The Secret to Fundraising - Don't Ask for Things

Raising Money Without Asking

• Do your board members love fundraising?
• Do you? 
• Do you want to have more fun securing the resources your organization needs?

When I say fundraising isn't about asking for money, people either slant their head and look at me confused or they give me the evil eye.  I don't mean to say you can't raise money if you ask for money; of course you can and it's done every day.  But it often feels, well, yucky (my technical term). 

Just ask your board members if they like asking people for money.  My guess is many of you feel your board members are not doing enough to open doors for your organization.  It's not that they are uncommitted; it's that their relationships are very important to them, and they don't want to put them in jeopardy.

Wouldn't it be cool if you could secure the resources you need without asking for things?  In fact, let's just be honest and admit that when we ask for money, it feels more like begging, and that feels yucky. 

There is a more genuine and spiritual approach to fundraising that feels good, and in this blog post, I'm going to tell  you exactly how to receive more by doing less asking.  This approach requires two important changes though:  FIRST, a change in how you think and what you believe; and SECOND, a change in what you do. 

Changing the Way You Think and What You Believe

There are some MISCONCEPTIONS about the world of fundraising:

• There's not enough money out there.  This just isn't true, but if you believe it, you've already put up a wall between you and all the opportunities to find the money that are out there.  There is soooooo much money out there it makes my head spin.  If you are not attracting it, YOU are the one not doing something as effectively as you could.  It doesn't matter if the economy is good or bad, whether you live in a rural community, a low-income community; there is plenty of money available for your organization. 

• We have to compete against everyone else.  This sense of competition makes me cringe.  It feels like you cannot be supportive of other organizations, because if you are, you will hurt your own.  If you think fundraising money is like a pie that has to be split among the organizations in your community, then again, you have limited yourself. 

In order for my approach to work for you, you must be an eternal optimist and believe all the resources that you  need exist - you just need to learn how to attract them to your organization.  The best athletes in the word do something very specific that gives them the edge over all the other athletes who, at that level really have the same skills.  They visualize what it feels like to cross the finish line and then they embody the feeling of what crossing the finish line feels like.

When it comes to fundraising, visualizing what it feels like to achieve the fundraising goal actually does something to your brain, causing you to become alert to the opportunities that have always been right in front of you but you didn't notice before. 

For example, you know how I love talking about Eastbrook Academy, because they put into practice a new way of thinking/believing PLUS new
behaviors.  Because of that they not only took their annual event to new heights (raising at this year's event a third of what they raised total in 15 years), but they achieved their initial goal a month before the event and then went on to double that goal and achieve that.  They were in the zone just like a professional athlete.  They could not have done this without changing the way they thought about money PLUS going about it in a way that made them feel comfortable and actually have fun. 

Changing What You Do

After you take a leap of faith and change your beliefs, what do you do next?  Well, action is required, but the right kind of action.  I've talked about these in other blog posts, so you may want to refer back to some of them on developing your story, inspiring people to become ambassadors for your organization, designing a compelling tour, etc.  

• Cultivate relationships when you DON'T NEED MONEY.  You will really strengthen your relationships with people if you change their perception that the only time you want to talk with them is when you need something. 

• Invite people in and share WITHOUT AN AGENDA.  Having an expected outcome from someone actually limits the outcome; it's like putting a wall up between you and the potential generosity of the person you're with.  That doesn't mean you don't enter the conversation prepared with things you want to share.  It means letting go of the result, and being genuinely interested in another human being.  The less you care about what happens, the more that will happen.  Caring too much about the results causes you to come across desperate, which is the opposite of inspiring.  Be truly open to the possibilities.  

• During your tour, ask your visitor questions.  His or her answers will give you clues about what really interests them, and then focus on those things.  Don't feel compelled to tell them everything - they don't usually care about everything, just certain things.  

• After the tour, sit down and share your achievements and priorities.  This is key and why you don't have to ask for money.  After you update your visitor/donor and highlight what you've been able to accomplish (thanks to them if they're already a donor), and then very clearly outline your major priorities and what you need to accomplish them.  You need to be specific, and you may even have separate one-sheets on each of the major priorities.  

• Ask these THREE MAGIC QUESTIONS in this order and then take notes.  Now it is time to stop talking and listen very carefully.  FIRST ask WHAT DO YOU THINK?  Start writing, because you are going to gain insight into what is really important to this person, as well as valuable feedback about how you are sharing your story.  SECOND ask HOW DO YOU SEE YOURSELF FITTING IN?  This question allows the person to decide for themselves where they want to have an impact, and because you were so clear on your priorities, whatever they decide will be what you need.  By not asking for a specific amount from them - but letting them know specifically what you need to achieve your priorities - you have left it wide open for them TO DECIDE FOR THEMSELVES, which often leads to a much bigger donation than you would have otherwise gotten.  Or, they could say, I'm not sure, or nothing now, to which you will answer THANK YOU! THIRD ask WHO ELSE NEEDS TO KNOW ABOUT WHAT WE'RE DOING?  If you've inspired them and been clear about your priorities, and because you didn't ask them for anything, I can almost guarantee that they will think of at least one other person or organization that may be interested in your organization's mission.  The answers to these questions represent the JUICY STUFF (another technical term) that directs your cultivation activities and leads to resources.  

• Send a hand-written thank you note within 48 hours.  No matter the result, send a thank you note. No matter what happens, you have made an impression on this person that could lead to something down the road. 

• Do your follow-up activities.  Followup is the key to success here.  If the visitor suggested someone might be interested, be sure to follow up with them about getting connected to that person, and follow up with that person and invite them for a tour.  Followup is every organization's weakness, and it's where all the results happen.

Celebrate Successes - Even the Small Ones

It's not the size of the gift that should matter when it comes to recognizing people or celebrating.  It is about understanding the path that got you there, because there is no difference in how you receive a small donation versus a large donation.  It is the same cultivation path, and you just never know who will lead you where and when.  And to help your board members build confidence, share the stories about how donations ultimately happened.  They will learn that every moment of the day is an opportunity to share the story and cultivate a relationship that might lead somewhere. 

As always, feel free to share what happens when you put these ideas to work for your organization, and please pass this information along to others who could benefit. 

Happy Spring!

To read more about how to do fundraising without asking for money, purchase my book The Secret to Fundraising; It's NOT About Asking for Money by clicking here.

Deb

 

Relationship Fundraising - Event Planning Season

3 Ways to  Make More Money on Your Event

FIRST - Spend time on the right things 

Most organizations don't come close to raising what they could through their events because they spend too much time on the wrong things.  While it's fun to pick out linens, taste the meal choices and make pretty center pieces, these things have little to do with achieving the main goal of a fundraising event, which is to maximize net income.  I think there are two reasons staff people spend too much time on these things.  First, they lack a clear understanding of strategic relationship cultivation, and second, they avoid doing the thing that is uncomfortable.  

The most important activity to spend time on leading up to a fundraising event is being intentional about who you want to sponsor and come to the event and cultivating those relationships.  Whether you have 12 months or 3 months to prepare for the event, after securing a date and location, all the other logistics can wait.  The focus needs to be on combing through all of your donors and key prospects and deciding where you think they fit in.  Before you approach them though, you will want to put together a sheet that lays out the history and the purpose of the event, along with your priorities for fundraising and all the options for getting involved.  

SECOND - Map all the ways to generate revenue 

The least effective way to raise money through your event is through attendance.  If all your revenue is tied to attendance, then that means you have to have a lot of people come to the event and you have to charge a lot of money.  What if there is a snow storm on the night of the event?  This strategy causes a lot of stress for everyone. 

The most effective way to raise money through your event is through event sponsorships that offer sponsors an opportunity to promote their company.  The amount you can secure from sponsors will depend on many factors, including history of the event, usual attendance, and the number and kind of promotion strategies you use (e.g., online, newspaper articles, invitations, flyers, partner organizations, etc.).  You will receive sponsor donations before the event, so even in the event attendance is less than you planned, you have already gotten money in the door. 

The sponsor amount is not tied to expenses.  Many small organizations feel that they can only ask sponsors to pay for specific expenses (e.g., the cost of the meal).  The sponsorship amount is whatever someone is willing to donate to you and usually depends on what you offer as far as recognition and how generous they are feeling.  

There are several other strategies in between attendance (day of event) and sponsorships (before event).  Silent auctions are something that event attendees are used to and also enjoy, because they feel that they are making a contribution, but they also get something in return.  Even a silent auction of minimally priced items can result in thousands of dollars.  Depending on who the attendees are (I'll talk about that next), a live auction of high-value items (vacation packages, suites at professional sporting events) and/or straight financial donations can result in thousands more.  If your organization's story is solid and compelling, and your priorities clear, this is a great way to inspire your attendees to give even more.  

Don't leave things to chance though.  Start with a gross revenue goal for the event as well as a net income goal - and stick with it.  For a goal of $38,000 gross, it would be appropriate to budget $8,000 for expenses (no more though).  It would be appropriate to budget $10,000 in sponsor dollars, maybe $8,000 for the silent auction, and another $6,000 for the live auction conservatively.  That leaves $12,000 to be raised through attendance, and at $75 per ticket (reasonable price), you will need 160 people to purchase tickets prior to the event.  If that attendance figure is too scary, then you will need to raise more more money in the other categories.  

THIRD - Start cultivating relationships 

Once you have this mapped out, it's time to make a list of all the people who are your prospects in each of these categories.  Now it's a matter of filling in the blanks - but not by yourself.  As I have said before, the job of the fund development director or event planner is NOT TO RAISE THE MONEY.  His or her job is to create and drive the strategy, and engage as many stakeholders as possible in implementing the strategy (e.g., board members, other staff members, key volunteers and other donors). 

Let's start with sponsors.  If this is your first event, begin by making a list of your key supporters, donors, volunteers and vendors.  Simply reach out and let them know you are doing an event and are wondering if they would like to be involved as a sponsor.  They will ask for information on the sponsor levels, and then you will follow up until you get a YES or NO.  If this isn't your first event, you will first go back to past sponsors and ask them to consider renewing their sponsorship at the same or higher level.  Be open to feedback and be creative about what you're willing to offer them as far as recognition and exposure.  


Gather a committee of 4-6 committed volunteers, including board members to take care of the silent auction.  Your board members should be willing to reach into their networks to recruit sponsors and also silent auction items.  You might also consider doing a mailing to area businesses; this seems to get good results too because offering gift cards is a way for those businesses to get new people in their doors.  

The attendance list is actually one of the most important strategies.  Typically, small organizations just send out invitations to their usual mailing list without thinking about who they want to attend the event.  If the goal of the event is truly to raise as much money as possible, then you want to focus on people who have the capacity to donate a lot of money.  This can be touchy though, because in the past you may have invited people who really couldn't afford to donate much.  In this case, if there might be hard feelings because you are changing the strategy for the event, you may want to create another event that is more about celebrating and is more financially accessible.  For this event, you wouldn't want to have the pressure of raising money.  

Spend time collecting materials from other successful events in the community to see who is sponsoring what organizations, and if their mission is similar to yours, consider reaching out to them and inviting them to your event or a tour.  Brainstorm your ideal attendance, and BE BRAVE and reach out to these folks to share your story and let them know you will be sending them an invitation.  Be sure to reach out to them first though, otherwise, your invitation will end up in the trash.  It's all about relationships.  

Ask your board members to each contribute 10 new people to the invitation list that they will ask to consider coming to the event.  You will need to provide your board members with materials and scripts and coaching to do this outreach.  Do not expect them to follow through without the support and encouragement they need. 

As always, I love to hear back from people to see how my articles have had an impact.  Good luck on your next fundraising event! 

Deb

P.S.  My latest book The Secret to Fundraising; It's NOT About Asking For Money is all about strategic relationship cultivation.  Click here to view it on Amazon.com.