Building Donor Relationships

Building Donor Relationships

By Bob Reynolds, CPA, CGMA

I have served as a volunteer and Board member for several organizations over the years. An organized approach to securing major gifts has been a challenge and is often the result of development personnel being consumed with raising short-term funding and orchestrating fundraising events. To generate major gifts and recurring donations, all things start with building strong donor relationships.

The following are the general steps to build a strong relationship with a donor:

Introduce Them to Your Organization

This introduction can happen at a fundraising event, online or in-person. Another effective way to start is to ask your board members and volunteers to make an introduction and participate in the initial contact.

Develop Trust

Consider inviting the potential donor to visit your organization for a personal tour to meet your team and witness the services you provide. By demonstrating the impact of your programs and services, you can show them what the needs are and how their donation could make an impact for those your organization serves.

Make the Ask

Please do not jump right to asking for money. It is important to first develop trust with the donor and identify what the needs are and how they can make an impact. It has been my experience that recurring gifts rarely happen without building trust and demonstrating transparency with a donor.

Perform Best Practices When Donations Are Secured

• Donations should be acknowledged within two days.
• Consider acknowledging major gifts with a handwritten letter.
• Provide updates on how their support is helping the organization fulfill its mission.
• Ask donors for feedback on program outcomes and operations.
• Acknowledge donors on your website, annual report and collateral marketing materials.
• Remember to always secure their permission before making the acknowledgement of their support public.

These are just a few quick tips. You'll receive many more at our Take Five Nonprofit Conference!

We understand the challenges organizations are facing when it comes to replenishing financial reserves, and determining needed investments in technology, infrastructure, and people. To help organizations develop their financial plan, the focus of our Take Five sessions in May will be developing strategies to secure grant funding and major gifts.

May 10: Amy Eisenstein will join us to discuss how to engage donors to secure major gifts for your organization. Amy is an expert in her field and has helped large and small nonprofits raise millions through major gift and capital campaigns.

May 24: Andrea Hoff, owner of You Thrive Consulting, will join us to follow up on her presentation last fall on effective grant writing, with a discussion to discuss how to raise the interest of funders through creative grant writing.