The “Resource Development” Conundrum

How can your nonprofit more easily and inexpensively acquire new cash donors, while drawing its current or lapsed donors closer to the organization’s work? If you are like many nonprofit leaders you may not like my answer.

As someone who is in charge of multiple fundraising channels for the organization and cause that I serve, I do not manage all channels of “resource development.” Yet, I have always appreciated the relationship that in-kind donations of goods and services, as well as the volunteering of one's time, has to fundraising’s bottom line. Over the years my challenge has been to convince nonprofit CEOs and Boards that these relationships are important and can have a positive impact on donor acquisition and retention in all nonprofit donor categories. No doubt there are some challenges to encouraging and accepting in-kind donations, and recruiting and developing volunteers. But, the results are worth it!

We were short on staff over the 2019 Christmas season, so I offered my assistance to the staff and volunteers who coordinate in-kind donations. The Salvation Army’s Angel Tree program is fantastic! Every Christmas season donations of new toys are sought for families who otherwise would not have gifts under the Christmas tree for their children. In Lake County Indiana alone, almost 10,000 new toys were donated fulfilling the Christmas wishes of more that 1,000 children in Lake County. Each year Angel Tree attracts many generous individuals, families, businesses, churches and civic groups who want to make a difference in the lives of disadvantaged children.

I was asked to help distribute the Angel Tree tags to those the people and groups who committed to purchasing new toys for children in need. The tags are designed to contain the information on the age, sex and preferred toys of the children, and collect the names and contact information of the donors. When I grabbed my first stack of Angel Tree tags, I noticed that the donor information area on the tags had been blocked out, preventing donors of the new toys from writing their names and contact information. Naturally I asked “why is this done?” The answer given… “We’ve always done it this way.” To put things into perspective, in Lake County Indiana alone, 10,000 new toys represented hundreds of donors whose gifts would not be entered into the donor management system (DMS), and NOT be appropriately thanked for their generosity. Many of these being new relationships having potential for cash and legacy gifts!

Immediately I stopped this practice and ordered new Angel Tree tags so that the donor information could be added. For the first time I have been reaching out to these donors, sending them ‘thank you’ letters for their toy donations and inviting them to connect with The Salvation Army in other ways. By the way, two-thirds of these donors were not found in our DMS, and had no previous history of supporting the organization. Now, these relationships will be developed, and the donors will be invited to support the good work of the organization in additional ways.

Having worked with many nonprofit consultants in 33 years, many would have missed this, in favor of spending donor contributions on high-priced mailing lists of people who have no connection with the organization at all. These are not qualified prospects. However, your donors making in-kind donations of food for people and pets, clothing, school supplies and other necessities are in fact QUALIFIED PROSPECTS for higher levels of giving. This also includes your volunteers!

Friends, how is your “Resource Development Program?” Is your nonprofit just chasing after cash, or is it welcoming and encouraging those in the communities you serve to provide other resources needed to help your cause and your clients? Resources that can otherwise be an expense to your nonprofit! Do you treat your in-kind donors and volunteers the same way that you care for your cash donors? Do you even enter their names, contact information, and gifts of products, services and time into your donor management system? If you do not, you are not alone. Many nonprofits large and small fail to do this, yet opt to spend donor gifts on purchasing mailing lists of people who have had no previous relationship with the organization.

Right now there are people, businesses, churches and civic groups who would help your organization, but are not. For many of these their lack of familiarity and uncertainty about your nonprofit and its work keeps them from donating cash. Their desire to get closer to your work, the cause and those you serve, is enough to now move them to go shopping for groceries, winter clothing, school supplies, and other necessities for the people you serve -- even toys for children! It is even enough for them to want to volunteer their valuable time. It is up to you and me to bring these donors to the point of comfort and confidence for giving their hard-earned cash.

I have had conversations with some of our most generous donors who will write checks for The Salvation Army to purchase food and winter clothing for the children and families we serve. They do this because they know that we also appeal to the communities of our need for food and winter clothing donations. They know that we are doing everything we can to meet the need, and the need for these are so great that it requires both donations of cash and products to fulfill it. We have earned these donors' trust by doing this.

Here is what your nonprofit can do to now to begin developing a long list of qualified prospects for cash and legacy giving:

• Consider the goods and services your organization now provides that could be donated.
• Also, consider inviting volunteers to do the work that needs to be done that you would otherwise pay a company or someone else to do. And create more spaces for volunteers.
• Communicate the need for these goods, services and time to be donated.
• Collect the names and contact information for those who donate the goods, services and time, and be sure to enter them into your donor management system, acknowledging and thanking them as you would anyone making a cash donation.
• Follow up with these donors to update them on the impact that their in-kind donation(s) are making. Keep them up to date on the organization’s work, and invite them to upcoming events. Welcome them to join your monthly donor program.

It may help you to look at fundraising and resource development in a different way…

Money, time and in-kind donations are not the resources to further your cause. It is the people who give these who are the true resource!