How to reach donors who demand a return on their investment

What do donors want? Some of them want to be treated as investors. A recent post at onPhilanthropy looks at reaching these donors in an interview with Tom Ralser, author of ROI For Nonprofits: The New Key to Sustainability (available at Amazon and at Powell's): Can Nonprofits Deliver Value to "Investors"?

All too often, nonprofits think that by describing the outcomes they produce, potential funders will automatically appreciate what they do and therefore give them money. With all of the nonprofits out there asking for money, this is just unrealistic. What many funders are demanding these days is the value of the outcomes produced.... This allows them to make a much more informed decision.

If you want to reach these donors, you need to them of them as investors, and their gifts as investments. It comes down to two things:

1 How you frame the offer. Emphasize effectiveness, efficiency, and impact. That doesn't mean you forget the old-fashioned emotional appeal, but you also need to prove that their gift will cause something good to happen.

2 How you report back. If you ever want to hear from the investor-like donor more than once, you need to tell them what their gift accomplished. So many organizations just blow off that part, and those are the organizations that are going to struggle in the coming years. Receipt promptly. Don't change the subject from the fundraising offer. Publish a newsletter that's about them, not just you.

Technorati Tags: philanthropy, ROI

Comments

[Loralyn Penzella]

Great info. Thanks~