3 Lessons I Learned in Fundraising— How, Whom, & When to Ask

By Rafael Magaña

As anyone who has worked in the nonprofit sector can attest, the need to ask for money can sometimes seem like the main mission of a charitable organization.

How you ask, whom you ask, and when you ask can make the difference between black and red on your financial statement.

How to Ask:

First and foremost, it is important to remember that you should have more than one way to ask for money. Diversification of your revenue streams is crucial in any nonprofit.

In order to maintain stable income for your organization, you need to seek funding from a variety of sources, including foundation and/or government grants, large and small donations from a wide base of donors, and fundraising events. A multifaceted approach to fundraising ensures that the loss of one revenue source doesn't put the future of your nonprofit at risk.

Often, asking for a large gift is approached differently than asking for a small one. A more personalized approach is often afforded donors who are able to make substantial contributions. But in both situations, the key to successful, sustainable fundraising is the relationship you build. Both large and small donors should be treated like investors in the valuable business you run, and how you ask should convey to all donors that their contribution makes them a stakeholder in the success of your endeavor.

By focusing on relationships instead of donations, you will build a network of friends to your cause who will be more likely to respond to future fundraising pleas because you have fostered their own sense of efficacy to create change.

Whom to Ask:

Believe it or not, most people will not share your passion for your cause. No matter how eloquently you make your plea or how fervently you establish your need, asking indiscriminately will never generate as much revenue as asking a select group of individuals who are predisposed to give to your organization, usually because of their personal experiences or beliefs.

As with any business, you must tailor your sales pitch to your target audience.

For established nonprofits, this means asking people who have donated time, money, or in-kind goods to your organization before.

For newer nonprofits, this means finding niche-groups whose interests align with your mission.

Government and foundation grants usually have strict criteria for the types of organizations and causes they will fund. Do not waste your time submitting dozens of grant applications to foundations that are not likely to award you any money.

Again, a targeted approach will be more successful; casting a narrow net will likely generate a more stable and sustainable stream of grant money. Don't overlook the importance of relationship building with foundations, too.

You stand a better chance of being re-funded in subsequent grant cycles if your grantors feel they've entered into an alliance with you and are instrumental in making a difference.

When to Ask:

For grants, your timing will be dictated by the granting foundation, as strict deadlines (usually annual or bi-annual) will determine when you submit your proposal.

Plan ahead to avoid last-minute crises and keep a detailed calendar of upcoming submission deadlines on hand.

Timing an annual plea letter is more subjective.

Many nonprofits send out a plea around the holidays, thinking that this time of year may spur generosity among donors. Be aware, however, that many people are financially stressed during the holidays and may be more likely to make a small donation at another time.

Moreover, you risk competing with other charitable organizations for donations if your letter or request arrives at the same time. Consider timing your plea letters to coincide with events that impact your cause.

A "national autism awareness month," for example, may raise the impact of your plea for funds to support an after-school program for children with autism; the looming cold winter weather may elevate the urgency of your request for donations to a homeless shelter.

Thinking critically about how you're asking for money, whom you're asking for money, and when you're asking for money can help focus your fundraising efforts and build an enduring network of revenue sources, large and small, for your nonprofit.

In the city of Tarragona, Spain, castellers gather every two years to see who can build the highest, most intricate human castles. This Catalan tradition requires astonishing strength, finesse, and balance. Not to mention courage.

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Copyright March 18, 2015 by Rafael Magaña. Contact for usage license.

Rafael Magaña helps organizations grow. Helps leaders accelerate strategy implementation in their organizations. Specializes in donor-centered Philanthropy. Major Gift Officer -Veritus Scholar. Director of Development & Communications at the Emphysema Foundation of America and Breathe Southern California. Enjoys writing about leadership, management and careers. Founder of Latino Professionals, Latina Professionals, & Latinx Professionals. He resides in California. Follow Rafael on LinkedIn (18,300+ followers) and on Twitter: @RafaelMagana

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