Let’s Get Ready to Fundraise!

By Elizabeth Grigsby, CFEE, CFRE

I have always considered myself an “accidental fundraiser.” Never did I think that one day, one of my primary responsibilities would be to raise money for my non-profit organization, enabling us to fulfill our mission and provide important projects to the community. When I started 20 years ago, there was very limited information and guidance on fundraising, so much of what I learned was through trial and error. Fortunately, times have changed, and now there is a wealth of research and information available on the most effective fundraising methods. However, this knowledge is only beneficial if it is implemented with the same level of dedication and planning as we put into our festivals or events. Today, my aim is to provide you with a comprehensive and holistic approach to fundraising, based on the latest research and the lessons I have learned throughout my career.

Make Sure You Are Ready To Go!

To begin, gather all the necessary legal documentation required to submit a request to a potential funder. If you’re approaching a granting organization, they might ask for specific documents, such as a recent financial report, a copy of your 501(c)(3) non-profit designation or audit, your current budget, and a list of Board Members. With the increasing prevalence of online sponsorship requests, it is highly probable that funders will request specific information about your organization. This may include details about your organization’s mission, history and a completed W-9 form.

Fundraising Requires Active Attention and Effort; It Doesn’t Happen On Its Own

Contrary to popular belief, successful fundraising is an ongoing endeavor throughout the year. Simply asking for donations or sponsorships is insufficient; you must also cultivate and nurture relationships continuously. This involves ensuring that your funders receive regular communication from you, including mail, emails, and newsletters. It’s also crucial to provide a sponsorship fulfillment report that outlines how their company received marketing exposure at your event. Moreover, expressing gratitude is one of the most critical aspects of fundraising. Showing appreciation can be as simple as sending a card, having a Board Member make a phone call, or sending them a t-shirt or tickets to your festival or event. Avoid creating a situation where your funders feel that they only hear from you when you need money.

Fundraising Thrives on Teamwork!

Too often, the responsibility of raising funds is solely entrusted to one individual within an organization, leaving them burdened with the entire task. This individual could be the CEO, Executive Director, Development Officer, or Vice President of Sponsorships. However, to truly unlock the full potential of fundraising, it is essential to actively involve every member of the staff and volunteers. A highly successful fundraising organization recognizes the importance of engaging the entire team in the process.

Consider this: a potential donor may have an extraordinary interaction with one of your dedicated volunteers, creating a lasting positive impression of your event or cause. Moreover, one of your Board Members might possess valuable knowledge about a new local business that could be interested in a potential sponsorship opportunity. Additionally, someone on your office staff might possess exceptional skills in crafting beautiful handmade thank-you cards. These instances exemplify how each individual within the organization can contribute their unique talents, expertise, and connections to bolster the fundraising efforts.

By embracing a collaborative approach, the organization not only enhances its chances of success but also cultivates stronger relationships with potential donors. Recognizing that fundraising is a collective effort empowers the entire team to actively participate, share ideas, and leverage their networks, ultimately paving the way for greater fundraising achievements.

It Is Essential to Begin with the End in Mind

Start by sitting down and determining precisely what you need to raise funds for and the specific amount required. Requesting funds for operating expenses differs significantly from seeking support for acquiring new equipment or constructing a new facility. Moreover, different funders have varying areas of interest, and it is your responsibility to align your request with the funder most likely to view it favorably. For instance, a Children’s Hospital might be interested in sponsoring the Children’s Area at your event, while a local foundation could be inclined towards one-time purchases of capital equipment like staging, lights, or safety gear. An event patron may prioritize the continuity of your event and offer an unrestricted contribution for operational expenses. The key is to understand your goals, the associated costs, and identify the most suitable potential donors.

Never Enter a Meeting EmptyHanded

It is crucial to come prepared with a well-crafted, written document that persuasively presents an overview of your request. This document should contain background information about your organization, detail your specific needs, explain their significance, outline the desired outcomes resulting from the funding, and provide compelling reasons for donors to feel motivated to contribute. Commonly known as a “case for support,” this document ideally should be professionally designed, incorporating graphics, photographs, and clear contact information for further information. By presenting a visually appealing and well-structured document, you can capture the attention and engagement of potential donors, conveying the essence of your cause in a compelling and memorable manner.

People Often Don’t Give Simply Because They Haven’t Been Asked

Research consistently shows that the primary reason for people not giving money is the absence of a direct request. However, this doesn’t mean you should approach a stranger on the street and ask for a donation or sponsorship. Instead, it is important to target individuals who possess two crucial attributes: affinity and capacity.

In this context, affinity refers to individuals who know you, your festival, or event, and genuinely appreciate what you do.

Capacity, on the other hand, signifies their financial capability to provide a cash or in-kind contribution. It is worth noting that we should exercise caution when judging people’s capacity based solely on their outward lifestyle, as this can often lead to wrong assumptions that they are unable to give. As a fundraiser, your role is to extend invitations to individuals and allow them to decide for themselves whether they are willing and able to contribute. Embrace an inclusive mindset and remember that everyone has the potential to make a difference, regardless of appearances and lifestyle.

You Already Have Potential Donors Within Your Reach!

One of the most exciting aspects of fundraising is that there are people you already know who are likely to contribute to your event or festival. Keeping in mind the criteria of affinity and capacity, those who are most inclined to provide a donation or sponsorship are those who know you best. These individuals include your dedicated volunteers, current and past Board Members, vendors, loyal attendees and sponsors who consistently support your event year after year, individuals on your email or mailing list, and those who have previously donated to your cause. By reaching out to individuals who already have a connection with your organization, you have a higher likelihood of securing their support.

Harness the Power of Technology to Enhance Your Fundraising Efforts!

Take advantage of social media, e-mail, online fundraising platforms like GoFundMe, and create an impressive website to expand your reach and streamline the donation process by accepting online payments. Utilize these digital tools to their full potential. Engage your audience with captivating videos, exclusive updates, and impactful photographs that showcase your organization’s important work. Use these visual elements to recruit new supporters, ignite enthusiasm among existing donors, and spread the word about the positive impact your organization is making.

By leveraging technology in this way, you can tap into a broader audience, facilitate seamless online donations, and effectively communicate the value of your cause. Embrace these digital strategies to maximize your fundraising potential and elevate your organization’s visibility in the digital sphere.

Diversify Your Funding!

It is crucial to diversify your fundraising strategy in the event business. Relying solely on sponsorship dollars can be risky, as unforeseen circumstances can leave us scrambling to find replacements. Unfortunately, securing sponsorships is often challenging due to intense competition, shifting giving priorities, staff turnover, and other factors beyond our control. In fact, sponsorships only contribute to 5% of all charitable giving, while individuals account for 69%.

To optimize your fundraising potential and safeguard against unexpected challenges, it is vital to create a comprehensive fund development plan for your festival or event. This plan should encompass a range of diverse income sources, including grants, individual donations, corporate sponsorships, special fundraising events, crowdfunding, and online campaigns. By diversifying your streams of income, you can fortify your financial stability and maintain a consistent flow of funds.

It Is Crucial to Adopt a LongTerm Perspective When it Comes to Fundraising

One common pitfall is the lack of consistent and ongoing efforts over the years. For instance, an organization may experience a positive response from their initial direct mail solicitation, but then fail to follow up the next year due to being “too busy.” This mindset is flawed.

Instead, it is important to build upon the successes of each year. If a donor contributes one dollar in a given year, the goal should be to encourage them to donate an equal or greater amount the following year. Remarkable transformations can occur over time. I have personally had an annual donation from one patron go from $100 to $100,000. It has taken eight years to reach this level, but it has been well worth the effort!

Therefore, it is crucial to play the long game in fundraising, maintaining consistent and persistent efforts, and capitalizing on previous successes to foster increased donor engagement and contributions.

Treating Your Funders Like Your Closest Friends Is a Powerful Approach in Fundraising

In today’s landscape, individuals, foundations, and businesses have numerous options for where they allocate their charitable resources. It is essential to position your organization as their top choice for giving.

One effective strategy is to consistently provide exceptional value and service to your funders, exceeding their expectations. Adopting the mindset of “underpromising and overdelivering” will help establish a positive reputation and build strong relationships. By consistently delivering outstanding results and experiences, you can instill a sense of excitement in your funders, making them eager to support your organization year after year.

Expressing gratitude towards your funders is crucial, both publicly and privately. If a funder desires recognition, such as having their name on a plaque or being listed in a thank-you advertisement in the newspaper, it’s important to fulfill their wishes. On the other hand, if a funder prefers to remain anonymous, respecting their privacy is essential. Take the time to understand your funders’ preferences and tailor the acknowledgment of their contributions accordingly. By demonstrating genuine appreciation and honoring their preferences, you can strengthen the bond between your organization and its funders.

In summary, by treating your funders as cherished allies, going above and beyond expectations, and expressing gratitude in ways that align with their preferences, you can cultivate lasting and mutually beneficial relationships.

Elizabeth Grigsby, CFEE, CFRE, has been the Executive Director of the Lubbock Arts Alliance for 20 years. During her tenure, the organization has had a six-fold increase in its budget and its marquee project, the annual Lubbock Arts Festival, has tripled in attendance. The Arts Festival has received a “Grand Pinnacle” award from the International Festivals & Events Association and two consecutive “Best in Texas” awards from the Texas Festivals and Events Association for being the best overall event in its budget category. Grigsby is a Certified Fund Raising Executive (CFRE) and Certified Festival & Event Executive (CFEE).