Dos and Don’ts of Text Fundraising: Avoid Common Pitfalls

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Text fundraising is becoming increasingly popular, and for good reason. According to M+R Benchmarks, revenue from mobile messages increased by 14% in 2023, and fundraising mobile messages generated $92 in revenue for every 1,000 messages sent.

Although this fundraising method seems simple, you must create a cohesive strategy to maximize donation revenue and provide a smooth user experience.

We’ve compiled a list of dos and don’ts to steer you in the right direction and help you launch successful text fundraising campaigns. That way, you’ll have an actionable list of steps to build your strategy and pitfalls to avoid.

Do: Select the right text-to-give platform.

Start by choosing text-to-give software that will enable your text fundraising campaigns. Qgiv’s text-to-give platforms guide recommends looking for a solution with the following features:

  • Customizable campaign options to tailor your initiative to your organization and audience
  • Real-time donation tracking to ensure you receive all contributed funds
  • Security measures like PCI compliance, fraud detection, and data encryption to keep donors’ personal information private
  • Integrations with your constituent relationship management platform (CRM) or accounting software for seamless data transfers and easy analysis

Additionally, you may seek a solution with engagement features like fundraising thermometers and activity feeds that you can display during events to maintain momentum and increase participation.

Don’t: Use complicated keywords.

After you select text-to-give software, the next step is to choose your text fundraising keyword. This keyword is what donors will text to your dedicated phone number to kickstart the donation process.

Picking a keyword that’s too long or difficult to remember may bar donors from getting involved. Prevent typos and encourage participation with short, relevant, and memorable keywords.

For example, an animal shelter raising money to fund its adoption program may use the keyword “PAWS,” while a homeless shelter collecting donations to purchase winter gear for residents may leverage “STAY WARM” as its keyword.

Do: Personalize your messages.

Build strong, individual relationships with donors and show them their contributions matter with personalized messages. Customize your texts by:

  • Pulling data from your nonprofit’s CRM to address donors by name. Unlike a generic “Dear Donor,” using supporters’ first names will grab their attention and make your messages more engaging from the very beginning.
  • Referencing past involvement. Recognize the contributions supporters have already made to your organization, such as previous donations or volunteer work.
  • Segmenting supporters into relevant groups. Customize your messages to speak to different segments, such as new, one-time, recurring, or major donors. For example, you may include a quick sentence summarizing what your organization does for new supporters and thank major donors for their generosity.

Test these strategies and track metrics such as message open and conversion rates to determine the most effective tactics.

Don’t: Overcomplicate the donation process.

Text fundraising should be quick and easy for donors, leaving them with a positive impression of your nonprofit. Make the process seamless by:

  • Giving instructions. Spell out the steps for participating in text fundraising so supporters know exactly what to do. Bloomerang’s text-to-give guide recommends including screenshots or creating a video to make your instructions even more intuitive.
  • Using a clear call to action (CTA). When promoting your campaign, implement a call to action that’s simple and action-oriented. For example, you may encourage supporters to “text PAWS to 23453 to donate to help a pet in need.”
  • Optimizing your donation page. Since your campaign will lead donors to your donation page, you’ll want to ensure it offers a positive user experience. Optimize the page for mobile users, making sure all visual elements resize for smaller devices, the text is large enough to read, and tap targets are appropriately sized. Additionally, make your donation page accessible by including alternative text for images, adding captions for videos, labeling form fields with descriptive text, and ensuring sufficient color contrast between background and foreground text.
  • Accepting multiple payment methods. Let donors contribute via their preferred payment methods. An overwhelming 63% of donors prefer to give online with a credit or debit card, but you should also accept ACH and digital wallets like Google Pay and Apple Pay.

With a smooth donation process, donors are more likely to follow through with their contributions and give again in the future.

Do: Simplify your texts.

Text messages have a 98% open rate, proving just how effective this channel is for reaching your donors. However, once supporters open your texts, you’ll want them to read these messages all the way through so they take action.

The key to driving action with these messages is to keep them concise. In one or two sentences, grab donors’ attention by getting straight to the point about the purpose of your campaign and how donors can help. Then, provide the link to your donation page so donors can easily follow through with contributions.

Don’t: Rely on text fundraising alone.

While text fundraising is effective, you can maximize donations using a multi-channel approach. Combine text fundraising with these strategies for the best results:

  • Email fundraising. Older donors who aren’t as technologically savvy may be more inclined to respond to fundraising emails than texts. Additionally, you can use emails to promote your text fundraising initiatives so supporters can choose how they’d like to give.
  • Events. Text fundraising can add an exciting element to events and boost donation revenue. For example, you may pair your silent auction with a text fundraising campaign, allowing donors without winning bids to still contribute in a meaningful way.
  • Direct mail. Include a QR code on direct mail fundraising materials that leads donors to a text fundraising landing page or automatically creates a message to your text fundraising number that includes the keyword.

At the end of your campaign, survey donors to find out how they discovered your text fundraising initiative. That way, you can analyze which strategies most effectively promote your text fundraising efforts.

Do: Follow up with donors.

Don’t leave donors hanging once they contribute. Immediately after they donate, automate a text message that thanks them for their support.

Then, ask donors if they’d like to opt into campaign updates. If they agree, send them messages about your fundraising goal progress on a regular basis.

Once your campaign wraps up, thank donors again for their generosity, report on your final fundraising results, and let them know how they can stay involved in your organization.

Don’t: Forget to emphasize impact.

Throughout the campaign, keep impact at the forefront. By focusing on impact, you can motivate donors to participate and show exactly how their contributions will make a difference.

Let donors know what certain donation amounts will allow you to achieve. For example, a soup kitchen may indicate that $75 will allow them to feed a family of four for a week, while $250 will allow them to buy new kitchen supplies.

You should also include impact statements based on your final fundraising total in your follow-up. Explain how many beneficiaries you’ll be able to help and what donors’ funds will allow your organization to provide.

Whether you’re running a year-end appeal, supplementing fundraising event revenue, or just implementing a new donation avenue, text fundraising can help you raise more in an efficient and engaging way. Promote this option widely across various channels to encourage involvement.

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An FAQ Guide To Opening A Successful Nonprofit Thrift Store

Picture a shop where people can buy affordable treasures while funding a meaningful mission. Nonprofit thrift stores aren’t just about shopping — they’re about turning in-kind donations into real change for the community.

From collecting donations to creating a thriving community space, opening a nonprofit thrift store requires thoughtful planning. In this FAQ guide, we’ll explore business strategies like sourcing inventory and creating effective pricing strategies, giving you the tools to create a space that truly serves your community and your cause.

Why should we open a nonprofit thrift store?

A nonprofit thrift store offers a unique way to generate consistent revenue while advancing your organization’s mission. This is especially crucial during times of economic uncertainty or declining donor trust.

Beyond funding, opening a thrift store fosters community engagement. It provides affordable items to local residents and new avenues for donors to give. Depending on how you’ll staff your thrift store, you may also create job training and volunteer opportunities.

Take Goodwill, for example. This nonprofit operates retail stores worldwide. It’s well-known for providing job training, education, and opportunities to individuals who face employment barriers, such as people who have disabilities or who were previously incarcerated.

For a localized example, check out Friends of the Library, which runs a used bookstore to provide funding to the Tuscaloosa Public Library. People donate books, magazines, CDs, DVDs, and records, which the store sells for between $0.50 and $4. Volunteers staff the store, and all proceeds benefit the library.

How do I establish a nonprofit thrift store?

Start by defining how the store will support your mission. Funds from selling goods can be reinvested into your nonprofit’s programs and services. Or, the goods you sell can directly further your mission, like how each Habitat for Humanity ReStore sells discounted furniture, appliances, and building materials to make homeownership more affordable.

Next, you’ll need to take care of some important legal steps to open your store, such as the following:

  • Trademark your store’s name to prevent others from using it.
  • Obtain your employer identification number (EIN).
  • Apply for 501(c)(3) tax-exempt status with the IRS. For established nonprofits, confirm that your existing status allows for operating a thrift store as a means of generating income while maintaining compliance with IRS rules. In either case, consult a tax professional.
  • Obtain your general business license, sales permit, wholesale license (if you’ll purchase inventory in bulk), and zoning permits.
  • Get the appropriate insurance, such as general liability insurance, property insurance, and workers’ compensation insurance.

From here, you’ll need to secure funding to open your store and hire staff members, such as a store manager, inventory manager, donation coordinator, and sales associates. Consult a lawyer to ensure you comply with all relevant laws at this stage.

Where can we get our thrift store’s inventory?

You can acquire your inventory using a variety of techniques. A few sourcing strategies include:

  • Donations: Accept gently used or new items from local community members and businesses.
  • Consignment: Sell community members’ items at your store, pay the original owner, and take a portion of the profits.
  • Wholesalers: These businesses buy goods in bulk from manufacturers and then sell them in smaller quantities at a lower price. You can stock up on items from them and still make a profit.
  • Flea Markets and Garage Sales: Check out local flea markets and yard sales to find a unique assortment of items at low prices.

When requesting donations, communicate clear policies on acceptable and non-acceptable items. For example, you might not accept broken appliances or ripped/stained clothing. Additionally, make it easy for community members to donate items by setting regular pickup or dropoff hours.

You might even work with local businesses to set up collection bins in their storefronts. Double the Donation explains that philanthropic-minded companies often help nonprofits by running donation drives. Publish a wishlist on your website to communicate what to collect.

Before putting any items on the sales floor, make sure they’re in sellable condition. Items needing minor repairs, cleaning, or refurbishing can be profitable with a little extra effort.

What should we include in donation tax receipts?

When accepting donated items, provide donors with tax receipts. Not only are sufficient receipts necessary for tax deductions, but they also foster donor trust. Receipts should include:

  • Your organization’s name, EIN, and contact info
  • Donor info, such as their name, postal address, and email address
  • Donation details, including the date and description (not value) of their non-cash contribution
  • Impact statement (optional, but emphasizes donors’ impact)
  • IRS Disclosure statement saying that no goods or services were provided in exchange for the donation and that the donor is responsible for assessing the value of donated items

Your point of sale (POS) software can streamline this process. For instance, staff may easily customize receipts by selecting donated items from a list and adding donor information. A self-service kiosk may also allow donors to generate their own tax receipts for dropoff donations.

How do we manage our thrift store’s inventory?

Managing your thrift store’s inventory well creates a great shopping experience. Here’s how to keep your inventory fresh, relevant, and under control:

  • Sort items regularly. Sort through donations and categorize items by type, quality, and season. This helps maintain an organized sales floor.
  • Rotate inventory. Regularly rotate stock to keep offerings fresh and relevant. Feature items that align with current times of the year, such as winter coats during colder months.
  • Handle unsold items responsibly. Develop a plan for unsold goods. For instance, you might hold clearance sales to move stagnant inventory and partner with recycling organizations to discard unsellable items sustainably.
  • Track popular items. Routinely assess which items sell best and ensure you’re sourcing more of those goods. For example, if furniture is in high demand, keep these items stocked.

The best POS systems for thrift stores streamline inventory management. You’ll be able to track inventory and get an overview of what’s in or out of stock. Your shelves will stay full, and customers can buy the products they want!

How should we price items?

Effective pricing keeps items affordable for shoppers while bringing in the funds you need. Price too high, and customers might leave empty-handed; price too low, and you could miss out on funds for your cause. Plus, properly priced inventory moves steadily, ensuring that fresh items are always available and reducing the risk of unsold inventory piling up.

ThriftCart’s thrift store pricing guide covers these factors to consider:

  • Condition and Quality: High-quality, well-maintained items should be priced higher than lower-quality or poor-condition items.
  • Brand and Rarity: Items from popular brands or rare pieces can be priced higher than similar items due to their perceived value or exclusivity.
  • Seasonality and Demand: Items in high demand or relevant to the current season should be priced higher since customers are more likely to purchase them at higher rates.
  • Pricing Research: Research local retailers and other thrift stores to ensure your prices are competitive and aligned with market standards.
  • Profit Margins: Set prices that cover the costs of storage, staffing, and operations, ensuring that your thrift store generates a profit.

You can also use different pricing models. For instance, fixed pricing involves having a set price for a product — no discounts or bargaining involved. Variable pricing means prices will change based on demand, such as mittens being priced higher in the winter.

Meanwhile, discounting can fuel sales if you have a consistent strategy. For example, color-coded discounting involves using specific colors to label items, with each color corresponding to a predefined discount percentage.

A chart depicting the three pricing models explained in the text above

Your POS system should streamline pricing, allowing your thrift store to easily implement discounts, set consistent prices for items, or adjust costs based on factors like demand and condition.

Nonprofit thrift stores are more than just a place for affordable finds; they’re a way for community members to give back while promoting sustainability. Every sale funds your mission, making a difference in people’s lives.

If you’re planning to open a nonprofit thrift store, start by defining how it will support your mission, and let that purpose guide your decisions as you build up your operations.

Kyle Payton headshot

Author: Kyle Payton is the general manager of ThriftCart, an all-in-one point-of-sale product assisting nonprofits and small businesses in navigating the complexities of retail.

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6 Quick Questions to Determine Your Fundraising Event Format

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Picture this—you’re brainstorming ideas for next year’s fundraising event. Some team members think you should try online or virtual fundraising while others hold fast to in-person events. You’re at a decision-making crossroads and aren’t sure which way to go.

This is a common occurrence for many organizations as more new and innovative ideas spring up each year. With all of these options, it’s difficult to know which one makes the most sense for your organization.

That’s why we’ve created this quick guide to help you take a step back and narrow your fundraising event choices. Together, we’ll review these questions you can use to inform your event decisions:

Infographic showing questions you can use to guide your fundraising event decisions, as explained throughout the text below.

1. What are your event goals?

Every fundraising event should be a vehicle for helping you meet clearly defined goals. First, it must help you meet your revenue goals. Your team should conduct research on both your fundraising history and current fundraising event trends to find a profitable solution.

In addition to raising revenue, your organization should consider what additional engagement or awareness goals you’d like to target with your new fundraising event. These could include:

  • Acquiring new donors. Large-scale community events are a great opportunity to expand your existing supporter network and tap into new donors. Ask your volunteers and existing donors to invite their friends and family.
  • Cultivating relationships with existing donors. Fundraising events offer another chance to engage regular supporters and invite them to delve deeper into your cause. For instance, if you host an event to fund a new project, you’ll be able to educate existing donors on your organization’s growth.
  • Encouraging community or school spirit. Fundraising events bring communities together to support worthwhile causes. You can use yours as an opportunity to enhance these community bonds or boost school spirit.
  • Promoting your cause. If your nonprofit is new to the area, or you’ve just revamped your elementary school, fundraising events can act as an impactful promotional tool. Just be sure to thoroughly explain your mission and how you’ll use the funds raised.

Ideally, your fundraising event will help you accomplish multiple goals at once. And, if you’d like to take your event one step further, you can partner with sponsors or other like-minded organizations to increase your resources and reach.

2. What is your budget?

Look at your budget holistically to determine which fundraising event combination will offer the best return on investment (ROI). For instance, live events require more upfront costs and planning but tend to bring in more revenue. On the other hand, online events are more flexible but may not generate as many donations.

Consider the following event-related expenses when narrowing down your event format:

  • Venue
  • Fundraising software
  • Catering
  • Entertainment
  • Staff
  • Decorations
  • Sound and lighting equipment

Ensure you have enough space in your budget for a contingency fund in case you fall short of your revenue goals. This way, you’ll be prepared should unexpected expenses or last-minute cancellations sneak up on you.

3. Who is your audience?

Knowing your audience helps determine which events will appeal to them. For instance, a large nonprofit organization might find success with upscale silent auction events while an elementary school might plan more family-friendly events like a fundraising field day or carnival.

Dig into your donor database to get the most relevant audience insights. Pay special attention to the following characteristics:

  • Age. Different age groups tend to have different donation habits and preferences. For instance, 40% of Millennials are enrolled in a monthly giving program, while 58% attend fundraising events.
  • Location. The location of your supporters is a deciding factor as well. For example, an online or hybrid event format may work best for organizations with a large global audience and limited planning time.
  • Income. Looking into the average income of your supporters can help you better understand how much you can expect to raise from your event. This way, you can plan one that appeals to their interests and takes their giving capacities into account.

Use these insights to adjust your current event format or opt for a new one completely. As an example, if you are set on running an auction, use your donor’s giving capacity to guide your auction item pricing choices.

4. What will your main revenue streams be?

Different event formats use different revenue streams. Often, one event format will rely on multiple methods to generate the most funds. For instance, a fundraising concert may use ticket sales in addition to merchandise sales or text-to-give options. Here is a full view of revenue streams you can explore for your event:

  • Ticket sales
  • Peer-to-peer or crowdfunding revenue
  • Merchandise
  • Auction revenue
  • Text-to-give
  • Raffle tickets
  • Recurring gifts
  • Matching gifts
  • In-kind contributions

Make sure you have the right software systems in place for your decided revenue streams. For online donations, you’ll want to choose a secure credit card processing platform that offers donors the ability to donate using their preferred payment option.

5. What time of year will your event be?

Choose an event date that does not conflict with your organization’s other plans or interfere with the plans of your supporters. Both of these criteria will differ depending on the nature of your organization and its supporter base.

On the nonprofit side, there are seasonal considerations an organization needs to grasp before deciding on an event. Funds2Orgs points out these noteworthy seasonal statistics:

  • On average, nonprofits raise 26% of their revenue in December.
  • 45% of donors enroll in a monthly giving program.
  • 10% of annual giving occurs in the last three days of the year.
  • GivingTuesday in 2023 saw a total of $3.1 billion in donation revenue in the U.S. alone.

On the school fundraising side, popular fundraising event seasons are back-to-school and springtime to energize your school community. Additionally, SchoolAuction.net suggests fundraising year-round to take the pressure off of a few event dates and tap into small amounts of consistent income.

6. What support will you need?

Event planning and coordination needs should be top of mind when considering your event format. If you have limited staff and planning time, you may opt for a few online fundraising events. On the other hand, if you have a knowledgeable and available support team, you might undertake more elaborate in-person fundraising opportunities.

Consider what volunteers, event staff, technical support, nonprofit board member support, and software support you need to make your event successful. Then, make your staff recruitment plans ahead of time so you’ll be ready once the event date rolls around.

Using these questions, your organization can choose your next fundraising event with confidence knowing you’ve done the research upfront. Once your event is over, be sure to update your internal records to indicate the revenue and engagement outcomes. That way, you’ll have fresh data to turn to for future event planning.

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Grant Project Kickoff Meeting: Free Template & Explainer

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Writing a winning grant proposal is no easy feat. These projects have many moving pieces and require cross-team collaboration. Mastering grant writing means mastering organization and communication.

A successful grant writing process fosters clear internal communication from the very start. This is why grant writing experts recommend hosting a kickoff meeting for everyone who’ll be involved in the grant application process.

A preliminary meeting can go a long way to simplify grant writing, freeing up more of your mental bandwidth to craft a truly standout proposal that will win support, diversify your funding, and bring your plans to life. Let’s review how these meetings work and walk through a sample meeting agenda you can use for your next grant project.

What’s a grant kickoff meeting?

A grant kickoff meeting is a gathering of the key team members in a nonprofit who will contribute to the grant proposal in some capacity. These meetings typically involve the grant writing lead(s) and individuals from the organization’s finance, program, and leadership teams.

This meeting should occur early in the grant writing process, once the project lead has identified the grant opportunity and distilled its requirements into a detailed outline but before actual information gathering or drafting has begun.

The purpose of this meeting is to align the whole team on a few essentials, including:

  • Details about the grant
  • The project your nonprofit is proposing
  • The grant application’s requirements
  • The specific resources needed to meet the requirements
  • Your schedule for meeting all deadlines

A successful meeting will put everyone on the same page with a shared understanding of the grant, your project, what’s needed from each team member, and by when. This level of organization and efficiency leads to smoother experiences and more cohesive narratives to impress funders.

As you already know, grant applications and their requirements can be complex and often lengthy. An organized agenda and clear communication before, during, and after the kickoff meeting will significantly streamline the entire process and set you up for success.

Template for your grant kickoff meeting agenda

Learn Grant Writing’s guide to writing a proposal recommends drafting a kickoff meeting agenda and sending it to all participants a day in advance. So what should your agenda include? These templates and steps will walk through the most important elements to include:

1. Meeting logistics

Start your agenda with the basic meeting logistics and key grant details that team members can reference quickly.

Date:

Time:

Grant writing lead:

Attendees:

Subject: (“Kickoff for ____ Grant,” etc.)

Title of grant:

Funder name:

Value of grant:

Final application deadline:

2. Introductions

In many cases, not everyone involved in the kickoff meeting will know each other. If you are a freelance grant writer hired by the nonprofit (or if you’re a staff member helping a freelancer set up the meeting), introductions will definitely be in order.

In any case, it’s always a good idea to start the meeting with a brief overview of each individual’s role in the organization and to establish why you’re meeting. You may even want to explicitly write out the objective and intended outcome of the meeting to give everyone an immediate shared understanding.

Objective: To review the grant requirements as a team, determine who will be responsible for which deliverables, and align on deadlines.

3. Project overview

Next, orient the team to the project being proposed, its current state, and what’s still needed to accomplish it. This section will naturally vary greatly between organizations and projects. You’ll likely want a team member directly involved in the project or program to lead this portion of the meeting.

Project overview: [Provide background information on project planning and needs]

Cost estimate:

Funding secured and sources:

Funding needed:

[Include other relevant details as needed]

4. Immediate questions

During the process of reviewing the grant’s requirements and putting together the agenda, you as the grant writing lead will likely encounter specific and miscellaneous requirements. Round up those for which you can get quick answers from the team to knock them out in one go.

Bigger or more open-ended questions can be held until you discuss the full requirements and tasks.

Quick questions:

  • [List of specific questions raised by the grant requirements, for example, whether the organization is registered on Grants.gov or has a specific policy in its bylaws]

5. List of Requirements

Now you can get into the meat of the grant application: the full list of required sections and attachments that your team will need to draft or gather.

Create a simple bullet list of the specific resources that you’ll need to include in the full application. If you can, go ahead and include the name of the team member who you think will best be able to provide each resource.

Narrative and attachment requirements:

  • Grant narrative – [Name]
  • [Other required attachments specified by the funder, like IRS forms, other government forms, budgets, schedules, letters of support, and Board Resolutions, with names of relevant team members]

Grant databases and other resources may provide lists of opportunities’ requirements, and while these can be extremely helpful at a glance, do not over-rely on them. The grant itself is the source of truth—take the time before your meeting to read the requirements several times and copy a direct outline of what it asks of you.

6. Tasks for the complete application

In this portion of the meeting, you’ll walk through the sections of the grant requirements as a team and confirm who will be responsible for which elements.

Pre-assigning these responsibilities helps to streamline the process of facilitating the meeting and reduces extra back-and-forth. However, if you assign a task to someone who actually isn’t in the best position to handle it, take a moment to quickly decide who should be responsible for it instead.

Other open questions will likely crop up, as well, which you can likely save for the end of the meeting. The goal at this early stage is to walk through a straightforward outline as a team and divvy up tasks, not necessarily to pause and talk through granular details and strategies. Many required sections of grant proposals, like program or project budgets and impact projections, are essential for completing later sections, so it pays to get the ball rolling on them quickly.

For this portion of your agenda, literally convert the grant’s required sections into an outline, copying its language word for word. This outline will look very different for every grant you pursue, so here’s an excerpt of a general example:

Rating Factor 1

  • 1.1 Organizational Capabilities
    • 1.1a Managerial and Technical Staff
      • Descriptions and relevant experience from the past five years on similar projects – [Name of assignee]
    • 1.1b Audits
    • Copies of audit results from the past two fiscal periods – [Name of assignee]

…

Rating Factor 2

  • 2.1 Need and Extent of Problem
    • 2.1a Narrative section: Need and viability – [Name of assignee]

…

Create a complete outline for your particular grant and add assignee names like in this example. This process helps ensure that nothing falls through the cracks and that your finished proposal will exactly echo what the funder is looking for.

7. Schedule

Compile all of the requirements and assignments into a comprehensive schedule. Determine due dates for individual sections and attachments based on the grant application’s final deadline (ideally aiming to get everything completed several days before the final deadline).

During the meeting, you can update any assignee names as needed but try to avoid drastically reworking your timeframes. As the grant writing lead, you’re in charge of overseeing the big picture of the project and keeping it on track.

Schedule of Deadlines for Grant Requirements

Sample calendar template for grant kickoff meeting, listing key deadlines and meeting dates

Note the inclusion of team meetings—use the calendar to centralize all relevant deadlines, meetings, and other details that the grant team will need on their radar.

A simple table or spreadsheet will work fine at this stage. You may come up with your own abbreviation or color-coding system to keep the schedule from becoming visually overwhelming, but ensure that everyone is aligned on what the system means, perhaps by including a key. You should also make sure that the calendar is easily accessible by everyone. Provide team members with both printed and digital versions of the finalized calendar.

8. Questions and next steps

In this final section of your kickoff meeting agenda, leave some time for questions that haven’t yet been covered.

You should also clearly spell out the next steps for team members, including the first upcoming deadlines, who to send which deliverables to, and the date and time of the next team check-in meeting, if it’s been determined.

Next Steps

  • Next meeting: [Date and time]
    • [Or, create an action item to decide on a date as a team.]
  • Send all deliverables to: [Name and email address]
  • First deliverables due:
    • [Deliverable – Assignee name – Deadline]

Remember, clear communication will create a smoother overall grant writing process. Very explicitly spell out what you need to progress, and encourage all team members to stay responsive to requests and questions from one another as the project moves forward.

The importance of project management for grant writing

As you can tell from the kickoff meeting process, grant writing requires the right approach. Project management, a collection of logistical and decision-making skills that encompasses organization, communication, task and time management, and more, is a critical but often overlooked asset for grant writers.

For long-term success as a nonprofit professional or grant freelancer, you need the right approach and resources, like the examples in this guide. Get familiar with the components of a kickoff meeting and why it’s such a valuable exercise, and then adapt this recommended process to best suit your organization’s needs.

Stay mindful, keep improving as you go, and get ready to write a winning proposal.

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Capital Campaign Prep: 5 Things to Do Before Fundraising

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When you think about capital campaigns, you might picture your team spending hours on research, shifting all your attention to major donors, and trudging through months of non-stop fundraising. The good news: It doesn’t have to be this way.

Capital campaigns can be joyous, community-driven endeavors that rally your entire support base around a project that will make a clear difference to your mission. It’s not just about fundraising—capital campaigns are about building excitement, momentum, and lasting communal support for your cause.

Achieving these results, however, takes plenty of preparation and thorough campaign planning. In this article, we’ll cover five important steps your nonprofit should take before you start fundraising to set your capital campaign on the path to success.

1. Partner with a fundraising consultant.

Fundraising consultants are invaluable assets to your capital campaign, especially if your organization has never launched one before. A consultant who specializes in capital campaigns can take your organization through every step of the process, providing expert, tailored advice along the way.

Specifically, they can help you with:

  • An internal assessment or feasibility study. Whether you choose to conduct a traditional feasibility study or a more transparent internal assessment, a consultant can guide you through the process and help you analyze the results.

  • Campaign planning and strategy. Get expert advice on your campaign’s goals, budget, timeline, fundraising strategy, events, and more.

  • Prospect research. Consultants with access to professional prospect research databases and wealth screening tools can identify, research, and target the prospective major donors who are most likely to give to your campaign.

  • Major gift cultivation and solicitation. After identifying the most likely major giving prospects, your consultant can create personalized donor cultivation plans and provide major gift solicitation tips.

When hiring a capital campaign consultant, remember that you’ll be working with your chosen expert for an extended period (potentially multiple years). It’s essential to consider factors like value alignment and communication styles in addition to prospective consultants’ services and areas of expertise.

Partner with a consultant you’ll enjoy working with—someone who will put your organization’s mission and values at the heart of their campaign strategy.

2. Analyze your past fundraisers.

Since capital campaigns are large-scale fundraising endeavors, it’s worthwhile to assess your organization’s current fundraising practices and identify areas for improvement. By improving your processes now, your team will be in a better position to succeed throughout your capital campaign and beyond.

With your consultant’s help, dive deep into your database and analyze your organization’s past fundraising data. Historically, where has your team struggled most? Have your biggest challenges been related to your team’s capacity, major gift solicitation, donor retention, or something else?

Once you know where to improve, take steps to make your fundraising team more efficient, effective, and confident before you start fundraising.

3. Identify and interview key stakeholders.

Traditionally, interviewing stakeholders is part of a feasibility study designed to determine whether your capital campaign can realistically meet your goals. However, many organizations find this approach outdated, opting instead to have open conversations about the campaign with key stakeholders to gather insights, strengthen relationships, and boost excitement for the project.

To gauge opinions and energize potential supporters, ask major donors, community leaders, and other important stakeholders questions like:

  • How do you feel about our organization’s vision for the future?

  • Do you think this campaign is relevant and important to our mission?

  • What do you think are our nonprofit’s strengths and challenges?

  • How high does our organization fall on your list of charitable priorities right now?

  • Can you see yourself contributing to this capital campaign? At what giving level?

The answers to these questions will give you an idea of the support your organization can expect for the campaign. When you lead these conversations yourself, you can also use them as an opportunity to test and refine your case for support. According to NXUnite by Nexus Marketing, it’s important to take supporters’ insight into consideration and make your case for support as appealing to their motivations as possible.

4. Obtain buy-in from board members.

Once you’ve done sufficient research and have solidified the core elements of your capital campaign (like messaging, initial timelines, potential lead donors, etc.), it’s time to get approval from your board. This is a crucial step to take before collecting any campaign donations. Make sure your board members have a thorough understanding of what the campaign will look like, how much support you can expect, the resources needed, and their own responsibilities.

To secure board buy-in, you might need to:

  • Share the detailed results of your internal assessment or feasibility study.

  • Provide initial campaign resources, like a budget, timeline, and case for support.

  • Explain the vision for the campaign and how it will drive your mission forward.

  • Create capital campaign committees (i.e., a planning and steering committee) and assign committee members if you haven’t already.

  • Set expectations for board member involvement and contributions to the capital campaign.

  • Discuss any major gift commitments you’ve received or can realistically expect to get.

Securing board buy-in on such a large project can be challenging, so don’t be afraid to lean on your consultant during this process. Ask them if they’d be willing to join a board meeting and discuss your plans for the campaign with board members. They’ll have valuable insight into your organization’s specific needs and common challenges that nonprofits like yours face when running capital campaigns.

5. Build up your community.

According to Donorly’s capital campaign guide, “organizations can achieve better, longer-lasting results when they take a community activation approach to capital campaigns.”

Major donors are not the only key players to be concerned with—what truly drives your mission forward is your community. After your capital campaign ends, your community members will be the ones to step up and fund the maintenance of your new building, use your new programs or services, and sustain your nonprofit long-term.

That’s why it’s essential to spend time building up your community and cementing your organization’s value to community members before you start fundraising for your capital campaign. You might do this by hosting regular events, reaching out to community leaders, or working to promote your cause to new audiences.

All of this work will help you raise more funds for your capital campaign once you’re ready to enter the quiet phase. However, this isn’t to say you can’t discuss giving at all with excited donors. If a lead donor is excited about the campaign and feels ready to dive in, collect a verbal commitment instead of accepting the donation now. This way, you’ll have the knowledge, buy-in, and pre-committed support to build a strong foundation for your capital campaign.

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Creating Compelling Year-End Appeals: 4 Best Practices

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Year-end is an extremely important time for nonprofits due to the elevated generosity of the season. After all, 17-20% of the average nonprofit’s revenue is raised in December alone. That’s why a lot of nonprofits host dedicated year-end giving campaigns, complete with engaging fundraising events, online marketing blasts, and more.

To maximize the success of your fundraising, you must craft engaging, compelling appeals to your supporters for gifts. With so many nonprofits vying for their attention during this season, it’s only natural that you want your appeals to stand out to meet your year-end giving goals.

In this guide, we’ll discuss four best practices your nonprofit should adopt to craft compelling year-end appeals that will inspire your supporters to give. Let’s take a look at how you can make this year-end season your most successful yet!

1. Start as early as possible.

Although year-end giving campaigns are executed in the last few months of the year, that doesn’t mean you should start crafting your campaign strategy and fundraising appeals during that time. Here’s an example of a year-end planning calendar from OneCause:

An example of a year-end planning calendar from OneCause, also described in text below.

  • Summer and fall: Start planning your campaigns by mapping out timelines, nailing down event details, and preparing your marketing strategies.
  • October: Build excitement for your year-end campaigns and get the ball rolling early by promoting your upcoming events and sending key information to your audiences.
  • November: Focus your campaigns on GivingTuesday, Black Friday, and Cyber Monday to boost visibility for your efforts.
  • December: Focus on the holidays and leverage them to inspire generosity. Tap into the altruistic message of this month to capture your audience’s interest.
  • Spring: Steward relationships with supporters, new and old, by creating multiple touchpoints. Thank them for their year-end gifts and explain what they helped your nonprofit achieve.

Plan out what your year-end marketing and appeals will look like as early as possible. Use the data collected from previous year-end campaigns to help you determine what themes and messages are most effective for your audience. For example, if your nonprofit serves the local Indian community, you might highlight Diwali in your early year-end appeals and host a community event to help them celebrate.

2. Personalize appeals.

If you’re notorious among your friends for disliking animals and loving plants, would they have more success asking you to take care of their pet dog or potted monstera during their week-long vacation?

To secure the donations your nonprofit needs to power its mission, your appeals must reach the right people, at the right time, with the right messaging. If they don’t, your supporters won’t feel compelled to take action and may even disengage from your organization entirely.

The best way to ensure that your messages resonate is by customizing your appeals to each audience group. Separate your audience into different groups, also known as segments. Here are a few examples of common nonprofit segments:

  • One-time donors
  • Recurring donors
  • Mid-level donors
  • Major donors
  • Legacy or planned donors
  • Volunteers
  • Staff members

Identify the key characteristics, interests, motivations, and past giving behavior of these groups with the data stored in your nonprofit constituent relationship management (CRM) system. Use this information as the foundation for personalizing your appeals.

Let’s take volunteers, for example. As they regularly donate their time and efforts to support your organization, it’s clear that they’re loyal to your cause and want to help your mission as best they can. In your appeals, thank your volunteers for the support they’ve already given to your nonprofit. Then, frame your ask as an additional way they can make a difference for your organization and highlight where your year-end funds are going. Make sure to be specific! Finally, direct them to your donation page so they can make their gift.

3. Secure emotional buy-in with storytelling.

Adding storytelling elements to your nonprofit’s year-end appeals enables you to secure emotional buy-in, boost interest, and ultimately increase donations. Not convinced? Let’s look at this example of two approaches to discussing an animal shelter’s impact:

  • Recently, we nursed a sick cat back to health and gave him basic behavioral training. Now, he can go to a family that needs a pet.
  • When Chester first came to us, he was malnourished and untrusting of humans. Over our time together, we’ve helped him gain three pounds to reach a healthy weight. With lots of socialization and behavioral training, he’s regained his confidence. Now, Chester’s ready to find a loving family to be his forever home!

Ultimately, both approaches provide the same information. However, the latter takes a narrative-driven angle that keeps the reader engaged and helps them connect emotionally with the impact the nonprofit has made. That’s the power of storytelling—and you can leverage it for your year-end appeals!

According to UpMetrics, these are the key elements of nonprofit storytelling:

  • Character: the who or what the narrative is centered around, usually a person, animal, or place
  • Setting: where your story takes place
  • Plot: the sequence of events that takes place
  • Conflict: the obstacle(s) your character faces in the story
  • Resolution: the final outcome of the narrative

Think back on your year, including the projects you’ve funded, the campaigns you’ve pushed forward, the events you’ve hosted, and the beneficiaries you’ve helped. In all these moments, select a few of the most compelling ones to feature in your year-end appeals. Communicate them using the storytelling elements above to demonstrate your impact to donors and highlight how giving to your organization is a worthwhile investment.

4. Create a sense of urgency.

Leverage the time-sensitive nature of your year-end fundraising goals to create a sense of urgency within your appeals. This is a highly effective tactic, as it encourages your donors to act quickly or even at that moment. When your supporters put off or delay making their gifts, you risk them forgetting to make it entirely. Having an urgent year-end appeal helps you secure their gifts, effectively boosting your fundraising revenue.

Here are a few ways you can create a sense of urgency within your year-end appeals:

  • Time-sensitive language: Use time-sensitive language to emphasize the urgency of your appeal. Highlight how much time supporters have to donate and use vocabulary associated with immediacy, such as “now” or “today.” For example, you might say: “Donate now to help us meet our fundraising goals!”
  • Countdown imagery: Include countdown imagery in your messaging and on your website. For example, have a countdown clock next to a fundraising thermometer that displays how close you are to your goals. Supporters who see this visual will feel compelled to donate to fill up your thermometer.
  • Strong, clear calls to action: Make it clear what action you want your donors to take through clear, succinct calls to action. Additionally, if supporters need to navigate to your donation page or campaign page to make a gift, include those links in your messages for a streamlined process.
  • Remind supporters about tax deductions: For donors who itemize their taxes and look to minimize their tax burden, a reminder about the deadline to donate to claim the deduction on that year’s taxes can spur extra gifts.

Send your messages through multiple channels to maximize the number of donors who see your urgent appeals and increase conversions. Your website, email newsletters, and social media posts are great places to start, as they allow you to connect with loyal supporters and potential new ones.

Year-end is not just a time for fundraising—it’s also a prime opportunity for you to strengthen new and existing donor relationships. With the right year-end appeals, you’ll boost donations for your mission and help your audience connect more deeply with your cause, resulting in more support in the future!

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5 Engaging Year-End Fundraising Ideas for Your Nonprofit

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It’s no secret that year-end giving is critical to nonprofits’ success. Research shows that 30% of annual charitable donations occur in December, and 10% of contributions happen in the last three days of the year!

This end-of-year giving surge is the perfect opportunity for your nonprofit to strengthen its relationships with donors and set itself up to retain their support for another year. To maximize supporter engagement opportunities during this season of generosity, consider supplementing your usual annual giving initiatives with fresh year-end and holiday fundraising ideas.

In this guide, we’ll discuss five of our favorite year-end fundraisers, many of which involve activities your supporters may already participate in during the holiday season. Let’s dive in!

1. Online Shopping Fundraiser

During the holiday season, shopping becomes increasingly popular as people buy everything from decorations to gifts to items that will help them execute their New Year’s resolutions. Consider giving your supporters a way to contribute to your nonprofit and shop more ethically by launching an online shopping fundraiser!

During an online shopping fundraiser, your organization earns a portion of your supporters’ sales totals when they make purchases at participating e-commerce businesses. You can launch this campaign in three simple steps:

  • Partner with an online shopping fundraiser platform—they’ll walk you through setting up your campaign and provide the app your supporters will use to automatically contribute to your organization as they shop.
  • Promote your fundraiser across all of your nonprofit’s print and digital marketing channels so supporters know how to participate.
  • Track your results so you can improve your marketing strategies throughout the holiday season and thank participants for their individual contributions.

Online shopping fundraisers cost nothing to run, and the best programs will provide support throughout the whole process, from handling retailer negotiations to designing marketing materials. Plus, you can leave your fundraiser open after the holiday season ends so participants can continue to support your cause with their purchases all year long!

2. Gift Card Fundraising

Your nonprofit can also tap into holiday gift-giving through gift card fundraising. Similar to an online shopping fundraiser, supporters buy gift cards to popular retailers and restaurants, and a portion of their purchase goes directly to your organization. While the end of the year is an especially good time to launch a gift card fundraiser, this also works as a year-round campaign since supporters will likely need to purchase gifts throughout the year for birthdays, graduations, weddings, and various other occasions.

ShopRaise’s gift card fundraising guide recommends choosing digital gift cards over physical ones for your organization’s fundraiser because supporters can receive them via email within minutes of purchase rather than having to wait for them to come in the mail. Then, they can give the gift card to its intended recipient simply by forwarding the email.

Supporters may also purchase fundraising gift cards for themselves so they can give back to a good cause while eating out or doing their own shopping. If your nonprofit runs a gift card fundraiser and online shopping fundraiser concurrently, a shopper can buy a gift card and then use it to pay for their purchases through your online shopping fundraiser, thereby contributing even more to your mission!

3. Virtual Silent Auction

Put a competitive twist on your supporters’ online holiday shopping with a virtual silent auction! Online auctions take the excitement of a traditional silent auction and make it more convenient for supporters since they can participate from anywhere. They’re also more cost effective for your nonprofit, although you should invest in auction-specific fundraising software to make your event go as smoothly as possible.

In addition to choosing an auction platform, some other key steps for organizing a virtual silent auction include:

  • Setting clear goals for supporter participation and revenue generation.
  • Securing corporate sponsorships to help offset the event’s upfront costs.
  • Procuring a variety of prizes that appeal to your supporters’ interests, from gift baskets to event tickets to vacation packages.
  • Marketing your auction early and often to maximize signup opportunities.

Make sure to collect data during your event so you can analyze it to determine whether you achieved your goals, and make informed decisions when planning future auctions.

4. Holiday eCards

If supporters purchase holiday gifts for their friends and family via your nonprofit’s online shopping, gift card, or virtual auction fundraisers, they may want to buy greeting cards to go with them. With a holiday-season charity eCard fundraiser, you can help them do just that!

To launch your eCard fundraiser, follow these basic steps:

  • Choose an eCard platform that makes it easy for nonprofits to create and sell their own designs.
  • Design a variety of holiday cards featuring your organization’s branding and mission-related imagery where appropriate (for example, an animal shelter might use photos of dogs and cats in holiday-themed costumes surrounded by seasonal decor).
  • Sell your designs by embedding the cards into your digital donation page or adding them to your nonprofit’s online store, and raise funds with each purchase!

In addition to fundraising during the holidays, eCardWidget recommends using your nonprofit’s eCard platform to send eye-catching event invitations and thank donors for their year-end gifts. You can also turn this into a year-round fundraiser by designing eCards for various holidays, birthdays, and other special occasions.

5. In-Kind Donation Drive

While many supporters probably want to buy items during the holiday season, some may also want to declutter their homes heading into the new year or simply give back in a tangible way. Your nonprofit can cater to these individuals by hosting an in-kind donation drive.

As you plan your year-end in-kind donation drive, you have a few options. First, determine what kinds of goods to request from supporters, such as supplies for a program you plan to launch in the new year or items to give to community members in need during the holiday season (food, winter clothes, children’s gifts, etc.). Then, decide whether to collect these goods in person by designating drop-off locations around your area or host your fundraiser virtually by creating an online wishlist so supporters can ship items directly to you.

No matter your approach, make sure to establish clear guidelines about the types and conditions of in-kind donations your nonprofit can and can’t accept. For example, you might state that donated food can’t be opened or expired, or that you’ll only take new, unwrapped toys for your holiday gift drive. These rules reduce the risk of receiving unusable or hazardous items and can help you explain to supporters why you may not be able to accept some of their generous gifts.

For all of these year-end fundraisers, prompt, personalized donor appreciation is critical. By showing supporters that your nonprofit recognizes and values their individual contributions, you’ll be more likely to retain them into the new year and beyond. Happy fundraising!

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6 Fundraising Ideas to Strengthen Donor Relationships

The importance of donor relationships is no mystery to nonprofit leaders. A strong connection between donors and nonprofits often leads to increased engagement and a greater sense of community among supporters. But how can your nonprofit focus on cultivating these connections while raising money for its cause?

In this guide, we’ll explain the role fundraising can play in donor engagement and review six effective fundraising ideas to simultaneously strengthen donor relationships and fund your work.

How can fundraisers help you engage and retain donors?

Fundraisers aren’t just about asking for money. While the main goal is to raise funds for your cause, strategic fundraising campaigns are also opportunities to empower donors, bring communities together, demonstrate your impact, and so much more. The right fundraisers can be powerful tools for engaging and retaining donors long-term.

Specifically, you can use your fundraising campaigns to strengthen relationships by:

  • Learning more about donors’ interests and passions at fundraising events.
  • Encouraging supporters to take the lead on fundraising and deepen their involvement with your nonprofit.
  • Emphasizing the impact you’ve achieved together with their donations and your organization’s work.
  • Giving donors a glimpse into your nonprofit’s future goals, plans, and priorities.

As we explore these fundraising ideas, think about how you might incorporate donor engagement strategies into each one. We’ll discuss a few strategies you can try, but remember that your organization is the expert on your unique donor base—zero in on the tactics you know will resonate with your donors most. Now, let’s dive into our fundraising ideas!

1. Peer-to-Peer Campaigns

One of the most important parts of relationship building is understanding the other person’s perspective. This is why your nonprofit should work to learn more about each supporter and the motivations behind their involvement. Donors who feel recognized and valued will ultimately be more engaged in your organization long-term.

Peer-to-peer campaigns are an effective way to have direct interactions with your supporters in order to learn more about why they love your organization. These campaigns raise money through the advocacy of your supporters, who recruit their friends and family members to donate to your organization. Volunteer fundraisers create and share their own personal campaign pages, typically on social media, through which their peers can donate to your nonprofit.

There are two types of peer-to-peer campaigns your nonprofit might host:

  1. Rolling campaign: This is a peer-to-peer campaign with no time limit. Since they have no deadline, these campaigns can operate alongside other fundraising events and initiatives (think Facebook birthday campaigns).
  2. Time-based campaign: These campaigns raise money by a predetermined deadline and are often tied to events.

In either campaign format, you can see how donors talk about and advocate for your nonprofit. But to build strong relationships, communication must go both ways. By explaining your cause and how donors should advocate for it, donors will understand more about your organization’s perspective and deepen their connection to your cause.

2. Product Fundraisers

Most people enjoy receiving a little something in return for their donations. Not only does this incentivize giving, but it also helps you connect with donors in a memorable way by offering a tangible gift in return for their contributions.

Product fundraisers allow nonprofits to do just that. By selling various products to supporters, your nonprofit will not only raise money for its cause but also offer a gift to donors. Nonprofits can sell a wide variety of products for this type of fundraiser, including:

  • Branded merchandise like t-shirts, water bottles, or stickers with your nonprofit’s branding.
  • Food, such as cookie dough, popcorn, chocolate bars, and other snacks.
  • Seasonal items, including candles or Christmas ornaments for the holiday season or flower bulbs for spring.

This fundraising idea also naturally lends itself to pairing with other fundraising events, giving you double the opportunities to raise funds and engage donors. For instance, ABC Fundraising suggests hosting a cookie-making event or bake sale at the end of a cookie dough fundraiser to maximize your fundraising potential.

3. A-Thon Events

Community fundraising events like A-thons place the focus solely on connection and socialization, enabling you to easily strengthen donor relationships while you collect donations.

A-Thon events are challenge-based activities that raise money and engage supporters through healthy competition. Any variation of this fundraiser works by establishing a challenge and having donors collect pledges from family and friends dependent on their performance in the challenge. Nonprofits can make almost any activity an A-Thon event, from traditional walk-a-thons to specialized bake-a-thons and dance-a-thons.

Since these events are highly customizable, they’re a creative opportunity for nonprofits to learn about and tap into their donors’ interests and hobbies. You can also easily align them with your nonprofit’s mission to boost donors’ feelings of connection. For example, take a look at how All Out Adventures connects supporters to its adaptive recreation programs with a kayak-a-thon:

Fundraising campaign page for All Out Adventures’ annual kayak-a-thon

4. Galas

Challenging activities engage supporters because of the excitement of participating in the activity. In contrast, high-end fundraising events are a calmer opportunity for your nonprofit to build relationships with its donors without the distraction of a high-energy activity.

Both in-person and virtual galas can raise money for your nonprofit’s cause while also allowing your organization’s leaders to speak with donors one-on-one and learn more about them and their families. For light entertainment, your gala could include:

  • Keynote speakers: Recruit one of your organization’s leaders or hire a professional speaker to give a speech related to your nonprofit’s work and the significance of your cause.
  • Raffles or auctions: Consider selling raffle tickets to win special prizes, like a gift basket or discounts at local establishments.
  • Local bands: Invite a local band to provide live music and connect donors with the community.
  • Unique performances: Find unique entertainment, like a comedian or magician, to give a special performance at your event.

While attendees eat and enjoy the entertainment, your nonprofit’s leaders can focus on mingling and getting to know each supporter. This event type also allows donors to socialize with each other, which can further strengthen the community within your nonprofit.

5. Donor-Driven Campaigns

This twist on peer-to-peer fundraising allows your donors to bring their campaign visions to life. And, with the right training and resources from your nonprofit, their passion for your cause can greatly boost your funds. Here’s how a donor-driven campaign works:

  1. Open your donor-driven campaign program to your supporter base and collect signups.
  2. Once the signup window has closed, gather your participants for a fundraising training session. During this session, donors pick what they want their campaign to look like, set goals, and start crafting outreach materials.
  3. Give your participants resources to succeed. These will vary based on the participant’s fundraising idea, but you can provide them a profile on your peer-to-peer fundraising website to start. Also, offer them templates for emails and social media posts so participants can market their personal campaigns more effectively.
  4. Offer coaching throughout the campaign. Set up short meetings with your participants to answer questions and provide advice so they can hit their fundraising goals.

This empowering fundraising idea works because you give donors complete control over how they want to collect gifts and conduct outreach. This flexibility allows them to play to their strengths and builds their personal investment in your cause.

Your nonprofit can also leverage this program to demonstrate donor appreciation. Giving donors control over how they run their campaigns shows them how much you value their passion for your mission. You can also formally show appreciation by hosting a thank-you banquet for all participants after the campaign ends, no matter how successful their personal campaigns were.

6. Volunteer Grants

What better way to strengthen relationships with donors than through volunteering? With volunteer grants, you can encourage donors to increase their involvement by volunteering and donating money without dipping into their own pockets.

360MatchPro defines volunteer grants as “a type of corporate giving program wherein businesses donate to the nonprofits their employees volunteer with.” Essentially, companies that run these programs commit to donating a specific amount of money to your nonprofit when their employees volunteer and report their hours. For instance, a volunteer might earn $50 for your nonprofit for every 15 hours they volunteer, or they might earn a $200 grant after reaching a certain hour threshold.

This fundraising idea shows donors that they can support your nonprofit in a multitude of ways, and it provides opportunities to get to know donors better by interacting with them at in-person volunteer events. To promote this fundraiser, simply let donors know that they might be eligible for volunteer grants and provide information about how they can request a grant.

Nonprofits are always looking for creative ways to raise money, but the most important part of fundraising is cultivating strong relationships with donors. After all, donors are the lifeblood of your organization’s operations. With these fundraising ideas, you can genuinely pursue deeper connections with supporters and celebrate all they do for your organization.

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Effective Donor Segmentation Strategies to Drive Revenue

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Giving trends in the nonprofit sector are reflecting larger economic patterns. While the total revenue raised on GivingTuesday 2023 showed a small increase compared to 2022, the number of donors dropped by 10%. This and other similar trends could be cause for concern as your donors and development team alike contend with inflation and concerns about the future of the economy.

Although they aren’t favorable, these findings shouldn’t cause your organization to panic. Instead, focus on preparing for whatever the future holds by protecting and diversifying your revenue streams. One way to do this is by strengthening and personalizing your digital marketing efforts to appeal to your supporters’ unique giving motivations, boosting donations.

We’ll explore some of the top strategies you can use to inspire more support for your cause using segmentation—but first, let’s cover the basics of this process.

Donor Segmentation Basics

GivingDNA’s guide to donor segmentation defines the term as “a strategy that nonprofits use to separate a donor base into smaller subgroups based on shared traits and characteristics.” Segmenting donors helps you break down your full donor database into more manageable subgroups.

By uncovering distinct preferences and interests through external data insights, you can create segments based on those details that will help you develop more targeted, tailored communications. These groups, or segments, can be based on a variety of characteristics. Some of the most common categories include:

  • Demographic data like age, gender, geographic location, income, and more.
  • Psychographic data, which denotes information about the donors’ lifestyles, interests, hobbies, and values.
  • Giving behavior like gift size, frequency, and recency.
  • Communication preferences, such as preferred communication channels, frequency, and content formats.
  • Engagement history, which reflects donors’ interactions with your communications, attendance at events, volunteer hours, and more.

These categories simply provide a starting point for your nonprofit. Depending on your unique needs, goals, and projects, you might experiment with more niche or specific segments.

4 Ways to Inspire Donations Using Donor Segmentation

Start with an RFM analysis.

An RFM analysis segments your donors based on the recency, frequency, and monetary value of their donations. This type of analysis can help your nonprofit identify the donors who are most likely to give. This way, you’ll gain a baseline understanding of your donor base and be able to allocate your marketing resources efficiently.

Here is a breakdown of each component of the RFM model:

  • Recency: This refers to the amount of time that has passed since the supporter’s last donation. For example, perhaps they made an online gift two months ago after being inspired by your email marketing campaign.
  • Frequency: This metric indicates the number of times a donor gives, usually within the last 36 months or so, representing how often they donate. Some may only give once a year or less, while members of your sustainer program donate each month.
  • Monetary value: This tracks the amount of money a donor contributes to your cause. The best way to calculate this value is to find the donor’s median gift size over a certain time period, either five years or whenever you acquired the donor.

From here, score donors based on each of these components and then filter them into the appropriate segments. For example, let’s say you have a donor who gave three months ago, donates twice per year, and usually gives slightly more than your organization-wide average gift amount. This donor would have a high RFM score and should be placed in a segment for donors who are likely to donate in response to your marketing efforts.

While RFM analyses can be a great place to start, they only provide limited insight. These analyses can help you forecast how donors will respond to your appeals, but they are purely based on past behaviors. Additionally, the RFM model excludes many other important dimensions of donor behavior, particularly why they give.

Examine interests and psychographic characteristics.

Given the limitations of the RFM model, you’ll also need to learn why donors choose to support your cause. When you’ve uncovered their deeper motivations and personal connections to the issue, you can infer which stories, strategies, and appeals would be most effective in your marketing campaigns.

For example, let’s say a healthcare organization that researches multiple sclerosis (MS) and provides services to those battling the disease wants to dig deeper into why donors support the cause. Here is how this organization could use common psychographic traits to segment and appeal to donors:

  • Lifestyle: There is a wide variety of lifestyle factors to consider, such as donors’ opinions, attitudes, social class, and personality. For example, are they adventurous risk-takers or conservative and family-oriented? The healthcare organization decides to segment donors based on their activity level and shares appeals that highlight the importance of mobility in quality of life to those who like to exercise and get outside.
  • Hobbies and interests: This includes the things that donors like to spend doing in their free time, such as golfing, hiking, cooking, creative writing, or volunteering. The nonprofit creates a segment of donors who are passionate about nutrition and healthy, home-cooked meals. Then, it shares educational resources about nutrition, promotes tickets to a healthy cooking workshop, and invites supporters to participate in a recipe contest.
  • Values and beliefs: Understanding donors’ values and belief systems will help you appeal to their sense of purpose. For instance, our example nonprofit could find that many of its donors believe strongly in equality and social justice. In this case, the organization could target the segment with appeals that highlight how its work and research work to address healthcare disparities and provide desperately needed services to those with MS.

For most people, their values, beliefs, and interests are deeply ingrained in who they are. So, you’ll be able to rely on insights from these segments for much longer than other traits that are subject to change (e.g., income), which can help you run profitable fundraising initiatives long into the future.

Track donor lifecycles.

Your donors pass through several distinct phases or “seasons” in their interactions with your nonprofit. Together, these phases make up the donor lifecycle, a process that encapsulates donors’ journey from discovering your nonprofit and donating for the first time to upgrading their support.

Understanding where donors fall in this lifecycle is crucial for properly welcoming new supporters, creating donor stewardship strategies, cultivating major donors, and motivating lapsed donors to re-engage. For example, let’s say you create segments for first-time donors, multi-year donors, and those who haven’t given in the last year. Here is how your communication strategies might differ for each segment:

  • First-time donors: Start with a heartfelt thank-you, then aim to welcome these donors and educate them about your cause. Share a welcome email series or mail them a packet with materials they need to get to know your organization. Inform them of other ways to get involved to encourage them to engage more deeply. Carefully track data about this segment’s preferences and responses to messages to improve your recruitment efforts.
  • Multi-year, active donors: During this phase, focus on stewarding your relationships with donors with the eventual goal of an upgrade. Keep your nonprofit on their minds by frequently communicating with them through their preferred channels. Make sure these messages also consider the other traits we’ve discussed. For example, invite them to fundraising events happening in their local area or share about initiatives that appeal to their special interests.
  • Donors at risk of lapsing: These donors haven’t engaged with your nonprofit in a while—it’s up to you to determine why that is and inspire them to come back! Try sharing a survey asking them why they no longer support your organization to pinpoint weak points in your strategy. This segment likely won’t respond to demands for donations. Instead, start with smaller, more doable asks (e.g., reading a blog post about a specific beneficiary). Ask them to come back, whether they are attending an event, volunteering, or donating.

Knowing where your donors are in their journey not only boosts retention and revenue—it also shows them that you notice and care when they make that first gift or haven’t engaged in a while. They’ll feel valued for their individual efforts to support your work and seen as more than just a dollar sign.

Create donor personas.

Donor personas are profiles of fictional people who represent your target audience(s). Personas are designed to encapsulate the main traits and motivations of each donor segment, giving you a clear image of who those supporters are and what pushes them to take action.

For example, here’s a donor persona for a fictional donor named Clara Thompson:

Sample donor persona (interpreted in text below).

Based on this persona, your team could extrapolate insights about the segment’s preferences. For example, someone like Clara who travels often, leads a busy life, and is passionate about technology would likely respond best to digital communications that make it quick and easy to donate. However, you may have another segment of retired seniors who would rather receive monthly updates via direct mail.

Referencing your entire donor database is important—this shows you organization-wide patterns you might otherwise miss. However, donor segmentation is an invaluable tool that will only become more important as hyper-personalized marketing becomes the norm. Applying these segmentation strategies to your marketing campaigns will give you the knowledge and ability to target donors with messages that feel made for them.

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Reasons to Integrate Your Donor Database and Marketing Tools

As a nonprofit professional, you know there is no one-size-fits-all approach to marketing, donor communications, or fundraising. That’s because the most effective tactics for attracting support and securing gifts depend on your specific mission, resources, and audience. Many organizations turn to donor analytics to better understand how they can refine their strategies and maximize results.

If you’re looking for insights to improve your marketing initiatives and expand your reach, integrating your constituent relationship management system (CRM) and your marketing tools can be a game changer. In this guide, we’ll walk through the following advantages of doing so:

  1. Produce marketing materials that resonate with donors.
  2. Focus on the most effective marketing channels.
  3. Improve donor follow-up communications.

By integrating your donor database with your marketing technology, you’ll be able to connect these tools and streamline the process of leveraging donor data to supercharge your marketing activities. Let’s explore how your nonprofit can benefit from these integrations.

Various useful integrations that nonprofits should implement with their donor database.

1. Produce marketing materials that resonate with donors.

With so much content floating around online, it’s not enough for donors to merely consume your nonprofit’s social media posts and blog articles—you need to find ways to spark their interest and inspire them to take action.

An integration between your CRM and marketing tools allows you to leverage the information you’ve collected about your donors to create accurate audience personas. Personas are fictional representations of the different types of donors in your nonprofit’s audience.

These profiles are based on shared characteristics such as:

  • Age
  • Gender
  • Location
  • Interests/Motivations
  • Communication Preferences
  • Average Gift Size

For example, an animal welfare nonprofit might have one persona outlining the traits, interests, and behaviors of older, major donors and another persona defining its younger, recurring donors.

To connect with its major donor persona, the nonprofit might realize that many of these individuals have large social networks of people who are passionate about animal welfare. As a result, they may reach out via emails or phone calls to see if these donors are interested in becoming a challenge donor, where they’ll make a significant gift if the organization manages to meet a predetermined fundraising campaign goal.

To engage their recurring donor persona, the marketing team could create more social media posts related to involvement opportunities such as volunteering at adoption events or becoming a peer-to-peer fundraiser, since these individuals are more likely to frequent these platforms and may not have as much of a capacity to make larger gifts to the nonprofit.

2. Focus on the most effective marketing channels.

In addition to informing how your nonprofit approaches donor segmentation, integrating your donor database and marketing tools ensures that you allocate your time and resources to the most impactful channels. By tracking and referencing donor engagement on each channel, you can determine which platforms you should focus your efforts on.

For instance, consider the following popular marketing channels and common methods to assess engagement on them:

  • Email. Whether you’re sending out a weekly newsletter or following up to say “thank you” for a donation, email is a tried-and-true way to connect with your nonprofit’s audience. Keep an eye on metrics such as your open rate, click-through rate, and unsubscribe rate to gauge whether donors are interested in your email content.
  • Social Media. From Facebook to Instagram to TikTok, there are numerous social media platforms your nonprofit can use to develop an active presence. However, different members of your audience will have different platforms they prefer. Evaluate your follower counts, impressions, and number of likes and comments to identify which platforms receive the most engagement from your donors.
  • Website. 68% of nonprofits surveyed by Nonprofit Tech for Good have redesigned their website in the last three years. Your website is often the first place prospective and current donors go to find more information about your nonprofit. Keep tabs on the number of new vs. returning visitors, bounce rate, and average session duration to analyze whether your website content appeals to your audience.
  • Direct Mail. Sending direct mail to your donors can be a powerful way to leave a lasting impression on them. Physical letters add a personal touch to your nonprofit’s communications, allowing you to keep your mission at the top of your recipients’ minds. Measure your return on investment (ROI) by reviewing your conversion rate, average donation amount, and donor acquisition cost.

As these numbers shift over time, you can adjust your marketing strategy and evaluate whether the changes you made are paying off. Repeat this process of improving and assessing to boost your results in the long run.

3. Improve donor follow-up communications.

According to Bloomerang’s donation page best practices, you should go beyond a simple gift confirmation page when it comes to appreciating donors for their contributions. With an integration between your donor management software and marketing tools, you can automate follow-up emails that are prompt and personalized with each recipient’s name.

To make a lasting impression with your automated thank-you communications, follow these tips:

  • Set the email to send within 48 hours after the donor makes a gift.
  • Craft an eye-catching subject line that is no longer than 60 characters.
  • Specify the impact of the donor’s gift, such as “Your generous donation will go toward providing veterinary care for our three newest parakeet rescues.”
  • Include compelling images that represent your mission.

Additionally, based on their engagement and giving history, you can share other involvement opportunities that are most likely to resonate with the donor. For example, if you find that one donor enjoys interacting with your nonprofit on social media and has a large online network, you might invite them to launch a birthday fundraiser on your behalf. Or, if another donor attends the majority of your events, you might suggest that they volunteer at your next fundraiser.

Integrating your donor database and marketing tools means that you can leverage more data insights to enhance your outreach, connect more deeply with donors, and ultimately boost your fundraising results. Consult with your CRM provider to explore available integration options and start tapping into the power of your donor data.

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