Center for Civic Partnerships

Building an Individual Donor Base

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Nonprofit fundraisers generally agree that creating a strong base of financial support for your organization includes individual donors. According to recent studies, an estimated 80-95 percent of yearly charitable contributions are from individuals. In contrast, only 10-12 percent of funding comes from foundations or corporations. Seven out of ten adults give away money and these individuals include all races and educational levels, men and women, employed and unemployed – most givers are from households that earn less than $59,000 a year. (Klein, Kim. (October 2000). “Building Cultural Diversity into Fundraising.” Grassroots Fundraising Journal, Vol. 19, No. 5.).
Since most people give money, it makes sense to find a way to seek their support. There are a number of issues to examine as you begin the process of deciding whether to begin an individual donor campaign.

How can we communicate with and approach potential individual supporters?

Direct mail
E-mail
Phone calls
In-person meetings
Door-to-door canvassing
Special events (including house parties)

Who can we approach for financial support?

People who have supported our organization in the past.
People who have a relationship with someone in our organization.
Individuals who believe in your cause but who are unfamiliar with our organization.
People from lists of similar local or national organizations – these can be rented or traded.

How do we begin?

Develop a fundraising plan – determine which individual donor fundraising strategies your organization will focus on (e.g., acquiring new donors, asking for major gifts, seeking renewals), set goals and create a system for collecting information, building the relationship and following up.
Start with who you know and use a personalized approach. Build a list of prospective donors by asking board members, current supporters, employees and volunteers to provide names of people who may be interested in your organization’s work.
Do your homework. Research what potential donors care about and connect their concerns with your work.
Think about fundraising as a long-term, ongoing process of building relationships. Cultivate relationships with loyal and major donors throughout the year.
Learn how to get over the fear of asking for donations by understanding the source of your fears, examining your attitudes and learning what motivates people to give.
Develop a culture of fundraising in your organization. Raising money is not just the Executive or Development Director’s job. Everyone can play a part.
ASK (several times a year) and then follow-up!
Thank your donors.

Some things to think about:

The average response rate is about 1 percent for direct mail.
Personal letters from board members and volunteers will often yield a 10 percent response rate – this can be increased to 20 percent if followed by a phone call (Klein, Kim. (February 2001). “How to Create an Effective Acquisition Strategy.” Grassroots Fundraising Journal, Volume 20, No.1.).
Consider launching a membership drive or phone-a-thon to build your donor base.

Online Resources

The Alliance for Nonprofit Management
www.allianceonline.org
Visit the Frequently Asked Questions (FAQ) section on Fundraising for informative articles such as “Why are people afraid to ask for money?” “How do I figure out how much someone can give my organization?” and “How do we ask for a major gift?” Much of this information draws upon the expertise of Kim Klein, fundraiser and founder of Grassroots Fundraising Journal.

Fundraising Expert
www.fundraisingexpert.com/default.htm
Visit this web site for a wide variety of resources on nonprofit administration, especially fundraising. For example, the section on Direct Mail provides a wealth of information on developing a direct marketing campaign including pros and cons, building your mailing list and writing an appeal letter (www.nonprofitexpert.com/direct_mail.htm).

Grassroots Fundraising Journal
www.grassrootsfundraising.org
This site includes articles, sample book chapters and other information from Kim Klein and other contributors to the Grassroots Fundraising Journal. You also may subscribe to a monthly e-newsletter and read archived advice columns on a variety of fundraising topics.