Should Local nonprofits Compete for Donor Dollars?

Should Local Nonprofits Compete for Donor Dollars?

Bryce Sanders, President

Perceptive Business Solutions Inc.

Businesses compete all the time.? They seek to gain market share.? If a store is new to the area, they often offer lower prices to build a clientele.? Car companies compete.? Toothpaste brands compete.? Should local nonprofits?? In my opinion, the answer is no.

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First of all, it’s not a good look.? Starting with the assumption all nonprofits do good work, it is difficult to say ours does more good work than yours.? Many communities have multiple museums. Hospital too.? They all seem to thrive.

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Donors have discretionary income.? They also have pools of assets.? One of the logical reasons it makes sense for financial advisors and private bankers to get involved as donors and volunteers at non-profits is the similarity of target audiences.? Financial advisors are looking for people with pools of assets.? Philanthropists have money to give away. The nonprofit benefits through the addition of volunteers who are good at fundraising.? The advisors and bankers meet people who might become friends and possibly clients.

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Let’s get back to those donors.? They have discretionary cash flow or a pool of assets they can direct towards charitable contributions.? Unlike car companies, who see an American household as a target audience that might own two cars, many charitable donors might support 20 charities on an annual basis.? They choose how their pile of charitable dollars is apportioned.? Put another way, there is enough for everyone, so competing at the expense of someone else is not a requirement for success.

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How should local nonprofits align their efforts in a complimentary, rather than a competitive way?

1.????? Scheduling events.? Many nonprofits hold gala fundraising events.? Supporters should not be put in the position of choosing which organization to support because two galas are held on the same evening.? Build a calendar showing the gala events for as many local nonprofits as you can research.? Plan yours on a date that will not conflict with someone else’s. Send out “save the date” cards 6+ weeks in advance so everyone is reminded when your event takes place.

2.????? Donor research.? Many businesses keep their client base confidential.? Doctors, lawyers and financial advisors are good examples.? Secret sauces, medical formulas and patents are proprietary information.? In the nonprofit world, donors names are often public information.? Charities run full page ads thanking their hundreds of donors by name!? They post large signs listing donors to the annual fund.? Event patrons are listed by name in gala events.? The names are out there. Donors often can choose for their gift to be anonymous.? You often see that expression as the first or last entry on a publicized donor list.? Most people are happy getting public recognition. A donor to one charity might be interested in supporting a second charity with a complimentary mission.? The family foundation supporting 20 local charities could easily support one more.

3.????? Consider ambassadors.? People only belong to one religious organization at a time.? In the nonprofit world, it is common for the people supporting one museum to support another too.? They might support three hospitals and four medical charities.? It makes sense for you to have active volunteers who belong to another organization and serve as ambassadors, sharing and gathering public information.? This can be important when questions like choosing the date for the gala arise.

4.????? Learn from each other.? Everyone holds events.? It is likely your board members attend the galas supporting other organizations.? Why?? Because they are also donors over there!? Learn what they do well and where there is room for improvement.? Years ago, the “paddle raise” was a new concept.? Silent auction bidding by smartphone was new too.? Someone saw it someplace and said “we should do that too.”

5.????? Share information.? Your organization found a great caterer for your charity gala.? They did an outstanding job.? Recommend the caterer to your connections at other nonprofits.? You will notice how several organizations feature the same band and the same caterers.? Word gets around.

6.????? Publicize, but privately.? Someday, someone will ask your organization to help publicize their event.? “Can we use your mailing list?”? Bad idea.? Once you lend it out, you lose control.? If you have a newsletter or website, you can promote “Other events in the community” in a separate section.? Words gets out.? Your membership names remain private.

There will be times when your organization can be a winner.? Many local newspapers run “People’s Choice” competitions.? In addition to businesses, organizations and events are often nominated in categories.? When yours are included, you can make your members wware and ask for their support.

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Bryce Sanders is president of Perceptive Business Solutions Inc.? He provides HNW client acquisition training for the financial services industry.? His book, “Captivating the Wealthy Investor” is available on Amazon.

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