Every now and then I get an email that asks how a new nonprofit should fundraise.
I just started a nonprofit and am at the very beginning of the fundraising process. I have a strong passion for the work I want to raise money for, but I am not quite sure where or how to start.
Fundraising as a new nonprofit is as hard as it will ever be. Why? If your organization is new, you haven’t yet built a track record. So start by asking yourself these questions.
Question #1: What’s the nonprofit landscape in your issue area?
How well can you describe the gap in community services that your program addresses? Where does your nonprofit fit into the landscape of related programs and community needs? Who else is working on this issue — regionally, upstream, downstream, or in a similar way? And how are you different?
Coming up with good answers about your anticipated impact and where you fit in will be critically important to your fundraising — and program — success.
Question #2: When you created your budget to launch this new program, what funders did you think might be interested?
Who is funding other nonprofits working in this issue area? What feedback have you received from informational interviews with funders and experts in this field that led you to create a nonprofit?
When you ask people for money, they give you advice. So ask for advice!
I live by this fundraising adage! Donors give for reasons of hope. They want to see change in the world. So describing your unique impact is critically important to cultivate giving.
I created something I call an Impact 2-Pager to help make the case. And it is a fantastic tool to use when you meet with potential funders for feedback on your program. It’s a fundraising template we offer for free, and I would love for you to use it.
Question #3: Does your board know they have to help you fundraise?
The IRS requires that you have a minimum number of board members when you create a 501(c)3 nonprofit, but more is better. Your board needs to be actively involved, especially when you’re just starting. They help define your mission and strategic direction and approve your annual operating expense. In short, they must help raise the revenue to pay for it.
Watch our YouTube video (youtube.com/@cultivategiving) on how to launch your Board Give-Get Policy, and download our free template with all the language you’ll need to get started.
Question #4: What will you do every few months to connect with donors?
Building a base of donors isn’t about asking for money. It’s about creating relationships with folks who care about the work you do, and keeping them informed on how you’re doing it. In major gift fundraising, it can take three years for someone to substantially increase their giving. (Personally, I use the standard of a Major Gift = 10 x their average past gifts.) There’s a free template for a simple annual fundraising plan at cultivategiving.com/templates.
Consistency matters. Build relationships with regular outreach, ideally by your board members. They can do something you (as staff) cannot: connect as peers.
Bonus tip
Create a Development Committee where a few board members brainstorm donor prospects, fundraising outreach, and personalized communications. And then have every new board member automatically serve on the Development Committee.
There’s also a Development Committee agenda template in the premium template bundle, but the free ones will get you started.
You’ve got this!
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