The Foundation of Donor Referrals
Before requesting referrals from donors, your nonprofit needs to lay a solid foundation. Read on to see if your organization can answer three key questions when it comes to healthy relationships with donors.
You’ve decided it’s time to grow your donor base through donor referrals. You realize this significantly widens your reach and impact. You’re ready to make plans and set them in motion. But what’s the best way to start?
If you find you’re hesitant to reach out to your current donors because you’ve not a clue what to say or when the best time to reach out is, pull up a seat at the table. You’re not alone. Asking for referrals requires intention and strategic planning.
One key idea to remember is donor development ultimately comes down to trust-filled relationships. That’s the foundation.
Donors are never “just” a source of funding. They are brothers and sisters in Christ that God is using to do His work. Asking your donors to share referrals is more than growing your network—it is a sacred invitation for them to become advocates for your mission, in addition to being givers. Sharing referrals shows an immense amount of trust by donors in your organization.
Before inviting donors further into advocacy, ask yourself these 3 questions:
1. Are you cultivating meaningful relationships?
Matthew 7:12 says “In everything, therefore, treat people the same way you want them to treat you…” It’s no surprise that Jesus’ words apply to the donor development world. Don’t go radio silent for months then show up unannounced asking for referrals. (Well, you can, but we don’t recommend it.)
Before asking for a referral, develop strong relationships with your donors. Show genuine appreciation for their donations. Regularly update them on the impact their support has. Pray for them, too. Building this trust and rapport is the bedrock for them to be comfortable recommending your organization. How you engage with donors mirrors to them how you’ll treat their friends and family.
2. Are you educating your donors about your mission?
Do your donors have a solid understanding of your nonprofit’s mission, goals, and impact? Can they explain what you stand for in a couple sentences? Provide them regularly with engaging stories and testimonies of how God is at work. Donors who are passionate about your cause and confident in your organization’s effectiveness are more inclined to advocate on your behalf.
3. Do your donors believe they’re integral to your work?
People often care less about the money they give and more about whether they feel connected. Hebrews 13:16 says, “Do not neglect doing good and sharing, for with such sacrifices God is pleased.” Remind your givers of the good work they are doing. Explain the good work you in turn are doing through their generosity. Strengthen their belief that without their generosity and advocacy, your organization wouldn’t be where it is now. Underline in your communications just how much you value their support!
The right time to ask.
If you’ve answered at least two questions with a yes, start asking for referrals with confidence! If you’re not quite there yet, nurture and strengthen those relationships before reaching out to your donor base. The best thing about genuine relationship building is it simply takes effort. Trust God with the process.
Doing your best to care for your donors but lacking time to do it well—or consistently? Schedule a free call with us! At Compel You, we love stepping in to fill your donor development gaps–at a fraction of the cost of hiring full-time employees.
Not sure what we mean? Read more about fractional hiring here. It’s our joy to help you grow and do Kingdom work alongside you!
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.
Need expert help designing a fundraising growth plan that leverages donor referrals? Schedule a free call!
Why hire fractional donor development?
As the leader of a Christian non-profit organization, there are several compelling reasons to consider hiring fractional donor development representatives. Fractional staffing refers to hiring part-time or temporary professionals to fulfill specific roles within an organization
As a leader of a Christian non-profit , there are several compelling reasons to consider hiring fractional donor development representatives. Fractional staffing refers to hiring part-time professionals to fulfill specific roles within an organization. Here are some reasons why this approach might be beneficial for your Christian non-profit:
Cost Efficiency: Fractional donor development reps can be a cost-effective solution for your organization, especially if you're working with a limited budget. Hiring part-time staff on an hourly basis allows you to allocate resources more efficiently.
Specialized Expertise: By hiring fractional professionals, you can tap into specialized expertise. Donor development is a crucial aspect of non-profit work, and bringing in individuals with specific skills in fundraising, relationship-building, and donor stewardship can enhance your organization's effectiveness.
Flexibility: Fractional staffing provides flexibility in terms of adjusting resources based on the current needs of your organization. This is particularly useful during fundraising campaigns, events, or other peak periods.
Strategic Focus: Fractional donor development reps can be brought in to focus on specific strategic initiatives, such as major donor cultivation, planned giving programs, or targeted fundraising campaigns. This allows your organization to address particular needs without committing to a full-time position.
Adaptability to Fluctuating Workloads: Non-profits often experience fluctuations in workload, especially during certain seasons or when running specific fundraising campaigns. Fractional staffing allows you to scale up or down as needed without the challenges of hiring and laying off full-time staff.
Reduced Overhead: Hiring part-time staff can reduce overhead costs associated with full-time employees, such as benefits and office space. This can free up resources that can be redirected toward the organization's mission.
Diverse Perspectives: Bringing in fractional staff members with diverse backgrounds and experiences can provide fresh perspectives and innovative ideas for donor development. This diversity can be valuable in connecting with a broad range of donors.
Risk Mitigation: Non-profits may face uncertainties related to funding and economic conditions. Using fractional roles allows you to manage risks associated with long-term commitments and provides greater adaptability to changing circumstances.
Test and Learn Approach: Fractional staffing allows your organization to test different approaches and strategies in donor development without making a long-term commitment. This experimental approach can help identify what works best for your specific mission and donor base.
Focus on Core Competencies: By outsourcing certain functions to fractional staff, your organization can focus on its core competencies and mission-related activities, knowing that donor development is being handled by professionals with specific expertise.
In summary, hiring fractional donor development reps can provide your Christian non-profit with cost-effective, specialized, and flexible solutions to enhance your fundraising efforts and ultimately support your organization's mission.
Learn more about Compel You’s fractional donor development solutions HERE.