Despite today’s technologically inclined society, many clients of our estate planning practice do not use e-mail or even a computer. This is why it is ideal to mail, from time to time, a compelling handwritten letter to faithful and consistent donors. These less technologically savvy individuals are possibly more receptive to the development of an endowment and the prospects of leaving a legacy. Hence, a customized message that addresses key aspects of your endowment program may generate interest from those who consistently give, but have never been personally approached by the nonprofit organization. The more you can customize the letter with information unique to the prospective endowment donor, the more effective the letter will be. An example of a customizable letter is as follows:
Dear Donor Name:
We received your last contribution of $_________, which has helped us tremendously. We gratefully appreciate your generosity and consistent support of our programs. The steadfast support we receive from donors like you has enabled us to reach important milestones such as …(list a few examples). But, so much more needs to be done to not only meet dynamic challenges which lie ahead, but also achieve sustainable organizational growth over the next ten to twenty years.
The future foundation of our organization rests upon how well we plan for tomorrow. Despite the temptation to solely focus our efforts on immediate programing needs, we know that financial stability and viability of our organization rests upon future planning. One way we address the future is though our special endowment program. If you have ever dreamed about leaving a family legacy, our endowment program may be a perfect way to fulfil this desire. We encourage you to talk with our planned giving advisor about the possibility of making an endowment gift through your will or other estate planning device.
President of …
To learn about how we help nonprofit organizations with their major gift programs go to www.scottpractice.com.
There are various perceived motives that form the basis of charitable intent. Three prominent economic models that explore altruism include 1) the public goods model, 2) the warm-glow model and 3) impact philanthropy. Many of our strategies focus on theories discussed in Brian Duncan’s “A theory of impact philanthropy”. The impact philanthropy model states that donors who give primarily to make a difference receive utility when their gift causes a direct change or impact on a social condition. These donors enjoy knowing how their gift directly benefited the cause of their concern. A nonprofit organization can increase its level of contributions by focusing its attention to impact donors. Although there are varying motives for giving, impact donors greatly enjoy the opportunity to target their donation because they appreciate seeing the impact of their giving. Conversely, these same donors do not like funding general operations because the use of their donation does not achieve a “direct” impact. For similar reasons, direct impact donors also prefer donating to smaller nonprofit organizations versus larger organizations because they perceive their donation can make a stronger impact. Nonprofit organizations who wish to target impact donors can create sponsoring agreements that showcase specific areas of need, but at the same time reinforce the general needs of the organization. The time and resources spent on attracting impact donors can be extremely beneficial for a nonprofit. Satisfied impact donors are more likely to remain involved with the organization. With the right approach, a nonprofit can also optimize the relationship, generating a charitable lifecycle of giving. For more information on our donor cultivation strategies, contact firstname.lastname@example.org.
Nonprofit managers and fundraising professionals acknowledge that effective fundraising has become more complex requiring more time and resources to cultivate sustainable donor relationships. We see the use of analytical technology as a priority for nonprofits interested in developing or strengthening philanthropic relationships. By using analytical technology, a nonprofit organization can collect, analyze and more efficiently use research data to develop better donor cultivation strategies. Research analytical tools, when used properly and ethically, can become fundamental in developing the right donor connections. Through creation of various rating profiles, an organization will have the ability to convert organized data into essential information on a range of variables such as a donor’s interest level, capacity, philanthropic priorities and anecdotal history. This information can be passed on to the organization’s development officer who can in turn better prepare for donor meetings and major gift discussions. The same collection of data can also be used to maintain interaction with key donors while at the same time become more responsive to donor interests. For instance, the organization can host meet and greet events that are especially tailored to specific donor interests discovered through internal donor research. In today’s information driven society, nonprofits who most successfully utilize data analysis techniques within their fundraising strategy will likely be the organizations that continue to thrive and expand. For more information on prospect research, contact us at email@example.com.