Why fundraisers should take some lessons from stock brokers
Gregory Warner
We help your supporters self-qualify their interest in giving so your frontline fundraisers spend their valuable time with the right people — when they’re ready to move forward. imarketsmart.com
I stumbled on an article written for stockbrokers (financial advisors) that I found interesting because it recounted the top three reasons why clients leave:
- Poor investment advice
- Bad service
- Poor communications
Also, it said “People die, move away, divorce. Some leave because ‘It’s not a good fit’.”
All that sounded familiar. Major donors stop giving for those very same reasons. Then it dawned on me that wealthy people make financial transactions with stockbrokers and fundraisers in similar ways. For instance:
Investors don’t give to stockbrokers. They invest in stocks through stockbrokers.
Similarly, donors don’t give to nonprofits. They invest in missions through nonprofits.
With stockbrokers, investors seek to feel good and make money as a result of their engagement, relationship, partnership, and shared vision.
With nonprofits, donors seek to feel good and make an impact as a result of their engagement, relationship, partnership, and shared vision.
Therefore, it’s important that you, your fundraising team and your entire organization think of yourselves as brokers, partners, educators, and facilitators— not fundraisers.
Stockbrokers offer investors opportunities.
Similarly, you, your team and your organization must offer your supporters valuable investment opportunities.
Sometimes those offers should include opportunities for engagement (with you, your staff, your leadership, some beneficiaries of their investments, or others). Why? Because investors want to be involved. They want to know what the heck you’re doing with their money!
Other times, those offers should include opportunities for them to educate themselves.
And sometimes those offers should include opportunities for them to invest some more.
Like a stockbroker, you are their gateway, their bridge, their coordinator, their arranger, their educator, their administrator, their confidant, and even (hopefully) their advisor. Think about it this way and I bet you’ll raise more money more efficiently.
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Chief Gratitude & Accountability Officer - Coaching for shift from surviving to thriving. Semi-retired. Part time: Artist, Actor, Writer, Speaker - Ask me more!
5 年Absolutely! As a former financial advisor and former philanthropic advisor, I believe that in both roles the key element is building a trusting relationship. Great observations.
Sr. Director of Volunteer Engagement and Donor Experience
5 年Wonderful article! Spot on observation. Thanks, Gregory!
FOI and Privacy Specialist in Government and the University sector
5 年Great analogy