The world of fundraising has become harder as we compete with other spending habits of our donors. The economy has tightened wallets, interest rates have risen, and businesses have struggled to maintain their success from just a few years ago. Where do we go to retain the level of fundraising we are used to for our fundraising events?
It is likely you have exhausted most avenues for fundraising, and you likely fear the impact of donor fatigue, as you hit your donors multiples times over the course of the year. The process of grants is complex, and businesses are being inundated with requests for donations and sponsorships.
It’s daunting….but with some effort, you can stand out in the crowd and find unique ways to raise more money for YOUR cause. Here are a few ideas to get you back on track for your fundraising goals.
Sponsorships – a different take
Imagine being a business owner and receiving a call from dozens of local charities who need their help for all of their important missions. Those same businesses get called by the schools their children go to and will be approached by industry and vendor relationships to partner for a cause that matters to them. It’s good business to support your network of family, friends, partners, and local communities. But where do they draw the line?
Another suggestion here is to not put the burden of filling a table on all sponsorships. Those sponsors who know you and “get you” will gladly fill a table, but for new sponsors who don’t have the confidence about your mission yet, they will be stressed to fill a table with people who have the capacity to give. The suggestion here is to not present all sponsorships to every potential business.
Think about it. Many large corporations — and smaller businesses — earmark 1% of their pre-tax profit for charitable giving. This isn’t a hard-and-fast rule, but also know that the same company will give 80% of those dollars to 3-4 causes. Your goal is to be one of those favorite 4 causes. A reasonable ask would be to make an ask to a new potential sponsor for a donation that is their budget range. Of course, there are businesses who give more than 1% of their pre-tax dollars, but for those who are new to you, you must assume the 1% rule. Google search the industry of that business to see what normal pre-tax profit margins are, and then based on the size of that business, you can estimate their giving capacity. For some of the companies, this information is in a 10K report or their annual report. It isn’t too far-fetched that smaller businesses will proudly share the size of their business in an informal conversation with you, so don’t be afraid to ask!
One more thing, if you plan to make the big ask, plan to be intentional in your conversation with that potential sponsor. You are asking for a big portion of their giving budget, so it is as important.
Take this information and organize your potential sponsors for specific asks, and make it personal. Sending one donor sheet with different levels of sponsorships is all too common, and less personal. These sponsors are wanting to be invested in your cause at a personal level, so why not personalize your ask of them?
Underwriting – learn to differentiate
When we think of sponsorships, we often build them based on giving something in return, such as tickets to the event, social media and marketing positioning, maybe access to a VIP pre-event, etc. If you have targeted businesses before that have yet to respond or resonate with your cause, it is not necessarily because they don’t want to. It’s just they have other competing interests and you have yet to provide them a compelling ‘ask.’ Giving them tickets to your event may seem enticing, but if they are already attending other galas, it actually might be a scheduling issues, gala fatigue, etc.
Maybe come back to those sponsors (either those that have attended in the past, or ones you know are philanthropic but not yet supporting you) with a new approach. Approach them with a different type of ask and acknowledge that not all sponsors are alike. (NOTE: Car dealerships are sometimes given dollars to spend on charity by their manufacturers, but those at the dealership level have no intention of attending your gala. Often these funds end up going unused because the ask is wrong for them!)
One thought is to make your ‘asks’ unique and stand out. You need your ask to resonate with the ‘WHY’ of your cause, and the “WHAT” impact those sponsorship dollars will make. I would also add that making a commitment to the business or key donor that you will only ask once this season shows your respect for their time and investment to your cause.
Your request might be to have a potential sponsor underwrite the auctioneer, for example. You would want them to know that by underwriting the auctioneer, your mission will see the benefits of a professional who will double or triple the results for their event. Now, the business owner knows that by giving to YOU, his dollars will go further! You have given that person a ‘what’ and a ‘why.’
You can have underwriting for the bar service, the band, a special entertainment such as casino night. You can have an underwriter for an amazing experience or vacation package that will help raise more money than the donated items that we often receive that lack the “WOW” factor.
Take time to review all cost elements of your event and create some underwriting opportunities. By doing so, you are creating a new category of fundraising that gives potential sponsors a different reason to give.
Extend the Giving outside of your event and raise more!
When you host an event, you are going to create a list of potential attendees. Your staff and board along with key sponsors will add to that list. Of course, that list will be much larger than the number of attendees, as many have other commitments, or are not yet ready to commit to your mission at that level.
Instead of asking the “yes-or-no” question of attending your event, why not instead ask an “either-or” question that enables every potential attendee the chance to invest in your mission, and be connected to the night of your event in a meaningful way?
If you ask someone if they will attend your event, their answer will be yes, no, or maybe. You have lost control of their investment to your mission. Change your ask to something that offers an alternative or two that will benefit your cause regardless of their attendance.
One way to do this is to introduce a raffle for anyone who wants to participate. This allows you to extend your fundraising outside of the room to people who can’t or won’t attend. Many “want” to support you, but without the proper ask, you have boxed yourself in to depend only on whether they attend or not!
An example of this ask is “we are having our annual event on May 1st, and we are hoping to raise $300,000. This will help us achieve our mission of ______. To do this we are asking those closest to us to either attend our event and be part of a special night, OR to participate in our BIG raffle that will be announced that night. I would love for you to either attend or be part of this raffle, which option works best for you?”
This gives the person an easy out if they have no intention of attending, and you will give them the chance to give on the spot instead. You should be ready to instruct them on the raffle to take advantage of their investment in the conversation you are having, as opposed to waiting and potentially losing their interest many days later. Not everyone will participate, but you will see a higher hit rate of giving units using this approach!
Part two of extending the giving outside the room is to provide exciting options for non-attendees to participate in your silent auction. It is hard to actually bid against those in attendance, and then to collect your item, it can be a barrier to participation.
Instead, we advocate creating what is called a “Vacation Station.” This is a section of your silent auction online that allows non-attendees to make their next vacation planned to also support your cause. In this scenario, we see charities who offer 6-10 different popular destinations at a “buy-it-now” price point that is favorable for multiple donors to purchase. There are many companies who offer consignment travel and experience packages that have a lower cost that you simply add a donation amount to the cost and sell in your Vacation Station. By adding $500 or $1,000 to each package, you create a new revenue stream for your non-attendees to give, at an affordable price…..no need to outbid others, just choose a vacation that appeals to you and give!
Here is a company that offers packages that can be used for your vacation station: www.missionfirstfundraising.org There are other companies as well, so it will be easy to create a vacation station that will extend fundraising outside the night of your event. NOTE: these trips are no-risk to the non-profit, you only purchase if you sell them in your vacation station!
Summary
It is important to change things up and find new ways to approach sponsors and donors. The definition of insanity is doing the same things over and over….and expecting different results.
These suggestions are strategic, and by building a plan for your team to engage all donors and potential sponsors, you will see an increase in your fundraising success!
