For a nonprofit to continue the work it does over time, it’s imperative that leaders continually engage in efforts to attract additional funding. Individual and corporate donors can be great resources that grant an organization access to lasting financial support and the opportunity to acquire even more potential donors through networking. However, locating these donors and building relationships with them isn’t as easy as it sounds.
As experts, the members of Forbes Nonprofit Council are accustomed to the effort required to find and secure the support of donors. Below, 11 of them each share their most effective strategy for conducting donor prospect research and successfully landing the right sponsors.
1. Find Alignment With Potential Sponsors
When prospecting sponsors, consider where the values, mission and objectives align. Find the opportunities which satisfy the underlying reason a potential donor would support your nonprofit. When prospecting corporate sponsors, find ways your nonprofit fits well with their corporate mission, objectives and marketing. Provide added value to a corporate sponsor and allow the individual to be the hero. – Aaron Alejandro, Texas FFA Foundation
2. Check Donor Lists For Active Sponsors
An effective strategy is to cross check donor lists to find commonalities. For example, if the same name pops up on two or three lists of organizations serving school-age children or STEM programs, then that’s a great indication of what’s important to that donor. Look for donors who support your cause by comparing lists. – Kimberly Lewis, Goodwill Industries of East Texas, Inc.
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3. Examine Peer Organizations
Look at peer organizations or those with similar missions and larger budgets. While we may not be trying to target those exact donors or funders, learning more about them and the common traits they share can inform your own prospecting. From there, looking into traditional wealth and interest factors through free online searches is a good next step. – Matthew Gayer, Spur Local
4. Explore Nontraditional Information Sources
Major donors are often featured in news articles, alumni magazines, podcasts and more. Levering nontraditional sources can help you understand the values and motivations of an individual. As a nonprofit combating trafficking, we always try to determine if a donor feels drawn to the issue to increase prosecution rates, protect survivors or prevent trafficking. Determining what motivates a donor is key. – Brittany Dunn, Safe House Project
5. Mine Your Existing Audience
If research is intended for the purpose of identifying new prospects, then mining your existing audience can be productive. Are you capturing contact information for visitors, audience members or those who engage with your organization on social media? If the research leads to deeper engagement—and larger gifts—from existing supporters, then mine your database to identify those with growing affinity and capacity. – Laura MacDonald, Benefactor Group
6. Leverage Current Donor Relationships
Reviewing lists of donor prospects with board members and active volunteers who know many of them personally is an ideal way to develop solid profiles of prospective donors. Many sources of financial and giving information exist, but learning more about preferences, giving inclinations, associates and business or family background can be achieved through conversations with those who know them best. – Victoria Burkhart, The More Than Giving Company
7. Attend Community Events
Attending community events like galas, concerts, dinners and receptions are crucial to meeting people. Then, invite them later to have a follow-up conversation so they can learn more about you and your cause. If you do some background research on what organizations they support, why and how, you’ll be on your way to developing a great relationship. Investing time in a face-to-face relationship is best. – Randy Wong, Hawaii Youth Symphony
8. Know Your Audience
I build a file on everyone I speak with. Knowing them as a person helps to connect your vision and mission in a personal way. It’s about relationships. People give and support people, not just missions. – Jamee Rodgers, Urban Neighborhood Initiative
9. Identify Like-Minded Institutions or Individuals
The most important screening tool for securing potential donors is identifying like-minded institutions or individuals who share your organization’s passion and values. In our case, it would be seeking to advance higher education institutions to empower graduates to become leaders in their respective careers and communities. – Michael Horowitz, TCS Education System
10. Use Technology To Streamline Processes
We employ a moves management approach to streamline research, teamwork and learning efficiency for successful fundraising. Using Trello, our six-step process involves discovery, qualification, cultivation, intent, solicitation and stewardship. With visual organization, collaboration features and obvious deadlines, our moves management approach results in more donor involvement and higher donor retention. – Brigit Helms, Miller Center for Social Entrepreneurship
11. Combine New And Traditional Methods
It is essential to remember that while online platforms offer a wealth of information, they should complement, not replace, traditional prospect research methods. Combining online research with personal interviews, networking events and in-depth conversations with existing donors can provide a more holistic understanding of potential donors and their motivations. Face-to-face interactions are still most effective. – Christopher Dipnarine, 4MyCiTy Inc.
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