Strategies For Effective Fundraising

I completely misread a major donor's signals and lost a six-figure gift. It was humbling. And it transformed my approach to donor relationships. Here's what happened: After multiple positive meetings, I was confident our capital campaign proposal aligned perfectly with this donor's interests. The signals seemed clear—enthusiastic questions, facility tour requests, introduction to family members. I prepared an impressive proposal with all the recognition bells and whistles. I was already mentally spending the gift. When I made the ask, his response was immediate: "This isn't what I care about at all." He wasn't interested in naming opportunities or recognition. He wanted to fund scholarships for students like himself—first-generation college students from rural communities. The proposal I'd spent weeks crafting completely missed his core motivation. What I learned: - Enthusiasm doesn't always signal alignment - Assumptions are fundraising poison - Direct questions about motivations beat clever interpretation - Donors give from personal values, not organizational priorities I now ask every donor: "What aspect of our work matters most to you personally, and why?" The answer has never led me astray since. Share a valuable lesson from a fundraising misstep! 💡 If this resonated with you, join thousands of fundraisers who are sharing what works and what doesn't inside the Donor Participation Project. Join us here 👇 shorturl.at/qhMHM

I have had the opportunity to serve on several nonprofit boards over the years. There's always a period of time -- as is the case currently -- when there is real concern over government funding. That's why it is so important for nonprofits, especiallty those in healthcare, to diversify its revenues streams. Just like businesses, nonprofits need financial resilience to sustain their mission and expand their impact. Here area few ways nonprofits can diversify revenue streams and create long-term stability: 1. Develop Strategic Partnerships – Collaborate with corporations, foundations, or healthcare organizations to co-develop research, technology, or community programs. These partnerships can lead to sponsorships, grants, and new funding opportunities. Too often, folks want to forge their own path. Now is the time for partnerships. 2.  Invest in Mission-Aligned Ventures – Consider sustainable investments such as impact funds or health tech startups that align with your mission while generating financial returns. It's key to have a good financial team to help assess opportunity and manage risk. Many nonprofits have started to create such funds, and more need to do so. 3. Expand Subscription or Membership Models – Offer premium content, exclusive research, or advocacy networks for a subscription fee. Organizations that provide unique insights can turn knowledge into a reliable revenue stream. 4. Utilize social media -- This way can be way to find new funders, who may not be familiar with you work. There is a science to utilizing social media -- you just can't post and think the money will come rolling in. Invest in a seasoned team who knows how to convert metrics into dollars. A diversified nonprofit isn’t just more financially stable—it’s better equipped to innovate, adapt, and drive meaningful change.  It is easier said than done -- and it takes time. What strategies have you seen work in nonprofit revenue diversification?  #NonprofitLeadership #RevenueDiversification #HealthcareInnovation

Welcome to the Future of Fundraising This past week, our team had a great breakthrough while running tests with the autonomous fundraiser. We tested the impact of the autonomous fundraiser independently sending donors in its portfolio a text message with a quick note on their birthdays. These self-written messages were light, kind and didn't ask for a response from the donor. Birthday messages were sent to 32 donors over a two week period. Results were surprising, inspiring and really exciting. Of the 32 donors who received the messages, 14 responded. Each response was positive, kind and surprisingly engaging, clearly proving that donors are not just open to, but excited about, light and personalized engagement from a VEO. Responses like “Thank you so much! This is such a great surprise!!” and, ”Wow, I haven’t heard from anyone at the College in over ten years, thank you for the note” were examples of the donors' tone. It quickly became clear that these lightweight, structured touchpoints significantly impacted the donor’s willingness to engage with a VEO and they are areas that we need to build on. While I’m sure it seems obvious to most frontline fundraisers that sending a personal note on a donor’s birthday is a great way to build a connection, to do this at scale and for thousands of mid-level donors, autonomously, has never been possible before. I believe these responses prove the potential for a significant shift in overall donor engagement where mid-level donors and smaller donors can now be treated with the kind and personalized attention that only major donors had been given in the past. This level of engagement throughout the donor pyramid is why autonomous fundraising is so important. Another surprising and exciting set of outcomes of this lightweight engagement were three independent introductions made by the Virtual Engagement Officer to staff members on campus, at the request of donors. These introductions were all directly related to Career Services – a clear area where the VEO can add immediate value at a time in a donor's life where they might need assistance. These touchpoints are important. A birthday is a known data point and a low-risk introductory point where autonomous fundraisers could universally thrive. This natural introduction touchpoint has the benefit of opening a line of communication between the VEO and the donor. Based on these early results, as long as the communications stay relevant, personalized and impactful, it seems that there are many opportunities to build on these learnings. This week our team is testing more low-risk data points that can enable VEOs to engage with a donor for the first time. The most natural next data point that we’re looking at is stewardship, where the autonomous fundraiser will reach out directly to the donor and thank them for their gift as part of the VEO’s 12-month engagement strategy. Have a great week. #fundraising #philanthropy #philanthropytech #nptech #AI

Donors don’t remember what you asked for. They remember how you made them feel. No donor remembers your budget line. They remember the moment they felt seen. Last year, I worked with a mid-sized charity struggling with donor retention. Their appeals were beautiful — but donors weren’t coming back. When we looked closer, it wasn’t the messaging that was broken. It was the feeling. Or more accurately, the lack of feeling. Every email spoke at their donors. None spoke to them. So we rewrote their follow-ups. We started with: “You made this possible.” We ended with: “How did this story make you feel?” Within six months, repeat giving rose by 38%. Fundraising isn’t persuasion!!! It’s connection!!! Donors don’t remember the amount you asked for — they remember the moment you helped them feel part of something bigger than themselves. Before you send your next appeal, pause and ask: → “Where’s the feeling in this message?” → “Would I be moved to respond?” If the answer is no, start again. This is the philosophy that drives all my work: Fundraising is meaning, not money. AI, data, and strategy matter — but they should amplify empathy, not replace it. If you’re rethinking your donor strategy for 2026, start with how you make people feel. That’s where loyalty — and legacy — begin

Your evaluation was rigorous. Your report killed it. You designed the methodology carefully. You interrogated the findings until you were confident they were right. Then you wrote a 80-page document. It buried the most important finding on page 34, and.. submitted it to a stakeholder who read the executive summary on a flight and never opened it again. The evaluation was good. The report undid it. And this isn't a personal failing. It's a sector-wide one. The development sector produces thousands of evaluation reports every year. Most of them change nothing. The writing is why. Not the data. Not the methodology. Not the sampling strategy or the theory of change. The writing. 𝗖𝗹𝗲𝗮𝗿. 𝗖𝗼𝗻𝗰𝗶𝘀𝗲. 𝗖𝗼𝗺𝗽𝗲𝗹𝗹𝗶𝗻𝗴. 𝗣𝗶𝗰𝗸 𝗮𝗻𝘆 𝘁𝘄𝗼, 𝗺𝗼𝘀𝘁 𝗲𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗿𝗲𝗽𝗼𝗿𝘁𝘀 𝗺𝗮𝗻𝗮𝗴𝗲 𝘇𝗲𝗿𝗼. They're dense where they should be direct. Cautious where they should be bold. Written to demonstrate expertise rather than to communicate it. And the people who needed to act on the findings... the minister skimming between meetings, the programme manager already stretched thin, the donor trying to decide whether to renew, they encountered a wall of jargon, a forest of tables, and a recommendation section so hedged and generalised it could apply to any programme anywhere. So they didn't act. Or they acted on instinct instead of evidence. Because the report didn't give them a choice. Here's how to do better... 1. Write for a real audience, not an abstract one ↳ Not “stakeholders” ↳ The specific person who will use this ↳ The minister with 5 minutes ↳ The programme manager under pressure ↳ The donor deciding on funding If you don’t know who you’re writing for, you’ll default to writing for yourself. 2. Start with the decision, not the methodology ↳ What needs to change because of this report? Write to that. 3. Lead with the answer ↳ Don’t make people work for the insight Page 1 should tell them what matters 4. Design for use, not submission ↳ A report is not the final product A decision is ---- Want insights like this directly in your inbox? Sign up for my mailing list. It's FREE! 👉 https://lnkd.in/ec8mqV2M

I remember when I was a grant writer, working our grant calendar to secure funding, when Jeff Bezos announced his first major round of philanthropic giving. Almost immediately, my boss (on orders from the CEO) came to me with a directive—find a way to get in front of him. Get his number. Land the meeting. I remember feeling the weight of that ask. How was I supposed to make that happen? There was no relationship, no clear alignment—just a vague hope that somehow, I had his number in my back pocket and that we’d catch his attention to secure funding. It was frustrating, and ultimately, ineffective. Fast forward to today, and I see so many fundraisers experiencing that same pressure. With the federal funding freeze creating uncertainty, nonprofit leaders are feeling the strain and, understandably, looking for solutions. But when the response is to send already overwhelmed fundraising teams on a mission to “find new donors” without a clear plan, it only adds to the stress and uncertainty. If that’s where you find yourself right now, I want to acknowledge how hard this moment is. Fundraising is already challenging, and navigating a shifting funding landscape without a roadmap can feel overwhelming. But instead of reacting out of urgency, I encourage you to take a breath and step back. A thoughtful, strategic approach will serve your organization—and your team—far better than a frantic search for funding. Here’s where to start: ✅ Assess Your Current Revenue Streams – Take stock of where your funding is coming from now. Which sources are stable? Which are at risk? Understanding this will help guide your next steps. ✅ Deepen Relationships with Existing Donors – Your current supporters are your greatest asset. Strengthening those relationships can often lead to increased giving and deeper engagement. ✅ Diversify with Intention – Rather than scrambling for new funders, explore how to expand and balance your revenue mix. Are there opportunities for unrestricted giving, partnerships, or earned income? ✅ Clarify Your Case for Support – If you’re seeking new funding, your message needs to be compelling and clear. Why should someone invest in your mission right now? What difference will their support make? This is a tough time for many nonprofits, but you don’t have to navigate it alone. If your team is feeling the pressure and you need a path forward, let’s connect. A strategic, relationship-driven approach will not only help you weather this moment but set you up for long-term success.

The Grant Funding Wake-Up Call In 20 years, I’ve never seen the situation this tough. In the past 12 months alone, over 100 trusts in the UK have spent out, paused, or closed altogether and competition for funding has intensified. To put it into perspective, the Health Lottery Foundation recently received 2,400 applications for just 30 awards. That’s not a queue, that’s a stampede. This should be a wake-up call for the sector. There simply isn’t enough money to go around, and someone always misses out. Grants have their place, but they should never be your only income stream. They’re short-term by design, not a foundation for sustainability. So what’s the alternative? We need to think more entrepreneurially. Two routes stand out: 1. Digital fundraising and corporate partnerships: In 2024, the UK public donated £15 billion and 48% of that came through digital platforms. Fundraising today requires the same mindset as marketing: build awareness, engagement, and trust before the ask. Partnerships with corporates can also open doors through social value, sponsorship, and platforms like Work for Good. 2. Consultancy and service delivery: Turn your expertise into value others will pay for. When I was made redundant, I shifted from community practitioner to consultant overnight - being commissioned to help public services design and deliver better community engagement. If I can do it, so can you. Start by identifying your strengths and matching them to the “pain points” of potential clients. And with the new UK procurement laws now making contracts more accessible to the third sector, there’s never been a better time to explore this. The Asset-Based Way Forward: If you work from an Asset-Based Community Development (ABCD) approach, this mindset shift should feel familiar. Start by mapping what you already have - your people, skills, connections, and physical or digital assets. Then ask: • Who could we partner with? • What problems could our strengths help others solve? • What services or ventures could generate value while staying true to our mission? Financial sustainability doesn’t come from chasing every pot of money, it comes from knowing your value and using it differently. What other creative ways have you found to build financial resilience beyond grants? Share your experience below - it might just help another organisation survive the storm. #CommunityPower #ABCD #CoProduction #SharedPower #DoingWithNotTo #PaulStepczak

You spent $15,000 to acquire 100 new donors who gave an average of $75 each. Your 'successful' campaign lost $7,500. Here's the math your board presentation didn't include: Campaign cost: $15,000 New donor revenue: $7,500 Year one result: -$7,500 But acquisition is an investment, right? Let's look at year two. With your 45% retention rate, 55 donors won't give again. The remaining 45 donors need to average $167 each just to break even on your two-year investment. Now consider this alternative: Your database contains 200 lapsed donors who previously gave $200 annually. A $3,000 reactivation campaign targeting these former supporters could realistically bring back 40 donors at their historical giving levels. That's $8,000 in year one revenue from a $3,000 investment - a $5,000 profit instead of a $7,500 loss. The insight isn't that donor acquisition is bad. It's that donor acquisition without profitability analysis is expensive guesswork. Your most profitable growth strategy might not be finding new donors. It might be reconnecting with the ones who already know and trust your mission. The question isn't whether you can afford to invest in donor acquisition. It's whether you can afford not to measure whether that investment actually pays off. Because in fundraising, the most successful campaigns aren't always the ones that acquire the most donors. They're the ones that generate the most profit.

Before it was about getting donors to write checks. Now it’s about involving them in your ecosystem. Here’s 5 steps to get started today: You’re not just fundraising anymore. You’re onboarding stakeholders. If you want repeatable, compounding revenue from donors, partners, and decision-makers, you need to stop treating them like check-writers… …and start treating them like collaborators in a living system. Here’s how. 1. Diagnose your “center of gravity” Most orgs center fundraising around the mission. But the real gravitational pull for donors is their identity. → Ask yourself: What is the identity we help our funders step into? Examples: Systems Disruptor. Local Hero. Climate Investor. Opportunity Builder. Build messaging, experiences, and invites around that identity, not just impact stats. 2. Turn every program into a flywheel for new capital Stop separating “program delivery” from “fundraising.” Your programs are your best sales engine → Examples: • Invite donors to shadow frontline staff for one hour • Allow funders to sponsor a real-time decision and see the outcome • Let supporters “unlock” bonus services for beneficiaries through engagement, not just cash People fund what they help shape. 3. Use feedback as a funding mechanism Most orgs treat surveys as box-checking. But used right, feedback is fundraising foreplay. → Ask donors and partners to co-define what “success” looks like before you report back. Then build dashboards, stories, and events around their metrics. You didn’t just show impact. You made them part of the operating model. 4. Make your “thank you” do heavy lifting Thanking donors isn’t the end of a transaction. It’s the first trust test for future collaboration. → Instead of a generic “thank you,” send: • A 1-minute voice memo with a specific insight you gained from their gift • A sneak peek at a challenge you’re tackling and ask for their perspective • A micro-invite: “Can I get your eyes on something next week?” You’re not closing a loop. You’re opening a door. 5. Build a “Donor OS” (Operating System) Every funder should have a journey, not just a transaction history. → Track things like: • What insight made them first say “I’m in”? • Who do they influence (and who influences them)? • What kind of risk are they comfortable taking? • What internal narrative did your mission fulfill for them? Then tailor comms, invitations, and roles accordingly. Not everyone needs another newsletter but someone does want a seat at the strategy table. With purpose and impact, Mario

The connection between donors and the mission is crucial for fundraising campaigns. Imagine your donor, with a morning coffee in hand, sitting at the kitchen table, not just reading about your cause but becoming an active part of it. Here's how to transform your donors from passive contributors to active participants: 𝐒𝐮𝐫𝐯𝐞𝐲𝐬 & 𝐐𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐧𝐚𝐢𝐫𝐞𝐬: Include a survey in your mailings to gather their opinions and preferences. This simple step shows donors that their input is valuable, making them feel heard and respected. 𝐏𝐞𝐭𝐢𝐭𝐢𝐨𝐧𝐬: Encourage them to sign a petition related to your cause. It’s more than just adding their name; it’s taking a stand. This shared action binds them more closely to your mission. 𝐍𝐨𝐭𝐞𝐬 & 𝐂𝐚𝐫𝐝𝐬: Give them the opportunity to send a personal message to someone benefiting from their support. This direct interaction creates meaningful connections, making the impact of their donation deeply personal. These strategies are more than just fundraising techniques; they are powerful engagement tools that transform the act of giving into a participatory experience. When donors are actively involved, they not only contribute more, but also become long-term advocates for your cause.