The Newest Strategy in Fundraising for Nonprofits: NonprofitMBA Podcast 1.5
Summary of Podcast
Today, what we are going to discuss is The Newest Strategy in Fundraising for Nonprofits.
The Nonprofit MBA’s purpose is to provide new business insights and fresh creative ideas for Executive Directors and their teams that will help them improve their organizations.
Introduction of Stephen
Welcome, everyone. My name is Stephen Halasnik and I am CoFounder and Managing Partner of Financing Solutions. Financing Solutions is the leading provider of Lines of Credit to Nonprofits. On a personal level, I have 25-years of experience in building companies and have the privilege to speak with nonprofit Executive Directors on a daily basis. If you like today’s podcast, please feel free to share it with a friend.
Introduction of Greg Warner, CEO of Marketsmart
MarketSmart is a planned and major gift marketing software and services firm that helps nonprofits raise more money more efficiently. The firm’s cornerstone engagement fundraising platform uses cutting-edge tracking technologies to help fundraisers zero-in on and effectively cultivate donors that are most likely to deliver large, major or legacy gifts.
CEO, Greg Warner has been a thought leader in the newest concept of fundraising for nonprofits.
Welcome to the Nonprofit MBA podcast.
Summary of Podcast
Nonprofits get set in their ways when fundraising and it’s hard to make changes to your past approaches. It’s hard to try the Newest Strategies in Fund Raising for Nonprofits.
Greg started his business when he was a ticked off as a donor and was tired of getting mass mailers, emails, and phone calls. He thought, there has to be a better way.
His fundraising software helps nonprofits with advanced technology donor discovery so you know who to approach based on actual data that the donor provides themselves through surveys that they often don’t mind filling out.
Marketsmart uses little data, think big data, to identify all phases of potential smarter fundraiser methods. It is the smart way to determine where to put your fundraising efforts.
A large number of donors are going away. Dropping 5% per year as referenced by The Nonprofit Times.
The average person today is less religious, and religion is a big reason people donate money to charity.
The aging population is a good thing because one donates more as they age but in 20 years, the population will be younger, and the younger generation wants to see more out of their donations. What the younger generation is asking for in a nonprofit is a great indicator of the newest trend in fundraising now.
People have the money now to donate but are buying other things.
Nonprofits need to be more strategic about donors and to communicate in the donor’s language
The smallest client of Marketsmart started with only 880 emails and when they sent the first survey out, they got a 54% response rate which is unheard of. That resulted in a major shift for the client’s fundraising efforts.
The surveys are critical to telling your nonprofit what donors to focus on and what those donors are interested in. Donors are happy to fill out surveys and surveys produce valuable data about who to focus on.
Fundraising in the future is headed towards what value am I getting from this charity? How does this charity fit what I am thinking? Do I feel good about what they do?
Trust is down 19% in the population
Executive Directors need to re-engineer their fundraising to one to one messaging and that is done through one to one donor relationships.
Board members shouldn’t think of fundraising as begging but facilitating relationships that help donors get what they want out of their charity.
Take a look at the free Fundraising Report Card which puts data to work for you so you can tell which donors to focus on.