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To add as much value as possible to an organization, board members should invest time in training, especially in the area of fund development. Many people who serve on boards report little comfort in this area. Good training emphasizes that each board member brings his or her own strengths to the process and each has a role to play.
Creating the infrastructure to build relationships takes time, talent and resources from both board and staff. Nonprofits embarking on this path will want to create a maturation process for donors, encouraging them to increasingly invest in a relationship based on their interests and the organization’s focus. Nonprofits can create opportunities for connecting with donors in significant ways, which can become progressively more individualized and involved over time.
Here are some examples:
Annual funds – The donor audience is segmented so there is not a one-size-fits-all approach to cultivation, solicitation, recognition, and stewardship.
Membership – The value of the membership is less than the amount an individual is willing to pay for the intangible mission-related support of the organization.
Special events – Make them fit with your mission and only view them as one step in the development process, not a means to an end.
Major donor programs – This is for organizations with existing donors and infrastructure.
Planned giving, living trusts, and other legacy gifts – Relationships are built with individuals who have supported the nonprofit for ten or more years.
Endowments – A source for long-term financial stability through major and planned gifts.
Let us know if you have other donor strategies that have been successful in fund development.
–Dennis
Dennis McMillian is President of The Foraker Group, a capacity building organization based in Alaska, and the author of Focus on Sustainability: A Nonprofit’s Journey.