So, everyone is trying to figure out new ways to raise money. There is tremendous fear that direct mail won't work anymore, that telephoning is too intrusive (it is, but it works!), and that the economy is too terrible for people to come to galas. So what's a non-profit to do?It seems to me that it all comes down to development, not fundraising. Now that won't help you if you need to raise a lot of money today or tomorrow, but development is what is needed to build philanthropic income. People give to the organizations they feel connected to and passionate about. And they give major gifts to the organizations they feel most connected to. And, the most cost effective way to raise money is through major gift solicitations. I even read an article many years ago that argued that annual giving programs should be abandoned because they cost too much, and for the same expenditure in major gifts much more money would be raised. I'm not willing to go that far because I think annual giving programs can provide a base of income for the organization, as well as broadening the base of potential major donors (especially true for organizations that don't have a "natural" constituency like alumni or grateful patients.)
So what does development mean? Developing relationships that make people feel connected to your organization. I know... this is development 101. But I think all too often we forget the crucial importance of relationship building in the rush to figure out how to raise a lot of money by tomorrow. If we've been doing the relationship building, and suddenly have a crisis that requires more money, we have the prospective donors ready to call upon to fill the gap. If we haven't built the relationships, we're forced into an "emergency" direct mail letter, or telemarketing program. These might raise the money, but they won't make anyone feel good, and they won't build for the future. The big challenge is to continue to build relationships that provide a pipeline for future gifts, while at the same time raising current gifts.
One of the best ideas I've seen recently is also one I have seen in the past. It's the "virtual" gala. A number of years ago, a library foundation sent out an invitation to people to "stay home and read a good book," and send us a gift. I never heard how much it raised, but it sounded like a great idea to me. I have just heard about the International Hillel Foundation running a similar program, but with a twist that makes it development in addition to fundraising. They have recruited volunteers around the world to host small house parties on the same night. Each has a fundraising goal, and each will also serve the relationship building function. To bring everyone together, there will be two live web feeds that can be viewed in real-time, or delay if appropriate, coming from the house party being held at the home of the international chair. Sounds like fun to me, and it sounds like the kind of event that could raise money now and build relationships for the future!
Do you have ideas for new ways to build relationships and raise money? Do you need some? Give me a call if you'd like to explore some possibilities.
