Fundraising pyramid schemes that actually work
Donor meetings can be nerve-racking
Everyone has shvitzy moments. Not the times you stupidly decide to “do” the steps up Masada in July, or even the eighteenth summer hour in a Michigan power outage.
They’re the moments when you deeply regret your wardrobe choice, suddenly feel the urge to resume your childhood nail-biting habit, and feel your heart beating faster than it does when you’re running 6:45 per mile. It’s times when you’re about to do something that feels really scary and out of your comfort zone, you know there’s a lot hanging on the line, and... you understand that you have the opportunity to do something really great.
“Nervous” is a pretty kind word to use in describing my feelings at this moment. I stood before the elevator inside an imposing office building, about to go up to a fundraising solicitation meeting with a donor who had the potential to make a significant impact on our cause. And I felt a little shaky and anxious as the doors opened and I began the ascent.
As I climbed higher I wondered, would we have enough time to present our material? Would I stumble? Make a fool out of myself? Would he give? Would he laugh at me and dismiss the cause?
Jewish philanthropy moment of kindness
Most of our conversation was a blur.
We did some small talk, the donor asked about our campaign, and we discussed sponsorship opportunities.
But then this philanthropist did something sensational. He explained that for the specific sponsorship opportunity we were seeking, there was only a maximum percentage of our fundraising total that his company was allowed to give. But if we raised our total goal to a higher dollar amount, he would be able to give a larger donation to the cause.
"Would that work for you?"
Would that work?! This was an outcome that I did not anticipate in any of my most-irrational dreams.
I graciously thanked him, and promptly received instructions for next steps to secure the sponsorship.
Fundraising should be done with intention
After many years this wonderful story is still clear in my mind, and it’s also been an important lesson that’s stayed with me and continues to guide me when I try to help other nonprofits with their solicitation materials.
Fundraising donation opportunities need to make sense financially for your donors.
Successful fundraising dollar goals aren't arbitrary. They're carefully constructed in tiers that are logical, have proven track records, and match an ideal set of donors' abilities to give.
In this scenario, as a fundraising “newb,” our numbers were clearly a mismatch for the donors who wanted to support our cause. We could have structured the giving opportunities in a more logical way that included more generous donor options.
But I’m grateful for the learning experience. It's a beautiful memory of classic Jewish philanthropy AND was a practical lesson in fundraising campaign finances.
How to structure a giving campaign
When planning the financials of your nonprofit's fundraising campaign, consider these structural elements to help you succeed and reach your goals—
Pyramid Structure
In nearly all fundraising campaigns, most of the money will come from just a few donors at the top of the pyramid, with the rest of the donations being made by more people in lower amounts.
Quantified Amounts
At each level in the giving pyramid, there is a specific amount of donors who will be targeted for the dollar amount at that level.
Secure major donors first, and use the fact that those donors have bought into the campaign to motivate donors from the lower giving tiers.
Measured Gaps
There is a measured gap in between the giving options. Build the chart downwards by cutting the gift size in half and doubling or tripling the number of donors at each level. Round the donation levels up or down to avoid wacky numbers.
Realistic Asks
The solicitation amounts should be a correct match for the target audience. With an established donor base, a giving pyramid may include more major donations at the top. For less-established campaigns, a chart will usually be bottom-heavy with more smaller donations. Plan your campaign donation opportunities accordingly.
Logical Total
The total giving opportunities should match your organization’s needs. A pyramid-style chart will help you clarify if there are enough potential donors at various levels to help you meet your goal, and if your target fundraising number is within reach.
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Photo credit: Enver Güçlü on Unsplash