaluate the long-term impact, not just immediate results. For example, while matching campaigns may boost short-term giving, they could reduce future donations if they primarily trigger feelings of guilt. Test and iterate to find the right formula for your organization.

Make the next generation a priority.

Children often mimic their parents’ philanthropy but need help making giving a habit. Educate families about your mission and engage children through programs like “read to donate” campaigns. Building lifelong donors starts young.

With creativity and persistence, nonprofits can shift occasional donors to become regular supporters. A focus on participation, understanding motivations, cultivating relationships, experimenting thoughtfully, and engaging the next generation are proven strategies to turn more one-time givers into long-term philanthropic partners.

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Hiring a consultant can be invaluable for nonprofits, but it also introduces challenges like missed deadlines and scope creep that require navigation. Missed deadlines often happen despite the best of intentions from both parties. Life events emerge and priorities shift, and what seemed feasible in the planning stages may prove unrealistic.

The key is maintaining open communication.

Explain the situation truthfully but compassionately, revising deadlines collaboratively. Consultants aiming to build long-term relationships will show flexibility; work with them on realistic solutions. Internally, reset stakeholder expectations, emphasizing that quality work takes time. Build in margin for the unexpected in the future.

Scope creep refers to the natural tendency for projects to expand beyond initial parameters.

This frequently stems from enthusiasm, as new possibilities emerge. Again, ongoing communication is critical. Consultants should speak up if extra work strains their capacity or budget before resentment builds. Clients should avoid presenting new ideas as fait accompli.

Discuss any changes openly, including new deadlines, work, and fees.

Both parties must compromise to find the optimal balance of scope and feasibility. If significant changes are needed, it may make sense to end the current project and launch a new engagement with revised goals.

Navigating challenges with consultants requires empathy, honesty and a solutions-oriented mindset from all sides. While missed deadlines and scope creep can damage relationships and trust if left unaddressed, a willingness to be flexible, communicate openly, and focus on a mutually agreeable path forward can actually strengthen partnerships.

When challenges arise, follow the Golden Rule, treating your consultant—and client!—as you would like to be treated in their place. Approach the situation not as a conflict to win but an opportunity to forge an even more productive working relationship based on good faith and understanding. With this mindset, common challenges often become a chance to build rapport and demonstrate reliability, cultivating partnerships for the long-term.

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Legacy gifts, also known as planned gifts, make up a significant portion of contributions to nonprofits each year. According to Giving USA, legacy gifts accounted for $46.01 billion given to charities in 2020. These gifts are from donors who thoughtfully include charities in their estate plans to create a lasting impact.

The best time to start securing legacy gifts was years ago. The second best time is now.

Donors often make estate planning decisions years before they pass away, so consistent communication about your mission and impact is key. Provide sample bequest language on your website and in print materials so donors and their attorneys have the information readily available. Sending annual reminders about planned giving opportunities through mailings, e-newsletters, and social media also keeps your organization top of mind for donors thinking about their legacy.

While major gift donors are obvious planned giving prospects, mid-level donors, lifetime members, and devoted volunteers also have the potential to become legacy donors. Treat these most loyal constituents as planned giving prospects, inviting them to attend special donor events and recognizing their consistent support. For younger donors in their 50s and 60s, a planned gift of even 1 to 3 percent of their estate could have major impact down the line as their assets appreciate. Starting cultivation of younger donors today sets the stage for a meaningful planned gift years later.

The most successful nonprofits know that legacy donors are often their most dedicated supporters, continuing annual gifts even after providing for the charity in their estate plan. Take a donor-centered approach by listening for clues that a donor is working with an estate planner. Be ready to share helpful resources and sample bequest language to ensure you have a seat at the table.

With consistent messaging and stewardship, donors who start out making small annual gifts can become your greatest legacy donors. In the end, planned giving success is all about relationships and taking the long view. Start now, keep going, and your nonprofit will reap the rewards for generations to come.

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For nonprofits, building an engaged audience is important but not enough. True impact comes from developing a community of advocates and supporters who trust and believe in your mission. According to marketing expert Mark Schaefer, “Community is the last great marketing strategy.”

Schaefer argues that nonprofits must move beyond engagement metrics and focus on building authentic relationships. This means creating spaces, both online and offline, for people to connect over shared interests and values. Bring together your most loyal supporters and give them opportunities to bond over their passion for your cause. Even starting with just five highly engaged people can be enough to get the momentum going.

A thriving community has benefits that engagement alone does not provide. Organic advocacy happens when community members spread your message through word-of-mouth and social sharing. Their endorsements are far more powerful than your organization saying the same thing. Community also offers a direct line to your supporters that provides instant feedback and ideas to help you stay culturally relevant.

However, community requires nurturing the right culture. It must be a welcoming space built on trust, respect, and support. Members want to feel that they belong and that their voices are heard. Identify and empower community advocates by giving them leadership roles and opportunities to contribute in meaningful ways. While community may mean giving up some control, the rewards of relevancy and organic growth are well worth it.

For resource-strapped nonprofits, community may seem like an impossible challenge. But according to Schaefer, it does not require a huge budget or staff.

Start small by experimenting with a Facebook group or monthly meetups. Focus on creating interesting content and experiences that elicit emotion and participation. As leaders emerge, reward their contributions to help the community thrive with limited resources.

In the end, community comes down to people – how they connect, share, and advocate for a cause bigger than themselves. Nurturing these human connections will build trust in your organization and a shared belief in your mission that endures well beyond any single campaign or communication. While measuring engagement provides data, building community creates true and lasting impact.

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For nonprofit fundraisers, building strong relationships with donors is key to success. Donors who frequently discuss an organization, feel valued in those conversations, and have a history of consecutive giving are much more likely to make larger lifetime gifts.

Donor engagement leads to increased giving over time, as shown in data from surveys of nearly 10,000 donors.

Focusing on engagement is strategic, not wishy-washy.

While engagement’s effects can be hard to measure directly, the data shows a clear pattern: more engagement leads to bigger gifts. For donors who gave under $1,000, the median gift over 11 years was $2. For donors who gave over $50,000, the median number of years of consecutive giving was 11. The more people positively discuss an organization, the more good things will come its way.

To build engagement, demonstrate credibility, reliability, and intimacy with donors, as defined by McKinsey. Report back on what you learn from them and how you use their input. For example, if you survey donors, share the results and how you plan to act on them. Send updates on the impact of fundraising campaigns donors contributed to. These types of accountability and follow-through establish trust.

While technology and social media play a role, meaningful personal outreach is key. For example, one college sends the widows of alumni a bookplate dedication for the library, noting it memorializes a shared value or interest of her late husband. This thoughtful gesture, expecting nothing in return, resonates profoundly.

To make the case for engagement internally, focus on its strategic benefits, not just fundraising. Engaged donors become advocates, helping to build enrollment, forge community partnerships, and more. An “engagement first” mindset takes work, but pays long-term dividends. Building trust and loyalty with donors will be increasingly critical as societal expectations of nonprofits continue to grow. Focus on relationships, and the dollars will follow.

Fundraisers, invest in engagement now. Your donor pyramid is changing, and those organizations that meet donors where they are with a value-first approach will thrive. Why? Because donor relationships matter.

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Artificial intelligence has been promising to transform fundraising for years. According to fundraising tech visionary Cherian Koshy, that promise is now reality. Koshy shared in a recent podcast how AI-powered tools can enhance nonprofit fundraising in exciting new ways.

First, AI makes analytics and data insights more accessible.

Tools like Akyo allow you to query your data through natural language and get instant answers. Instead of complicated SQL queries and expensive business intelligence platforms, fundraisers of any skill level can simply ask a question about their data and get a response. AI summarizes key data points, identifies trends, and uncovers new insights to inform strategy.

Second, AI generates customized content at scale.

Using a tool like ChatGPT, fundraisers can automatically produce fundraising appeals, social media content, newsletters, and thank you letters personalized for different donor segments. While the results still need human editing, AI gets you 90% of the way there. This allows small nonprofits to keep churning out relationship-building content that would otherwise be unrealistic given limited resources.

However, Koshy cautions that AI should augment human fundraisers, not replace them. “AI will never be able to sit in front of someone and have authentic conversations,” he says. “It won’t be able to build real relationships.” The human touch is still crucial for securing donations and stewarding meaningful donor connections. AI simply helps free up capacity so fundraisers can focus on that human-centered work.

In summary, AI-powered tools are enabling nonprofits to work smarter and faster. Access to data insights, customized content, and time-saving automation provide new opportunities for organizations of all sizes to strengthen their fundraising. While fundraising will always require the human touch, AI is helping ensure that human touch can reach more people— and make a bigger impact. The AI revolution is here, and it’s allowing fundraisers to focus on what matters most: the relationships that inspire giving.

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Nonprofit CRMs contain a wealth of information about donors and prospects, but the data often stops at transaction summaries and contact reports. Advancement services professionals realize there is meaningful data outside the CRM that can help build more accurate predictive models.

Phone-a-thon data, email engagement metrics, alumni records, and other data sources offer clues into donors’ interests and behaviors. This “microdata” provides context that can turn a flat CRM record into a multidimensional profile. The challenge is accessing the data and engineering it into useful formats.

Vendors sit on large reserves of data, but often only provide high-level summaries to clients. Advancement services should request raw phone-a-thon data, email stats, and other metrics to analyze in-house. It may take negotiating, but the data access will allow for customized segmentation and modeling. With leadership support, advancement services can partner with vendors and IT to develop data sharing agreements and storage solutions.

Using microdata and data engineering, advancement services can develop models that predict donors’ likelihood to give and capacity for major gifts with greater accuracy. As resources get tighter, data-driven insights ensure fundraisers spend time with the right donors. While CRM data alone may point to two donors with similar transaction summaries, microdata can reveal that one donor has been attending alumni events for years and opens every email, indicating a closer relationship and greater potential.

Nonprofits seeking a competitive advantage will invest in advancement services and adopt a data-centric strategy.

Asking for additional data is the first step. With the right tools and skills, advancement services can find hidden patterns in microdata to build models that transform how organizations identify and engage their most valuable prospects. Overall, leveraging data beyond the CRM is critical for establishing long-term donor relationships and fundraising excellence.

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Fundraising is all about building relationships. And the key to building strong relationships is listening. By listening to your donors and understanding what motivates them, you can connect their giving to meaningful impact and turn “pat on the head” donors into major supporters.

According to fundraising experts Russell James and Jim Langley, donors want to feel heard and know their gifts will accomplish something significant. Questions are the key to discovering a donor’s interests and values. Ask open-ended questions like “what causes do you care most about?” or “if money were no object, what kind of impact would you like to have?” These questions start conversations about personally meaningful victories that tie donations to outcomes.

Surveys are one scalable way to ask questions, identify prospects, and improve fundraising ROI.

Follow up survey responses with in-depth conversations. Explain that you want donors’ input to better achieve your mission. Ask for advice and stories, not just money. This establishes trust and shows donors their opinions and experiences matter.

Don’t just tell donors about your organization’s accomplishments. Ask them about their priorities and concerns. Then match these interests with specific projects or programs. Describe opportunities to sponsor or endowed elements of your work. This gives meaning to different gift levels and turns transactional “pat on the head” donors into mission-focused partners.

Some donors want their gifts restricted to certain areas. Offer creative options beyond unrestricted funding like sponsoring an initiative for a set time period or endowing essential operational expenses. Show how these targeted gifts still support your overall goals while also creating personal meaning for supporters.

Listening is the key to learning what motivates your donors and translating that into opportunities for impact and meaningful partnerships. Ask questions, share what you’re learning, and invite more interaction. Nurture authentic relationships based on trust and understanding. That is how listening becomes fundraising.

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Nonprofits have traditionally relied on donors giving money upfront based on promises of impact. But according to Juan Somavia, head of innovation at UNICEF, that model is changing. Donors today want to see measurable results for their contributions. They are demanding evidence that their donations are achieving real outcomes.

This shift to “pay for results” models is challenging nonprofits to fundamentally rethink how they operate. Simply sharing heartwarming stories and anecdotes of change is no longer enough.

Nonprofits must get better at quantifying and communicating the impact of donor dollars in a transparent, data-driven way.

Some nonprofits are experimenting with impact bonds, where private funders provide upfront capital and then get repaid based on the organization achieving predefined outcomes. For example, a nonprofit focused on youth employment might issue a bond to fund job training programs. If they are able to place a targeted number of youth into jobs, the funders get their money back. If they exceed the targets, funders may earn an additional return on their investment. If outcomes fall short, funders lose their money.

While potentially risky, impact bonds align incentives and give nonprofits more flexibility to innovate. They also appeal to data-driven donors who want to fund what works. To explore this model, nonprofits should first identify programs that have a proven, quantifiable impact and solid evidence base. They can then work with partners to determine outcomes that balance ambition and realism.

Impact bonds are not for every nonprofit or program, but they signal a broader trend that is here to stay. Nonprofits must get better at articulating their “impact value proposition” in qualitative and quantitative ways. Fundraising appeals and campaigns should prominently feature key metrics and goals, not just stories. And nonprofit leaders must build a culture of continuous improvement and learning to truly understand what moves the needle. The future is paying for results. Nonprofits need to put impact at the center of their work if they want to attract the next generation of donors.

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