Break Glass Ceilings with Donor Referrals
Expanding a non-profit's donor base is crucial for long-term growth. You know this all too well as a leader in your organization. But what direction should expansion take once you’ve tapped out your current donor base? Is now the time to cold-prospect?
Maxing out a donor base and breaking that founders’ glass ceiling is a common struggle Christian non-profits face as they grow. While cold-prospecting potential donors is certainly essential within fundraising plans, it’s not always the first or only step forward.
The quickest, most cost-efficient way for donor base expansion when you’re on the brink of asking for too much or too often, is gaining referrals from existing donors.
Did you know that in 2022, the largest source of charitable giving came from individuals? Individual giving, which totaled $319.04 billion, represented 64% of total giving. (Giving USA 2021 Annual Report) In a different study that asked donors the main reasons why they gave to an organization, 16% responded saying someone they knew directly asked them to donate. Take these stats and imagine the expansive networks of each donor. The opportunities for referrals are immeasurable!
Why leverage donor referrals before cold-prospecting?
Everyone loves hearing a good 5-star review from their closest friend. Why? Because they know that person and trust their experience. Referrals cut out, or greatly reduce, the cultivation factor in the cold-prospecting equation. When beginning a relationship with a potential donor that has no pre-existing connection to your organization, the trust building process requires repeated exposure and time.
Donor referrals are a powerful tool for non-profits as they come with built-in credibility. Often, your current donors will refer like-minded people who may share similar beliefs and passions for causes. In a world of competing causes and voices, when someone personally vouches for your non-profit and the difference it’s making, that’s equivalent to a 5-star review.
After referring a friend or contact, your donor may answer questions on your organization’s behalf or even address hesitations with stories of their own experience. These conversations often happen before your first contact with the referral, significantly reducing the time and resources your organization needs to spend moving a high-potential donor through the donor cycle.
Relationships are where the real magic of giving happens. If you’ve faithfully nurtured relationships with your donors, asking your donors for referrals is crucial to your expanding your donor base and fundraising growth plan. Don’t neglect the fertile ground in front of you.